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, 2012

[  ]

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 –

1,567,971 common shares as of January 14, 2013.          

Explanatory Note

The purpose of this amendment No. 1 on Form 10-Q/A to Jewett-Cameron's Form 10-Q Quarterly Report for the period ended November 30, 2012 as filed with the Securities and Exchange Commission on January 14, 2013 is solely to furnish the XBRL Interactive Data Files as exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T 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 14, 2013

/s/ "Donald M. Boone"

Donald M. Boone, President/CEO/Director

February 14, 2013

/s/  "Murray G. Smith"

Murray G. Smith, Chief Financial Officer

EX-31.1

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;

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 14, 2013

By:

/s/  "Donald M. Boone"

Donald M. Boone,

Chief Executive Officer

EX-31.2

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;

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 14, 2013

By:

/s/  "Murray G. Smith"

Murray G. Smith,

Chief Financial Officer

EX-32.1

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, 2012 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 14, 2013	Signed: /s/  "Donald M. Boone"
	Donald M. Boone, President and CEO

EX-32.2

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, 2012 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 14, 2013	Signed:  /s/  "Murray G. ,Smith"
	Murray G. Smith, Chief Financial Officer

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Note 2. Significant Accounting Policies: Shipping and Handling Costs (Policies)

3 Months Ended

Nov. 30, 2012

Policies

Shipping and Handling Costs

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.

XML

Note 15. Supplemental Disclosure With Respect To Cash Flows: Schedule of Cash Flow, Supplemental Disclosures (Tables)

3 Months Ended

Nov. 30, 2012

Tables/Schedules

Schedule of Cash Flow, Supplemental Disclosures

	Three months ended November 30, 2012	Three months ended November 30, 2011
Cash paid during the periods for:
Interest	$          -	$           -
Income taxes	$          -	$           -

XML

Note 5. Intangible Assets: Intangible Assets (Tables)

3 Months Ended

Nov. 30, 2012

Tables/Schedules

Intangible Assets

	November 30, 2012	August 31, 2012
Patent	$  850,000	$  850,000
Other	43,655	43,655
	893,655	893,655
Accumulated amortization	(469,754)	(449,452)
Net book value	$  423,901	$  444,203

XML

Note 2. Significant Accounting Policies: Schedule of Weighted Average Number of Shares (Details) (USD $)	3 Months Ended
	Nov. 30, 2012	Nov. 30, 2011
Net income	$ 480,746	$ 64,033
Weighted average number of common shares outstanding, Basic	1,567,971	1,900,215
Dilutive Securities, Effect on Basic Earnings Per Share, ESOP Convertible Preferred Stock	$ 0	$ 0
Weighted average number of common shares outstanding, Diluted	1,567,971	1,900,215

XML

Note 3. Inventory: Inventory (Tables)

3 Months Ended

Nov. 30, 2012

Tables/Schedules

Inventory

	November 30, 2012	August 31, 2012
Wood products and metal products	$  5,168,783	$  6,457,600
Industrial tools	525,450	437,347
Agricultural seed products	66,791	190,442
Total	$  5,761,024	$  7,085,389

XML

Note 2. Significant Accounting Policies: Currency and Foreign Exchange (Policies)

3 Months Ended

Nov. 30, 2012

Policies

Currency and Foreign Exchange

Currency and foreign exchange

These financial statements are expressed in U.S. dollars as the Company's operations are based only in the United States.

The Company does not have non-monetary or monetary assets and liabilities that are in a currency other than the U.S. dollar.  Any 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.

XML

Note 2. Significant Accounting Policies: Estimates (Policies)

3 Months Ended

Nov. 30, 2012

Policies

Estimates

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.

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Note 12. Contingent Liabilities and Commitments: Litigation Reserve (Tables)

3 Months Ended

Nov. 30, 2012

Tables/Schedules

Litigation Reserve

	November 30, 2012	August 31, 2012
Litigation loss	$                 -	$                  -
Litigation reserve	170,819	184,286
Interest expense	-	-
Interest income	(6,661)	(13,467)
Total	$     164,158	$      170,819

XML

Note 2. Significant Accounting Policies: Property, Plant and Equipment: Property, Plant and Equipment, Estimated Useful Lives (Tables)

3 Months Ended

Nov. 30, 2012

Tables/Schedules

Property, Plant and Equipment, Estimated Useful Lives

	Minimum Useful Life	Maximum Useful Life
Office equipment	5	7
Warehouse equipment	2	10
Buildings	5	30

XML

Note 2. Significant Accounting Policies: Financial Instruments (Policies)

3 Months Ended

Nov. 30, 2012

Policies

Financial Instruments

Financial instruments

The Company uses the following methods and assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate such values:

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

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

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

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

XML

Note 13. Segment Information: Revenue by Major Customers (Tables)

3 Months Ended

Nov. 30, 2012

Tables/Schedules

Revenue by Major Customers

	Three months ended November 30, 2012	Three months ended November 30, 2011
Sales	$   1,926,150	$               Nil

XML

Note 4. Property, Plant and Equipment: Property, Plant and Equipment (Tables)

3 Months Ended

Nov. 30, 2012

Tables/Schedules

Property, Plant and Equipment

	November 30, 2012	August 31, 2012
Office equipment	$      493,686	$     491,470
Warehouse equipment	1,433,335	1,343,311
Buildings	2,382,448	2,362,555
Land	818,072	818,072
	5,127,541	5,015,408
Accumulated depreciation	(3,055,491)	(3,018,299)
Net book value	$   2,072,050	$   1,997,109

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Note 2. Significant Accounting Policies

3 Months Ended

Nov. 30, 2012

Notes

Note 2. Significant Accounting Policies

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 all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.  At November 30, 2012, cash was $7,256,455 compared to $7,309,388 at August 31, 2012.  At November 30, 2012 and August 31, 2012, 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:

	Minimum Useful Life	Maximum Useful Life
Office equipment	5	7
Warehouse equipment	2	10
Buildings	5	30

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 63 months and 75 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.

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, 2012 and November 30, 2011 are as follows:

	Three months ended November 30, 2012	Three months ended November 30, 2011
Net income	$ 480,746	$ 64,033
Basic weighted average number of  common shares outstanding	1,567,971	1,900,215
Effect of dilutive securities - Stock options	0	0
Diluted weighted average number of common shares outstanding, end of period	1,567,971	1,900,215

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, 2012, and there were no options outstanding on November 30, 2012.

Financial instruments

The Company uses the following methods and assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate such values:

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

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

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

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

The estimated fair values of the Company's financial instruments as of November 30, 2012 and August 31, 2012 follows:

	November 30, 2012		August 31, 2012
	Carrying	Fair	Carrying	Fair
	Amount	Value	Amount	Value
Cash	$7,256,455	$7,256,455	$7,309,388	$7,309,388
Accounts receivable, net of allowance	2,666,822	2,666,822	3,092,842	3,092,842
Note receivable	-	-	20,000	20,000
Accounts payable and accrued liabilities	1,787,020	1,787,020	2,758,249	2,758,249

The following table presents information about the assets that are measured at fair value on a recurring basis as of November 30, 2012, 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 in situations where there is little, if any, market activity for the asset:

	November 30, 2012		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash	$	7,256,455	$	7,256,455	$	—	$	—

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

Income taxes

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

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

Shipping and handling costs

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

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 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. The adoption of this new guidance did not have, and is not expected to have, a material impact on the Company’s consolidated 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 did not have, and is not expected to have, a material impact on the Company’s consolidated financial statements.

In September 2011, the FASB issued ASU 2011-08 "Testing Goodwill for Impairment", which gives companies the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount before performing the two-step test mandated prior to this update. This ASU also provides companies with a revised list of examples of events and circumstances to consider, in their totality, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If a company concludes that this is the case, it must perform the two-step test. Otherwise, a company may skip the two-step test. Companies are not required to perform the qualitative assessment and may instead proceed directly to the first step of the two-part test. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of this new guidance did not have, and is not expected to have, a material impact on the Company’s consolidated financial statements

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Note 2. Significant Accounting Policies: Schedule of Weighted Average Number of Shares (Tables)

3 Months Ended

Nov. 30, 2012

Tables/Schedules

Schedule of Weighted Average Number of Shares

	Three months ended November 30, 2012	Three months ended November 30, 2011
Net income	$ 480,746	$ 64,033
Basic weighted average number of  common shares outstanding	1,567,971	1,900,215
Effect of dilutive securities - Stock options	0	0
Diluted weighted average number of common shares outstanding, end of period	1,567,971	1,900,215

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Note 2. Significant Accounting Policies: Property, Plant and Equipment (Policies)

3 Months Ended

Nov. 30, 2012

Policies

Property, Plant and Equipment

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:

	Minimum Useful Life	Maximum Useful Life
Office equipment	5	7
Warehouse equipment	2	10
Buildings	5	30

XML

Note 2. Significant Accounting Policies: Inventory (Policies)

3 Months Ended

Nov. 30, 2012

Policies

Inventory

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.

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Note 2. Significant Accounting Policies: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables)

3 Months Ended

Nov. 30, 2012

Tables/Schedules

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

	November 30, 2012		August 31, 2012
	Carrying	Fair	Carrying	Fair
	Amount	Value	Amount	Value
Cash	$7,256,455	$7,256,455	$7,309,388	$7,309,388
Accounts receivable, net of allowance	2,666,822	2,666,822	3,092,842	3,092,842
Note receivable	-	-	20,000	20,000
Accounts payable and accrued liabilities	1,787,020	1,787,020	2,758,249	2,758,249

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Note 2. Significant Accounting Policies: Intangibles (Policies)

3 Months Ended

Nov. 30, 2012

Policies

Intangibles

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 63 months and 75 months, respectively, and are reviewed annually for impairment.

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Note 2. Significant Accounting Policies: Asset Retirement Obligations (Policies)

3 Months Ended

Nov. 30, 2012

Policies

Asset Retirement Obligations

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.

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Note 1. Nature of Operations

3 Months Ended

Nov. 30, 2012

Notes

Note 1. Nature of Operations

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 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.

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, 2012 and August 31, 2012 and its results of operations and cash flows for the three month periods ended November 30, 2012 and November 30, 2011 in accordance with U.S. GAAP. Operating results for the three month period ended November 30, 2012 are not necessarily indicative of the results that may be experienced for the fiscal year ending August 31, 2013.

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Note 2. Significant Accounting Policies: Impairment of Long-lived Assets and Long-lived Assets To Be Disposed of (Policies)

3 Months Ended

Nov. 30, 2012

Policies

Impairment of Long-lived Assets and Long-lived Assets To Be Disposed of

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.

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Note 2. Significant Accounting Policies: Revenue Recognition (Policies)

3 Months Ended

Nov. 30, 2012

Policies

Revenue Recognition

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.

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Note 13. Segment Information: Revenue Attributed to Foreign Countries by Geographic Area (Tables)

3 Months Ended

Nov. 30, 2012

Tables/Schedules

Revenue Attributed to Foreign Countries by Geographic Area

	Three months ended November 30, 2012	Three months ended November 30, 2011
United States	$  7,680,338	$  6,862,527
Canada	467,597	250,022
Mexico/Latin America	1,097,390	(42,442)
Europe	33,306	117,375
Asia/Pacific	17,774	53,128
Total Sales	$ 9,296,405	$ 7,240,610

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CONSOLIDATED BALANCE SHEETS (Prepared by Management) (Interim period unaudited) (USD $)	Nov. 30, 2012		Aug. 31, 2012
Current assets
Cash	$ 7,256,455		$ 7,309,388
Accounts receivable	2,666,822		3,092,842
Inventory	5,761,024	[1]	7,085,389	[1]
Note receivable			20,000
Prepaid expenses	1,968,569		388,957
Total current assets	17,652,870		17,896,576
Property, plant and equipment, net	2,072,050	[2]	1,997,109	[2]
Intangible assets, net	423,901	[3]	444,203	[3]
Deferred income taxes	87,250	[4]	101,573	[4]
Total assets	20,236,071		20,439,461
Current liabilities
Accounts payable	828,452		1,577,182
Litigation reserve	164,158	[5]	170,819	[5]
Accrued liabilities	958,568		1,181,067
Accrued income taxes	330,957		37,203
Total current liabilities	2,282,135		2,966,271
Contingent liabilities and commitments	0	[6]	0	[6]
Stockholders' equity
Preferred shares	0	[7]	0	[7]
Common shares	1,479,721	[7]	1,479,721	[7]
Additional paid-in capital	600,804		600,804
Retained earnings	15,873,411		15,392,665
Total stockholders' equity	17,953,936		17,473,190
Total liabilities and stockholders' equity	$ 20,236,071		$ 20,439,461

[1] Note 3

[2] Note 4

[3] Note 5

[4] Note 6

[5] Note 12 a

[6] Note 12

[7] Note 8

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Note 2. Significant Accounting Policies: Fair Value, Assets Measured on Recurring Basis (Tables)

3 Months Ended

Nov. 30, 2012

Tables/Schedules

Fair Value, Assets Measured on Recurring Basis

	November 30, 2012		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash	$	7,256,455	$	7,256,455	$	—	$	—

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Prepared by Management) (Unaudited) (USD $)	3 Months Ended
	Nov. 30, 2012		Nov. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 480,746		$ 64,033
Items not involving an outlay of cash:
Depreciation and amortization	57,494		61,198
Deferred income taxes	14,323		752
Interest income on litigation	(6,661)
Changes in non-cash working capital items:
Decrease in accounts receivable	426,020		1,044,596
Decrease (increase) in inventory	1,324,365		(2,677,341)
Decrease in note receivable	20,000
(Increase) in prepaid expenses	(1,579,612)		(483)
(Decrease) increase in accounts payable and accrued liabilities	(971,229)		509,154
Increase in accrued income taxes	293,754		81,947
Net cash provided (used) by operating activities	59,200		(916,144)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment	(112,133)		(12,813)
Purchase of intangible assets and other			(4,550)
Net cash used in investing activities	(112,133)		(17,363)
CASH FLOWS FROM FINANCING ACTIVITIES
Redemption of common stock			(454,120)
Net cash used in financing activities			(454,120)
Net (decrease) in cash	(52,933)		(1,387,627)
Cash, beginning of period	7,309,388		6,774,127
Cash, end of period	$ 7,256,455	[1]	$ 5,386,500	[1]

[1] Supplemental disclosure with respect to cash flows, Note 15

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Note 2. Significant Accounting Policies: Comprehensive Income (Policies)

3 Months Ended

Nov. 30, 2012

Policies

Comprehensive Income

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.

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Note 15. Supplemental Disclosure With Respect To Cash Flows

3 Months Ended

Nov. 30, 2012

Notes

Note 15. Supplemental Disclosure With Respect To Cash Flows

15.          SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS

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

	Three months ended November 30, 2012	Three months ended November 30, 2011
Cash paid during the periods for:
Interest	$          -	$           -
Income taxes	$          -	$           -

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

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Note 2. Significant Accounting Policies: Stock-based Compensation (Policies)

3 Months Ended

Nov. 30, 2012

Policies

Stock-based Compensation

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, 2012, and there were no options outstanding on November 30, 2012.

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Note 2. Significant Accounting Policies: Principles of Consolidation (Policies)

3 Months Ended

Nov. 30, 2012

Policies

Principles of Consolidation

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.

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Earnings Per Share	3 Months Ended
	Nov. 30, 2012	Nov. 30, 2011
Earnings Per Share:
Weighted average number of common shares outstanding, Diluted	1,567,971	1,900,215

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Statement of Financial Position - Parenthetical (USD $)	Nov. 30, 2012	Aug. 31, 2012
Preferred Stock, Par Value	$ 0	$ 0
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par Value	$ 0	$ 0
Common Stock, Shares Authorized	20,000,000	20,000,000
Common Stock, Shares Issued	1,567,971	1,567,971
Common Stock, Shares Outstanding	1,567,971	1,567,971
Accounts Receivable allowance	$ 0	$ 6,509
Inventory allowance	$ 125,756	$ 139,869

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Note 10. Stock Options

3 Months Ended

Nov. 30, 2012

Notes

Note 10. Stock Options

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 the November 30, 2012 and August 31, 2012.

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Document and Entity Information (USD $)	3 Months Ended
	Nov. 30, 2012	Jan. 14, 2013	Feb. 29, 2012
Document and Entity Information:
Entity Registrant Name	JEWETT CAMERON TRADING CO LTD
Document Type	10-Q
Document Period End Date	Nov. 30, 2012
Amendment Flag	false
Entity Central Index Key	0000885307
Current Fiscal Year End Date	--08-31
Entity Common Stock, Shares Outstanding		1,567,971
Entity Public Float			$ 7,568,990
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	No
Entity Voluntary Filers	Yes
Entity Well-known Seasoned Issuer	Yes
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1

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Note 11. Employee Stock Ownership Plan ("ESOP")

3 Months Ended

Nov. 30, 2012

Notes

Note 11. Employee Stock Ownership Plan ("ESOP")

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 formerly held common shares of the Company and granted to participants in the plan certain ownership rights in, but not possession of, or voting control of, any common stock of the Company held by the Trustee of the Plan.  Shares of common stock were 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 were allocated.  Any dividends on allocated ESOP shares are recorded as a reduction of retained earnings.  Beginning in fiscal 2010, the ESOP began its investment in diversified mutual funds. During fiscal 2011 and 2012, all of the Company’s shares held by the ESOP were sold, with the majority repurchased by the Company and cancelled under the 10b5-1 share repurchase plans. Effective June 30, 2012, the ESOP has been terminated, subject to the approval of the Internal Revenue Service.  No further contributions shall be made to the ESOP.  Upon receipt of approval from the Internal Revenue Service, the remaining assets shall be distributed to the participants pursuant to the terms of the Plan.

ESOP compensation expense was $Nil and $141,518 for the fiscal years ended August 31, 2012 and 2011, respectively, and is included in wages and employee benefits.  The ESOP shares are as follows:

	August 31, 2012	August 31, 2011
Shares owned by ESOP	Nil	224,939

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CONSOLIDATED STATEMENTS OF OPERATIONS (Prepared by Management) (Unaudited) (USD $)	3 Months Ended
	Nov. 30, 2012		Nov. 30, 2011
REVENUES
SALES	$ 9,296,405		$ 7,240,610
COST OF SALES	7,305,399		5,774,415
GROSS PROFIT	1,991,006		1,466,195
OPERATING EXPENSES
Selling, general and administrative expenses	335,820		428,348
Depreciation and amortization	57,494		61,198
Wages and employee benefits	825,307		813,713
Total operating expenses	1,218,621		1,303,259
Income from operations	772,385		162,936
OTHER ITEMS
Interest and other income	16,710
Interest expense		[1]	(16,204)	[1]
Total other items	16,710		(16,204)
Income before income taxes	789,095		146,732
Income tax expense	(308,349)		(82,699)
Net income	$ 480,746		$ 64,033
Basic earnings per common share	$ 0.31		$ 0.03
Diluted earnings per common share	$ 0.31		$ 0.03
Weighted average number of common shares outstanding, Basic	1,567,971		1,900,215
Weighted average number of common shares outstanding, Diluted	1,567,971		1,900,215

[1] Note 12 a

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Note 5. Intangible Assets

3 Months Ended

Nov. 30, 2012

Notes

Note 5. Intangible Assets

5.             INTANGIBLE ASSETS

A summary of intangible assets is as follows:

	November 30, 2012	August 31, 2012
Patent	$  850,000	$  850,000
Other	43,655	43,655
	893,655	893,655
Accumulated amortization	(469,754)	(449,452)
Net book value	$  423,901	$  444,203

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Note 4. Property, Plant and Equipment

3 Months Ended

Nov. 30, 2012

Notes

Note 4. Property, Plant and Equipment

4.             PROPERTY, PLANT AND EQUIPMENT

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

	November 30, 2012	August 31, 2012
Office equipment	$      493,686	$     491,470
Warehouse equipment	1,433,335	1,343,311
Buildings	2,382,448	2,362,555
Land	818,072	818,072
	5,127,541	5,015,408
Accumulated depreciation	(3,055,491)	(3,018,299)
Net book value	$   2,072,050	$   1,997,109

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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Note 2. Significant Accounting Policies: Generally Accepted Accounting Principles (Policies)

3 Months Ended

Nov. 30, 2012

Policies

Generally Accepted Accounting Principles

Generally accepted accounting principles

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

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Note 12. Contingent Liabilities and Commitments

3 Months Ended

Nov. 30, 2012

Notes

Note 12. Contingent Liabilities and Commitments

12.          CONTINGENT LIABILITIES AND COMMITMENTS

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

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

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

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

In February 2012, the Company received the decision from the Oregon Supreme Court which was favorable to Jewett Cameron as plaintiff. As a result, the Company has reversed $1,459,832 of the litigation reserve and accrued interest during the 2nd quarter of fiscal 2012 ended February 29, 2012.  The reversal was treated as a one-time gain during the quarter.

During the year ended August 31, 2012, the Company recorded $13,467 of interest income due to the favourable difference in interest rates between the judgments. During the first quarter of fiscal 2013 ended November 30, 2012, the Company recorded $6,661 of interest income.

A summary of the litigation reserve is as follows:

	November 30, 2012	August 31, 2012
Litigation loss	$                 -	$                  -
Litigation reserve	170,819	184,286
Interest expense	-	-
Interest income	(6,661)	(13,467)
Total	$     164,158	$      170,819

b)            At November 30, 2012 and August 31, 2012 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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Note 8. Capital Stock

3 Months Ended

Nov. 30, 2012

Notes

Note 8. Capital Stock

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.

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Note 6. Deferred Income Taxes

3 Months Ended

Nov. 30, 2012

Notes

Note 6. Deferred Income Taxes

6.             DEFERRED INCOME TAXES

Deferred income tax assets as of November 30, 2012 of $87,250 (August 31, 2012 - $101,573) 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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Note 7. Bank Indebtedness

3 Months Ended

Nov. 30, 2012

Notes

Note 7. Bank Indebtedness

7.             BANK INDEBTEDNESS

There was no bank indebtedness under the Company’s line of credit as of November 30, 2012 or August 31, 2012.

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.

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Note 9. Cancellation of Capital Stock

3 Months Ended

Nov. 30, 2012

Notes

Note 9. Cancellation of Capital Stock

9.             CANCELLATION OF CAPITAL STOCK

Treasury stock may be kept based on an acceptable inventory method such as the average cost basis.  Upon disposition or cancellation, the treasury stock account is credited for an amount equal to the number of shares cancelled, multiplied by the cost per share and the difference is treated as additional paid-in-capital in excess of stated value.

During the 3rd quarter of fiscal 2012 ended May 31, 2012, the Company repurchased and cancelled a total of 41,899 common shares of its common stock under a 10b5-1 share repurchase plan. The total cost was $382,510 at an average price of $9.13 per share. The premium paid to acquire these shares over their per share book value in the amount of $342,969 was recorded as a decrease to retained earnings.

During the 2nd quarter of fiscal 2012 ended February 29, 2012, the Company repurchased and cancelled a total of 248,587 shares of its common stock under a 10b5-1 share repurchase plan. The total cost was $2,238,929 at an average share price of $9.01 per share. The premium paid to acquire these shares over their per share book value in the amount of $2,004,334 was recorded as a decrease to retained earnings.

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.

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Note 2. Significant Accounting Policies: Earnings Per Share (Policies)

3 Months Ended

Nov. 30, 2012

Policies

Earnings Per Share

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.

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Note 13. Segment Information: Segment Reporting Information (Tables)

3 Months Ended

Nov. 30, 2012

Tables/Schedules

Segment Reporting Information

	Three months ended November 30, 2012	Three months ended November 30, 2011
Sales to unaffiliated customers:
Industrial wood products	$   2,361,471	$    1,487,774
Lawn, garden, pet and other	4,772,939	3,574,366
Seed processing and sales	1,810,645	1,687,111
Industrial tools and clamps	351,350	491,359
	$   9,296,405	$    7,240,610
Income (loss) before income taxes:
Industrial wood products	$        62,545	$        (93,112)
Lawn, garden, pet and other	586,951	181,791
Seed processing and sales	109,004	97,850
Industrial tools and clamps	34,732	(12,553)
Unallocated overhead	(4,137)	(27,244)
	$       789,095	$       146,732
Identifiable assets:
Industrial wood products	$    1,840,340	$    3,002,705
Lawn, garden, pet and other	16,982,560	15,907,800
Seed processing and sales	727,220	1,155,861
Industrial tools and clamps	609,409	623,310
Unallocated overhead	76,542	7,235
	$  20,236,071	$  20,696,911
Depreciation and amortization:
Industrial wood products	$              403	$              403
Lawn, garden, pet and other	51,781	55,384
Seed processing and sales	3,884	4,675
Industrial tools and clamps	1,426	736
	$         57,494	$         61,198
Capital expenditures:
Industrial wood products	$                  -	$                   -
Lawn, garden, pet and other	112,133	12,813
Seed processing and sales	-	-
Industrial tools and clamps	-	-
	$      112,133	$         12,813
Interest expense:
Lawn, garden, pet and other	$                  -	$         16,204

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Note 14. Concentrations

3 Months Ended

Nov. 30, 2012

Notes

Note 14. Concentrations

14.          CONCENTRATIONS

Credit risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable.  The Company places its cash with a high quality financial institution.  The Company has concentrations of credit risk with respect to accounts receivable as large amounts of its accounts receivable are concentrated geographically in the United States amongst a small number of customers. At November 30, 2012, two customers accounted for accounts receivable greater than 10% of total accounts receivable at 29%. At November 30, 2011, one customer accounted for accounts receivable greater than 10% of total accounts receivable at 13%. 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, 2012, there were two suppliers that each accounted for greater than 10% of total purchases, and the aggregate purchases amounted to $2,250,297. 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.

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Note 2. Significant Accounting Policies: Cash and Cash Equivalents (Policies)

3 Months Ended

Nov. 30, 2012

Policies

Cash and Cash Equivalents

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, 2012, cash was $7,256,455 compared to $7,309,388 at August 31, 2012.  At November 30, 2012 and August 31, 2012, there were no cash equivalents.

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Note 11. Employee Stock Ownership Plan ("ESOP"): Employee Stock Purchase Plan (Tables)

3 Months Ended

Nov. 30, 2012

Tables/Schedules

Employee Stock Purchase Plan

	August 31, 2012	August 31, 2011
Shares owned by ESOP	Nil	224,939

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Note 2. Significant Accounting Policies: Recent Accounting Pronouncements (Policies)

3 Months Ended

Nov. 30, 2012

Policies

Recent Accounting Pronouncements

Recent Accounting Pronouncements

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. The adoption of this new guidance did not have, and is not expected to have, a material impact on the Company’s consolidated 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 did not have, and is not expected to have, a material impact on the Company’s consolidated financial statements.

In September 2011, the FASB issued ASU 2011-08 "Testing Goodwill for Impairment", which gives companies the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount before performing the two-step test mandated prior to this update. This ASU also provides companies with a revised list of examples of events and circumstances to consider, in their totality, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If a company concludes that this is the case, it must perform the two-step test. Otherwise, a company may skip the two-step test. Companies are not required to perform the qualitative assessment and may instead proceed directly to the first step of the two-part test. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of this new guidance did not have, and is not expected to have, a material impact on the Company’s consolidated financial statements

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Prepared by Management) (Unaudited) (USD $)		Number of Shares	Amount	Additional paid-in capital	Retained earnings	Total
Beginning balance at Aug. 31, 2011			$ 1,801,043	$ 600,804	$ 15,086,971	$ 17,488,818
Shares outstanding at Aug. 31, 2011		1,908,457
Shares repurchased and cancelled, value	[1]		(321,322)		(2,754,237)	(3,075,559)
Shares repurchased and cancelled, shares		(340,486)
Net income					3,059,931	3,059,931
Ending balance at Aug. 31, 2012			1,479,721	600,804	15,392,665	17,473,190
Shares outstanding at Aug. 31, 2012		1,567,971
Net income					480,746	480,746
Ending balance at Nov. 30, 2012			$ 1,479,721	$ 600,804	$ 15,873,411	$ 17,953,936
Shares outstanding at Nov. 30, 2012		1,567,971

[1] Note 9

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Note 3. Inventory

3 Months Ended

Nov. 30, 2012

Notes

Note 3. Inventory

3.             INVENTORY

A summary of inventory is as follows:

	November 30, 2012	August 31, 2012
Wood products and metal products	$  5,168,783	$  6,457,600
Industrial tools	525,450	437,347
Agricultural seed products	66,791	190,442
Total	$  5,761,024	$  7,085,389

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Note 2. Significant Accounting Policies: Accounts Receivable (Policies)

3 Months Ended

Nov. 30, 2012

Policies

Accounts Receivable

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.

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Note 2. Significant Accounting Policies: Income Taxes (Policies)

3 Months Ended

Nov. 30, 2012

Policies

Income Taxes

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.

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Note 13. Segment Information

3 Months Ended

Nov. 30, 2012

Notes

Note 13. Segment Information

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:

	Three months ended November 30, 2012	Three months ended November 30, 2011
Sales to unaffiliated customers:
Industrial wood products	$   2,361,471	$    1,487,774
Lawn, garden, pet and other	4,772,939	3,574,366
Seed processing and sales	1,810,645	1,687,111
Industrial tools and clamps	351,350	491,359
	$   9,296,405	$    7,240,610
Income (loss) before income taxes:
Industrial wood products	$        62,545	$        (93,112)
Lawn, garden, pet and other	586,951	181,791
Seed processing and sales	109,004	97,850
Industrial tools and clamps	34,732	(12,553)
Unallocated overhead	(4,137)	(27,244)
	$       789,095	$       146,732
Identifiable assets:
Industrial wood products	$    1,840,340	$    3,002,705
Lawn, garden, pet and other	16,982,560	15,907,800
Seed processing and sales	727,220	1,155,861
Industrial tools and clamps	609,409	623,310
Unallocated overhead	76,542	7,235
	$  20,236,071	$  20,696,911
Depreciation and amortization:
Industrial wood products	$              403	$              403
Lawn, garden, pet and other	51,781	55,384
Seed processing and sales	3,884	4,675
Industrial tools and clamps	1,426	736
	$         57,494	$         61,198
Capital expenditures:
Industrial wood products	$                  -	$                   -
Lawn, garden, pet and other	112,133	12,813
Seed processing and sales	-	-
Industrial tools and clamps	-	-
	$      112,133	$         12,813
Interest expense:
Lawn, garden, pet and other	$                  -	$         16,204

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:

	Three months ended November 30, 2012	Three months ended November 30, 2011
Sales	$   1,926,150	$               Nil

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 quarter ended November 30:

	Three months ended November 30, 2012	Three months ended November 30, 2011
United States	$  7,680,338	$  6,862,527
Canada	467,597	250,022
Mexico/Latin America	1,097,390	(42,442)
Europe	33,306	117,375
Asia/Pacific	17,774	53,128
Total Sales	$ 9,296,405	$ 7,240,610

All of the Company’s significant identifiable assets were located in the United States as of November 30, 2012 and 2011.