Our general and administrative expenses ("G&A expenses") decreased approximately 7% as a result of cost reduction efforts undertaken by management in light of the weakened economy, particularly in the housing market, and delays in development within our service areas. Specifically, we reduced the level of outside legal and other professional services. More specific details of the decreases in our G&A expenses are included in our Form 10-K which was filed with the Securities and Exchange Commission on November 12, 2010.
Our Tap Participation Fee ("TPF") expense consists of fees due and payable once we have sold a water tap and received the consideration due for such water tap. The Tap Participation Fee liability, which is included in our summarized statement of financial position below, represents the fair value of the estimated amounts payable to HP A&M as a result of the assets we acquired from HP A&M in 2006. The increase in the liability is due to the imputed interested.
Our summarized financial position as of August 31, 2010 and 2009 is as follows:
|August 31, 2010||August 31, 2009||$ Change|
|Cash, cash equivalents and marketable securities||$ 1,446,100||$ 3,707,300||$ (2,261,200)|
|Other current assets||373,500||283,100||90,400|
|Total current assets||1,819,600||3,990,400||(2,170,800)|
|Investments in water and water systems, net||102,931,300||103,159,600||(228,300)|
|Other long-term assets||1,626,900||941,100||685,800|
|Total assets||$ 106,377,800||$ 108,091,100||$ (1,713,300)|
|Liabilities and Shareholders' Equity|
|Current liabilities||$ 171,300||$ 138,100||$ 33,200|
|Tap participation fee payable to HP A&M||61,141,300||57,521,300||3,620,000|
|Other long-term liabilities||2,605,200||2,662,500||(57,300)|
|Total shareholders' equity||42,460,000||47,769,200||(5,309,200)|
|Total liabilities and shareholders' equity||$ 106,377,800||$ 108,091,100||$ (1,713,300)|
Levels of cash, cash equivalents and marketable securities have declined due mainly to the use of cash in operations. Our August 31, 2010 cash balance was also impacted by our $700,000 escrow payment related to the Sky Ranch acquisition which was announced on August 4, 2010. Reference is made to the Management's, Discussion and Analysis section of our August 31, 2010 Form 10-K for further information on cash used by operations. Subsequent to August 31, 2010, we completed the sale of approximately $5.5 million of common stock and the issuance of a convertible note with a principal amount of $5.2 million. Approximately $6.3 million of the $10.7 million we raised subsequent to August 31, 2010, was used to complete our acquisition of the Sky Ranch property, which is described in greater detail in our Form 10-K. The remaining $4.4 million will be used for general corporate working capital purposes.