10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q/A

Amendment No. 1

(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, 2011

[  ]

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 – 1,858,457 common shares as of January 6, 2012.          

Explanatory Note

The purpose of this amendment on Form 10-Q/A to Jewett Cameron's Form 10-Q Quarterly Report for the period ended November 30,2011 as filed with the Securities and Exchange Commission on January 17, 2012 is solely to furnish the XBRL Interactive Data Files as exhibit 101 to the Form 10-Q which were not included in the original filing.

There have been no other changes made to the Form 10-Q. This Form 10-Q/A Amendment No. 1 does not reflect subsequent events occurring after the original filing date of the Form 10-Q or modify or update disclosures made in the Form 10-Q.

Item 6.

Exhibits

31.1

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

31.2

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

32.1

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

32.2

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

101.INS

XBRL Instance Document

101.SCH

XBRL Taxonomy Extension Schema Document

101.CAL

XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

XBRL Taxonomy Extension Label Linkbase Document

101.PRE

XBRL Taxonomy Extension Presentation Linkbase Document

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)

February 22, 2012

/s/  "Donald M. Boone"

Donald M. Boone, President/CEO/Director

February 22, 2012

/s/  "Murray G. Smith"

Murray G. Smith, Chief Financial Officer

EX-31

CERTIFICATIONS

 I, Donald M. Boone, certify that:

1. 

I have reviewed this Quarterly Report on Form 10-Q/A of Jewett Cameron Trading Company Ltd for the period ended November 30, 2011;

2. 

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

3. 

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

4. 

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

a)

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

b)

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

c)

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

d)

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

5. 

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

a)

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

b)

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

Date:

February 22, 2012

By:

/s/  "Donald M. Boone"

Donald M. Boone,

Chief Executive Officer

EX-31

CERTIFICATIONS

 I, Murray G. Smith, certify that:

1. 

I have reviewed this Quarterly Report on Form 10-Q/A of Jewett Cameron Trading Company Ltd for the period ended November 30, 2011;

2. 

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

3. 

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

4. 

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

a)

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

b)

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

c)

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

d)

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

5. 

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

a)

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

b)

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

Date:

February 22, 2012

By:

/s/  "Murray G. Smith"

Murray G. Smith,

Chief Financial Officer

EX-32

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/A for the period ended November 30, 2011 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company does hereby certify, to such officer’s knowledge, that, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)

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

(2)

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

Date:  February 22, 2012	Signed: /s/  "Donald M. Boone"
	Donald M. Boone, President and CEO

EX-32

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/A for the period ended November 30, 2011 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company does hereby certify, to such officer’s knowledge, that, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)

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

(2)

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

Date:  February 22, 2012	Signed:  /s/  "Murray G. Smith"
	Murray G. Smith, Chief Financial Officer

XML

Accounting Changes and Error Corrections (USD $)	3 Months Ended
	Nov. 30, 2011	Nov. 30, 2010
Accounting Changes and Error Corrections
Income (Loss) from Continuing Operations before Income Taxes, Domestic	$ 146,732	$ (1,269,958)

XML

Organization, Consolidation and Presentation of Financial Statements

3 Months Ended

Nov. 30, 2011

Organization, Consolidation and Presentation of Financial Statements

Nature of Operations [Text Block]

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.  JCLC has the following wholly owned subsidiaries:  MSI-PRO Co. (“MSI”), incorporated April 1996, Jewett-Cameron Seed Company, (“JCSC”), incorporated October 2000, and Greenwood Products, Inc. (“Greenwood”), incorporated February 2002.  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.   JCLC’s business consists of warehouse distribution and direct sales of wood products and specialty metal 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.

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, 2011 and August 31, 2011 and its results of operations and cash flows for the three month periods ended November 30, 2011 and November 30, 2010 in accordance with U.S. GAAP.  Operating results for the three month periods ended November 30, 2011 are not necessarily indicative of the results that may be experienced for the fiscal year ending August 31, 2012.

XML

JEWETT-CAMERON TRADING COMPANY LTD. (USD $)	Nov. 30, 2011	Aug. 31, 2011
Allowances for doubtful accounts	$ 2,467
Allowances for inventory	$ 199,568	$ 204,860
Common stock, shares authorized	20,000,000	20,000,000
Common stock, par value (in Dollars per share)	$ 0	$ 0
Common stock, shares issued	1,858,457	1,908,457
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, par value (in Dollars per share)	$ 0	$ 0
Preferred stock, shares issued	0	0

XML

Statement of Cash Flows (USD $)	3 Months Ended
	Nov. 30, 2011	Nov. 30, 2010
Statement of Cash Flows
Decrease in accounts receivable	$ 1,044,596	$ 2,114,056
(Increase) in inventory	(2,677,341)	(486,814)
(Increase) in prepaid expenses	(483)	(87,584)
Deferred income taxes	752	(594)
Increase in accounts payable and accrued liabilities	509,154	1,099,752
Increase (decrease) in accrued income taxes	81,947	(423,029)
Net cash provided (used) by operating activities	(916,144)	1,429,379
Purchase of property, plant and equipment	(12,813)	(33,980)
Purchase of intangible assets and other	(4,550)
Proceeds from sale of property, plant and equipment		5,450
Net cash used in investing activities	(17,363)	(28,530)
Redemption of common stock	(454,120)	(2,450,844)
Net cash used in financing activities	(454,120)	(2,450,844)
Net (decrease) in cash and cash equivalents	$ (1,387,627)	$ (1,049,995)

XML

Earnings Per Share	3 Months Ended
	Nov. 30, 2011	Nov. 30, 2010
Earnings Per Share
Pro Forma Weighted Average Shares Outstanding, Diluted	1,900,215	2,308,672
Weighted Average Number of Shares Issued, Basic	1,900,215	2,308,672

XML

Statement of Cash Flows, Supplemental Disclosures

3 Months Ended

Nov. 30, 2011

Statement of Cash Flows, Supplemental Disclosures

Cash Flow, Supplemental Disclosures [Text Block]

15.          SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS

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

	2011	2010
Cash paid during the periods for:
Interest	$          -	$           -
Income taxes	$          -	$           -

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

XML

Statement of Financial Position, Classified (USD $)	Nov. 30, 2011	Aug. 31, 2011	Nov. 30, 2010	Aug. 31, 2010
Statement of Financial Position, Classified
Cash and Cash Equivalents, at Carrying Value	$ 5,386,500	$ 6,774,127	$ 7,660,319	$ 8,710,314
Accounts Receivable, Net, Current	2,852,490	3,897,086
Inventory, Net	8,492,934	5,815,593
Prepaid Taxes	600,580	682,527
Assets, Current	18,222,828	18,059,174
Property, Plant and Equipment, Net	1,820,389	1,850,037
Assets	20,696,911	20,577,844
Liabilities, Current	3,598,180	3,089,026
Additional Paid in Capital	600,804	600,804
Retained Earnings (Accumulated Deficit)	14,744,070	15,086,971
Stockholders' Equity Attributable to Parent	17,098,731	17,488,818
Common Stock, Value, Outstanding	1,753,857	1,801,043
Liabilities and Equity	$ 20,696,911	$ 20,577,844

XML

Debt

3 Months Ended

Nov. 30, 2011

Debt

Debt Disclosure [Text Block]

7.             BANK INDEBTEDNESS

There was no bank indebtedness under the Company’s line of credit as of November 30, 2011 or August 31, 2011.

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 200 basis points.

XML

Document and Entity Information (USD $)	3 Months Ended
	Nov. 30, 2011	Jan. 06, 2012	Feb. 28, 2011
Document and Entity Information
Entity Registrant Name	JEWETT CAMERON TRADING CO LTD
Document Type	10-Q
Document Period End Date	Nov. 30, 2011
Amendment Flag	false
Entity Central Index Key	0000885307
Current Fiscal Year End Date	--08-31
Entity Common Stock, Shares Outstanding		1,858,457
Entity Public Float			$ 9,550,611
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1

XML

Equity

3 Months Ended

Nov. 30, 2011

Equity

Stockholders' Equity Note Disclosure [Text Block]

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.

Treasury Stock [Text Block]

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 paid-in-capital in excess of stated value.

During the 1st quarter of fiscal 2012 ended November 30, 2011, the Company repurchased and cancelled a total of 50,000 shares of its common stock under a 10b5-1 share repurchase plan. The total cost was $454,120 at an average share price of $9.08 per share. The premium paid to acquire these shares over their per share book value in the amount of $406,934 was recorded as a decrease to retained earnings.

During the 4th quarter of Fiscal 2011, the Company repurchased and cancelled a total of 10,500 shares of its common stock under a 10b5-1 share re-purchase plan. The total cost was $98,175 at an average share price of $9.35 per share. The premium paid to acquire these shares over their per share book value in the amount of $88,266 was recorded as a decrease to retained earnings.

During the 3rd quarter of Fiscal 2011, the Company repurchased and cancelled a total of 95,908 shares of its common stock under a 10b5-1 share re-purchase plan. The total cost was $911,126 at an average share price of $9.50 per share. The premium paid to acquire these shares over their per share book value in the amount of $820,616 was recorded as a decrease to retained earnings.

During the 1st quarter of Fiscal 2011, the Company repurchased and cancelled a total of 297,072 shares of its common stock under a 10b5-1 share re-purchase plan.  The total cost was $2,450,844 at an average share price of $8.25 per share.  The premium paid to acquire these shares over their per share book value in the amount of $2,170,492 was recorded as a decrease to retained earnings.

During the 4th quarter of Fiscal 2010, the Company re-purchased and cancelled a total of 79,040 shares of its common stock under a 10b5-1 share re-purchase plan.  The total cost was $549,151 at an average share price of $6.95 per share.  The premium paid to acquire these shares over their per share book value in the amount of $474,853 was recorded as a decrease to retained earnings.

XML

Statement of Financial Position, Unclassified - Deposit Based Operations (USD $)	Nov. 30, 2011	Aug. 31, 2011	Nov. 30, 2010
Statement of Financial Position, Unclassified - Deposit Based Operations
Notes, Loans and Financing Receivable, Net	$ 41,500	$ 41,500
Estimated Litigation Liability	$ 1,644,119	$ 1,627,915	$ (962,137)

XML

Inventory

3 Months Ended

Nov. 30, 2011

Inventory

Inventory Disclosure [Text Block]

3.             INVENTORY

A summary of inventory is as follows:

	November 30, 2011	August 31, 2011
Wood products and metal products	$ 7,816,726	$ 4,926,121
Industrial tools	445,887	456,523
Agricultural seed products	230,321	432,949
	$ 8,492,934	$ 5,815,593

XML

Accounting Policies

3 Months Ended

Nov. 30, 2011

Accounting Policies

Significant Accounting Policies [Text Block]

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, JCLC, 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.

Estimates

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

Cash and cash equivalents

The Company considers cash and cash equivalents to be highly liquid in nature.  At November 30, 2011, cash and cash equivalents were $5,386,500 compared to $6,774,127 at August 31, 2011.

Accounts receivable

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

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

Inventory

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

Property, plant and equipment

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

Office equipment	5-7 years
Warehouse equipment	2-10 years
Buildings	5-30 years

Intangibles

The Company’s intangible assets have a finite life and are recorded at cost.  The most significant intangible assets are two patents related to gate support systems.  Amortization is calculated using the straight-line method over the remaining lives of 75 months and 87 months, respectively, and are reviewed annually for impairment.

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.  Any amounts expressed in Canadian dollars are indicated as such.

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

Earnings per share

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

The earnings per share data for the three months ended November 30, 2011 and November 30, 2010 are as follows:

	2011	2010
Net income  (loss)	$    64,033	$   (846,335)
Basic weighted average number of        common shares outstanding	1,900,215	2,308,672
Effect of dilutive securities
Stock options	-	-
Diluted weighted average number       of common shares outstanding	1,900,215	2,308,672

Comprehensive income

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

Stock-based compensation

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

No options were granted during the quarter ended November 30, 2011, and there were no options outstanding on November 30, 2011.

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

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

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

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

The estimated fair values of the Company's financial instruments as of November 30, 2011 and August 31, 2011 follows:

	November 30, 2011		August 31, 2011
	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Cash and cash equivalents	$5,386,500	$5,386,500	$6,774,127	$6,774,127
Accounts receivable	2,852,490	2,852,490	3,897,086	3,897,086
Note receivable	41,500	41,500	41,500	41,500
Accounts payable and accrued liabilities	1,954,061	1,954,061	1,461,111	1,461,111

The following table presents information about the assets that are measured at fair value on a recurring basis as of November 30, 2011, 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, 2011		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents	$	5,386,500	$	5,386,500	$	—	$	—

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

Income taxes

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

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

Shipping and handling costs

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

.

Revenue recognition

The Company recognizes revenue from the sales of lumber, building supply products, industrial wood products and 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 and products sold and collection of the amounts is reasonably assured.

Reclassifications

Certain reclassifications have been made to prior periods’ financial statements to conform to the classifications used in the current period. 

Recent Accounting Pronouncements

In January 2010, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2010-06, “Improving Disclosures about Fair Value Measurements,” which amends existing disclosure requirements under ASC 820. ASU No. 2010-06 requires new disclosures for significant transfers between Levels 1 and 2 in the fair value hierarchy and separate disclosures for purchases, sales, issuances, and settlements in the reconciliation of activity for Level 3 fair value measurements. This ASU also clarifies the existing fair value disclosures regarding the level of disaggregation and the valuation techniques and inputs used to measure fair value. ASU No. 2010-06 will only impact disclosures and is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures on purchases, sales, issuances and settlements in the roll forward of activity for Level 3 fair value measurements. Those disclosures are effective for interim and annual periods beginning after December 15, 2010. Other than requiring additional disclosures, adoption of this new guidance did not have and is not expected to have a material impact on the Company’s financial statements.

In April 2010, the FASB issued ASU No. 2010-17, "Revenue Recognition—Milestone Method" which provides guidance on applying the milestone method of revenue recognition for milestone payments for achieving specific performance measures when those payments are related to uncertain future events. The guidance is effective on a prospective basis to milestones achieved in fiscal years, and interim periods within those years, beginning on or after June 15, 2010. The adoption of this new guidance did not have a material impact on the Company’s financial statements.

In May 2011, the FASB issued ASU No. 2011-04, "Fair Value Measurement Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS", which provides guidance to achieve common fair value measurement and disclosure requirements between GAAP and International Financial Reporting Standards. This guidance amends current fair value measurement and disclosure guidance to include increased transparency around valuation inputs and investment categorization. The guidance is effective for fiscal years and interim periods beginning after December 15, 2011. We do not believe our adoption of this new guidance in the first quarter of 2012 will have a material impact on the Company’s financial statements.

In June 2011, the FASB issued ASU No. 2011-05, "Presentation of Comprehensive Income" which provides guidance regarding presentation of other comprehensive income in the financial statements. This guidance will eliminate the option under GAAP to present other comprehensive income in the statement of changes in equity. Under the guidance, the Company will have the option to present the components of net income and comprehensive income in either one or two consecutive financial statements. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of this new guidance is not expected to have a material impact on the Company’s financial statements.

Employee Stock Ownership Plan (ESOP), Policy [Policy Text Block]

11.          EMPLOYEE STOCK OWNERSHIP PLAN (“ESOP”)

The Company sponsors an ESOP that covers all U.S. employees who are employed by the Company on August 31 of each year and who have at least one thousand hours with the Company in the twelve months preceding that date.  The ESOP grants to participants in the plan certain ownership rights in, but not possession of, or voting control of, the common stock of the Company held by the Trustee of the Plan.  Shares of common stock are allocated annually to participants in the ESOP pursuant to a prescribed formula. The Company records compensation expense based on the market price of the Company's shares when they are allocated.  Any dividends on allocated ESOP shares are recorded as a reduction of retained earnings.  ESOP compensation expense was $141,518 and $146,677 for the fiscal years ended August 31, 2011 and 2010, respectively, and is included in wages and employee benefits.  The ESOP shares are as follows:

	November 30, 2011	August 31, 2011
Shares owned by ESOP	196,537	224,939

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Segment Reporting (USD $)

3 Months Ended

Nov. 30, 2011

Nov. 30, 2010

Segment Reporting

Segment Reporting Information, Significant Noncash Items Other than Depreciation, Depletion, and Amortization Expense

$ (16,204)

$ (1,348,652)

Segment Reporting Disclosure [Text Block]

13.          SEGMENT INFORMATION

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

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

Following is a summary of segmented information for the three month periods ended November 30:

	2011	2010
Sales to unaffiliated customers:
Industrial wood products	$   1,487,774	$   1,835,698
Lawn, garden, pet and other	3,574,366	2,898,006
Seed processing and sales	1,687,111	915,928
Industrial tools and clamps	491,359	435,419
	$   7,240,610	$   6,085,051
Income (loss) before income taxes:
Industrial wood products	$       (93,112)	$     (151,027)
Lawn, garden, pet and other	181,791	194,297	*
Seed processing and sales	97,850	41,946
Industrial tools and clamps	(12,553)	22,390
Unallocated overhead	(27,244)	(23,439)
	$      146,732	$        84,167
Identifiable assets:
Industrial wood products	$   3,002,705	$   2,453,068
Lawn, garden, pet and other	15,907,800	15,739,788
Seed processing and sales	1,155,861	612,748
Industrial tools and clamps	623,310	558,682
Unallocated overhead	7,235	88,886
	$ 20,696,911	$ 19,453,172
Depreciation and amortization:
Industrial wood products	$             403	$             478
Lawn, garden, pet and other	55,384	59,699
Seed processing and sales	4,675	4,565
Industrial tools and clamps	736	635
	$        61,198	$        65,377
Capital expenditures:
Industrial wood products	$               -	$                  -
Lawn, garden, pet and other	12,813	-
Seed processing and sales	-	33,980
Industrial tools and clamps	-	-
	$        12,813	$        33,980
Interest expense:
Lawn, garden, pet and other	$        16,204	$      391,988

* For comparability purposes, this amount excludes one-time charges for litigation reserve ($962,137) and related interest ($391,988).

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,

	2011	2010
Sales	$      Nil	$     669,747

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 quarters ended November 30:

	2011	2010
United States	$  6,862,527	$  5,108,891
Canada	250,022	617,469
Mexico	(42,442)	3,217
Europe	117,375	104,903
Asia/Pacific	53,128	250,571

All of the Company’s significant identifiable assets were located in the United States as of November 30, 2011 and 2010.

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Compensation Related Costs, Retirement Benefits

3 Months Ended

Nov. 30, 2011

Compensation Related Costs, Retirement Benefits

Compensation and Employee Benefit Plans [Text Block]

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 Toronto Stock Exchange ("TSX"), 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 the November 30, 2011 and August 31, 2011.

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Intangible Assets, Goodwill and Other (USD $)

3 Months Ended

Nov. 30, 2011

Aug. 31, 2011

Intangible Assets, Goodwill and Other

Other Intangible Assets, Net

$ 496,584

$ 510,771

Intangible Assets Disclosure [Text Block]

5.             INTANGIBLE ASSETS

A summary of intangible assets is as follows:

	November 30, 2011	August 31, 2011
Patent	$  850,000	$  850,000
Other	35,155	30,605
	885,155	880,605
Accumulated amortization	(388,571)	(369,834)
Net book value	$  496,584	$  510,771

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Deferred Costs, Capitalized, Prepaid, and Other Assets (USD $)	Nov. 30, 2011	Aug. 31, 2011
Deferred Costs, Capitalized, Prepaid, and Other Assets
Deferred Income Taxes and Other Assets, Noncurrent	$ 157,110	$ 157,862

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Property, Plant, and Equipment

3 Months Ended

Nov. 30, 2011

Property, Plant, and Equipment

Property, Plant and Equipment Disclosure [Text Block]

4.             PROPERTY, PLANT AND EQUIPMENT

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

	November 30, 2011	August 31, 2011
Office equipment	$     625,522	$      612,709
Warehouse equipment	1,136,002	1,136,002
Buildings	2,339,815	2,339,815
Land	615,213	615,213
	4,716,552	4,703,739
Accumulated depreciation	(2,896,163)	(2,853,702)
Net book value	$  1,820,389	$   1,850,037

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.

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Commitment and Contingencies

3 Months Ended

Nov. 30, 2011

Commitment and Contingencies

Contingencies Disclosure [Text Block]

12.          CONTINGENT LIABILITIES AND COMMITMENTS

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

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

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

During the 1st quarter of Fiscal 2011, the Oregon Court of Appeals ruled that the judgment in favor of Jewett Cameron as plaintiffs should be reversed and the judgment in favor of defendants should stand.  The judgment in favor of the Company was for $819,000 plus attorneys fees.  The judgment against plaintiffs is for $1,187,137.  The Company is appealing the decision to the Oregon Supreme Court. Arguments were heard on November 8, 2011, and a decision is forthcoming. During the 1st quarter of fiscal 2011, the Company recorded a litigation loss of $962,137 and interest of $391,988 in addition to the existing litigation reserve of $225,000. Additional interest of $48,790 was recorded during the remainder of fiscal 2011. During the 1st quarter of fiscal 2012 ended November 30, 2011, additional interest of $16,204 accrued.

A summary of the litigation reserve is as follows:

	November 30, 2011	August 31, 2011
Litigation loss	$     962,137	$     962,137
Litigation reserve	225,000	225,000
Interest	456,982	440,778
Total	$  1,644,119	$  1,627,915

b)    At November 30, 2011 and August 31, 2011, the Company had an un-utilized line-of-credit of $5,000,000 (note 7).  The line-of-credit has certain financial covenants. The Company is in compliance with these covenants.

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Income Taxes

3 Months Ended

Nov. 30, 2011

Income Taxes

Income Tax Disclosure [Text Block]

6.             DEFERRED INCOME TAXES

Deferred income tax assets as of November 30, 2011 of $157,110 (August 31, 2011 - $157,862) 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. 

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Statement of Income (Including Gross Margin) (USD $)	3 Months Ended
	Nov. 30, 2011	Nov. 30, 2010
Statement of Income (Including Gross Margin)
Revenue, Net	$ 7,240,610	$ 6,085,051
Cost of Goods Sold	5,774,415	4,639,257
Gross Profit	1,466,195	1,445,794
Depreciation, Depletion and Amortization, Nonproduction	61,198	65,377
Labor and Related Expense	813,713	821,539
Selling, General and Administrative Expense	428,348	480,184
Gain (Loss) on Sale of Property Plant Equipment		(5,450)
Operating Expenses	1,303,259	1,367,100
Interest Expense, Other	(16,204)	(391,988)
Income Tax Expense (Benefit)	(82,699)	423,623
Income (Loss) from Continuing Operations Attributable to Parent	162,936	78,694
Earnings Per Share, Basic	$ 0.03	$ (0.37)
Earnings Per Share, Diluted	$ 0.03	$ (0.37)
Net income (loss)	$ 64,033	$ (846,335)

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Risks and Uncertainties

3 Months Ended

Nov. 30, 2011

Risks and Uncertainties

Concentration Risk Disclosure [Text Block]

14.          CONCENTRATIONS

Credit risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable.  The Company places its cash and cash equivalents 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, 2011, one customer accounted for accounts receivable greater than 10% of total accounts receivable at 13%. At November 30, 2010, three customers accounted for accounts receivable greater than 10% of total accounts receivable at a combined total of 32%. 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, 2011, there were three suppliers that each accounted for greater than 10% of total purchases, and the aggregate purchases amounted to $3,542,079. For the three months ended November 30, 2010, there were two suppliers that each accounted for greater than 10% of total purchases, and the aggregate purchases amounted to $1,391,733.

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Other Income and Expenses (USD $)	3 Months Ended
	Nov. 30, 2010
Other Income and Expenses
Interest and Other Income	$ 23