Note 4. Restatement

3 Months Ended

Jan. 31, 2012

Notes

Note 4. Restatement

4. Restatement

     In the fourth quarter of Fiscal 2012 Management determined to restate the financial statements for the fiscal years ended October 31, 2011, 2010 & 2009, the three months ended January 31, 2012 and 2011, the six months ended April 30, 2012 and 2011 and the nine months ended July 2012 and 2011.  The restatement is to reclassify the financial results from certain properties sold or held for sale by the Companies in 2011 or 2012 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 for the relevant periods.  The following are the previously reported and restated balances on the combined balance sheet as of October 2011 and the combined statement of operations for the three months ended January 31, 2012 and 2011:

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 STATEMENTS OF OPERATIONS

	For the three months ended January 31, 2012
	As Previously Reported	Reclassified	As Restated
Revenues:
Land resource management revenue	$11,864,004	($10,911,419)	$952,585
Rental income revenue	475,137	(21,165)	453,972
Total revenues	12,546,184	(10,932,584)	1,613,600
Costs and expenses:
Land resource management costs	11,923,486	(10,911,337)	1,012,149
Rental income costs	247,141	(439)	246,702
Total costs and expenses	12,980,674	(10,911,776)	2,068,898
(Loss) profit from continuing operations	(434,490)	(20,808)	(455,298)
Other income and (expense):
Interest expense	(331,677)	7,386	(324,291)
Total other income and expense	(328,939)	7,386	(321,553)
(Loss) from continuing operations before income taxes	(763,429)	(13,422)	(776,851)
Credit for income taxes on continuing operations	(260,000)	(5,000)	(265,000)
Net loss before discontinued operations	(503,429)	(8,422)	(511,851)
Discontinued operations	0	13,422	13,422
Provision (credit) for income taxes on discontinued operations:
Deferred income taxes on discontinued operations	0	5,000	5,000
Net income from discontinued operations	0	8,422	8,422

COMBINED STATEMENTS OF OPERATIONS

	For the three months ended January 31, 2011
	As Previously Reported	Reclassified	As Restated
Revenues:
Rental income revenue	$575,195	($123,754)	$451,441
Total revenues	1,467,664	(123,754)	1,343,910
Costs and expenses:
Rental income costs	261,230	(20,216)	241,014
Total costs and expenses	1,868,899	(20,216)	1,848,683
Loss (profit) from continuing operations	(401,235)	(103,538)	(504,773)
Other income and (expense):
Interest and other income	89,862	(80,417)	9,445
Interest expense	(387,279)	29,429	(357,850)
Total other income and expense	(297,417)	(50,988)	(348,405)
(Loss) from continuing operations before income taxes	(698,652)	(154,526)	(853,178)
Provision for income taxes on continuing operations	(238,000)	(52,000)	(290,000)
Net loss before discontinued operations	(460,652)	(102,526)	(563,178)
Discontinued operations	0	154,526	154,526
Provision for income taxes on discontinued operations:	0	52,000	52,000
Net income from discontinued operations	$0	$102,526	$102,526