3. Restatement

12 Months Ended

Oct. 31, 2011

Notes

3. Restatement

3.  RESTATEMENT

   In the fourth quarter of Fiscal 2012 Management determined to restate the financial statements for the fiscal years ended October 31, 2011, 2010 and 2009, the three months ended January 31, 2011, the six months ended April 30, 2011 and the nine months ended July 2011.  The restatement is to reclassify the financial results from certain properties sold by the Companies in 2011 which should have been, but were not, reported in discontinued operations for the periods prior to the respective dates of their disposition.  The properties include:

1.      approximately 1 acre of land in Fort Collins, Colorado on which an Applebee’s restaurant was located, sold by Blue Ridge on September 30, 2011;

2.      1.2 acres of land in Wallisville, Texas on which a Jack in the Box restaurant was located, sold by Blue Ridge on November 30, 2011;

3.      201 acres of land comprising the Jack Frost Mountain Ski Area, sold by Blue Ridge on December 15, 2011; and

4.      approximately 110 acres of land comprising the Big Boulder Ski Area, sold by Big Boulder on December 15, 2011.

   The restatement did not impact the Companies’ total net (loss) income for the relevant periods.  The following are the previously reported and restated balances on the combined balance sheets as of October 2011 and 2010 and the combined statement of operations for the years ended October 31, 2011, 2010 and 2009:

COMBINED BALANCE SHEET

	October 31, 2011
ASSETS	As Previously Reported	Reclassified	As Restated
Land improvements, buildings and equipment, net	$22,881,409	($268,288)	$22,613,121
Land held for investment, principally unimproved	6,943,374	(37,706)	6,905,668
Long-lived assets held for sale	4,721,303	(1,780,155)	2,941,148
Net investment in direct financing leases	7,788,195	(7,788,195)	0
Prepaid expenses and other assets	1,379,312	(895,878)	483,434
Assets of discontinued operations	0	10,770,222	10,770,222
LIABILITIES:
Debt	28,123,504	(1,010,384)	$27,113,120
Liabilities of discontinued operations	0	1,010,384	1,010,384

COMBINED BALANCE SHEET

	October 31, 2010
ASSETS	As Previously Reported	Reclassified	As Restated
Land improvements, buildings and equipment, net	$25,401,708	($1,605,985)	$23,795,723
Land held for investment, principally unimproved	8,523,723	(1,618,055)	6,905,668
Net investment in direct financing leases	8,298,793	(8,298,793)	0
Prepaid expenses and other assets	1,273,842	(772,705)	501,137
Assets of discontinued operations	0	12,295,538	12,295,538
LIABILITIES:
Debt	28,947,454	(1,697,645)	$27,249,809
Liabilities of discontinued operations	0	1,697,645	1,697,645

COMBINED STATEMENTS OF OPERATIONS

	For the year ended October 31, 2011
	As Previously Reported	Reclassified	As Restated
Revenues:
Land resource management revenue	$4,322,670	($1,450,000)	$2,872,670
Rental income revenue	2,322,482	(491,608)	1,830,874
Total revenues	7,638,754	(1,941,608)	5,697,146
Costs and expenses:
Land resource management costs	6,362,653	(1,926,279)	4,436,374
Rental income costs	1,037,317	(63,405)	973,912
Total costs and expenses	10,188,630	(1,989,684)	8,198,946
Loss (profit) from continuing operations	(2,549,876)	48,076	(2,501,800)
Other income and (expense):
Interest and other income	332,928	(321,669)	11,259
Interest	(1,527,817)	112,786	(1,415,031)
Total other income and expense	(1,194,889)	(208,883)	(1,403,772)
(Loss) from continuing operations before income taxes	(3,744,765)	(160,807)	(3,905,572)
(Credit) provision for income taxes on continuing operations:
Deferred income taxes on continuing operations	(1,272,000)	(54,000)	(1,326,000)
Total (credit) provision for income taxes on continuing operations	(1,270,000)	(54,000)	(1,324,000)
Net loss before discontinued operations	(2,474,765)	(106,807)	(2,581,572)
Discontinued operations	0	160,807	160,807
Provision (credit) for income taxes on discontinued operations:
Deferred income taxes on discontinued operations	0	54,000	54,000
Net income from discontinued operations	0	106,807	106,807

COMBINED STATEMENTS OF OPERATIONS

	For the year ended October 31, 2010
	As Previously Reported	Reclassified	As Restated
Revenues:
Rental income revenue	$2,248,947	($454,951)	$1,793,996
Total revenues	5,887,230	(454,951)	5,432,279
Costs and expenses:
Rental income costs	1,063,085	(65,367)	997,718
Total costs and expenses	10,245,416	(65,367)	10,180,049
Loss (profit) from continuing operations	(4,358,186)	(389,584)	(4,747,770)
Other income and (expense):
Interest and other income	340,548	(318,957)	21,591
Interest	(1,364,442)	103,103	(1,261,339)
Total other income and expense	(1,023,894)	(215,854)	(1,239,748)
(Loss) from continuing operations before income taxes	(5,382,080)	(605,438)	(5,987,518)
(Credit) provision for income taxes on continuing operations:
Deferred income taxes on continuing operations	(1,970,000)	(206,000)	(2,176,000)
Total (credit) provision for income taxes on continuing operations	(1,973,000)	(206,000)	(2,179,000)
Net loss before discontinued operations	(3,409,080)	(399,438)	(3,808,518)
Discontinued operations	0	605,438	605,438
Provision (credit) for income taxes on discontinued operations:
Deferred income taxes on discontinued operations	0	206,000	206,000
Net income from discontinued operations	0	399,438	399,438

COMBINED STATEMENTS OF OPERATIONS

	For the year ended October 31, 2009
	As Previously Reported	Reclassified	As Restated
Revenues:
Rental income revenue	$2,353,627	($381,401)	$1,972,226
Total revenues	15,896,666	(381,401)	15,515,265
Costs and expenses:
Rental income costs	1,184,221	(82,477)	1,101,744
Total costs and expenses	15,094,522	(82,477)	15,012,045
Loss (profit) from continuing operations	802,144	(298,924)	503,220
Other income and (expense):
Interest and other income	328,924	(316,112)	12,812
Interest	(1,064,822)	29,651	(1,035,171)
Total other income and expense	(735,898)	(286,461)	(1,022,359)
(Loss) profit from continuing operations before income taxes	66,246	(585,385)	(519,139)
(Credit) provision for income taxes on continuing operations:
Deferred income taxes on continuing operations	(130,000)	(199,000)	(329,000)
Total (credit) provision for income taxes on continuing operations	(83,000)	(199,000)	(282,000)
Net income (loss) before discontinued operations	149,246	(386,385)	(237,139)
Discontinued operations	0	585,385	585,385
Provision (credit) for income taxes on discontinued operations:
Deferred income taxes on discontinued operations	0	199,000	199,000
Net income from discontinued operations	0	386,385	386,385