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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended
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Aug. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] |
Deferred Revenue by Segment and Changes in Unearned Revenue | Deferred revenue by segment is as follows:
|  | August 31, 2018 |  |  | August 31, 2017 |
Wholesale water and wastewater services |  | $ | — |  |  | $ | 1,055,488 |
Land development activities |  |  | 361,050 |  |  |  | — |
Oil and gas leases |  |  | 116,111 |  |  |  | — |
Balance, end of period |  |  | 477,161 |  |  |  | 1,055,488 |
Changes in unearned revenue were as follows:
|  | August 31, 2018 |  |  | August 31, 2017 |
Balance, beginning of period |  | $ | 1,055,488 |  |  | $ | 1,130,291 |
Cumulative effect of adoption of ASU 2014-09 |  |  | (1,055,488 | ) |  |  | — |
Billings |  |  | 2,667,200 |  |  |  | — |
Contract revenues recognized |  |  | (2,190,039 | ) |  |  | (74,803 | )
Balance, end of period |  |  | 477,161 |  |  |  | 1,055,488 |
Discontinued Operations Financials | Prior period balances have been reclassified to present the operations of the agricultural business as a discontinued operation. Discontinued Operations Statements of Operations
|  | Fiscal Years Ended August 31, |
|  | 2017 |  |  | 2016 |
Farm revenues |  | $ | 6,800 |  |  | $ | 267,500 |
Farm expenses |  |  | (1,300 | ) |  |  | (77,100 | )
Gross profit |  |  | 5,500 |  |  |  | 190,400 |
General and administrative expenses |  |  | (46,900 | ) |  |  | (313,400 | )
Operating loss |  |  | (41,400 | ) |  |  | (123,000 | )
Finance charges |  |  | 9,400 |  |  |  | 38,400 |
(Loss) gain on sale of farm assets |  |  | — |  |  |  | 4,300 |
Loss from discontinued operations, net of taxes |  | $ | (32,000 | ) |  | $ | (80,300 | )
The individual assets and liabilities of the discontinued agricultural business are combined in the captions “Assets of discontinued operations” and “Liabilities of discontinued operations” in the consolidated balance sheets. The carrying amounts of the major classes of assets and liabilities included as part of the discontinued business are presented in the following table: Discontinued Operations Balance Sheets
|  | August 31, |
|  | 2017 |
Assets: |  |  |
Trade accounts receivable |  | $ | 110,700 |
Long-term land investment (1) |  |  | 450,600 |
Prepaid expenses |  |  | — |
Total assets |  | $ | 561,300 |
Liabilities: |  |  |  |
Accrued liabilities |  |  | 11,200 |
Total liabilities |  | $ | 11,200 |
(1) | Long-Term Land Investment. During the fiscal quarter ended November 30, 2015, the Company purchased three farms totaling 700 acres for approximately $450,600. The farms were acquired to correct dry-up covenant issues related to water only farms to obtain the release of the escrow funds related to the Company’s farm sale to Arkansas River Farms, LLC. The Company has classified the farms as long-term assets.
Effect of New Accounting Standards | The cumulative effect of the changes made to the Company’s consolidated September 1, 2017 balance sheet for the adoption of ASU 2014-09 were as follows:
|  | Balance at August 31, 2017 |  |  | Adjustments Due to ASU 2014-09 |  |  | Balance at September 1, 2017 |
Assets |  |  |  |  |  |  |  |  |
Deferred tax assets (Deferred revenue) |  | $ | 316,400 |  |  | $ | (316,400 | ) |  | $ | — |
Deferred tax assets - valuation allowance (Deferred revenue) |  |  | (316,400 | ) |  |  | 316,400 |  |  |  | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Deferred revenues, current |  | $ | 55,800 |  |  | $ | (55,800 | ) |  | $ | — |
Deferred revenues, less current portion |  |  | 999,249 |  |  |  | (999,249 | ) |  |  | — |
Equity |  |  |  |  |  |  |  |  |  |  |  |
Accumulated deficit |  | $ | (103,993,900 | ) |  | $ | 1,055,049 |  |  | $ | (102,938,851 | )
In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on the Company’s consolidated statements of operations and comprehensive income (loss) and balance sheet was as follows:
|  | For the Fiscal Year Ended August 31, 2018 |
Statement of Operations |  | As Reported |  |  | Amounts That Would Have Been Reported Under ASC 605 |  |  | Effect of Change Higher/(Lower) |
Revenues |  |  |  |  |  |  |  |  |
Special facility fees |  | $ | — |  |  | $ | 41,508 |  |  | $ | (41,508 | )
Water tap fees |  |  | 49,948 |  |  |  | 64,242 |  |  |  | (14,294 | )
Net income |  |  | 7,569 |  |  |  | 63,371 |  |  |  | (55,802 | )
|  | As of August 31, 2018 |
Balance Sheet |  | As Reported |  |  | Amounts That Would Have Been Reported Under ASC 605 |  |  | Effect of Change Higher/(Lower) |
Liabilities |  |  |  |  |  |  |  |  |
Deferred revenues, current |  | $ | — |  |  | $ | 55,800 |  |  | $ | (55,800 | )
Deferred revenues, less current portion |  |  | — |  |  |  | 943,886 |  |  |  | (943,886 | )
Deferred oil and gas lease payment, current (1) |  |  | 55,733 |  |  |  | 55,733 |  |  |  | — |
Deferred oil and gas lease payment, less current portion |  |  | 60,378 |  |  |  | 60,378 |  |  |  | — |
Deferred lot fees |  |  | 361,050 |  |  |  | 361,050 |  |  |  | — |
Equity |  |  |  |  |  |  |  |  |  |  |  |
Accumulated deficit |  | $ | (102,931,282 | ) |  | $ | (103,930,529 | ) |  | $ | 999,247 |
(1) | Inclusive of the Bison Lease and deferred oil and gas lease payment and water tap and construction fee deferred revenues as described in this Note 2 – Summary of Significant Accounting Policies under “Revenue Recognition.”

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