0001217160-15-000011.txt : 20150114 0001217160-15-000011.hdr.sgml : 20150114 20150114163707 ACCESSION NUMBER: 0001217160-15-000011 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20141130 FILED AS OF DATE: 20150114 DATE AS OF CHANGE: 20150114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JEWETT CAMERON TRADING CO LTD CENTRAL INDEX KEY: 0000885307 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-LUMBER & OTHER BUILDING MATERIALS DEALERS [5211] IRS NUMBER: 000000000 STATE OF INCORPORATION: OR FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-19954 FILM NUMBER: 15527542 BUSINESS ADDRESS: STREET 1: 32275 NW HILLCREST CITY: NORTH PLAINS STATE: OR ZIP: 97133 BUSINESS PHONE: 5036470110 MAIL ADDRESS: STREET 1: P O BOX 1010 CITY: NORTH PLAINS STATE: OR ZIP: 97133 10-Q 1 jcnov_201410q.htm JEWETT CAMERON FORM 10-Q FOR THE PERIOD ENDED NOVEMBER 30, 2014 Jewett Cameron Form 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(MARK ONE)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2014

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ________ TO ________.

COMMISSION FILE NUMBER 000-19954

JEWETT-CAMERON TRADING COMPANY LTD.

(Exact Name of Registrant as Specified in its Charter)


BRITISH COLUMBIA		NONE
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)


32275 N.W. Hillcrest, North Plains, Oregon		97133
(Address Of Principal Executive Offices)		(Zip Code)

(503) 647-0110

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer


Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer ¨	Smaller Reporting Company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨ No x

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common Stock, no par value – 2,585,661 common shares as of January 14, 2015.

Jewett-Cameron Trading Company Ltd.

Index to Form 10-Q


PART I – FINANCIAL INFORMATION

Item 1.	Financial Statements	3

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	25

Item 4.	Controls and Procedures	26

PART II – OTHER INFORMATION

Item 1.	Legal Proceedings	26

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27

Item 3.	Defaults Upon Senior Securities	27

Item 4.	Mine Safety Disclosures	27

Item 5.	Other Information	27

Item 6.	Exhibits	28


	- 2 -

PART 1 – FINANCIAL INFORMATION

Item 1.

Financial Statements

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

(Unaudited – Prepared by Management)

NOVEMBER 30, 2014


	- 3 -

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)


	November 30, 2014	August 31, 2014

ASSETS

Current assets
Cash	$ 1,984,977	$ 4,327,540
Accounts receivable, net of allowance of $Nil (August 31, 2014 - $Nil)	2,720,614	2,442,928
Inventory, net of allowance of $87,800 (August 31, 2014 - $111,756) (note 3)	10,744,751	9,154,129
Note receivable	-	15,000
Prepaid expenses	569,976	762,533
Prepaid income taxes	341,176	546,347

Total current assets	16,361,494	17,248,477

Property, plant and equipment, net (note 4)	2,097,760	2,147,387

Intangible assets, net (note 5)	277,780	295,956

Total assets	$ 18,737,034	$ 19,691,820

- Continued -

The accompanying notes are an integral part of these consolidated financial statements.

- 4 -

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)


	November 30, 2014	August 31, 2014

Continued

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable	$ 377,496	$ 240,825
Litigation reserve (note 13(a))	110,726	117,387
Accrued liabilities	950,107	1,073,930

Total current liabilities	1,438,329	1,432,142

Deferred tax liability (note 6)	64,689	60,972

Total liabilities	1,503,018	1,493,114

Contingent liabilities and commitments (note 13)

Stockholders’ equity
Capital stock (note 8)
Authorized
21,567,564 common shares, without par value
10,000,000 preferred shares, without par value
Issued
2,585,661 common shares (August 31, 2014 – 2,704,630)	1,220,064	1,276,201
Additional paid-in capital	600,804	600,804
Retained earnings	15,413,148	16,321,701

Total stockholders’ equity	17,234,016	18,198,706

Total liabilities and stockholders’ equity	$ 18,737,034	$ 19,691,820

The accompanying notes are an integral part of these consolidated financial statements.


	- 5 -

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)


	Three Months Ended November 30,
	2014	2013

SALES	$ 7,982,617	$ 8,006,281

COST OF SALES	6,112,594	6,156,502

GROSS PROFIT	1,870,023	1,849,779

OPERATING EXPENSES
Selling, general and administrative expenses	461,448	391,886
Depreciation and amortization	69,083	70,019
Wages and employee benefits	809,593	843,950

	1,340,124	1,305,855

Income from operations	529,899	543,924

OTHER ITEMS
Interest and other income	6,895	6,661
Gain on sale of equipment	-	4,109
	6,895	10,770

Income before income taxes	536,794	554,694

Income tax expense	(209,007)	(222,115)

Net income	$ 327,787	$ 332,579

Basic earnings per common share	$ 0.12	$ 0.11

Diluted earnings per common share	$ 0.12	$ 0.11

Weighted average number of common shares outstanding:
Basic	2,688,942	3,134,936
Diluted	2,688,942	3,134,936

The accompanying notes are an integral part of these consolidated financial statements.


	- 6 -

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)


	Capital Stock
	Number of Shares	Amount	Additional paid-in capital	Retained earnings	Total

August 31, 2012	3,135,942	$ 1,479,721	$ 600,804	$ 15,392,665	$ 17,473,190

Shares repurchased and cancelled (note 9)	(1,006)	(475)	-	(6,713)	(7,188)
Net income	-	-	-	3,132,019	3,132,019

August 31, 2013	3,134,936	1,479,246	600,804	18,517,971	20,598,021

Shares repurchased and cancelled (note 9)	(430,306)	(203,045)	-	(4,054,723)	(4,257,768)
Net income	-	-	-	1,858,453	1,858,453

August 31, 2014	2,704,630	1,276,201	600,804	16,321,701	18,198,706

Shares repurchased and cancelled (note 9)	(118,969)	(56,137)	-	(1,236,340)	(1,292,477)
Net income	-	-	-	327,787	327,787

November 30, 2014	2,585,661	$ 1,220,064	$ 600,804	$ 15,413,148	$ 17,234,016

The accompanying notes are an integral part of these consolidated financial statements.


	- 7 -

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)


	Three Month Periods Ended November 30,
	2014	2013

CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 327,787	$ 332,579
Items not involving an outlay of cash:
Depreciation and amortization	69,083	70,019
Gain on sale of equipment	-	(4,109)
Deferred income taxes	3,717	(4,564)
Interest income on litigation	(6,661)	(6,661)

Changes in non-cash working capital items:
(Increase) decrease in accounts receivable	(277,686)	1,107,043
(Increase) decrease in inventory	(1,590,622)	146,240
Decrease in note receivable	15,000	15,000
Decrease in prepaid income taxes	205,171	226,679
(Increase) decrease in prepaid expenses	192,557	(295,563)
Increase (decrease) in accounts payable and accrued liabilities	12,848	(1,745,918)

Net cash used by operating activities	(1,048,806)	(159,255)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment	(1,280)	(57,918)
Proceeds from sale of equipment	-	4,800

Net cash used in investing activities	(1,280)	(53,118)

CASH FLOWS FROM FINANCING ACTIVITIES
Redemption of common stock	(1,292,477)	-

Net cash used in financing activities	(1,292,477)	-

Net decrease in cash	(2,342,563)	(212,373)

Cash, beginning of period	4,327,540	8,308,445

Cash, end of period	$ 1,984,977	$ 8,096,072

Supplemental disclosure with respect to cash flows (note 16)

The accompanying notes are an integral part of these consolidated financial statements.

- 8 -

JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

November 30, 2014

(Unaudited)

NATURE OF OPERATIONS

Jewett-Cameron Trading Company Ltd. was incorporated in British Columbia on July 8, 1987 as a holding company for Jewett-Cameron Lumber Corporation (“JCLC”), incorporated September 1953. Jewett-Cameron Trading Company, Ltd. acquired all the shares of JCLC through a stock-for-stock exchange on July 13, 1987, and at that time JCLC became a wholly owned subsidiary. Effective September 1, 2013, the Company reorganized certain of its subsidiaries. JCLC’s name was changed to JC USA Inc. (“JC USA”), and a new subsidiary, Jewett-Cameron Company (“JCC”), was incorporated.

JC USA has the following wholly owned subsidiaries: MSI-PRO Co. (“MSI”), incorporated April 1996, Jewett-Cameron Seed Company, (“JCSC”), incorporated October 2000, Greenwood Products, Inc. (“Greenwood”), incorporated February 2002, and Jewett-Cameron Company, incorporated September 2013. Jewett-Cameron Trading Company Ltd. and its subsidiaries (the “Company”) have no significant assets in Canada.

The Company, through its subsidiaries, operates out of facilities located in North Plains, Oregon. JCC’s business consists of the manufacturing and distribution of specialty metal products and wholesale distribution of wood products to home centers and other retailers located primarily in the United States. Greenwood is a processor and distributor of industrial wood and other specialty building products principally to customers in the marine and transportation industries in the United States. MSI is an importer and distributor of pneumatic air tools and industrial clamps in the United States. JCSC is a processor and distributor of agricultural seeds in the United States. JC USA provides professional and administrative services, including accounting and credit services, to its subsidiary companies.

These unaudited financial statements are those of the Company and its wholly owned subsidiaries. In the opinion of management, the accompanying Consolidated Financial Statements of Jewett-Cameron Trading Company Ltd., contain all adjustments, consisting only of normal recurring adjustments, necessary to fairly state its financial position as of November 30, 2014 and August 31, 2014 and its results of operations and cash flows for the three month periods ended November 30, 2014 and November 30, 2013 in accordance with U.S. GAAP. Operating results for the three month period ended November 30, 2014 are not necessarily indicative of the results that may be experienced for the fiscal year ending August 31, 2015.

SIGNIFICANT ACCOUNTING POLICIES

Generally accepted accounting principles

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

Principles of consolidation

These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, JC USA, JCC, MSI, JCSC, and Greenwood, all of which are incorporated under the laws of Oregon, U.S.A.

All inter-company balances and transactions have been eliminated upon consolidation.


	- 9 -

JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

November 30, 2014

(Unaudited)

SIGNIFICANT ACCOUNTING POLICIES (cont’d…)

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, 2014, cash was $1,984,977 compared to $4,327,540 at August 31, 2014. At November 30, 2014 and August 31, 2014, there were no cash equivalents.

Accounts receivable

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

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

Inventory

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

Property, plant and equipment

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


	Office equipment	3-7 years
	Warehouse equipment	2-10 years
	Buildings	5-30 years

Intangibles

The Company’s intangible assets have a finite life and are recorded at cost. The most significant intangible assets are two patents related to gate support systems. Amortization is calculated using the straight-line method over the remaining lives of 39 months and 51 months, respectively, and are reviewed annually for impairment.


	- 10 -

JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

November 30, 2014

(Unaudited)

SIGNIFICANT ACCOUNTING POLICIES (cont’d…)

Asset retirement obligations

The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development, and normal use of the long-lived assets. The Company also records a corresponding asset which is amortized over the life of the asset. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time (accretion expense) and changes in the estimated future cash flows underlying the obligation (asset retirement cost). The Company does not have any significant asset retirement obligations.

Impairment of long-lived assets and long-lived assets to be disposed of

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount and the fair value less costs to sell.

Currency and foreign exchange

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

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

Earnings per share

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

The earnings per share data for the three months ended November 30, 2014 and November 30, 2013 are as follows:


	2014	2013

Net income	$ 327,787	$ 332,579

Basic weighted average number of common shares outstanding	2,688,942	3,134,936

Effect of dilutive securities
Stock options	-	-

Diluted weighted average number of common shares outstanding	2,688,942	3,134,936


	- 11 -

JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

November 30, 2014

(Unaudited)

SIGNIFICANT ACCOUNTING POLICIES (cont’d…)

Comprehensive income

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

Stock-based compensation

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

No options were granted during the quarter ended November 30, 2014, and there were no options outstanding on November 30, 2014.

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, 2014 and August 31, 2014 follows:


	November 30, 2014		August 31, 2014
	Carrying	Fair	Carrying	Fair
	Amount	Value	Amount	Value
Cash	$1,984,977	$1,984,977	$4,327,540	$4,327,540
Accounts receivable, net of allowance	2,720,614	2,720,614	2,442,928	2,442,928
Note receivable	-	-	15,000	15,000
Accounts payable and accrued liabilities	1,327,603	1,327,603	1,314,755	1,314,755


	- 12 -

JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

November 30, 2014

(Unaudited)

SIGNIFICANT ACCOUNTING POLICIES (cont’d…)

Financial instruments (cont’d…)

The following table presents information about the assets that are measured at fair value on a recurring basis as of November 30, 2014, 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, 2014		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash	$	1,984,977	$	1,984,977	$	—	$	—

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, specialty metal products, and other specialty products and tools, when the products are shipped, title passes, and the ultimate collection is reasonably assured. Revenue from the Company's seed operations is generated from seed processing, handling and storage services provided to seed growers, and by the sales of seed products. Revenue from the provision of these services and products is recognized when the services have been performed, products sold and collection of the amounts is reasonably assured.

Reclassifications

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


	- 13 -

JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

November 30, 2014

(Unaudited)

SIGNIFICANT ACCOUNTING POLICIES (cont’d…)

Recent Accounting Pronouncements

Management has reviewed the new accounting guidance and determined that there is not a material impact on our financial statements.

INVENTORY

A summary of inventory is as follows:


	November 30, 2014	August 31, 2014


Wood products and metal products	$ 9,943,118	$ 8,219,574
Industrial tools	574,503	665,563
Agricultural seed products	227,130	268,992

	$ 10,744,751	$ 9,154,129

PROPERTY, PLANT AND EQUIPMENT

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


	November 30, 2014	August 31, 2014

Office equipment	$ 563,703	$ 562,423
Warehouse equipment	1,482,278	1,482,278
Buildings	2,688,616	2,688,616
Land	761,924	761,924
	5,496,521	5,495,241

Accumulated depreciation	(3,398,761)	(3,347,854)

Net book value	$ 2,097,760	$ 2,147,387

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.


	- 14 -

JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

November 30, 2014

(Unaudited)

INTANGIBLE ASSETS

A summary of intangible assets is as follows:


	November 30, 2014	August 31, 2014
Patent	$ 850,000	$ 850,000
Other	43,655	43,655
	893,655	893,655
Accumulated amortization	(615,875)	(597,699)

Net book value	$ 277,780	$ 295,956

DEFERRED INCOME TAXES

Deferred income tax liability as of November 30, 2014 of $64,689 (August 31, 2014 – $60,972) 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.

BANK INDEBTEDNESS

There was no bank indebtedness under the Company’s $1,000,000 line of credit as of November 30, 2014 or August 31, 2014.

Bank indebtedness, when it exists, is secured by an assignment of accounts receivable and inventory. Interest is calculated solely on the one month LIBOR rate plus 175 basis points.

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.

Common Stock Split

The Company declared a two for one stock split of its common stock with a record date at the close of business on April 25, 2013. Shareholders received one additional common share for each common share held as of the record date. The stock split was effective as of May 2, 2013. Share and per share data have been retroactively adjusted to reflect the effects of the stock split.


	- 15 -

JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

November 30, 2014

(Unaudited)

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 1^st quarter of fiscal 2015 ended November 30, 2014, the Company repurchased and cancelled a total of 118,969 common shares under a 10b5-1 share repurchase plan. The total cost was $1,292,477 at an average price of $10.86 per share. The premium paid to acquire these shares over their per share book value in the amount of $1,236,340 was recorded as a decrease to retained earnings.

During the 4^thquarter of fiscal 2014 ended August 31, 2014, the Company repurchased and cancelled a total of 45,048 common shares under a 10b5-1 share repurchase plan. The total cost was $454,050 at an average price of $10.08 per share. The premium paid to acquire these shares over their per share book value in the amount of $432,794 was recorded as a decrease to retained earnings.

During the 3rd quarter of fiscal 2014 ended May 31, 2014, the Company repurchased and cancelled a total of 327,078 common shares under a 10b5-1 share repurchase plan. The total cost was $3,234,699 at an average price of $9.89 per share. The premium paid to acquire these shares over their per share book value in the amount of $3,080,365 was recorded as a decrease to retained earnings.

During the 2nd quarter of fiscal 2014 ended February 28, 2014, the Company repurchased and cancelled a total of 58,180 common shares under a 10b5-1 share repurchase plan. The total cost was $569,019 at an average price of $9.78 per share. The premium paid to acquire these shares over their per share book value in the amount of $541,564 was recorded as a decrease to retained earnings.

10.

STOCK OPTIONS

The Company has a stock option program under which stock options to purchase securities from the Company can be granted to directors and employees of the Company on terms and conditions acceptable to the regulatory authorities of Canada, notably the Ontario Securities Commission and the British Columbia Securities Commission.

Under the stock option program, stock options for up to 10% of the number of issued and outstanding common shares may be granted from time to time, provided that stock options in favor of any one individual may not exceed 5% of the issued and outstanding common shares. No stock option granted under the stock option program is transferable by the optionee other than by will or the laws of descent and distribution, and each stock option is exercisable during the lifetime of the optionee only by such optionee. Generally, no option can be for a term of more than 10 years from the date of the grant.

The exercise price of all stock options, granted under the stock option program, must be at least equal to the fair market value (subject to regulated discounts) of such common shares on the date of grant. Options vest at the discretion of the Board of Directors.

The Company had no stock options outstanding as of November 30, 2014 and August 31, 2014.


	- 16 -

JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

November 30, 2014

(Unaudited)

11.

EMPLOYEE STOCK OWNERSHIP PLAN (“ESOP”)

The Company formerly sponsored an ESOP that covered all U.S. employees who were employed by the Company on August 31 of each year and who had 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 recorded compensation expense based on the market price of the Company's shares when they were allocated. Any dividends on allocated ESOP shares were 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 was terminated, subject to the approval of the Internal Revenue Service. No further contributions were made to the ESOP. On October 18, 2013, the Internal Revenue Service issued a favorable determination letter for the termination of the ESOP, and the Plan has distributed the remaining assets to participants.

ESOP compensation expense was $Nil and $Nil for the fiscal years ended August 31, 2014 and 2013, respectively. No shares were owned by the ESOP at August 31, 2014 or 2013.

12.

PENSION AND PROFIT-SHARING PLANS

The Company has a deferred compensation 401(k) plan for all employees with at least 12 months of service pending a semi-annual enrolment time. The plan allows for a non-elective discretionary contribution based on the first $60,000 of eligible compensation. For the quarters ended November 30, 2014 and 2013 the 401(k) compensation expense was $33,778 and $47,754, respectively.


	- 17 -

JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

November 30, 2014

(Unaudited)

13.

CONTINGENT LIABILITIES AND COMMITMENTS

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.

In July 2014, upon remand from the Oregon Supreme Court, the Oregon Court of Appeals has concluded that Greenwood Forest Products, Inc. as defendants are entitled to a new trial, and, as a consequence, 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 attorney’s fees. The judgment against plaintiffs was for $1,187,137. On August 7, 2014, the Company filed a petition with the Oregon Supreme Court for a review of the Oregon Court of Appeals notice. The petition requests the Oregon Supreme Court review the most recent ruling by the Oregon Court of Appeals, reverse the decision, and affirm the original judgment of the trial court. In December 2014, the Company received notice that the Oregon Supreme Court has accepted the case for review. As of the date of this filing, the potential exposure to the Company of this new ruling is $1.8 million.

During the year ended August 31, 2014, the Company recorded $26,716 of interest income due to the favorable difference in interest rates between the judgments. During the period ended November 30, 2014, the Company recorded $6,661 of interest income.


	- 18 -

JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

November 30, 2014

(Unaudited)

13.

CONTINGENT LIABILITIES AND COMMITMENTS (cont’d…)

A summary of the litigation reserve is as follows:


	November 30, 2014	August 31, 2014

Litigation loss	$ -	$ -
Litigation reserve	117,387	144,103
Interest expense	-	-
Interest income	(6,661)	(26,716)
Total	$ 110,726	$ 117,387

At November 30, 2014 and August 31, 2014 the Company had an un-utilized line-of-credit of $1,000,000 (note 7). The line-of-credit has certain financial covenants. The Company is in compliance with these covenants.

14.

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.

Effective September 1, 2013, the Company reorganized certain of its subsidiaries. The majority of fixed and intangible assets, and certain Corporate and administrative functions which were formerly contained within the “Lawn, garden, pet and other” reporting segment are now classified as “Corporate and administrative.”

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


	2014			2013


Sales to unaffiliated customers:
Industrial wood products	$	992,682	$		1,457,246
Lawn, garden, pet and other		5,888,909			5,443,943
Seed processing and sales		704,894			740,742
Industrial tools and clamps		396,132			364,350
	$	7,982,617	$		8,006,281

Income (loss) before income taxes:
Industrial wood products	$	18,067	$		(11,424)
Lawn, garden, pet and other		164,755			258,917
Seed processing and sales		89,245			73,648
Industrial tools and clamps		38,618			37,264
Corporate and administrative		226,109			196,289
	$	536,794	$		554,694


	- 19 -

JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

November 30, 2014

(Unaudited)

14.

SEGMENT INFORMATION (cont’d…)


	2014		2013

Identifiable assets:
Industrial wood products	$	1,240,106	$	1,440,281
Lawn, garden, pet and other		11,591,435		8,929,943
Seed processing and sales		375,076		196,819
Industrial tools and clamps		686,540		616,992
Corporate and administrative		4,843,877		11,049,258
	$	18,737,034	$	22,233,293

Depreciation and amortization:
Industrial wood products	$	245	$	245
Lawn, garden, pet and other		12,957		10,101
Seed processing and sales		2,736		3,450
Industrial tools and clamps		700		1,904
Corporate and administrative		52,445		54,319
	$	69,083	$	70,019

Capital expenditures:
Industrial wood products	$	-	$	-
Lawn, garden, pet and other		-		-
Seed processing and sales		-		-
Industrial tools and clamps		-		-
Corporate and administrative		1,280		57,918
	$	1,280	$	57,918

Interest expense:
Lawn, garden, pet and other	$	-	$	-

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:


	2014		2013
Sales	$	3,651,188	$	3,314,699

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:


	2014		2013

United States	$	7,608,352	$	7,399,773
Canada		308,453		137,935
Mexico/Latin America		65,812		379,032
Europe		-		89,541

All of the Company’s significant identifiable assets were located in the United States as of November 30, 2014 and 2013.


	- 20 -

JEWETT-CAMERON TRADING COMPANY LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

November 30, 2014

(Unaudited)

15.

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, 2014, two customers accounted for accounts receivable greater than 10% of total accounts receivable at 55%. At November 30, 2013, two customers accounted for accounts receivable greater than 10% of total accounts receivable at 38%. 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, 2014, there were three suppliers that each accounted for greater than 10% of total purchases, and the aggregate purchases amounted to $5,465,620. For the three months ended November 30, 2013, there were three suppliers that each accounted for greater than 10% of total purchases, and the aggregate purchases amounted to $2,605,730.

16.

SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS

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


	2014	2013

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

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


	- 21 -

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

These unaudited financial statements are those of the Company and its wholly owned subsidiaries. In the opinion of management, the accompanying consolidated financial statements of Jewett-Cameron Trading Company Ltd., contain all adjustments, consisting only of normal recurring adjustments, necessary to fairly state its financial position as of November 30, 2014 and August 31, 2014 and its results of operations and cash flows for the three month period ended November 30, 2014 and November 30, 2013 in accordance with U.S. GAAP. Operating results for the three month period ended November 30, 2014 are not necessarily indicative of the results that may be experienced for the fiscal year ending August 31, 2015.

The Company’s operations are classified into four reportable segments, which were determined based on the nature of the products offered along with the markets being served. The segments are as follows:

Industrial wood products

Lawn, garden, pet and other

Seed processing and sales

Industrial tools

Effective September 1, 2013, the Company reorganized certain of its subsidiaries. Jewett-Cameron Lumber Corporation (JCLC) was changed to JC USA Inc. (JC USA), which has the following four wholly-owned subsidiaries.

The industrial wood products segment reflects the business conducted by Greenwood Products, Inc. (Greenwood), Greenwood is a processor and distributor of industrial wood products. A major product category is treated plywood that is sold to boat manufacturers and the transportation industry.

The lawn, garden, pet and other segment reflects the business of the newly incorporated Jewett-Cameron Company (JCC), which is a manufacturer and distributor of specialty metal products and a wholesaler of wood products formerly conducted by JCLC. Wood products include fencing and landscape timbers, while metal products include dog kennels, proprietary gate support systems, perimeter fencing, and greenhouses. JCC uses contract manufacturers to make the specialty metal products. Some of the products that JCC distributes flow through the Company’s distribution center located in North Plains, Oregon, and some are shipped direct to the customer from the manufacturer. Primary customers are home centers and other retailers.

The seed processing and sales segment reflects the business of Jewett-Cameron Seed Company (JCSC). JCSC processes and distributes agricultural seed. Most of this segment’s sales come from selling seed to distributors with a lesser amount of sales derived from cleaning seed.

The industrial tools segment reflects the business of MSI-PRO (MSI). MSI imports and distributes products including pneumatic air tools, industrial clamps, and saw blades; that are primarily sold to retailers that in turn sell to contractors and end users.

RESULTS OF OPERATIONS

Three Months Ended November 30, 2014 and November 30, 2013

For the three months ended November 30, 2014, sales decreased $23,664 to $7,982,617 from $8,006,281 for the three months ended November 30, 2013.

Sales at Greenwood were $992,682 for the three months ended November 30, 2014 compared to sales of $1,457,246 for the three months ended November 30, 2013, which was a decrease of $464,564, or 32%. Demand for Greenwood’s products remained weak, as sales to boat manufactures continue to be severely affected by the downturn in the economy. Boat manufacturers continue to work down excess inventory accumulated over several years. In February 2014, the Company sold its excess inventory related to the marine industry in an arm’s length transaction. The Company does not anticipate a significant marine industry recovery in the near future. Nevertheless, the Company will maintain a readiness to participate in the marine segment when, and if, the market rebounds. Greenwood is continuing to develop new customer relationships and establish additional uses for its products. For the quarter, Greenwood had operating income of $18,068 compared to an operating loss of ($11,424) in the three months ended November 30, 2013.


	- 22 -

Sales at JCC were $5,888,909 for the three months ended November 30, 2014 compared to sales of $5,443,943 for the three months ended November 30, 2013, which was an increase of $444,966, or 8%. The increase in sales was primarily due to the Company’s efforts to obtain new business, including expanding its customer base through the addition of small and mid-sized customers. Operating income for JCC was $394,175 (excluding intercompany interest expense of $229,420) for the three months ended November 30, 2014, which was a decrease of $60,751 from the operating income of $454,926 (excluding intercompany interest expense of $196,009) for the three months ended November 30, 2013. Overall market competitiveness has increased and raw material prices remain high, which have resulted in lower margins. Overall, the operating results of JCC are seasonal with the first two quarters of the fiscal year being much slower than the final two quarters of the fiscal year.

Sales at JCSC were $704,894 for the three months ended November 30, 2014, compared to sales of $740,742 for the three months ended November 30, 2013. This represents a decrease of $35,848, or 5%, primarily due to increased competition in product seed sales.

Sales at MSI were $396,132 for the three months ended November 30, 2014 compared to sales of $364,350 for the three months ended November 30, 2013, which was an increase of $31,782, or 9%. The Company has consolidated its product offerings and has wound down the sales of certain of its lower margin products. Late in fiscal 2014, management decided to further narrow the Company’s product offerings, focusing on key specialty products with higher inventory turnover. Operating income for the quarter was $46,395 compared to operating income of $43,415 for the comparative quarter in the prior year, which is in line with the higher level of sales for the quarter.

Gross margin for the three month period ended November 30, 2014 was 23.4% compared to 23.1% for the three months ended November 30, 2013. The rise in gross margins in the current quarter was due to a favorable sales mix of higher margin metal products. However, higher raw material costs are restraining our overall margins.

The Company's income tax expense in the current period was $209,007 compared to $222,115 for the three months ended November 30, 2013. Net income for the three months ended November 30, 2014 was $327,787, or $0.12 per basic and diluted share, compared to net income of $332,579, or $0.11 per basic and diluted share, for the three months ended November 30, 2013. The net income per share was higher due to the lower weighted average number of common shares outstanding as a result of the Company’s share repurchases.

LIQUIDITY AND CAPITAL RESOURCES

As of November 30, 2014, the Company had working capital of $14,923,165 compared to working capital of $15,816,335 as of August 31, 2014, a decrease of $893,170. The decrease was largely due to the Company’s repurchase of common shares. Cash declined to $1,984,977, a decrease of $2,342,563, as the Company expended cash on the repurchase of shares and for the purchase of inventory. Accounts receivable rose to $2,720,614 from $2,442,928 due to the seasonal cycle of sales to customers and the related timing of cash receipts. Inventory increased by $1,590,622 and prepaid expenses, which are largely related to down payments for future inventory purchases, decreased by $192,557. Note receivable declined by $15,000 as the remaining balance of the note was repaid during the quarter. Accounts payable increased by $136,671 due to the seasonal cycle of payments to inventory suppliers. Accrued liabilities declined by $123,823. Litigation reserve declined by $6,661 as differences in interest rates resulted in a reduction in the amount reserved.

As of November 30, 2014, accounts receivable and inventory represented 82% of current assets and 72% of total assets. For the three months ended November 30, 2014, the accounts receivable collection period, or DSO, was 31 days compared to 25 days for the three months ended November 30, 2013. Inventory turnover to the three months ended November 30, 2014 was 148 days compared to 125 days for the three months ended November 30, 2013.

External sources of liquidity include a line of credit from U.S. Bank of $1,000,000. Previously the line of credit was $5,000,000, but in March 2014, the Company voluntarily elected to reduce the line of credit borrowing limit to $1,000,000. As of November 30, 2014, the Company had no borrowing balance leaving the entire amount available. Borrowing under the line of credit is secured by an assignment of accounts receivable and inventory. The interest rate is calculated solely on the one month LIBOR rate plus 175 basis points. As of November 30, 2014 the one month LIBOR rate plus 175 basis points was 1.90% (0.15% + 1.75%). The line of credit has certain financial covenants. The Company is in compliance with these covenants.


	- 23 -

The Company has been utilizing its cash position by repurchasing common shares under formal repurchase plans in order to increase shareholder value. On May 29, 2013, the Company announced the Board of Directors had authorized a new Rule 10b5-1 share repurchase plan to purchase for cancellation up to 400,000 common shares through the facilities of NASDAQ. This share repurchase plan commenced on June 3, 2013 and terminated on August 16, 2013. During the fiscal year ended August 31, 2013, a total of 192 common shares were repurchased under this plan. The total cost of the shares acquired was $2,304 at an average price of $12.00 per share.

On January 13, 2014, the Company announced the Board of Directors had authorized a Rule 10b5-1 share repurchase plan to purchase for cancellation up to 313,493 common shares through the facilities of NASDAQ. Transactions may involve Company insiders or their affiliates executed in compliance with the Company’s Insider Trading Policy. The share repurchase plan was effected in accordance with Rule 10b-18 under the U.S. Securities Exchange Act of 1934, which contains restrictions on the number of shares that may be purchased on a single day, subject to certain exceptions for block purchases, based on the average daily trading volumes ("ADTV") of the Company’s shares on NASDAQ. Purchases shall be limited to one “Block” purchase per week in lieu of the 25% of ADTV limitation for compliance with Rule 10b-18(b)(4). A “block” as defined under Rule 10b-18(a)(5) means a quantity of stock that, among other things, is at least 5,000 shares and has a purchase price of at least US$50,000. The share repurchase plan commenced on January 20, 2014 and terminated on March 24, 2014. A total of 313,493 common shares were repurchased under this plan. The total cost of the shares acquired was $3,055,591 at an average price of $9.75 per share.

On April 9, 2014, the Company announced the Board of Directors had authorized a share repurchase plan to purchase for cancellation up to 300,000 common shares through the facilities of NASDAQ under similar terms as the January 13, 2014 repurchase plan. This share repurchase plan commenced on April 14, 2014 and terminated on November 14, 2014. Under the Plan, the Company repurchased a total of 235,782 common shares at a cost of $2,494,654 which is an average price of $10.58 per share.

Business Risks

This quarterly report includes “forward–looking statements” as that term is defined in Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” “anticipates,” or “hopeful,” or the negative of those terms or other comparable terminology, or by discussions of strategy, plans or intentions. For example, this section contains numerous forward-looking statements. All forward-looking statements in this report are made based on management’s current expectations and estimates, which involve risks and uncertainties, including those described in the following paragraphs.

Risks Related to Our Common Stock

We may decide to acquire assets or enter into business combinations, which could be paid for, either wholly or partially with our common stock and if we decide to do this our current shareholders would experience dilution in their percentage of ownership.

Our Articles of Incorporation give our Board of Directors the right to enter into any contract without the approval of our shareholders. Therefore, our management could decide to make an investment (buy shares, loan money, etc.) without shareholder approval. If we acquire an asset or enter into a business combination, this could include exchanging a large amount of our common stock, which could dilute the ownership interest of present stockholders.

Future stock distributions could be structured in such a way as to be 1) diluting to our current shareholders or 2) could cause a change in control to new investors.

If we raise additional funds by selling more of our stock, the new stock may have rights, preferences or privileges senior to those of the rights of our existing stock. If common stock is issued in return for additional funds, the price per share could be lower than that paid by our current stockholders. The result of this would be a lessening of each present stockholder’s relative percentage interest in our company.

Our shareholders could experience significant dilution if we issue our authorized 10,000,000 preferred shares.


	- 24 -

The Company’s common shares currently trade within the NASDAQ Capital Market in the United States. The common shares also formerly traded on the Toronto Stock Exchange (“TSX”) in Canada until the Company voluntarily delisted from the TSX on October 11, 2012. The average daily trading volume of our common stock on NASDAQ was 4,087 shares for the three months ended November 30, 2014. With this limited trading volume, investors could find it difficult to purchase or sell our common stock.

Risks Related to Our Business

We could experience a decrease in the demand for our products resulting in lower sales volumes.

In the past we have at times experienced decreasing products sales with certain customers. The reasons for this can be generally attributed to: increased competition; general economic conditions; demand for products; and consumer interest rates. If economic conditions deteriorate or if consumer preferences change, we could experience a significant decrease in profitability.

If our top customers were lost, we could experience lower sales volumes.

For the three months ended November 30, 2014, our top ten customers represented 72% of our total sales. We would experience a significant decrease in sales and profitability and would have to cut back our operations, if these customers were lost and could not be replaced. Our top ten customers are in the U.S., Canada and Mexico and are primarily in the retail home improvement industry.

We could experience delays in the delivery of our products to our customers causing us to lose business.

We purchase our products from other vendors and a delay in shipment from these vendors to us could cause significant delays in our delivery to our customers. This could result in a decrease in sales orders to us and we would experience a loss in profitability.

We could lose our credit agreement and could result in our not being able to pay our creditors.

We have a line of credit with U.S. Bank in the amount of $1,000,000, of which $1,000,000 is available. We are currently in compliance with the requirements of our existing line of credit. If we lost this credit it could become impossible to pay some of our creditors on a timely basis.

If we fail to maintain an effective system of internal controls, we may not be able to detect fraud or report our financial results accurately, which could harm our business and we could be subject to regulatory scrutiny.

We have completed a management assessment of internal controls as prescribed by Section 404 of the Sarbanes-Oxley Act, which we were required to do in connection with our year ended August 31, 2014. Based on this process we did not identify any material weaknesses. Although we believe our internal controls are operating effectively, we cannot guarantee that in the future we will not identify any material weaknesses in connection with this ongoing process.

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Interest Rate Risk

The Company does not have any derivative financial instruments as of November 30, 2014. However, the Company is exposed to interest rate risk.

The Company’s interest income and expense are most sensitive to changes in the general level of U.S. interest rates. In this regard, changes in U.S. interest rates affect the interest earned on the Company’s cash as well as interest paid on debt.

The Company has a line of credit whose interest rate may fluctuate over time based on economic changes in the environment. The Company is subject to interest rate risk and could be subject to increased interest payments if market interest rates fluctuate. The Company does not expect any change in the interest rates to have a material adverse effect on the Company’s results from operations.

Foreign Currency Risk

The Company operates primarily in the United States. However, a relatively small amount of business is conducted in currencies other than U.S. dollars. Also, to the extent that the Company uses contract manufacturers in China, currency exchange rates can influence the Company’s purchasing costs.


	- 25 -

Item 4.

Controls and Procedures

Disclosure Controls and Procedures

Management of the Company, including the Chief Executive Officer and the Chief Financial Officer, have evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”). Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures are effective in ensuring that information required to be disclosed in our Exchange Act reports is (1) recorded, processed, summarized and reported in a timely manner, and (2) accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting that occurred during the Company’s most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Part II – OTHER INFORMATION

Item 1.

Legal Proceedings

One of our subsidiaries 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).


	- 26 -

In January 2013, the Company's subsidiary JC USA Inc. (formerly Jewett-Cameron Lumber Corporation) reached a settlement with the State of Oregon Department of Transportation in the Circuit Court of the State of Oregon for Washington County, Case No. C122901CV. Under the settlement agreement, the Company agreed to sell approximately 1.64 acres of land to the Department of Transportation for $410,000. The land had a cost basis of $56,148, and the Company recorded a gain on sale of property plant and equipment of $353,852 during the fiscal year ended August 31, 2013.

The Company does not know of any other material, active or pending legal proceedings against them; nor is the Company involved as a plaintiff in any other material proceeding or pending litigation. The Company knows of no other active or pending proceedings against anyone that might materially adversely affect an interest of the Company.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

The following table details the Company’s repurchase of its common shares during the quarter ended November 30, 2014.


Period	Total Number of Shares purchased	Average Price Paid per Share	Total number of shares purchased as part of publicly announced plans or programs ⁽¹⁾	Maximum Number of shares that may yet be purchased under the plans or programs

September	15,196	$ 9.88	132,009	167,991

October	7,464	$10.07	139,473	160,527

November	96,309	$11.08	235,782	- ⁽²⁾

Total	118,969	$10.86	235,782	-

⁽¹⁾

The Company announced a 10b-18 share repurchase plan on April 9, 2014. The Plan allowed for the repurchase of up to 300,000 common shares commencing April 14, 2014 and terminating on November 14, 2014, although the plan could be limited or terminated at any time without prior notice. A total of 116,813 common shares were repurchased under the plan during Q3 and Q4 of fiscal 2014 ended August 31, 2014.

⁽²⁾

The Plan terminated automatically on November 14, 2014.

Item 3.

Defaults Upon Senior Securities

---No Disclosure Required---

Item 4. Mine Safety Disclosures

---No Disclosure Required---

Item 5.

Other Information

---No Disclosure Required---


	- 27 -

Item 6.

Exhibits

3.1

Amended and Restated Articles of Incorporation of Jewett-Cameron Lumber Corporation

-= Filed as an exhibit to the 10-Q Quarterly Report filed on January 13, 2014 =-

3.2

Articles of Incorporation of Jewett-Cameron Company.

-= Filed as an exhibit to the 10-Q Quarterly Report filed on January 13, 2014 =-

31.1

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

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Jewett-Cameron Trading Company Ltd.

(Registrant)

January 14, 2015

“Donald M. Boone”

Donald M. Boone, President/CEO/Director

January 14, 2015

“Murray G. ,Smith”

Murray G. Smith, Chief Financial Officer


	- 28 -

EX-31.1 2 cfo302certification.htm CEO CERTIFICATION CFO 302 Certification

CERTIFICATIONS

I, Murray G. Smith, certify that:

I have reviewed this Quarterly Report on Form 10-Q of Jewett Cameron Trading Company Ltd;

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;

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;

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:

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;

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;

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

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

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):

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

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

Date:

January 14, 2015

By:

/s/ “Murray G. Smith”

Murray G. Smith,

Chief Financial Officer

EX-31.2 3 ceo302certification.htm CFO CERTIFICATION CEO 302 Certification

CERTIFICATIONS

I, Donald M. Boone, certify that:

I have reviewed this Quarterly Report on Form 10-Q of Jewett Cameron Trading Company Ltd;

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

Date:

January 14, 2015

By:

/s/ “Donald M. Boone”

Donald M. Boone,

Chief Executive Officer

EX-32.1 4 ceo906certification.htm CERTIFICATION OF CEO CEO 906 Certification

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE U.S. SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Jewett-Cameron Trading Company Ltd. (the “Company”) on Form 10-Q for the period ended November 30, 2014 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: January 14, 2015

Signed: /s/ “Donald M. Boone”

Donald M. Boone,

President and CEO

EX-32.2 5 cfo906certification.htm CERTIFICATION OF CFO CFO 906 Certification

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE U.S. SARBANES-OXLEY ACT OF 2002

(1)

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

(2)

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

Date: January 14, 2015

Signed: /s/ “Murray G. Smith”

Murray G. Smith,

Chief Financial Officer

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1.             NATURE OF OPERATIONS   Jewett-Cameron Trading Company Ltd. was incorporated in British Columbia on July 8, 1987 as a holding company for Jewett-Cameron Lumber Corporation (JCLC), incorporated September 1953. Jewett-Cameron Trading Company, Ltd. acquired all the shares of JCLC through a stock-for-stock exchange on July 13, 1987, and at that time JCLC became a wholly owned subsidiary. Effective September 1, 2013, the Company reorganized certain of its subsidiaries. JCLCs name was changed to JC USA Inc. (JC USA), and a new subsidiary, Jewett-Cameron Company (JCC), was incorporated.    JC USA has the following wholly owned subsidiaries: MSI-PRO Co. (MSI), incorporated April 1996, Jewett-Cameron Seed Company, (JCSC), incorporated October 2000, Greenwood Products, Inc. (Greenwood), incorporated February 2002, and Jewett-Cameron Company, incorporated September 2013. Jewett-Cameron Trading Company Ltd. and its subsidiaries (the Company) have no significant assets in Canada.   The Company, through its subsidiaries, operates out of facilities located in North Plains, Oregon. JCCs business consists of the manufacturing and distribution of specialty metal products and wholesale distribution of wood products to home centers and other retailers located primarily in the United States. Greenwood is a processor and distributor of industrial wood and other specialty building products principally to customers in the marine and transportation industries in the United States. MSI is an importer and distributor of pneumatic air tools and industrial clamps in the United States. JCSC is a processor and distributor of agricultural seeds in the United States. JC USA provides professional and administrative services, including accounting and credit services, to its subsidiary companies.   These unaudited financial statements are those of the Company and its wholly owned subsidiaries. In the opinion of management, the accompanying Consolidated Financial Statements of Jewett-Cameron Trading Company Ltd., contain all adjustments, consisting only of normal recurring adjustments, necessary to fairly state its financial position as of November 30, 2014 and August 31, 2014 and its results of operations and cash flows for the three month periods ended November 30, 2014 and November 30, 2013 in accordance with U.S. GAAP. Operating results for the three month period ended November 30, 2014 are not necessarily indicative of the results that may be experienced for the fiscal year ending August 31, 2015.

2.             SIGNIFICANT ACCOUNTING POLICIES   Generally accepted accounting principles   These consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America.    Principles of consolidation   These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, JC USA, JCC, MSI, JCSC, and Greenwood, all of which are incorporated under the laws of Oregon, U.S.A.   All inter-company balances and transactions have been eliminated upon consolidation.   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 Companys 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, 2014, cash was $1,984,977 compared to $4,327,540 at August 31, 2014.  At November 30, 2014 and August 31, 2014, 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:     <table border="0" cellspacing="0" cellpadding="0" width="650" style='width:487.6pt;border-collapse:collapse'> <tr style='height:1.0pt'> <td width="507" valign="top" style='width:380.4pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'>   </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> Minimum </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> Maximum </td> </tr> <tr style='height:1.0pt'> <td width="507" valign="top" style='width:380.4pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> Office equipment, expected useful lives in years </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> 3 </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> 7 </td> </tr> <tr style='height:1.0pt'> <td width="507" valign="top" style='width:380.4pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> Warehouse equipment, expected useful lives in years </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> 2 </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> 10 </td> </tr> <tr style='height:1.0pt'> <td width="507" valign="top" style='width:380.4pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> Buildings, expected useful lives in years </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> 5 </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> 30 </td> </tr> </table>         Intangibles   The Companys 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 39 months and 51 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 statement of operations transactions in a foreign currency are translated at rates that approximate those in effect at the time of translation.  Gains and losses from translation of foreign currency transactions into U.S. dollars are included in current results of operations.   Earnings per share   Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding in the period. Diluted earnings per common share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive common shares.   The earnings per share data for the three months ended November 30, 2014 and November 30, 2013 are as follows:     <table border="0" cellspacing="0" cellpadding="0" width="633" style='width:474.4pt;border-collapse:collapse'> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> 2014 </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> 2013 </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'> Net income </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $   327,787 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $   332,579 </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'> Basic weighted average number of common shares outstanding </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,688,942 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 3,134,936 </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'> Effect of dilutive securities </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'> Stock options </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 0 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 0 </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> Diluted weighted average number of common shares outstanding </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,688,942 </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 3,134,936 </td> </tr> </table>       Comprehensive income   The Company has no items of other comprehensive income in any year presented.  Therefore, net income presented in the consolidated statements of operations equals comprehensive income.   Stock-based compensation   All stock-based compensation is recognized as an expense in the financial statements and such costs are measured at the fair value of the award.   No options were granted during the quarter ended November 30, 2014, and there were no options outstanding on November 30, 2014.   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, 2014 and August 31, 2014 follows:     <table border="0" cellspacing="0" cellpadding="0" width="630" style='width:472.65pt;border-collapse:collapse'> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="151" colspan="2" valign="top" style='width:113.2pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> November 30, 2014 </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="152" colspan="2" valign="top" style='width:113.65pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> August 31, 2014 </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> Carrying </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Fair </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> Carrying </td> <td width="76" valign="top" style='width:57.05pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Fair </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> Amount </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> Value </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> Amount </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> Value </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Cash </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> $1,984,977 </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> $1,984,977 </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> $4,327,540 </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> $4,327,540 </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Accounts receivable, net of allowance </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,720,614 </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,720,614 </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,442,928 </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,442,928 </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Note receivable </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> 15,000 </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> 15,000 </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> Accounts payable and accrued liabilities </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 1,327,603 </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 1,327,603 </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 1,314,755 </td> <td width="76" valign="top" style='width:57.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 1,314,755 </td> </tr> </table>     The following table presents information about the assets that are measured at fair value on a recurring basis as of November 30, 2014, 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:     <table border="0" cellspacing="0" cellpadding="0" width="621" style='width:465.75pt;border-collapse:collapse'> <tr align="left"> <td width="35%" valign="bottom" style='width:35.84%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> November 30, 2014 </td> <td width="4%" valign="bottom" style='width:4.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> Quoted Prices in Active Markets (Level 1) </td> <td width="4%" valign="bottom" style='width:4.06%;padding:0pt 0pt 0pt 0pt'>   </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> Significant Other Observable Inputs (Level 2) </td> <td width="4%" valign="bottom" style='width:4.06%;padding:0pt 0pt 0pt 0pt'>   </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> Significant Unobservable Inputs (Level 3) </td> </tr> <tr align="left"> <td width="35%" valign="top" style='width:35.84%;padding:0pt 0pt 0pt 0pt'> Assets: </td> <td width="2%" valign="bottom" style='width:2.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="11%" valign="bottom" style='width:11.16%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'>   </td> <td width="4%" valign="bottom" style='width:4.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="11%" valign="bottom" style='width:11.14%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'>   </td> <td width="4%" valign="bottom" style='width:4.06%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.12%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="8%" valign="bottom" style='width:8.4%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'>   </td> <td width="4%" valign="bottom" style='width:4.06%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="11%" valign="bottom" style='width:11.12%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'>   </td> </tr> <tr align="left"> <td width="35%" valign="top" style='width:35.84%;background:white;padding:0pt 0pt 0pt 0pt'> Cash </td> <td width="2%" valign="bottom" style='width:2.02%;background:white;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;background:white;padding:0pt 0pt 0pt 0pt'> $ </td> <td width="11%" valign="bottom" style='width:11.16%;background:white;padding:0pt 0pt 0pt 0pt'> 1,984,977 </td> <td width="4%" valign="bottom" style='width:4.02%;background:white;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;background:white;padding:0pt 0pt 0pt 0pt'> $ </td> <td width="11%" valign="bottom" style='width:11.14%;background:white;padding:0pt 0pt 0pt 0pt'> 1,984,977 </td> <td width="4%" valign="bottom" style='width:4.06%;background:white;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.12%;background:white;padding:0pt 0pt 0pt 0pt'> $ </td> <td width="8%" valign="bottom" style='width:8.4%;background:white;padding:0pt 0pt 0pt 0pt'> </td> <td width="4%" valign="bottom" style='width:4.06%;background:white;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;background:white;padding:0pt 0pt 0pt 0pt'> $ </td> <td width="11%" valign="bottom" style='width:11.12%;background:white;padding:0pt 0pt 0pt 0pt'> </td> </tr> </table>     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, specialty metal products, and other specialty products and tools, when the products are shipped, title passes, and the ultimate collection is reasonably assured.  Revenue from the Company's seed operations is generated from seed processing, handling and storage services provided to seed growers, and by the sales of seed products.  Revenue from the provision of these services and products is recognized when the services have been performed, products sold and collection of the amounts is reasonably assured.   Reclassifications   Certain reclassifications have been made to prior years financial statements to conform to the classifications used in the current year.      Recent Accounting Pronouncements   Management has reviewed the new accounting guidance and determined that there is not a material impact on our financial statements.

3.             INVENTORY   A summary of inventory is as follows:     <table border="0" cellspacing="0" cellpadding="0" width="634" style='width:475.85pt;border-collapse:collapse'> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> November 30, 2014 </td> <td width="24" valign="top" style='width:18.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="101" valign="top" style='width:75.9pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> August 31, 2014 </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="101" valign="top" style='width:75.9pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="101" valign="top" style='width:75.9pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'> Wood products and metal products </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $   9,943,118 </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="101" valign="top" style='width:75.9pt;padding:0pt 5.4pt 0pt 5.4pt'> $  8,219,574 </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial tools </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 574,503 </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="101" valign="top" style='width:75.9pt;padding:0pt 5.4pt 0pt 5.4pt'> 665,563 </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'> Agricultural seed products </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 227,130 </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="101" valign="top" style='width:75.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 268,992 </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="101" valign="top" style='width:75.9pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $ 10,744,751 </td> <td width="24" valign="top" style='width:18.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="101" valign="top" style='width:75.9pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $  9,154,129 </td> </tr> </table>

4.             PROPERTY, PLANT AND EQUIPMENT   A summary of property, plant, and equipment is as follows:       <table border="0" cellspacing="0" cellpadding="0" width="636" style='width:477.0pt;border-collapse:collapse'> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> November 30, 2014 </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> August 31, 2014 </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Office equipment </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $      563,703 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $      562,423 </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Warehouse equipment </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 1,482,278 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 1,482,278 </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Buildings </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,688,616 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,688,616 </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Land </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 761,924 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 761,924 </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> 5,496,521 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> 5,495,241 </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Accumulated depreciation </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> (3,398,761) </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> (3,347,854) </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> Net book value </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $   2,097,760 </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $   2,147,387 </td> </tr> </table>   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.

5.             INTANGIBLE ASSETS   A summary of intangible assets is as follows:     <table border="0" cellspacing="0" cellpadding="0" width="630" style='width:472.5pt;border-collapse:collapse'> <tr style='height:8.85pt'> <td width="402" valign="top" style='width:301.5pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:8.85pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt;height:8.85pt'> November 30, 2014 </td> <td width="20" valign="top" style='width:15.25pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:8.85pt'>   </td> <td width="106" valign="top" style='width:79.25pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt;height:8.85pt'> August 31, 2014 </td> </tr> <tr style='height:12.6pt'> <td width="402" valign="top" style='width:301.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> Patent </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> $  850,000 </td> <td width="20" valign="top" style='width:15.25pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'>   </td> <td width="106" valign="top" style='width:79.25pt;border:none;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> $  850,000 </td> </tr> <tr style='height:11.95pt'> <td width="402" valign="top" style='width:301.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> Other </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> 43,655 </td> <td width="20" valign="top" style='width:15.25pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'>   </td> <td width="106" valign="top" style='width:79.25pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> 43,655 </td> </tr> <tr style='height:12.6pt'> <td width="402" valign="top" style='width:301.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> 893,655 </td> <td width="20" valign="top" style='width:15.25pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'>   </td> <td width="106" valign="top" style='width:79.25pt;border:none;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> 893,655 </td> </tr> <tr style='height:11.95pt'> <td width="402" valign="top" style='width:301.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> Accumulated amortization </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> (615,875) </td> <td width="20" valign="top" style='width:15.25pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'>   </td> <td width="106" valign="top" style='width:79.25pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'> (597,699) </td> </tr> <tr style='height:11.95pt'> <td width="402" valign="top" style='width:301.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'>   </td> <td width="20" valign="top" style='width:15.25pt;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'>   </td> <td width="106" valign="top" style='width:79.25pt;border:none;padding:0pt 5.4pt 0pt 5.4pt;height:11.95pt'>   </td> </tr> <tr style='height:12.6pt'> <td width="402" valign="top" style='width:301.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> Net book value </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> $  277,780 </td> <td width="20" valign="top" style='width:15.25pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'>   </td> <td width="106" valign="top" style='width:79.25pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:12.6pt'> $  295,956 </td> </tr> </table>

6.             DEFERRED INCOME TAXES   Deferred income tax liability as of November 30, 2014 of $64,689 (August 31, 2014 $60,972) reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

7.             BANK INDEBTEDNESS   There was no bank indebtedness under the Companys $1,000,000 line of credit as of November 30, 2014 or August 31, 2014.   Bank indebtedness, when it exists, is secured by an assignment of accounts receivable and inventory. Interest is calculated solely on the one month LIBOR rate plus 175 basis points.

8.             CAPITAL STOCK   Common Stock   Holders of common stock are entitled to one vote for each share held.  There are no restrictions that limit the Company's ability to pay dividends on its common stock.  The Company has not declared any dividends since incorporation.   Common Stock Split   The Company declared a two for one stock split of its common stock with a record date at the close of business on April 25, 2013. Shareholders received one additional common share for each common share held as of the record date. The stock split was effective as of May 2, 2013. Share and per share data have been retroactively adjusted to reflect the effects of the stock split.

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 1st quarter of fiscal 2015 ended November 30, 2014, the Company repurchased and cancelled a total of 118,969 common shares under a 10b5-1 share repurchase plan. The total cost was $1,292,477 at an average price of $10.86 per share. The premium paid to acquire these shares over their per share book value in the amount of $1,236,340 was recorded as a decrease to retained earnings.   During the 4th quarter of fiscal 2014 ended August 31, 2014, the Company repurchased and cancelled a total of 45,048 common shares under a 10b5-1 share repurchase plan. The total cost was $454,050 at an average price of $10.08 per share. The premium paid to acquire these shares over their per share book value in the amount of $432,794 was recorded as a decrease to retained earnings.   During the 3rd quarter of fiscal 2014 ended May 31, 2014, the Company repurchased and cancelled a total of 327,078 common shares under a 10b5-1 share repurchase plan. The total cost was $3,234,699 at an average price of $9.89 per share. The premium paid to acquire these shares over their per share book value in the amount of $3,080,365 was recorded as a decrease to retained earnings.   During the 2nd quarter of fiscal 2014 ended February 28, 2014, the Company repurchased and cancelled a total of 58,180 common shares under a 10b5-1 share repurchase plan. The total cost was $569,019 at an average price of $9.78 per share. The premium paid to acquire these shares over their per share book value in the amount of $541,564 was recorded as a decrease to retained earnings.

10.          STOCK OPTIONS   The Company has a stock option program under which stock options to purchase securities from the Company can be granted to directors and employees of the Company on terms and conditions acceptable to the regulatory authorities of Canada, notably the Ontario Securities Commission and the British Columbia Securities Commission.   Under the stock option program, stock options for up to 10% of the number of issued and outstanding common shares may be granted from time to time, provided that stock options in favor of any one individual may not exceed 5% of the issued and outstanding common shares.  No stock option granted under the stock option program is transferable by the optionee other than by will or the laws of descent and distribution, and each stock option is exercisable during the lifetime of the optionee only by such optionee.  Generally, no option can be for a term of more than 10 years from the date of the grant.   The exercise price of all stock options, granted under the stock option program, must be at least equal to the fair market value (subject to regulated discounts) of such common shares on the date of grant.  Options vest at the discretion of the Board of Directors.   The Company had no stock options outstanding as of November 30, 2014 and August 31, 2014.

11.          EMPLOYEE STOCK OWNERSHIP PLAN (ESOP)   The Company formerly sponsored an ESOP that covered all U.S. employees who were employed by the Company on August 31 of each year and who had 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 recorded compensation expense based on the market price of the Company's shares when they were allocated.  Any dividends on allocated ESOP shares were 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 Companys 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 was terminated, subject to the approval of the Internal Revenue Service.  No further contributions were made to the ESOP.  On October 18, 2013, the Internal Revenue Service issued a favorable determination letter for the termination of the ESOP, and the Plan has distributed the remaining assets to participants.   ESOP compensation expense was $Nil and $Nil for the fiscal years ended August 31, 2014 and 2013, respectively.  No shares were owned by the ESOP at August 31, 2014 or 2013.

12.          PENSION AND PROFIT-SHARING PLANS   The Company has a deferred compensation 401(k) plan for all employees with at least 12 months of service pending a semi-annual enrolment time.  The plan allows for a non-elective discretionary contribution based on the first $60,000 of eligible compensation. For the quarters ended November 30, 2014 and 2013 the 401(k) compensation expense was $33,778 and $47,754, respectively.

13.          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 courts 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 courts 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.   In July 2014, upon remand from the Oregon Supreme Court, the Oregon Court of Appeals has concluded that Greenwood Forest Products, Inc. as defendants are entitled to a new trial, and, as a consequence, 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 was for $1,187,137.  On August 7, 2014, the Company filed a petition with the Oregon Supreme Court for a review of the Oregon Court of Appeals notice. The petition requests the Oregon Supreme Court review the most recent ruling by the Oregon Court of Appeals, reverse the decision, and affirm the original judgment of the trial court. In December 2014, the Company received notice that the Oregon Supreme Court has accepted the case for review. As of the date of this filing, the potential exposure to the Company of this new ruling is $1.8 million.   During the year ended August 31, 2014, the Company recorded $26,716 of interest income due to the favorable difference in interest rates between the judgments. During the period ended November 30, 2014, the Company recorded $6,661 of interest income.   A summary of the litigation reserve is as follows:     <table border="0" cellspacing="0" cellpadding="0" width="617" style='width:463.05pt;border-collapse:collapse'> <tr align="left"> <td width="364" valign="top" style='width:272.85pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> November 30,                 2014 </td> <td width="24" valign="top" style='width:18.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="122" valign="top" style='width:91.2pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> August 31, 2014 </td> </tr> <tr align="left"> <td width="364" valign="top" style='width:272.85pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="122" valign="top" style='width:91.2pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="364" valign="top" style='width:272.85pt;padding:0pt 5.4pt 0pt 5.4pt'> Litigation loss </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $                  - </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="122" valign="top" style='width:91.2pt;padding:0pt 5.4pt 0pt 5.4pt'> $                  - </td> </tr> <tr align="left"> <td width="364" valign="top" style='width:272.85pt;padding:0pt 5.4pt 0pt 5.4pt'> Litigation reserve </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 117,387 </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="122" valign="top" style='width:91.2pt;padding:0pt 5.4pt 0pt 5.4pt'> 144,103 </td> </tr> <tr align="left"> <td width="364" valign="top" style='width:272.85pt;padding:0pt 5.4pt 0pt 5.4pt'> Interest expense </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="122" valign="top" style='width:91.2pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> </tr> <tr align="left"> <td width="364" valign="top" style='width:272.85pt;padding:0pt 5.4pt 0pt 5.4pt'> Interest income </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> (6,661) </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="122" valign="top" style='width:91.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> (26,716) </td> </tr> <tr align="left"> <td width="364" valign="top" style='width:272.85pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> Total </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $      110,726 </td> <td width="24" valign="top" style='width:18.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="122" valign="top" style='width:91.2pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $      117,387 </td> </tr> </table>     b)            At November 30, 2014 and August 31, 2014 the Company had an un-utilized line-of-credit of $1,000,000 (note 7).  The line-of-credit has certain financial covenants. The Company is in compliance with these covenants.

14.          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.   Effective September 1, 2013, the Company reorganized certain of its subsidiaries. The majority of fixed and intangible assets, and certain Corporate and administrative functions which were formerly contained within the Lawn, garden, pet and other reporting segment are now classified as Corporate and administrative.   Following is a summary of segmented information for the three month periods ended November 30:       <table border="0" cellspacing="0" cellpadding="0" width="630" style='width:472.5pt;border-collapse:collapse'> <tr style='height:13.5pt'> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:13.5pt'>   </td> <td width="120" valign="top" style='width:90.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:13.5pt'> 2014 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:13.5pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:13.5pt'> 2013 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Sales to unaffiliated customers: </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial wood products </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $      992,682 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $   1,457,246 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Lawn, garden, pet and other </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 5,888,909 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 5,443,943 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Seed processing and sales </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 704,894 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 740,742 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial tools and clamps </td> <td width="120" valign="top" style='width:90.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 396,132 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 364,350 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $   7,982,617 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $   8,006,281 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Income (loss) before income taxes: </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial wood products </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $        18,067 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $       (11,424) </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Lawn, garden, pet and other </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 164,755 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 258,917 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Seed processing and sales </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 89,245 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 73,648 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial tools and clamps </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 38,618 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 37,264 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Corporate and administrative </td> <td width="120" valign="top" style='width:90.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 226,109 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 196,289 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $      536,794 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $       554,694 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Identifiable assets: </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial wood products </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $   1,240,106 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $    1,440,281 </td> </tr> <tr style='height:9.0pt'> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:9.0pt'> Lawn, garden, pet and other </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:9.0pt'> 11,591,435 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:9.0pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:9.0pt'> 8,929,943 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Seed processing and sales </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 375,076 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 196,819 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial tools and clamps </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 686,540 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 616,992 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Corporate and administrative </td> <td width="120" valign="top" style='width:90.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 4,843,877 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 11,049,258 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $  18,737,034 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $  22,233,293 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Depreciation and amortization: </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial wood products </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $             245 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $              245 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Lawn, garden, pet and other </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 12,957 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 10,101 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Seed processing and sales </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,736 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 3,450 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial tools and clamps </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 700 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 1,904 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Corporate and administrative </td> <td width="120" valign="top" style='width:90.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 52,445 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 54,319 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $        69,083 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $        70,019 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Capital expenditures: </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial wood products </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $                 - </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $                  - </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Lawn, garden, pet and other </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Seed processing and sales </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial tools and clamps </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Corporate and administrative </td> <td width="120" valign="top" style='width:90.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 1,280 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 57,918 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>  $         1,280 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $        57,918 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Interest expense: </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Lawn, garden, pet and other </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $                 - </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $                  - </td> </tr> </table>       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:     <table border="0" cellspacing="0" cellpadding="0" width="630" style='width:472.5pt;border-collapse:collapse'> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 2014 </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 2013 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Sales </td> <td width="120" valign="top" style='width:90.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $   3,651,188 </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="114" valign="top" style='width:85.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $   3,314,699 </td> </tr> </table>     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:     <table border="0" cellspacing="0" cellpadding="0" width="630" style='width:472.5pt;border-collapse:collapse'> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 2014 </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 2013 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="114" valign="top" style='width:85.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> United States </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $  7,608,352 </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="114" valign="top" style='width:85.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $  7,399,773 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Canada </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 308,453 </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="114" valign="top" style='width:85.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 137,935 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Mexico/Latin America </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 65,812 </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="114" valign="top" style='width:85.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 379,032 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Europe </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="114" valign="top" style='width:85.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 89,541 </td> </tr> </table>     All of the Companys significant identifiable assets were located in the United States as of November 30, 2014 and 2013.

15.          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, 2014, two customers accounted for accounts receivable greater than 10% of total accounts receivable at 55%. At November 30, 2013, two customers accounted for accounts receivable greater than 10% of total accounts receivable at 38%. 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, 2014, there were three suppliers that each accounted for greater than 10% of total purchases, and the aggregate purchases amounted to $5,465,620. For the three months ended November 30, 2013, there were three suppliers that each accounted for greater than 10% of total purchases, and the aggregate purchases amounted to $2,605,730.

16.          SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS   Certain cash payments for the three months ended November 30 are summarized as follows:     <table border="0" cellspacing="0" cellpadding="0" width="628" style='width:470.7pt;border-collapse:collapse'> <tr align="left"> <td width="414" valign="top" style='width:310.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 2014 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="94" valign="top" style='width:70.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 2013 </td> </tr> <tr align="left"> <td width="414" valign="top" style='width:310.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="94" valign="top" style='width:70.2pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="414" valign="top" style='width:310.5pt;padding:0pt 5.4pt 0pt 5.4pt'> Cash paid during the periods for: </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="94" valign="top" style='width:70.2pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="414" valign="top" style='width:310.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   Interest </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $          0 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="94" valign="top" style='width:70.2pt;padding:0pt 5.4pt 0pt 5.4pt'> $           0 </td> </tr> <tr align="left"> <td width="414" valign="top" style='width:310.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   Income taxes </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $          0 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="94" valign="top" style='width:70.2pt;padding:0pt 5.4pt 0pt 5.4pt'> $           0 </td> </tr> </table>   There were no non-cash investing or financing activities during the periods presented.

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

Principles of consolidation   These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, JC USA, JCC, MSI, JCSC, and Greenwood, all of which are incorporated under the laws of Oregon, U.S.A.   All inter-company balances and transactions have been eliminated upon consolidation.

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 Companys 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, 2014, cash was $1,984,977 compared to $4,327,540 at August 31, 2014.  At November 30, 2014 and August 31, 2014, 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:     <table border="0" cellspacing="0" cellpadding="0" width="650" style='width:487.6pt;border-collapse:collapse'> <tr style='height:1.0pt'> <td width="507" valign="top" style='width:380.4pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'>   </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> Minimum </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> Maximum </td> </tr> <tr style='height:1.0pt'> <td width="507" valign="top" style='width:380.4pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> Office equipment, expected useful lives in years </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> 3 </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> 7 </td> </tr> <tr style='height:1.0pt'> <td width="507" valign="top" style='width:380.4pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> Warehouse equipment, expected useful lives in years </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> 2 </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> 10 </td> </tr> <tr style='height:1.0pt'> <td width="507" valign="top" style='width:380.4pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> Buildings, expected useful lives in years </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> 5 </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> 30 </td> </tr> </table>

Intangibles   The Companys 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 39 months and 51 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 statement of operations transactions in a foreign currency are translated at rates that approximate those in effect at the time of translation.  Gains and losses from translation of foreign currency transactions into U.S. dollars are included in current results of operations.

Earnings per share   Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding in the period. Diluted earnings per common share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive common shares.   The earnings per share data for the three months ended November 30, 2014 and November 30, 2013 are as follows:     <table border="0" cellspacing="0" cellpadding="0" width="633" style='width:474.4pt;border-collapse:collapse'> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> 2014 </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> 2013 </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'> Net income </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $   327,787 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $   332,579 </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'> Basic weighted average number of common shares outstanding </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,688,942 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 3,134,936 </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'> Effect of dilutive securities </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'> Stock options </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 0 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 0 </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> Diluted weighted average number of common shares outstanding </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,688,942 </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 3,134,936 </td> </tr> </table>

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

Stock-based compensation   All stock-based compensation is recognized as an expense in the financial statements and such costs are measured at the fair value of the award.   No options were granted during the quarter ended November 30, 2014, and there were no options outstanding on November 30, 2014.

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, 2014 and August 31, 2014 follows:     <table border="0" cellspacing="0" cellpadding="0" width="630" style='width:472.65pt;border-collapse:collapse'> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="151" colspan="2" valign="top" style='width:113.2pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> November 30, 2014 </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="152" colspan="2" valign="top" style='width:113.65pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> August 31, 2014 </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> Carrying </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Fair </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> Carrying </td> <td width="76" valign="top" style='width:57.05pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Fair </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> Amount </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> Value </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> Amount </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> Value </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Cash </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> $1,984,977 </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> $1,984,977 </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> $4,327,540 </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> $4,327,540 </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Accounts receivable, net of allowance </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,720,614 </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,720,614 </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,442,928 </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,442,928 </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Note receivable </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> 15,000 </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> 15,000 </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> Accounts payable and accrued liabilities </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 1,327,603 </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 1,327,603 </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 1,314,755 </td> <td width="76" valign="top" style='width:57.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 1,314,755 </td> </tr> </table>     The following table presents information about the assets that are measured at fair value on a recurring basis as of November 30, 2014, 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:     <table border="0" cellspacing="0" cellpadding="0" width="621" style='width:465.75pt;border-collapse:collapse'> <tr align="left"> <td width="35%" valign="bottom" style='width:35.84%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> November 30, 2014 </td> <td width="4%" valign="bottom" style='width:4.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> Quoted Prices in Active Markets (Level 1) </td> <td width="4%" valign="bottom" style='width:4.06%;padding:0pt 0pt 0pt 0pt'>   </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> Significant Other Observable Inputs (Level 2) </td> <td width="4%" valign="bottom" style='width:4.06%;padding:0pt 0pt 0pt 0pt'>   </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> Significant Unobservable Inputs (Level 3) </td> </tr> <tr align="left"> <td width="35%" valign="top" style='width:35.84%;padding:0pt 0pt 0pt 0pt'> Assets: </td> <td width="2%" valign="bottom" style='width:2.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="11%" valign="bottom" style='width:11.16%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'>   </td> <td width="4%" valign="bottom" style='width:4.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="11%" valign="bottom" style='width:11.14%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'>   </td> <td width="4%" valign="bottom" style='width:4.06%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.12%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="8%" valign="bottom" style='width:8.4%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'>   </td> <td width="4%" valign="bottom" style='width:4.06%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="11%" valign="bottom" style='width:11.12%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'>   </td> </tr> <tr align="left"> <td width="35%" valign="top" style='width:35.84%;background:white;padding:0pt 0pt 0pt 0pt'> Cash </td> <td width="2%" valign="bottom" style='width:2.02%;background:white;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;background:white;padding:0pt 0pt 0pt 0pt'> $ </td> <td width="11%" valign="bottom" style='width:11.16%;background:white;padding:0pt 0pt 0pt 0pt'> 1,984,977 </td> <td width="4%" valign="bottom" style='width:4.02%;background:white;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;background:white;padding:0pt 0pt 0pt 0pt'> $ </td> <td width="11%" valign="bottom" style='width:11.14%;background:white;padding:0pt 0pt 0pt 0pt'> 1,984,977 </td> <td width="4%" valign="bottom" style='width:4.06%;background:white;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.12%;background:white;padding:0pt 0pt 0pt 0pt'> $ </td> <td width="8%" valign="bottom" style='width:8.4%;background:white;padding:0pt 0pt 0pt 0pt'> </td> <td width="4%" valign="bottom" style='width:4.06%;background:white;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;background:white;padding:0pt 0pt 0pt 0pt'> $ </td> <td width="11%" valign="bottom" style='width:11.12%;background:white;padding:0pt 0pt 0pt 0pt'> </td> </tr> </table>     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, specialty metal products, and other specialty products and tools, when the products are shipped, title passes, and the ultimate collection is reasonably assured.  Revenue from the Company's seed operations is generated from seed processing, handling and storage services provided to seed growers, and by the sales of seed products.  Revenue from the provision of these services and products is recognized when the services have been performed, products sold and collection of the amounts is reasonably assured.

Reclassifications   Certain reclassifications have been made to prior years financial statements to conform to the classifications used in the current year.

Recent Accounting Pronouncements   Management has reviewed the new accounting guidance and determined that there is not a material impact on our financial statements.

<table border="0" cellspacing="0" cellpadding="0" width="650" style='width:487.6pt;border-collapse:collapse'> <tr style='height:1.0pt'> <td width="507" valign="top" style='width:380.4pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'>   </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> Minimum </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> Maximum </td> </tr> <tr style='height:1.0pt'> <td width="507" valign="top" style='width:380.4pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> Office equipment, expected useful lives in years </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> 3 </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> 7 </td> </tr> <tr style='height:1.0pt'> <td width="507" valign="top" style='width:380.4pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> Warehouse equipment, expected useful lives in years </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> 2 </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> 10 </td> </tr> <tr style='height:1.0pt'> <td width="507" valign="top" style='width:380.4pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> Buildings, expected useful lives in years </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> 5 </td> <td width="71" valign="top" style='width:53.6pt;padding:0pt 5.4pt 0pt 5.4pt;height:1.0pt'> 30 </td> </tr> </table>

<table border="0" cellspacing="0" cellpadding="0" width="633" style='width:474.4pt;border-collapse:collapse'> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> 2014 </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> 2013 </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'> Net income </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $   327,787 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $   332,579 </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'> Basic weighted average number of common shares outstanding </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,688,942 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 3,134,936 </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'> Effect of dilutive securities </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'> Stock options </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 0 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 0 </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="399" valign="top" style='width:298.9pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> Diluted weighted average number of common shares outstanding </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,688,942 </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 3,134,936 </td> </tr> </table>

<table border="0" cellspacing="0" cellpadding="0" width="630" style='width:472.65pt;border-collapse:collapse'> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="151" colspan="2" valign="top" style='width:113.2pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> November 30, 2014 </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="152" colspan="2" valign="top" style='width:113.65pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> August 31, 2014 </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> Carrying </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Fair </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> Carrying </td> <td width="76" valign="top" style='width:57.05pt;border:none;border-top:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Fair </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> Amount </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> Value </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> Amount </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> Value </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Cash </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> $1,984,977 </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> $1,984,977 </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> $4,327,540 </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> $4,327,540 </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Accounts receivable, net of allowance </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,720,614 </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,720,614 </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,442,928 </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,442,928 </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Note receivable </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> <td width="16" valign="top" style='width:11.8pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;padding:0pt 5.4pt 0pt 5.4pt'> 15,000 </td> <td width="76" valign="top" style='width:57.05pt;padding:0pt 5.4pt 0pt 5.4pt'> 15,000 </td> </tr> <tr align="left"> <td width="312" valign="top" style='width:234.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> Accounts payable and accrued liabilities </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 1,327,603 </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 1,327,603 </td> <td width="16" valign="top" style='width:11.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="75" valign="top" style='width:56.6pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 1,314,755 </td> <td width="76" valign="top" style='width:57.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 1,314,755 </td> </tr> </table>

<table border="0" cellspacing="0" cellpadding="0" width="621" style='width:465.75pt;border-collapse:collapse'> <tr align="left"> <td width="35%" valign="bottom" style='width:35.84%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> November 30, 2014 </td> <td width="4%" valign="bottom" style='width:4.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> Quoted Prices in Active Markets (Level 1) </td> <td width="4%" valign="bottom" style='width:4.06%;padding:0pt 0pt 0pt 0pt'>   </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> Significant Other Observable Inputs (Level 2) </td> <td width="4%" valign="bottom" style='width:4.06%;padding:0pt 0pt 0pt 0pt'>   </td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'> Significant Unobservable Inputs (Level 3) </td> </tr> <tr align="left"> <td width="35%" valign="top" style='width:35.84%;padding:0pt 0pt 0pt 0pt'> Assets: </td> <td width="2%" valign="bottom" style='width:2.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="11%" valign="bottom" style='width:11.16%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'>   </td> <td width="4%" valign="bottom" style='width:4.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="11%" valign="bottom" style='width:11.14%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'>   </td> <td width="4%" valign="bottom" style='width:4.06%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.12%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="8%" valign="bottom" style='width:8.4%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'>   </td> <td width="4%" valign="bottom" style='width:4.06%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;padding:0pt 0pt 0pt 0pt'>   </td> <td width="11%" valign="bottom" style='width:11.12%;border:none;border-top:solid black 1.0pt;padding:0pt 0pt 0pt 0pt'>   </td> </tr> <tr align="left"> <td width="35%" valign="top" style='width:35.84%;background:white;padding:0pt 0pt 0pt 0pt'> Cash </td> <td width="2%" valign="bottom" style='width:2.02%;background:white;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;background:white;padding:0pt 0pt 0pt 0pt'> $ </td> <td width="11%" valign="bottom" style='width:11.16%;background:white;padding:0pt 0pt 0pt 0pt'> 1,984,977 </td> <td width="4%" valign="bottom" style='width:4.02%;background:white;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;background:white;padding:0pt 0pt 0pt 0pt'> $ </td> <td width="11%" valign="bottom" style='width:11.14%;background:white;padding:0pt 0pt 0pt 0pt'> 1,984,977 </td> <td width="4%" valign="bottom" style='width:4.06%;background:white;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.12%;background:white;padding:0pt 0pt 0pt 0pt'> $ </td> <td width="8%" valign="bottom" style='width:8.4%;background:white;padding:0pt 0pt 0pt 0pt'> </td> <td width="4%" valign="bottom" style='width:4.06%;background:white;padding:0pt 0pt 0pt 0pt'>   </td> <td width="2%" valign="bottom" style='width:2.02%;background:white;padding:0pt 0pt 0pt 0pt'> $ </td> <td width="11%" valign="bottom" style='width:11.12%;background:white;padding:0pt 0pt 0pt 0pt'> </td> </tr> </table>

<table border="0" cellspacing="0" cellpadding="0" width="634" style='width:475.85pt;border-collapse:collapse'> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> November 30, 2014 </td> <td width="24" valign="top" style='width:18.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="101" valign="top" style='width:75.9pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> August 31, 2014 </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="101" valign="top" style='width:75.9pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="101" valign="top" style='width:75.9pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'> Wood products and metal products </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $   9,943,118 </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="101" valign="top" style='width:75.9pt;padding:0pt 5.4pt 0pt 5.4pt'> $  8,219,574 </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial tools </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 574,503 </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="101" valign="top" style='width:75.9pt;padding:0pt 5.4pt 0pt 5.4pt'> 665,563 </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'> Agricultural seed products </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 227,130 </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="101" valign="top" style='width:75.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 268,992 </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="101" valign="top" style='width:75.9pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="407" valign="top" style='width:305.45pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $ 10,744,751 </td> <td width="24" valign="top" style='width:18.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="101" valign="top" style='width:75.9pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $  9,154,129 </td> </tr> </table>

<table border="0" cellspacing="0" cellpadding="0" width="636" style='width:477.0pt;border-collapse:collapse'> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> November 30, 2014 </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> August 31, 2014 </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Office equipment </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $      563,703 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $      562,423 </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Warehouse equipment </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 1,482,278 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 1,482,278 </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Buildings </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,688,616 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,688,616 </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Land </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 761,924 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 761,924 </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> 5,496,521 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> 5,495,241 </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Accumulated depreciation </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> (3,398,761) </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> (3,347,854) </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="408" valign="top" style='width:306.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> Net book value </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $   2,097,760 </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $   2,147,387 </td> </tr> </table>

<table border="0" cellspacing="0" cellpadding="0" width="617" style='width:463.05pt;border-collapse:collapse'> <tr align="left"> <td width="364" valign="top" style='width:272.85pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> November 30,                 2014 </td> <td width="24" valign="top" style='width:18.0pt;border:none;border-top:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="122" valign="top" style='width:91.2pt;border-top:double windowtext 1.5pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0pt 5.4pt 0pt 5.4pt'> August 31, 2014 </td> </tr> <tr align="left"> <td width="364" valign="top" style='width:272.85pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="122" valign="top" style='width:91.2pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="364" valign="top" style='width:272.85pt;padding:0pt 5.4pt 0pt 5.4pt'> Litigation loss </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $                  - </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="122" valign="top" style='width:91.2pt;padding:0pt 5.4pt 0pt 5.4pt'> $                  - </td> </tr> <tr align="left"> <td width="364" valign="top" style='width:272.85pt;padding:0pt 5.4pt 0pt 5.4pt'> Litigation reserve </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 117,387 </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="122" valign="top" style='width:91.2pt;padding:0pt 5.4pt 0pt 5.4pt'> 144,103 </td> </tr> <tr align="left"> <td width="364" valign="top" style='width:272.85pt;padding:0pt 5.4pt 0pt 5.4pt'> Interest expense </td> <td width="108" valign="top" style='width:81.0pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="122" valign="top" style='width:91.2pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> </tr> <tr align="left"> <td width="364" valign="top" style='width:272.85pt;padding:0pt 5.4pt 0pt 5.4pt'> Interest income </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> (6,661) </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="122" valign="top" style='width:91.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> (26,716) </td> </tr> <tr align="left"> <td width="364" valign="top" style='width:272.85pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> Total </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $      110,726 </td> <td width="24" valign="top" style='width:18.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="122" valign="top" style='width:91.2pt;border:none;border-bottom:double windowtext 1.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $      117,387 </td> </tr> </table>

<table border="0" cellspacing="0" cellpadding="0" width="630" style='width:472.5pt;border-collapse:collapse'> <tr style='height:13.5pt'> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:13.5pt'>   </td> <td width="120" valign="top" style='width:90.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:13.5pt'> 2014 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:13.5pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:13.5pt'> 2013 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Sales to unaffiliated customers: </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial wood products </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $      992,682 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $   1,457,246 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Lawn, garden, pet and other </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 5,888,909 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 5,443,943 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Seed processing and sales </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 704,894 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 740,742 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial tools and clamps </td> <td width="120" valign="top" style='width:90.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 396,132 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 364,350 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $   7,982,617 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $   8,006,281 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Income (loss) before income taxes: </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial wood products </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $        18,067 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $       (11,424) </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Lawn, garden, pet and other </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 164,755 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 258,917 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Seed processing and sales </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 89,245 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 73,648 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial tools and clamps </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 38,618 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 37,264 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Corporate and administrative </td> <td width="120" valign="top" style='width:90.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 226,109 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 196,289 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $      536,794 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $       554,694 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Identifiable assets: </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial wood products </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $   1,240,106 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $    1,440,281 </td> </tr> <tr style='height:9.0pt'> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:9.0pt'> Lawn, garden, pet and other </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:9.0pt'> 11,591,435 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt;height:9.0pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:9.0pt'> 8,929,943 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Seed processing and sales </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 375,076 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 196,819 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial tools and clamps </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 686,540 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 616,992 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Corporate and administrative </td> <td width="120" valign="top" style='width:90.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 4,843,877 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 11,049,258 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $  18,737,034 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $  22,233,293 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Depreciation and amortization: </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial wood products </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $             245 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $              245 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Lawn, garden, pet and other </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 12,957 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 10,101 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Seed processing and sales </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 2,736 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 3,450 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial tools and clamps </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 700 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 1,904 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Corporate and administrative </td> <td width="120" valign="top" style='width:90.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 52,445 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 54,319 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $        69,083 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $        70,019 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Capital expenditures: </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial wood products </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $                 - </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $                  - </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Lawn, garden, pet and other </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Seed processing and sales </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Industrial tools and clamps </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Corporate and administrative </td> <td width="120" valign="top" style='width:90.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 1,280 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 57,918 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>  $         1,280 </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $        57,918 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Interest expense: </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Lawn, garden, pet and other </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $                 - </td> <td width="21" valign="top" style='width:15.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="117" valign="top" style='width:88.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $                  - </td> </tr> </table>

<table border="0" cellspacing="0" cellpadding="0" width="630" style='width:472.5pt;border-collapse:collapse'> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 2014 </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 2013 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Sales </td> <td width="120" valign="top" style='width:90.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $   3,651,188 </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="114" valign="top" style='width:85.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'> $   3,314,699 </td> </tr> </table>

<table border="0" cellspacing="0" cellpadding="0" width="630" style='width:472.5pt;border-collapse:collapse'> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 2014 </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 2013 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="120" valign="top" style='width:90.0pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="114" valign="top" style='width:85.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> United States </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> $  7,608,352 </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="114" valign="top" style='width:85.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $  7,399,773 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Canada </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 308,453 </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="114" valign="top" style='width:85.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 137,935 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Mexico/Latin America </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 65,812 </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="114" valign="top" style='width:85.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 379,032 </td> </tr> <tr align="left"> <td width="372" valign="top" style='width:279.0pt;padding:0pt 5.4pt 0pt 5.4pt'> Europe </td> <td width="120" valign="top" style='width:90.0pt;padding:0pt 5.4pt 0pt 5.4pt'> - </td> <td width="24" valign="top" style='width:18.0pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="114" valign="top" style='width:85.5pt;padding:0pt 5.4pt 0pt 5.4pt'> 89,541 </td> </tr> </table>

<table border="0" cellspacing="0" cellpadding="0" width="628" style='width:470.7pt;border-collapse:collapse'> <tr align="left"> <td width="414" valign="top" style='width:310.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 2014 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="94" valign="top" style='width:70.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'> 2013 </td> </tr> <tr align="left"> <td width="414" valign="top" style='width:310.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="94" valign="top" style='width:70.2pt;border:none;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="414" valign="top" style='width:310.5pt;padding:0pt 5.4pt 0pt 5.4pt'> Cash paid during the periods for: </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="94" valign="top" style='width:70.2pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> </tr> <tr align="left"> <td width="414" valign="top" style='width:310.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   Interest </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $          0 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="94" valign="top" style='width:70.2pt;padding:0pt 5.4pt 0pt 5.4pt'> $           0 </td> </tr> <tr align="left"> <td width="414" valign="top" style='width:310.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   Income taxes </td> <td width="102" valign="top" style='width:76.5pt;padding:0pt 5.4pt 0pt 5.4pt'> $          0 </td> <td width="18" valign="top" style='width:13.5pt;padding:0pt 5.4pt 0pt 5.4pt'>   </td> <td width="94" valign="top" style='width:70.2pt;padding:0pt 5.4pt 0pt 5.4pt'> $           0 </td> </tr> </table>

British Columbia 1987-07-08 3 7 2 10 5 30

327787

332579

2688942

3134936

2688942

3134936

4327540

2720614

2442928

15000

1327603

1314755

1984977

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Common Stock Split The Company declared a two for one stock split of its common stock with a record date at the close of business on April 25, 2013. Shareholders received one additional common share for each common share held as of the record date. The stock split was effective as of May 2, 2013. Share and per share data have been retroactively adjusted to reflect the effects of the stock split.

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Significant Accounting Policies: Property, Plant and Equipment: Property, Plant and Equipment, Estimated Useful Lives (Tables) link:presentationLink link:definitionLink link:calculationLink 000230 - Disclosure - 2. Significant Accounting Policies: Generally Accepted Accounting Principles (Policies) link:presentationLink link:definitionLink link:calculationLink EX-101.CAL 8 jctcf-20141130_cal.xml EX-101.DEF 9 jctcf-20141130_def.xml EX-101.LAB 10 jctcf-20141130_lab.xml Industrial tools and clamps, depreciation and amortization Breakdown of depreciation and amortization details Lawn, garden, pet and other, assets Breakdown of assets details Warehouse equipment, expected useful lives in years Warehouse equipment, expected useful lives in years Currency and Foreign Exchange Intangibles 12. Pension and Profit-sharing Plans 9. Cancellation of Capital Stock Discussion of stock repurchased and cancelled during the reporting periods. Gain on sale of equipment Gain on sale of equipment Income statement Common Stock, Shares Issued Preferred Stock, Shares Outstanding Entity Central Index Key Document Period End Date Document Type Industrial wood products, sales Breakdown of sales details Land Land Generally Accepted Accounting Principles 15. Concentrations Statement of Stockholders' Equity Interest and other income Common Stock, Shares Outstanding Preferred Stock, Shares Issued Amendment Flag Europe sales Area of sales by country Industrial tools and clamps, income before tax Breakdown of income before tax details Line of Credit Facility, Current Borrowing Capacity Line of Credit Facility, Current Borrowing Capacity Schedule of Segment Reporting Information, by Segment Inventory 11. Employee Stock Ownership Plan ("esop") 4. Property, Plant and Equipment 3. Inventory Shares repurchased and cancelled, value Shares repurchased by the company and cancelled Additional paid-in capital {1} Additional paid-in capital Number of Shares Net cash used in investing activities (Increase) decrease in inventory Deferred income taxes Basic earnings per common share GROSS PROFIT GROSS PROFIT Total stockholders' equity Total stockholders' equity Prepaid income taxes Statement of financial position Entity Filer Category Corporate and administrative depreciation and amortization Breakdown of depreciation and amortization details Identifiable assets Identifiable assets Identificable assets Finite-Lived Intangible Assets, Gross, Total Finite-Lived Intangible Assets, Gross, Total Office equipment Equipment detail. Price in active market, level 1 Price in active market, level 1 Fair Value, Option, Quantitative Disclosures Income Taxes 6. Deferred Income Taxes Statement Diluted earnings per common share Wages and employee benefits Total current liabilities Accounts payable Intangible assets, net Document Fiscal Year Focus Entity Common Stock, Shares Outstanding United States sales Area of sales by country Industrial wood products, income before tax Breakdown of income detail Intangible Assets, Current, Total Intangible Assets, Current, Total Tables/Schedules Policies CASH FLOWS FROM INVESTING ACTIVITIES Weighted average number of common shares outstanding: Basic SALES Revenue, Net, Total Current liabilities Entity Incorporation, Date of Incorporation Entity Well-known Seasoned Issuer Seed processing and sales, assets Breakdown of assets detail Cumulative Effect on Retained Earnings, before Tax Wood products and metal products Inventory detail. Impairment of Long-lived Assets and Long-lived Assets To Be Disposed of 1. Nature of Operations Net cash used by operating activities (Increase) decrease in prepaid expenses Decrease in prepaid income taxes Income before income taxes Total liabilities and stockholders' equity Total liabilities and stockholders' equity LIABILITIES AND STOCKHOLDERS' EQUITY Lawn, garden, pet and other, sales Breakdown of sales details Estimated Litigation Liability, Noncurrent Estimated Litigation Liability, Noncurrent Legal Matters and Contingencies Reclassifications Notes Net income {1} Net income Additional paid-in capital Total assets Total assets Concentration, volume of purchases Concentration, volume of purchases Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest, Total Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest, Total Corporate and administrative income before tax Breakdown of income before tax details Other Finite-Lived Intangible Assets, Gross Property, Plant, and Equipment and Intangible Assets Shipping and Handling Costs Shares repurchased and cancelled, shares Shares repurchased by the company and cancelled Retained earnings {1} Retained earnings Net decrease in cash Net cash used in financing activities Purchase of property, plant and equipment Purchase of property, plant and equipment CASH FLOWS FROM OPERATING ACTIVITIES OTHER ITEMS COST OF SALES Authorized: 21,567,564 common shares, without par value, 10,000,000 preferred shares, without par value. Issued 2,585,661 common shares (August 31, 2014 - 2,704,630) Stockholders' equity Total current assets Total current assets ASSETS Entity Public Float Industrial wood products, depreciation and amortization Breakdown of depreciation and amortization detail Warehouse equipment Equipment detail. Dilutive Securities, Effect on Basic Earnings Per Share Range Recent Accounting Pronouncements Statement {1} Statement Proceeds from sale of equipment Decrease in note receivable Net income Net income Net income Document Fiscal Period Focus Interest Paid Concentration Risk, Customer Canada sales Area of sales by country Lawn, garden, pet and other, income before tax Breakdown of income details Fair Value, Assets Measured on Recurring Basis Stock-based Compensation Asset Retirement Obligations Accounts Receivable Equity Component CASH FLOWS FROM FINANCING ACTIVITIES Interest income on litigation Interest income on litigation Statement of cash flows Total other items Common Stock, Shares Authorized Total liabilities Total liabilities Entity Incorporation, State Country Name Entity Voluntary Filers Document and Entity Information: Industrial tools and clamps, assets Breakdown of asset details Industrial tools Inventory detail. Weighted Average Number of Shares Issued, Basic Weighted Average Number of Shares Issued, Basic Schedule of Cash Flow, Supplemental Disclosures Financial Instruments Preferred Stock, Par Value Accrued liabilities Prepaid expenses Lawn, garden, pet and other, depreciation and amortization Breakdown of depreciation and amortization details Seed processing and sales, sales Breakdown of sales details Stockholders' Equity Note, Stock Split Property, Plant and Equipment, Gross Details Schedule of Sales in Excess of Ten Percent Schedule of Sales in Excess of Ten Percent 10. Stock Options Beginning balance Beginning balance Ending balance Changes in non-cash working capital items: Selling, general and administrative expenses Inventory allowance Industrial wood products, assets Breakdown of assets detail Payments for Repurchase of Common Stock Office equipment, expected useful lives in years Office equipment, expected useful lives in years Earnings Per Share 14. Segment Information 13. Contingent Liabilities and Commitments Redemption of common stock Amount paid to redeem common stock Income from operations Income from operations OPERATING EXPENSES Note receivable Note receivable Inventory, net of allowance of $87,800 (August 31, 2014 - $111,756) Inventory, net of allowance of $87,800 (August 31, 2014 - $111,756) Entity Registrant Name Corporate and administrative capital expenditures Breakdown of capital expenditure details Average price per share repurchased and cancelled Average price per share repurchased and cancelled Minimum Range {1} Range Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area Schedule of Earnings Per Share, Basic and Diluted Property, Plant and Equipment, Estimated Useful Lives Comprehensive Income Property, Plant and Equipment Principles of Consolidation 16. Supplemental Disclosure With Respect To Cash Flows 2. Significant Accounting Policies Litigation reserve Litigation reserve Property, plant and equipment, net Property, plant and equipment, net Accounts receivable, net of allowance of $Nil (August 31, 2014 - $Nil) Accounts receivable, net of allowance of $Nil (August 31, 2014 - $Nil) Current Fiscal Year End Date Income Taxes Paid Mexico/Latin America sales Area of sales by country Seed processing and sales, depreciation and amortization Breakdown of depreciation and amortization detail Seed processing and sales, income before tax Breakdown of income before tax details Amortization of Intangible Assets Estimates 7. Bank Indebtedness Shares outstanding Shares outstanding Shares outstanding Amount Equity Components EX-101.PRE 11 jctcf-20141130_pre.xml XML 12 R39.htm IDEA: XBRL DOCUMENT

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

3 Months Ended

Nov. 30, 2014

Policies

Shipping and Handling Costs

Shipping and handling costs

- Definition

Disclosure of accounting policy for recognition of costs in the period which correspond to the sales and revenue categories presented in the statement of operations. The accounting policy may include the amount and nature of costs incurred, provisions associated with inventories, purchase discounts, freight and other costs included in cost of sales incurred and recorded in the period. This disclosure also includes the nature of costs of sales incurred and recorded in the statement of operations for the period relating to transactions with related parties.

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

3 Months Ended

Nov. 30, 2014

Tables/Schedules

Schedule of Cash Flow, Supplemental Disclosures

	2014	2013

Cash paid during the periods for:
Interest	$ 0	$ 0
Income taxes	$ 0	$ 0

XML 14 R48.htm IDEA: XBRL DOCUMENT

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

3 Months Ended

Nov. 30, 2014

Tables/Schedules

Property, Plant and Equipment

	November 30, 2014	August 31, 2014

Office equipment	$ 563,703	$ 562,423
Warehouse equipment	1,482,278	1,482,278
Buildings	2,688,616	2,688,616
Land	761,924	761,924
	5,496,521	5,495,241

Accumulated depreciation	(3,398,761)	(3,347,854)

Net book value	$ 2,097,760	$ 2,147,387

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1. Nature of Operations (Details)	3 Months Ended
1. Nature of Operations (Details)	Nov. 30, 2014
Details
Entity Incorporation, State Country Name	British Columbia
Entity Incorporation, Date of Incorporation	Jul. 08, 1987

14. Segment Information: Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Details) (USD $)	Nov. 30, 2014	Nov. 30, 2013
Details
United States sales	$ 7,608,352fil_UnitedStatesSales	$ 7,399,773fil_UnitedStatesSales
Canada sales	308,453fil_CanadaSales	137,935fil_CanadaSales
Mexico/Latin America sales	65,812fil_MexicoLatinAmericaSales	379,032fil_MexicoLatinAmericaSales
Europe sales		$ 89,541fil_EuropeSales

2. Significant Accounting Policies: Property, Plant and Equipment: Property, Plant and Equipment, Estimated Useful Lives (Details)	3 Months Ended
	Nov. 30, 2014
Minimum
Office equipment, expected useful lives in years	3
Warehouse equipment, expected useful lives in years	2
Buildings, expected useful lives in years	5
Maximum
Office equipment, expected useful lives in years	7
Warehouse equipment, expected useful lives in years	10
Buildings, expected useful lives in years	30

14. Segment Information: Schedule of Segment Reporting Information, by Segment (Details) (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013
Details
Industrial wood products, sales	$ 992,682fil_IndustrialWoodProductsSales	$ 1,457,246fil_IndustrialWoodProductsSales
Lawn, garden, pet and other, sales	5,888,909fil_LawnGardenPetAndOtherSales	5,443,943fil_LawnGardenPetAndOtherSales
Seed processing and sales, sales	704,894fil_SeedProcessingAndSalesSales	740,742fil_SeedProcessingAndSalesSales
Industrial tools and clamps, sales	396,132fil_IndustrialToolsAndClampsSales	364,350fil_IndustrialToolsAndClampsSales
Revenue, Net, Total	7,982,617us-gaap_SalesRevenueNet	8,006,281us-gaap_SalesRevenueNet
Industrial wood products, income before tax	18,067	(11,424)
Lawn, garden, pet and other, income before tax	164,755	258,917
Seed processing and sales, income before tax	89,245	73,648
Industrial tools and clamps, income before tax	38,618	37,264
Corporate and administrative income before tax	226,109	196,289
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest, Total	536,794	554,694
Industrial wood products, assets	1,240,106fil_IndustrialWoodProductsAssets	1,440,281fil_IndustrialWoodProductsAssets
Lawn, garden, pet and other, assets	11,591,435fil_LawnGardenPetAndOtherAssets	8,929,943fil_LawnGardenPetAndOtherAssets
Seed processing and sales, assets	375,076fil_SeedProcessingAndSalesAssets	196,819fil_SeedProcessingAndSalesAssets
Industrial tools and clamps, assets	686,540fil_IndustrialToolsAndClampsAssets	616,992fil_IndustrialToolsAndClampsAssets
Corporate and administrative assets	4,843,877fil_CorporateAndAdministrativeAssets	11,049,258fil_CorporateAndAdministrativeAssets
Identifiable assets	18,737,034fil_IdentifiableAssets	22,233,293fil_IdentifiableAssets
Industrial wood products, depreciation and amortization	245	245
Lawn, garden, pet and other, depreciation and amortization	12,957	10,101
Seed processing and sales, depreciation and amortization	2,736	3,450
Industrial tools and clamps, depreciation and amortization	700	1,904
Corporate and administrative depreciation and amortization	52,445	54,319
Depreciation, Depletion and Amortization, Nonproduction, Total	69,083us-gaap_DepreciationAndAmortization	70,019us-gaap_DepreciationAndAmortization
Corporate and administrative capital expenditures	1,280	57,918
Purchase of property, plant and equipment	$ 1,280	$ 57,918

9. Cancellation of Capital Stock (Details) (USD $)	3 Months Ended
9. Cancellation of Capital Stock (Details) (USD $)	Nov. 30, 2014	Aug. 31, 2014	May 31, 2014	Feb. 28, 2014
Details
Payments for Repurchase of Common Stock	$ 1,292,477	$ 454,050	$ 3,234,699	$ 569,019
Average price per share repurchased and cancelled	$ 10.86	$ 10.08	$ 9.89	$ 9.78
Cumulative Effect on Retained Earnings, before Tax	$ 1,236,340	$ 432,794	$ 3,080,365	$ 541,564

14. Segment Information: Schedule of Sales in Excess of Ten Percent (Details) (USD $)	Nov. 30, 2014	Nov. 30, 2013
Details
Sales to customers in excess of 10% of total sales	$ 3,651,188	$ 3,314,699

7. Bank Indebtedness (Details) (USD $)	Nov. 30, 2014
Details
Line of Credit Facility, Current Borrowing Capacity	$ 1,000,000

12. Pension and Profit-sharing Plans (Details) (USD $)	3 Months Ended
12. Pension and Profit-sharing Plans (Details) (USD $)	Nov. 30, 2014	Nov. 30, 2013
Details
Pension Contributions	$ 33,778us-gaap_PensionContributions	$ 47,754us-gaap_PensionContributions

Statement of Financial Position - Parenthetical (USD $)	Nov. 30, 2014	Aug. 31, 2014
Statement of financial position
Preferred Stock, Par Value	$ 0	$ 0
Preferred Stock, Shares Authorized	10,000,000us-gaap_PreferredStockSharesAuthorized	10,000,000us-gaap_PreferredStockSharesAuthorized
Preferred Stock, Shares Issued	0us-gaap_PreferredStockSharesIssued	0us-gaap_PreferredStockSharesIssued
Preferred Stock, Shares Outstanding	0us-gaap_PreferredStockSharesOutstanding	0us-gaap_PreferredStockSharesOutstanding
Common Stock, Par Value	$ 0	$ 0
Common Stock, Shares Authorized	21,567,564us-gaap_CommonStockSharesAuthorized	21,567,564us-gaap_CommonStockSharesAuthorized
Common Stock, Shares Issued	2,585,661us-gaap_CommonStockSharesIssued	2,704,630us-gaap_CommonStockSharesIssued
Common Stock, Shares Outstanding	2,585,661us-gaap_CommonStockSharesOutstanding	2,704,630us-gaap_CommonStockSharesOutstanding
Accounts Receivable allowance	$ 0	$ 0
Inventory allowance	$ 87,800us-gaap_InventoryAdjustments	$ 111,756us-gaap_InventoryAdjustments

Document and Entity Information	3 Months Ended
Document and Entity Information	Nov. 30, 2014	Jan. 14, 2015
Document and Entity Information:
Entity Registrant Name	Jewett Cameron Trading Co Ltd
Document Type	10-Q
Document Period End Date	Nov. 30, 2014
Amendment Flag	false
Entity Central Index Key	0000885307
Current Fiscal Year End Date	--08-31
Entity Common Stock, Shares Outstanding		2,585,661dei_EntityCommonStockSharesOutstanding
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	2015
Document Fiscal Period Focus	Q1
Entity Incorporation, State Country Name	British Columbia
Entity Incorporation, Date of Incorporation	Jul. 08, 1987

JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Prepared by Management) (Unaudited) (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013
Income statement
SALES	$ 7,982,617us-gaap_SalesRevenueNet	$ 8,006,281us-gaap_SalesRevenueNet
COST OF SALES	6,112,594us-gaap_CostOfGoodsSold	6,156,502us-gaap_CostOfGoodsSold
GROSS PROFIT	1,870,023us-gaap_GrossProfit	1,849,779us-gaap_GrossProfit
OPERATING EXPENSES
Selling, general and administrative expenses	461,448	391,886
Depreciation and amortization	69,083us-gaap_DepreciationAndAmortization	70,019us-gaap_DepreciationAndAmortization
Wages and employee benefits	809,593us-gaap_LaborAndRelatedExpense	843,950us-gaap_LaborAndRelatedExpense
Income from operations	529,899	543,924
OTHER ITEMS
Interest and other income	6,895us-gaap_InterestAndOtherIncome	6,661us-gaap_InterestAndOtherIncome
Gain on sale of equipment		4,109
Total other items	6,895us-gaap_OtherIncome	10,770us-gaap_OtherIncome
Income before income taxes	536,794	554,694
Income tax expense	(209,007)us-gaap_IncomeTaxExpenseBenefit	(222,115)us-gaap_IncomeTaxExpenseBenefit
Net income	$ 327,787us-gaap_NetIncomeLoss	$ 332,579us-gaap_NetIncomeLoss
Basic earnings per common share	$ 0.12us-gaap_EarningsPerShareBasic	$ 0.11us-gaap_EarningsPerShareBasic
Diluted earnings per common share	$ 0.12us-gaap_EarningsPerShareDiluted	$ 0.11us-gaap_EarningsPerShareDiluted
Weighted average number of common shares outstanding: Basic	2,688,942	3,134,936
Weighted average number of common shares outstanding: Diluted	2,688,942	3,134,936

8. Capital Stock (Details)	3 Months Ended
8. Capital Stock (Details)	Nov. 30, 2014
Details
Stockholders' Equity Note, Stock Split	Common Stock Split The Company declared a two for one stock split of its common stock with a record date at the close of business on April 25, 2013. Shareholders received one additional common share for each common share held as of the record date. The stock split was effective as of May 2, 2013. Share and per share data have been retroactively adjusted to reflect the effects of the stock split.

15. Concentrations (Details) (USD $)	3 Months Ended
15. Concentrations (Details) (USD $)	Nov. 30, 2014	Nov. 30, 2013
Details
Concentration Risk, Customer	55	38
Concentration, volume of purchases	$ 5,465,620fil_ConcentrationVolumeOfPurchases	$ 2,605,730fil_ConcentrationVolumeOfPurchases