Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Aug. 31, 2019 | Nov. 08, 2019 | Feb. 28, 2019 | |
Cover [Abstract] | |||
Entity Registrant Name | PURE CYCLE CORP | ||
Entity Central Index Key | 0000276720 | ||
Current Fiscal Year End Date | --08-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 171,975,455 | ||
Entity Common Stock, Shares Outstanding | 23,826,598 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Aug. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Address, State or Province | CO |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Aug. 31, 2019 | Aug. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 4,478,020 | $ 11,565,038 |
Short-term investments | 5,188,813 | 8,717,967 |
Trade accounts receivable, net | 1,099,631 | 1,067,268 |
Prepaid expenses and deposits | 1,016,751 | 1,372,886 |
Inventories | 11,613,112 | 5,195,059 |
Taxes receivable | 141,410 | 0 |
Total current assets | 23,537,737 | 27,918,218 |
Long-term investments | 0 | 190,370 |
Investments in water and water systems, net | 50,270,310 | 36,721,884 |
Land and mineral interests | 5,104,477 | 4,659,569 |
Notes receivable - related parties, including accrued interest | 988,381 | 906,199 |
Other assets | 1,945,202 | 777,734 |
Long-term land investment | 450,641 | 450,641 |
Deferred tax asset | 1,283,246 | 282,000 |
Tax Receivable | 141,410 | 0 |
Total assets | 83,721,404 | 71,906,615 |
Current liabilities: | ||
Accounts payable | 170,822 | 787,662 |
Accrued liabilities | 3,428,418 | 849,538 |
Deferred revenues | 3,991,535 | 361,050 |
Deferred oil and gas lease and water sales payment | 706,464 | 55,733 |
Total current liabilities | 8,297,239 | 2,053,983 |
Deferred oil and gas lease and water sales payment, less current portion | 360,884 | 60,378 |
Participating Interests in Export Water Supply | 332,140 | 339,035 |
Total liabilities | 8,990,264 | 2,453,396 |
Commitments and contingencies | ||
Preferred stock: | ||
Series B - par value $.0.001 per share, 25 million shares authorized; 432,513 shares issued and outstanding (liquidation preference of $432,513) | 433 | 433 |
Common stock: | ||
Par value 1/3 of $.01 per share, 40 million shares authorized; 23,826,598 and 23,764,098 shares issued and outstanding, respectively | 79,427 | 79,218 |
Collateral stock | 0 | 0 |
Additional paid-in capital | 172,360,413 | 171,831,293 |
Accumulated other comprehensive income | 3,891 | 66,446 |
Accumulated deficit | (97,713,023) | (102,524,171) |
Total shareholders' equity | 74,731,141 | 69,453,219 |
Total liabilities and shareholders' equity | $ 83,721,404 | $ 71,906,615 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Aug. 31, 2019 | Aug. 31, 2018 |
Common stock: | ||
Common stock, par value (in dollars per share) | $ 0.003 | $ 0.003 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 23,826,598 | 23,764,098 |
Common stock, shares outstanding (in shares) | 23,826,598 | 23,764,098 |
Series B Preferred Stock [Member] | ||
Preferred stock: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 432,513 | 432,513 |
Preferred stock, shares outstanding (in shares) | 432,513 | 432,513 |
Liquidation preference | $ 432,513 | $ 432,513 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | ||
Revenues: | |||
Total revenues | [1] | $ 20,361,509 | $ 6,959,199 |
Expenses: | |||
Water service operations | (1,502,370) | (1,379,644) | |
Wastewater service operations | (28,020) | (28,350) | |
Land development construction costs | (11,304,962) | (2,013,840) | |
Other | (140,118) | (88,318) | |
Depletion and depreciation | (968,229) | (651,449) | |
Total cost of revenues | (13,943,699) | (4,161,601) | |
Gross profit | 6,417,810 | 2,797,598 | |
General and administrative expenses | (3,106,548) | (2,855,095) | |
Depreciation | (312,602) | (251,230) | |
Operating income (loss) | 2,998,661 | (308,727) | |
Other income (expense): | |||
Oil and gas lease income, net | 55,733 | 51,089 | |
Oil and gas royalty income, net | 148,327 | 191,309 | |
Interest income | 298,605 | 206,138 | |
Other | 26,627 | (7,129) | |
Net income before taxes | 3,527,953 | 132,680 | |
Income tax benefit | 1,283,195 | 282,000 | |
Net income | 4,811,148 | 414,680 | |
Unrealized holding (losses) gains | (62,556) | 77,551 | |
Total comprehensive income | $ 4,748,592 | $ 492,231 | |
Basic and diluted net income per common share (in dollars per share) | $ 0.20 | $ 0.02 | |
Weighted average common shares outstanding-basic (in shares) | 23,795,973 | 23,760,765 | |
Weighted average common shares outstanding-diluted (in shares) | 24,002,836 | 23,930,535 | |
Metered Water Usage [Member] | |||
Revenues: | |||
Total revenues | $ 4,654,344 | $ 4,555,912 | |
Wastewater Treatment Fees [Member] | |||
Revenues: | |||
Total revenues | 35,818 | 46,199 | |
Special Facility Funding Recognized [Member] | |||
Revenues: | |||
Total revenues | 0 | 0 | |
Water Tap Fees Recognized [Member] | |||
Revenues: | |||
Total revenues | 3,544,737 | 49,948 | |
Lot Sales [Member] | |||
Revenues: | |||
Total revenues | 11,955,989 | 2,138,950 | |
Other [Member] | |||
Revenues: | |||
Total revenues | $ 170,621 | $ 168,190 | |
[1] | The Company had other income from non-segment sources (oil and gas, interest and other) of $529,293 and $441,407 for the fiscal years ended August 31, 2019 and 2018, respectively. |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Total |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of accounting standards | $ 0 | $ 0 | $ 0 | $ 0 | $ 1,055,049 | $ 1,055,049 |
Balance at Aug. 31, 2017 | $ 433 | $ 79,185 | 171,431,486 | (11,105) | (103,993,900) | 67,506,099 |
Balance (in shares) at Aug. 31, 2017 | 432,513 | 23,754,098 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | $ 0 | $ 0 | 324,840 | 0 | 0 | 324,840 |
Exercise of options | $ 0 | $ 33 | 74,967 | 0 | 0 | 75,000 |
Exercise of options (in shares) | 0 | 10,000 | ||||
Net income (loss) | $ 0 | $ 0 | 0 | 0 | 414,680 | 414,680 |
Unrealized holding gain (loss) on investments | 0 | 0 | 0 | 77,551 | 0 | 77,551 |
Balance at Aug. 31, 2018 | $ 433 | $ 79,218 | 171,831,293 | 66,446 | (102,524,171) | 69,453,219 |
Balance (in shares) at Aug. 31, 2018 | 432,513 | 23,764,098 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | $ 0 | $ 0 | 336,228 | 0 | 0 | 336,228 |
Exercise of options | $ 0 | $ 209 | 192,892 | 0 | 0 | 193,101 |
Exercise of options (in shares) | 0 | 62,500 | ||||
Net income (loss) | $ 0 | $ 0 | 0 | 0 | 4,811,148 | 4,811,148 |
Unrealized holding gain (loss) on investments | 0 | 0 | 0 | (62,556) | 0 | (62,556) |
Balance at Aug. 31, 2019 | $ 433 | $ 79,427 | $ 172,360,413 | $ 3,891 | $ (97,713,023) | $ 74,731,141 |
Balance (in shares) at Aug. 31, 2019 | 432,513 | 23,826,598 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Cash flows from operating activities | ||
Net income (loss) | $ 4,811,148 | $ 414,680 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Share-based compensation expense | 336,228 | 324,840 |
Depreciation and depletion | 1,280,830 | 902,676 |
Bad debt (recovery) expense | (37,233) | 79,860 |
Investment in Well Enhancement and Recovery Systems LLC | 6,601 | 10,490 |
Interest income and other non-cash items | (420) | (2,366) |
Interest added to receivable from related parties | (41,776) | (17,728) |
Deferred income taxes | (1,284,066) | 0 |
Changes in operating assets and liabilities: | ||
Inventories | (5,018,452) | (1,217,292) |
Trade accounts receivable | 4,870 | (369,923) |
Prepaid expenses and other assets | (700,063) | (959,394) |
Note receivable - related parties | (40,406) | (110,161) |
Accounts payable and accrued liabilities | (368,456) | 750,078 |
Income taxes | 0 | (282,000) |
Deferred revenues | 3,630,485 | 360,611 |
Deferred income - oil and gas lease | 951,237 | 116,111 |
Net cash provided by operating activities | 3,530,527 | 482 |
Cash flows from investing activities: | ||
Investments in water, water systems and land | (14,106,724) | (1,046,911) |
Investments in Sky Ranch pipeline | 0 | (241,819) |
Investments in Sky Ranch land development | 0 | (3,977,767) |
Sales and maturities of marketable securities | 55,697,933 | 34,057,552 |
Purchase of short-term investments | (52,040,964) | (22,645,017) |
Purchase of long-term investments | 0 | 0 |
Purchase of property and equipment | (353,996) | (445,286) |
Net cash (used in) provided by investing activities | (10,803,751) | 5,700,752 |
Cash flows from financing activities | ||
Proceeds from note receivable - related parties | 0 | 215,504 |
Proceeds from exercise of options | 193,101 | 75,000 |
Payment to contingent liability holders | (6,896) | (2,523) |
Net cash provided in financing activities | 186,205 | 287,981 |
Net change in cash and cash equivalents | (7,087,019) | 5,989,215 |
Cash and cash equivalents - beginning of year | 11,565,038 | 5,575,823 |
Cash and cash equivalents - end of year | 4,478,019 | 11,565,038 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Inventories included in accounts payable and accrued liabilities | 1,399,602 | 0 |
Investments in water, water systems and land included in accounts payable and accrued liabilities | 930,895 | 0 |
Transfer of income taxes to income taxes receivable | 282,820 | 0 |
Transfer of prepaid asset to other asset | 0 | 89,609 |
Transfer of land and mineral interest to inventory | $ 0 | $ 3,977,767 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Aug. 31, 2019 | |
ORGANIZATION [Abstract] | |
ORGANIZATION | NOTE 1 – ORGANIZATION Pure Cycle Corporation (the “Company”) was incorporated in Delaware in 1976 and reincorporated in Colorado in 2008. The Company operates in two business segments; (i) developing wholesale water and wastewater systems in the water-short Denver metropolitan area, and (ii) developing a Master Planned Community on approximately 930 acres of land located along the Interstate 70 corridor (“I-70”), approximately four miles south of Denver International Airport (“DIA”), which is planned to include a mix of 3,200 single-family and multifamily residential units and over 2 million square feet of commercial, retail, and industrial space. The Company has accumulated valuable water and land interests over the past 30 years and has developed an extensive network of wholesale water production, storage, treatment, and distribution systems, and wastewater collection and treatment systems which serve domestic, commercial and industrial customers in the Denver metropolitan region. The Company's land assets are located in one of the most active development areas in the Denver metropolitan region along I-70. As of August 31, 2019, the |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Aug. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements of the Company include the accounts of Pure Cycle Corporation and its majority-owned and controlled subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) 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. Estimates are used to account for certain items such as revenue recognition, reimbursable costs and expenses, costs of revenue for lot sales, share-based compensation, deferred tax asset valuation, and the useful lives of assets. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include all highly liquid debt instruments with original maturities of three months or less. The Company’s cash equivalents are comprised entirely of money market funds maintained at a reputable financial institution and U.S. Treasury debt securities. At various times during the fiscal year ended August 3 1, 2019, t Land Development Inventories Inventories primarily include land held for development and sale. Inventories are stated at cost. Capitalized lot development costs at Sky Ranch are costs incurred to construct lots at Sky Ranch that meet the Company’s capitalization criteria for improvements to a lot and are capitalized as incurred. The Company capitalizes certain legal, engineering, design, permitting, land acquisition, and construction costs related to the development of lots at Sky Ranch. The Company uses the specific identification method for the purpose of accumulating land development costs and allocates costs to each lot to determine the cost basis for each lot sale. The Company records all land cost of sales over time based on inputs of costs incurred to date to total estimated costs to complete. In accordance with Accounting Standards Codification (“ASC”) Topic 360, Property, Plant and Equipment Fair Value Measurements Investments Management determines the appropriate classification of its investments in certificates of deposit and treasury securities at the time of purchase and reevaluates such determinations each reporting period. Certificates of deposit and debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. The Company has $192,800 of investments classified as held-to-maturity at August 31 , 2019 Accumulated other comprehensive income (loss). Concentration of Credit Risk and Fair Value Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents and investments. From time to time, the Company places its cash in money market instruments, certificates of deposit and U.S. government treasury obligations. To date, the Company has not experienced significant losses on any of these investments. The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate that value. Cash and Cash Equivalents – Trade Accounts Receivable – Investments – Fair Value Measurements. Accounts Payable – Long-Term Financial Liabilities – Water and Land Assets Water and Land Assets Participating Interests in Export Water Notes Receivable – Related Parties – Notes receivable – related parties Off-Balance Sheet Instruments – Participating Interests in Export Water Cash Flows The Company did not have any debt during the fiscal years ended August 31, 2019 and 2018, and therefore did not pay any interest during the fiscal years ended August 31, 2019 and 2018. The Company did not pay any income taxes during the fiscal year ended August 31, 2018. Trade Accounts Receivable The Company records accounts receivable net of allowances for uncollectible accounts. The Company has not recorded an allowance for uncollectible accounts in receivables from continuing operations for either of the periods ended August 31 , 2019 or 2018. The allowance for uncollectible accounts was determined based on a specific review of all past due accounts. Long-Lived Assets The Company reviews its long-lived assets 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 undiscounted net cash flows expected to be generated by the eventual use of 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 or fair value less costs to sell. The Company determined that no indicators were noted which would result in an impairment of the Company’s long-lived assets for the period ended August 31, 2019 and 2018. Capitalized Costs of Water and Wastewater Systems and Depreciation and Depletion Charges Costs to construct water and wastewater systems that meet the Company’s capitalization criteria are capitalized as incurred, including interest, if applicable, and depreciated on a straight-line basis over their estimated useful lives of up to 30 years. The Company capitalizes design and construction costs related to construction activities, and it capitalizes certain legal, engineering and permitting costs relating to the adjudication and improvement of its water assets. The Company depletes its water assets that are being utilized on the basis of units produced (i.e., thousands of gallons sold) divided by the total volume of water adjudicated in the water decrees. Revenue Recognition The Company disaggregates revenue by major product line as reported on the consolidated statements of operations and comprehensive income. The Company generates revenues through two lines of business. Revenues are derived through its wholesale water and wastewater business and through the sale of developed land primarily for residential lots, both of which businesses are described below. The Company generates revenues through its wholesale water and wastewater business predominantly from three sources: (i) monthly wholesale water usage fees and wastewater service fees, (ii) one-time water and wastewater tap fees and construction fees/Special Facility funding, and (iii) consulting fees. Because these items are separately delivered and distinct, the Company accounts for each of the items separately, as described below. Wholesale Water and Wastewater Fees (i) Monthly water usage and wastewater treatment fees – Water and Land Assets In addition to providing domestic water, the Company provides raw water for hydraulic fracturing to industrial customers in the oil and gas industry that are located in and adjacent to its service areas. Frack water revenues are recognized at a point in time upon delivering water to a customer. The Company delivered 356.1 million and 406.6 million gallons of water to customers during the years ended August 31, 2019 and 2018, respectively, of which 84% and 77% was used for oil and gas exploration, respectively. The Company recognizes wastewater treatment revenues monthly based on a flat monthly fee and actual usage charges. The monthly wastewater treatment fees are shown net of amounts retained by the Rangeview District. Costs of delivering water and providing wastewater service to customers are recognized as incurred. (ii) Water and wastewater tap fees and construction fees/Special Facility funding The Company recognizes water and wastewater tap fee revenues at the time the Company grants a right for the customer to connect to the water or wastewater service line to obtain service. The Company recognized $3,018,300 and $49,900 of water tap fee revenues during the years ended August 31, 2019 and 2018, respectively. The water tap fees recognized are based on the amounts billed to the Rangeview District and any amounts paid to third parties pursuant to the CAA as further described in Note 7 – Long-Term Obligations and Operating Lease The Company recognizes construction fees, including fees received to construct “Special Facilities,” over time as the construction is completed because the customer is generally able to use the property improvement to enhance the value of other assets during the construction period. Special Facilities are facilities that enable water to be delivered to a single customer and are not otherwise classified as a typical wholesale facility or retail facility. Temporary infrastructure required prior to construction of permanent water and wastewater systems or transmission pipelines to transfer water from one location to another are examples of Special Facilities. Management has determined that Special Facilities are separate and distinct performance obligations because these projects are contracted to construct a specific water and wastewater system or transmission pipeline and typically do not include multiple performance obligations in a contract with a customer. No Special Facilities revenue was recognized during the fiscal year ended August 31, 2019 or 2018. As of August 31, 2019 and 2018, the Company had no contract liabilities related to water tap and construction fee/Special Facility funding revenue. (iii) Consulting fees Land Development Activities The Company generates revenues through the sale of finished lots at its Sky Ranch development primarily from several sources of revenues: (i) the sale of finished lots, (ii) construction support activities, (iii) project management services, and (iv) reimbursable expenses incurred to develop certain public improvements. (i) Land development through the sale of finished lots The Company sells lots at Sky Ranch pursuant to distinct agreements with each builder. These agreements follow one of two formats. One format is the sale of a finished lot, whereby the purchaser pays for a ready-to-build finished lot and payment is a lump-sum payment upon completion of the finished lot. The Company will recognize revenues at the point in time of the closing of the sale of a finished lot in which control transfers to the builder and the builder is able to obtain a building permit, as the transaction cycle will be complete and the Company will have no further obligations for the lot. During the year ended August 31, 2019, the Company received payment and recognized revenue of $4,053,800 from one home builder in exchange for the delivery of 57 finished lots. No revenue was recognized for lot sales at a point in time during the year ended August 31, 2018. The Company’s second format is the sale of finished lots pursuant to a development agreement with builders, whereby the Company receives payments in stages that include (i) payment upon the delivery of platted lots (which requires the Company to deliver deeded title to individual lots), (ii) a second payment upon the completion of certain infrastructure milestones, and (iii) final payment upon the delivery of the finished lot. Ownership and control of the platted lots pass to the builders once the Company closes the sale of the platted lots. Because the builder (i.e., the customer) takes control of the lot at the first closing and subsequent improvements made by the Company improve the builder’s lot as construction progresses, the Company accounts for revenue over time with progress measured based upon costs incurred to date compared to total expected costs. Any revenue in excess of amounts entitled to be billed is reflected on the balance sheet as a contract asset, and amounts received in excess of revenue recognized are recorded as deferred revenue. As of August 31, 2019, the Company had received cumulative payments of approximately $14.0 million under the development agreements relating to 198 lots from two home builders, of which approximately $10.0 million of revenue was recognized over time based on the costs incurred to date compared to total expected costs for full completion of the 198 lots. For the years ended August 31, 2019 and 2018, the Company recognized approximately $7.9 million and approximately $2.1 million of lot sales over time, respectively. The Company had deferred revenues of $3,991,500 and $361,100 as of August 31, 2019 and 2018, respectively. The Company does not have any material significant payment terms as all payments are expected to be received within 12 months after the delivery of the platted lot. The Company adopted the practical expedient for financing components and does not need to account for a financing component of these lot sales as the delivery of lot sales is expected to occur within one year. (ii) Construction support activities Inventories Land development construction costs Related Party Transactions Inventories Inventories (iii) Project management services Pursuant to these agreements, the Company acts as the project manager and provides any and all services required to deliver the CAB-eligible improvements, including but not limited to CAB compliance; planning design and approvals; project administration; contractor agreements; and construction management and administration. The Company must submit to the CAB a monthly invoice, in a form acceptable to the CAB. The Company is responsible for all expenses it incurs in the performance of the agreements and is not entitled to any reimbursement or compensation except as defined in the agreements, unless otherwise approved in advance by the CAB in writing. The CAB is subject to annual budget and appropriation procedures and does not intend to create a multiple-fiscal year direct or indirect debt or other financial obligation. The Company receives a project management fee of five percent (5%) of actual construction costs of CAB-eligible improvements. The project management fee qualifies as a reimbursable cost to the Company. The project management fee is based only on the actual costs of the improvements; thus, items such as fees, permits, review fees, consultant or other soft costs, and land acquisition or any other costs that are not directly related to the cost of construction of CAB-eligible improvements are not included in the calculation of the project management fee. Soft costs and other costs that are not directly related to the construction of CAB-eligible improvements are included in Inventories (iv) Reimbursable expenses Related Party Transactions Inventories Land development construction costs The Company evaluated disaggregation of revenue and has determined that no additional disaggregation of revenue is necessary. Deferred Revenue Deferred revenues as of August 31, 2019 Oil and Gas Lease Payments Deferred revenues from lot sales for the years ended August 31, 2019 and 2018 were $4.0 million and $361,100, respectively. The Company received an up-front payment of $167,200 in fiscal 2018, which is being recognized as income on a straight-line basis over three years (the term of the Bison Lease). The Company recognized lease income of $55,700 and $51,100 during the fiscal years ended August 31, 2019 and 2018, respectively, related to the up-front payment received pursuant to the Bison Lease. As of August 31, 2019, the Company has deferred revenues of $60,400 related to the Bison Lease that will be recognized into income ratably through September 2020. The Company received an up-front payment of $573,700 in fiscal 2019 for the OGOA, which is being recognized as income on a straight-line basis over three years (the term of the agreement). If after three years the operator has not spud at least one well on the oil and gas operations area, the operator may extend the right to the OGOA one additional year by paying $75,000 to the Company. The operator may only extend the OGOA for two additional years for a total of five years. The Company recognized lease income of $26,200 during the fiscal year ended August 31, 2019 related to the up-front payment received pursuant to the OGOA. As of August 31, 2019, the Company has deferred revenues of $547,500 related to the OGOA that will be recognized into income ratably through July 2022. The Company received an up-front payment of $425,800 in fiscal 2019, which will be recognized as income as industrial water is provided to the operator beginning in October 2019. None of this up-front payment was recognized in revenue as of August 31, 2019. Deferred revenues by segment is as follows: August 31, 2019 August 31, 2018 Wholesale water and wastewater services $ — $ — Land development activities 3,991,535 361,050 Oil and gas leases 1,067,348 116,111 Balance, end of period $ 5,058,883 $ 477,161 Changes in unearned revenue were as follows: August 31, 2019 August 31, 2018 Balance, beginning of period $ 477,161 $ 1,055,488 Cumulative effect of adoption of ASU 2014-09 — (1,055,488 ) Billings 24,943,231 2,667,200 Contract revenues recognized (20,361,509 ) (2,190,039 ) Balance, end of period $ 5,058,883 $ 477,161 Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized (“contracted not recognized revenue”), which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. At August 31, 2019, the Company had outstanding open contracts for $22,189,000, which primarily related to the sale of 506 lots at Sky Ranch. The Company expects to recognize approximately 70% of such revenue over the next 12 months. Inventories Inventories primarily include land held for development and sale, which the Company has begun developing and are stated at cost. Capitalized lot development costs at Sky Ranch are costs incurred to construct finished lots at Sky Ranch that meet the Company’s capitalization criteria for improvements to a lot and are capitalized as incurred. The Company capitalizes certain legal, engineering, design, permitting, land acquisition, and construction costs related to the development of lots at Sky Ranch. The Company uses the specific identification method for purposes of accumulating land development costs and allocates costs to each lot to determine the cost basis for each lot sale. The Company will record all land cost of sales when a lot is completed and sold on a lot-by-lot basis. Costs included in Inventories Inventories In accordance with ASC 360, the Company measures land held for sale at the lower of the carrying value or net realizable value. In determining fair value, the Company primarily relies upon the most recent negotiated price that is a Level 2 input (see Note 3 – Fair Value Measurements Royalty and Other Obligations Revenues from the sale of Export Water are shown gross of royalties payable to the Land Board. Revenues from the sale of water on the Lowry Range are invoiced directly by the Rangeview District, and a percentage of such collections are then paid to the Company by the Rangeview District. Water revenue from such sales are shown net of royalties paid to the Land Board and amounts retained by the Rangeview District. Oil and Gas Lease Payments In July 2019, the Company received an up-front payment of $573,700 for the OGOA, which will be recognized as income on a straight-line basis over three years. If after three years the operator has not spud at least one well on the OGOA, the operator may extend the right to the OGOA one additional year by paying $75,000 to the Company. The operator may only extend the OGOA for two additional years for a total of five years. The Company recognizes the up-front payments on a straight-line basis over the terms of the respective agreements. During the fiscal years ended August 31, 2 019 and 2018 The Company entered into the Bison Lease, on September 20, 2017. Pursuant to the Bison Lease, the Company received an up-front payment of $167,200, which is being recognized as income on a straight-line basis over three years (the term of the Bison Lease). The Company recognized lease income of $55,700 and $51,100 during the fiscal years ended August 31, 2019 and 2018, respectively, related to the up-front payment received. As of August 31, 2019, the Company has deferred revenues of $60,400 of income related to the Bison Lease that will be recognized into income ratably through September 2020. As further described in Note 4 – Water and Land Assets , 2019, and 2018, Other income Share-based Compensation The Company maintains a stock option plan for the benefit of its employees and non-employee directors. The Company recognizes share-based compensation costs as expenses over the applicable vesting period of the stock award using the straight-line method. The compensation costs to be expensed are measured at the grant date based on the fair value of the award. The Company has adopted the alternative transition method for calculating the tax effects of share-based compensation, which allows for a simplified method of calculating the tax effects of employee share-based compensation. The Company has released its full valuation allowance on its deferred tax assets as of August 31, 2019. The impact on the income tax provision for the granting and exercise of stock options during the fiscal year ended August 31, 2019, 2018 t The Company recognized $336,200 and $324,800 of share-based compensation expenses during the fiscal 2019 and 2018, resp Income Taxes The Company uses a “more-likely-than-not” threshold for the recognition and de-recognition of tax positions, including any potential interest and penalties relating to tax positions taken by the Company. The Company does not have any significant unrecognized tax benefits as of August 31 , 2019. The Company’s deferred tax asset and valuation allowance was decreased by approximately $1.2 million as a result of the decreased corporate tax rate that went into effect pursuant to H.R.1, commonly known as the Tax Cuts and Jobs Act (the “Tax Act”), signed into law on December 22, 2017. As of August 31, 2018, the Company has a $282,000 alternative minimum tax (“AMT”) deferred tax asset for which it does not have a valuation allowance. The Company expects to receive the AMT as a refund in future years. Most, if not all, of this credit will be refundable starting with the filing of the 2018 (fiscal year ended 2019) through 2021 (fiscal year ending 2022) tax returns, subject to limitations of Internal Revenue Code Section 382 (arises with ownership changes) and the sequestration limitation of the Balanced Budget Act of 1997. The Company will continue to evaluate the impact of the Tax Act and will record any resulting tax adjustments during fiscal 2020. The Company maintained a valuation allowance on the net deferred tax asset other than AMT credits as of August 31, 2018. The Company has determined it is more likely than not that the Company will realize its deferred tax assets. Such assets primarily consist of operating loss carryforwards. The Company assessed the realizability of its deferred tax asset using all available evidence. In particular, the Company considered both historical results and projections of profitability for the reasonably foreseeable future periods. The Company is required to reassess its conclusions regarding the realization of its deferred tax assets at each financial reporting date. As a result of the evaluation, the Company concluded that all of the valuation allowance is no longer necessary. By releasing the valuation allowance, the Company recognized a deferred tax benefit of approximately $1,284,100 which positively impacted the Company’s results of operations and financial position. The Company files income tax returns with the Internal Revenue Service and the State of Colorado. The tax years that remain subject to examination are fiscal 2015 through fiscal 2018. The Company does not believe that there will be any material changes in its unrecognized tax positions over the next 12 months. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. At August 31 , 2019, the Company did not have any accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense recognized during the fiscal year ended August 31, 2019 or 2018. Income (Loss) per Common Share Income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares outstanding during each period. Common stock options of 206,860 and 169,770 common share equivalents as of August 31, 2019 and 2018, respectively, were included in the calculation of income per common share as dilutive common stock equivalents using the treasury stock method. Common stock options aggregating 50,000 common share equivalents as of August 31, 2019, have been excluded from the cal Recently Issued Accounting Pronouncements The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its consolidated financial statements and to ensure that there are proper controls in place to ascertain that the Company’s consolidated financial statements properly reflect the change. New pronouncements assessed by the Company recently are discussed below: In June 2018, the Financial Accounting Standards Board (the “FASB”) issued ASU 2018-07, Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting Compensation — Stock Compensation Equity — Equity-Based Payments to Non-Employees In February 2018, the FASB issued ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220); Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Aug. 31, 2019 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 3 – FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. The Company uses a fair value hierarchy that has three levels of inputs, both observable and unobservable, with use of the lowest possible level of input to determine fair value. Level 1 — Valuations for assets and liabilities traded in active exchange markets, such as The NASDAQ Stock Market. The Company had no Level 1 assets or liabilities as of August 31, 2019 or August 31, 2018. Level 2 — Valuations for assets and liabilities obtained from readily available pricing sources via independent providers for market transactions involving similar assets or liabilities. The Company had one and seven Level 2 assets as of August 31, 2019 and 2018, respectively, which consist of certificates of deposit and/or U.S. treasury notes. Level 3 — Valuations for assets and liabilities that are derived from other valuation methodologies, including discounted cash flow models and similar techniques, and not based on market exchange, dealer, or broker-traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. The Company had one Level 3 liability, the contingent portion of the CAA, as of August 31, 2019 and 2018. The Company has determined that the contingent portion of the CAA does not have a readily determinable fair value (see Note 5 – Participating Interests in Export Water The Company maintains policies and procedures to value instruments using what management believes to be the best and most relevant data available. Level 2 Asset – Investments. The Company’s investments are the Company’s only financial asset measured at fair value on a recurring basis. The fair value of the investment securities is based on the values reported by the financial institutions where the funds are held. These securities include only federally insured certificates of deposit and U.S. treasuries. The following table provides information on the assets and liabilities measured at fair value on a recurring basis as of August 31, 2019: Fair Val Fair Value Cost / Other Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Accumulated Unrealized Gains and (Losses) Certificates of deposit $ — $ — $ — $ — $ — $ — U.S. treasuries 4,996,000 4,992,100 — 4,996,000 — 3,900 Total $ 4,996,000 $ 4,992,100 $ — $ 4,996,000 $ — $ 3,900 The following table provides information on the assets and liabilities measured at fair value on a recurring basis as of August 31, 2018 Fair Value Measurement Using: Fair Value Cost / Other Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Accumulated Unrealized Gains and (Losses) Certificates of deposit $ — $ — $ — $ — $ — $ — U.S. treasuries 8,718,000 8,644,900 — 8,718,000 — 66,400 Subtotal $ 8,718,000 $ 8,644,900 $ — $ 8,718,000 $ — $ 66,400 The Company also holds a certificate of deposit that is not carried at fair value on the consolidated balance sheets and is classified as a held-to-maturity security. As of August 31, 2019, 2018 , t |
WATER AND LAND ASSETS
WATER AND LAND ASSETS | 12 Months Ended |
Aug. 31, 2019 | |
WATER AND LAND ASSETS [Abstract] | |
WATER AND LAND ASSETS | NOTE 4 – WATER AND LAND ASSETS Investment in Water and Water Systems The Company’s water and water systems consist of the following approximate costs and accumulated depreciation and depletion as of August 31: August 31, 2019 August 31, 2018 Costs Accumulated Depreciation and Depletion Costs Accumulated Depreciation and Depletion Rangeview water supply $ 14,823,800 $ (14,700 ) $ 14,813,800 $ (12,800 ) Sky Ranch water rights and other costs 7,371,500 (757,400 ) 8,514,100 (561,400 ) Fairgrounds water and water system 2,899,800 (1,151,000 ) 2,899,900 (1,062,900 ) Rangeview water system 5,617,800 (372,300 ) 1,655,600 (261,200 ) Water supply – other 4,758,200 (860,100 ) 4,337,200 (625,300 ) Wild Pointe service rights 1,631,800 (489,800 ) 1,631,700 (267,700 ) Sky Ranch pipeline 5,723,700 (411,600 ) 5,615,900 (222,000 ) Lost Creek water supply 3,324,000 — — — Construction in progress 8,176,600 — 267,000 — Totals 54,327,200 (4,056,900 ) 39,735,200 (3,013,300 ) Net investments in water and water systems $ 50,270,300 $ 36,721,900 The Company is constructing a water reclamation facility for the Sky Ranch development. The costs of the facility are being recorded in construction in progress. The Company anticipates the facility will be completed in the second quarter of fiscal 2020 at a total cost of approximately $12 million. Depletion and Depreciation The Company recorded $1,900 and $2,200 of depletion charges during the fiscal years ended August 31 , 2019 and 2018, respectively. During the fiscal years ended August 31, 2019 and 2018, this related entirely to the Rangeview Water Supply (as defined below). The Company recorded $1,278,900 and $900,500 of depreciation expense in the fiscal years ended August 31, 2019 and 2018, respectively. These figures include $312,600 and $251,200 of depreciation expense for other equipment not included in the table above in the fiscal years ended August 31, 2019 and 2018, respectively. Assets Classes Estimated Useful Lives Wild Pointe Units of production depletion Rangeview water supply Units of production depletion Lost Creek water supply Units of production depletion Rangeview, Sky Ranch and WISE water systems 30 years ECCV wells 10 years Furniture and fixtures 5 years Trucks and heavy equipment 5 years Water system general (pumps, valves, etc.) 5 years Computers 3 years Water equipment 3 years Software 1 year Rangeview Water Supply and Water System The “Rangeview Water Supply” consists of approximately 26,985 acre feet and is a combination of tributary surface water and groundwater rights along with certain storage rights associated with the Lowry Range, a 27,000-acre property owned by the Land Board located 16 miles southeast of Denver, Colorado. Approximately $18.4 million of Investments in Water and Water Systems on the Company’s balance sheet as of August 31 , 2019, r The Company acquired the Rangeview Water Supply beginning in 1996 when: (i) The Rangeview District entered into the 1996 Amended and Restated Lease Agreement with the Land Board, which owns the Lowry Range; (ii) The Company entered into the Agreement for Sale of Export Water with the Rangeview District; (iii) The Company entered into the 1996 Service Agreement with the Rangeview District for the provision of water service to the Rangeview District’s customers on the Lowry Range; and (iv) In 1997, the Company entered into the Wastewater Service Agreement with the Rangeview District for the provision of wastewater service to the Rangeview District’s customers on the Lowry Range. In July 2014, the Company, the Rangeview District and the Land Board entered into the 2014 Amended and Restated Lease (the “Lease”), which superseded the original 1996 lease, and the Company and the Rangeview District entered into an Amended and Restated Service Agreement. Collectively, the foregoing agreements, as amended, are referred to as the “Rangeview Water Agreements.” Pursuant to the Rangeview Water Agreements, the Company owns 11,650 acre feet of water consisting of 10,000 acre feet of groundwater and 1,650 acre feet of average yield surface water which can be exported off the Lowry Range to serve area users (referred to as “Export Water”). The 1,650 acre feet of surface rights are subject to completion of documentation by the Land Board related to the Company’s exercise of its right to substitute an aggregate gross volume of 165,000 acre feet of its groundwater for 1,650 acre feet per year of adjudicated surface water and to use this surface water as Export Water. Additionally, assuming completion of the substitution of groundwater for surface water, the Company has the exclusive right to provide water and wastewater service, through 2081, to all water users on the Lowry Range and the right to develop an additional 13,685 acre feet of groundwater and 1,650 acre feet of adjudicated surface water to serve customers either on or off the Lowry Range. The Rangeview Water Agreements also provide for the Company to use surface reservoir storage capacity in providing water service to customers both on and off the Lowry Range. Services on the Lowry Range – Rates and charges for all water and wastewater services on the Lowry Range, including tap fees and usage or monthly fees, are governed by the terms of the Rangeview Water Agreements. Rates and charges are required to be not greater than the average of similar rates and charges of three surrounding municipal water and wastewater service providers, which are reassessed annually. Pursuant to the Rangeview Water Agreements, the Land Board receives a royalty of 10% or 12% of gross revenues from the sale or disposition of the water, depending on the nature and location of the purchaser of the water, except that the royalty on tap fees shall be 2% (other than taps sold for Sky Ranch which are exempt). The Company also is required to pay the Land Board a minimum annual water production fee, which will offset future royalty obligations. The Company has made minimum annual royalty payments of $45,600. The Rangeview District retains 2% of the remaining gross revenues, and the Company receives 98% of the remaining gross revenues after the Land Board royalty. The Land Board does not receive a royalty on wastewater fees. The Company receives 100% of the Rangeview District’s wastewater tap fees and 90% of the Rangeview District’s wastewater usage fees (the Rangeview District retains the other 10%). Export Water – WISE The WISE Partnership Agreement provides for the purchase of certain infrastructure (i.e., pipelines, water storage facilities, water treatment facilities, and other appurtenant facilities) to deliver water to and among the 10 members of the SMWA, Denver Water and Aurora Water. Certain infrastructure has been constructed and other infrastructure will be constructed over the next several years. During fi scal 2019, the Company made $419,200 in capital investments in WISE. During fiscal 2018, the Comp Long-Term Obligations and Operating Lease The Arapahoe County Fairgrounds Water and Water System The Company owns 321 acre feet of groundwater purchased pursuant to its agreement with Arapahoe County. The Company plans to use this water in conjunction with its Rangeview Water Supply in providing water to areas outside the Lowry Range. The $2.9 million of capitalized costs noted in the table above includes the costs to construct various Wholesale and Special Facilities, including a new deep water well, a 500,000-gallon water tank and pipelines to transport water to the Arapahoe County fairgrounds. The Lost Creek Water Supply In August 2019, the Company purchased 150 acre feet of ditch water rights, 800 acre feet of renewable groundwater rights, 70 acre feet of deep groundwater rights and 260 acres of land in Weld County. Total consideration for the land and water included the $3.5 million purchase price, plus direct costs and fees of $42,200. The Company allocated the total acquisition cost to the land and water rights based on estimates of each asset’s respective fair value. The purchase of the Lost Creek land and water was accounted for as an asset acquisition. Service to Customers Not on the Lowry Range Sky Ranch – Total consideration for the land and water included the $7.0 million purchase price, plus direct costs and fees of $554,100. The Company allocated the total acquisition cost to the land and water rights based on estimates of each asset’s respective fair value. In June 2017, the Company completed and placed into service its Sky Ranch pipeline, connecting its Sky Ranch water system to the Rangeview District’s water system for approximately $5.7 million. Wild Pointe – O&G Leases In 2011, the Company entered into the O&G Lease with Anadarko. Pursuant to the O&G Lease, the Company received an up-front payment from Anadarko for the purpose of exploring for, developing, producing and marketing oil and gas on 634 acres of mineral estate owned by the Company at its Sky Ranch property. The O&G Lease is now held by production, entitling the Company to royalties based on production. In September 2017, the Company entered into the three-year Bison Lease for the purpose of exploring for, developing, producing and marketing oil and gas on 40 acres of mineral estate owned by the Company adjacent to the Lowry Range. Land and Mineral Interests As part of the 2010 Sky Ranch acquisition, the Company acquired approximately 930 acres of land that is valued at approximately $3.1 million as of August 3 1, 2019. Ad As of August 31, the approximate costs allocated to the Company’s land and mineral interest are as follows: August 31, 2019 August 31, 2018 Sky Ranch land (1) $ 3,037,556 $ 3,037,557 Sky Ranch development costs 423,324 196,553 Lost Creek land 218,138 — Arkansas Valley mineral rights 1,425,459 1,425,459 Net land and mineral interests 5,104,477 4,659,569 (1) The Company transferred $585,700 of Sky Ranch land costs to Inventories related to the initial phase of development, consisting of 151 acres, which began in fiscal 2018. |
PARTICIPATING INTERESTS IN EXPO
PARTICIPATING INTERESTS IN EXPORT WATER | 12 Months Ended |
Aug. 31, 2019 | |
PARTICIPATING INTERESTS IN EXPORT WATER [Abstract] | |
PARTICIPATING INTERESTS IN EXPORT WATER | NOTE 5 – PARTICIPATING INTERESTS IN EXPORT WATER The Company acquired its Rangeview Water Supply through various amended agreements entered into in the early 1990s. The acquisition was finalized with the signing of the CAA in 1996. Upon entering into the CAA, the Company recorded an initial liability of $11.1 million, which represented the cash that the Company received from the participating interest holders that was used to purchase the Company’s Export Water (described in greater detail in Note 4 – Water and Land Assets The CAA obligation is non-interest bearing, and if the Export Water is not sold, the parties to the CAA have no recourse against the Company. Additionally, if the Company does not sell the Export Water, the holders of the Series B Preferred Stock are not entitled to payment of any dividend and have no contractual recourse against the Company. As the proceeds from the sale of Export Water are received and the amounts are remitted to the CAA holders, the Company allocates a ratable percentage of this payment to the principal portion (the Participating Interests in Export Water Supply From time to time, the Company repurchased various portions of the CAA obligations, which retained their original priority. The Company did not make any CAA acquisitions during the fiscal year ended August 31, 2019 or 2018. The Company is currently allocated approximately 88% of the total proceeds from the sale of Export Water after payment of the Land Board royalty. Additionally, as a result of the acquisitions, and the consideration from the cumulative sales of Export Water, as detailed in the table below, the remaining potential third-party obligation at August 31, 2019, is approximately $1 million: Export Water Proceeds Received Initial Export Water Proceeds to Pure Cycle Total Potential Third-party Obligation Participating Interests Liability Contingency Original balances $ — $ 218,500 $ 31,807,700 $ 11,090,600 $ 20,717,100 Activity from inception until August 31, 2016: Acquisitions — 28,042,500 (28,042,500 ) (9,790,000 ) (18,252,500 ) Relinquishment — 2,386,400 (2,386,400 ) (832,100 ) (1,554,300 ) Option payments - Sky Ranch and The Hills at Sky Ranch 110,400 (42,300 ) (68,100 ) (23,800 ) (44,300 ) Arapahoe County tap fees 533,000 (373,100 ) (159,900 ) (55,800 ) (104,100 ) Export Water sale payments 676,500 (540,300 ) (136,200 ) (47,300 ) (88,900 ) Balance at August 31, 2017 1,319,900 29,691,700 1,014,600 341,600 673,000 Fiscal 2018 activity: 60,800 (53,600 ) (7,200 ) (2,500 ) (4,700 ) Balance at August 31, 2018 1,380,700 29,638,100 1,007,400 339,100 668,300 Fiscal 2019 activity: Export Water sale payments 166,300 (146,500 ) (19,800 ) (6,900 ) (12,900 ) Balance at August 31, 2019 $ 1,547,000 $ 29,491,600 $ 987,600 $ 332,200 $ 655,400 The CAA includes contractually established priorities which call for payments to CAA holders in order of their priority. This means the first payees receive their full payment before the next priority level receives any payment and so on until full repayment. Of the next approximately $6.5 million of Export Water payouts, which at current levels would occur over several years, the Company will receive approximately $5.7 million of revenue. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Aug. 31, 2019 | |
ACCRUED LIABILITIES [Abstract] | |
ACCRUED LIABILITIES | NOTE 6 – ACCRUED LIABILITIES At August 31, 2019, t Inventories Land development construction costs Investments in water and water systems. At August 31 , 2018, the |
LONG-TERM OBLIGATIONS AND OPERA
LONG-TERM OBLIGATIONS AND OPERATING LEASE | 12 Months Ended |
Aug. 31, 2019 | |
LONG-TERM OBLIGATIONS AND OPERATING LEASE [Abstract] | |
LONG-TERM OBLIGATIONS AND OPERATING LEASE | NOTE 7 – LONG-TERM OBLIGATIONS AND OPERATING LEASE As of August 31, 2019 and 2018, t The Participating Interests in Export Water Supply are obligations of the Company that have no scheduled maturity dates. Therefore, these liabilities are not disclosed in tabular format. However, the Participating Interests in Export Water Supply are described in Note 5 – Participating Interests in Export Water WISE Partnership During December 2014, the Company, through the Rangeview District, consented to the waiver of all contingencies set forth in the Amended and Restated WISE Partnership – Water Delivery Agreement, dated December 31, 2013 (the “WISE Partnership Agreement”), among the City and County of Denver acting through its Board of Water Commissioners (“Denver Water”), the City of Aurora acting by and through its utility enterprise (“Aurora Water”), and the South Metro WISE Authority (“SMWA”). The SMWA was formed by the Rangeview District and nine other governmental or quasi-governmental water providers pursuant to the South Metro WISE Authority Formation and Organizational Intergovernmental Agreement, dated December 31, 2013 (the “SM IGA”), to enable the members of SMWA to participate in the regional water supply project known as the Water Infrastructure Supply Efficiency partnership (“WISE”) created by the WISE Partnership Agreement. The SM IGA specifies each member’s pro rata share of WISE and the members’ rights and obligations with respect to WISE. The WISE Partnership Agreement provides for the purchase of certain infrastructure (i.e., pipelines, water storage facilities, water treatment facilities, and other appurtenant facilities) to deliver water to and among the 10 members of the SMWA, Denver Water and Aurora Water. Certain infrastructure has been constructed and other infrastructure will be constructed over the next several years. During fiscal 2019, t By consenting to the waiver of the contingencies set forth in the WISE Partnership Agreement, pursuant to the terms of the Rangeview/Pure Cycle WISE Project Financing and Service Agreement (the “WISE Financing Agreement”) between the Company and the Rangeview District, the Company has an agreement to fund the Rangeview District’s participation in WISE effective as of December 22, 2014. The Company’s cost of funding the Rangeview District’s purchase of its share of existing infrastructure and future infrastructure for WISE and funding operations and water deliveries related to WISE is projected to be approximately $7.0 million over the next five years. See further discussion in Note 14 – Related Party Transactions. Operating Lease Effective February 2018, the Company entered into an operating lease for approximately 11,393 square feet of office and warehouse space. The lease has a three-year term with payments of $6,600 per month and an option to extend the primary lease term for a two-year period at a rate representing a 12.5% increase over the primary base payments. The change in the lease costs is not material to the Company’s operations. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Aug. 31, 2019 | |
SHAREHOLDERS' EQUITY [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 8 – SHAREHOLDERS’ EQUITY Preferred Stock The Company’s non-voting Series B Preferred Stock has a preference in liquidation of $1.00 per share less any dividends previously paid. Additionally, the Series B Preferred Stock is redeemable at the discretion of the Company for $1.00 per share less any dividends previously paid. In the event that the Company’s proceeds from the sale or disposition of Export Water rights exceed $36,026,232, the Series B Preferred Stockholders will receive the next $432,513 of proceeds in the form of a dividend. The terms of the Series B Preferred Stock prohibit payment of dividends on common stock unless all dividends accrued on the Series B Preferred Stock have been paid. Equity Compensation Plan The Company maintains the 2014 Equity Incentive Plan (the “2014 Equity Plan”), which was approved by shareholders in January 2014 and became effective April 12, 2014. Executives, eligible employees, consultants and non-employee directors are eligible to receive options and stock grants pursuant to the 2014 Equity Plan. Pursuant to the 2014 Equity Plan, options to purchase shares of stock and restricted stock awards can be granted with exercise prices, vesting conditions and other performance criteria determined by the Compensation Committee of the Company’s board of directors. The Company has reserved 1.6 million shares of common stock for issuance under the 2014 Equity Plan. Awards to purchase 402,000 shares of the Company’s common stock have been made under the 2014 Equity Plan. Prior to the effective date of the 2014 Equity Plan, the Company granted stock awards to eligible participants under its 2004 Incentive Plan (the “2004 Incentive Plan”), which expired April 11, 2014. No additional awards may be granted pursuant to the 2004 Incentive Plan; however, awards outstanding as of April 11, 2014, will continue to vest and expire and may be exercised in accordance with the terms of the 2004 Incentive Plan. The Company estimates the fair value of share-based payment awards on the date of grant using the Black-Scholes option-pricing model (“Black-Scholes model”). Using the Black-Scholes model, the value of the portion of the award that is ultimately expected to vest is recognized as a period expense over the requisite service period in the consolidated statements of operations and comprehensive income (loss). Option forfeitures are to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company does not expect any forfeiture of its option grants and therefore the compensation expense has not been reduced for estimated forfeitures. During fiscal yea r 2019, no options expired. During fiscal year 2018, 2,50 The Company’s determination of the estimated fair value of share-based payment awards on the date of grant is affected by the following variables and assumptions: ● The grant date exercise price – is the closing market price of the Company’s common stock on the date of grant; ● Estimated option lives – based on historical experience with existing option holders; ● Estimated dividend rates – based on historical and anticipated dividends over the life of the option; ● Life of the option – based on historical experience, option grants have lives of between five and 10 years; ● Risk-free interest rates – with maturities that approximate the expected life of the options granted; ● Calculated stock price volatility – calculated over the expected life of the options granted, which is calculated based on the weekly closing price of the Company’s common stock over a period equal to the expected life of the option; and ● Option exercise behaviors – based on actual and projected employee stock option exercises. In fiscal 2019, the Company granted its President and non-employee directors options to purchase 50,000 and a combined 32,500 shares of the Company’s common stock pursuant to the 2014 Equity Plan, respectively. All of the options expire 10 years after the date of grant. The Company calculated the fair value of the options granted during 2019 using the Black-Scholes model. In fiscal 2018, the Company granted its President and non-employee directors options to purchase 50,000 and a combined 32,500 shares of the Company’s common stock pursuant to the 2014 Equity Plan, respectively. All of the options expire 10 years after the date of grant. The Company calculated the fair value of the options granted during 2018 using the Black-Scholes model. The variable assumptions used in the fair value calculations using the Black-Scholes model are as follows: For the Fiscal Years Ended August 31, 2019 2018 Expected term (years) 5.80 5.80 Risk-free interest rate 2.93 % 2.41 % Expected volatility 41.83 % 57.88 % Expected dividend yield 0 % 0 % Weighted average grant-date fair value $ 4.60 $ 4.41 During the fiscal years ended August 31, 2019 and 2018, 62,500 and 10,000 options were exercised, respectively. The following table summarizes the combined stock option activity for the 2004 Incentive Plan and 2014 Equity Plan for the fiscal year ended August 31 , 2019: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Approximate Aggregate Intrinsic Value Outstanding at August 31, 2017 465,500 $ 4.88 6.30 $ 1,007,740 Granted 82,500 $ 8.05 Exercised (10,000 ) $ 7.50 Forfeited or expired (2,500 ) $ 7.50 Outstanding at August 31, 2018 535,500 $ 5.31 6.04 $ 3,180,990 Granted 82,500 $ 10.48 Exercised (62,500 ) $ 3.09 Forfeited or expired — $ — Outstanding at August 31, 2019 555,500 $ 6.33 6.27 $ 2,527,590 Options exercisable at August 31, 2019 403,000 $ 5.44 5.47 $ 2,180,299 The following table summarizes the activity and value of non-vested options as of and for the fiscal year ended August 31, 2019 : Number of Options Weighted Average Grant Date Fair Value Non-vested options outstanding at August 31, 2018 155,833 $ 3.76 Granted 82,500 4.60 Vested (85,833 ) 3.46 Forfeited — — Non-vested options outstanding at August 31, 2019 152,500 $ 4.03 All non-vested options are expected to vest. The total fair value of options vested during the fiscal years ended August 3 1, 2019 and 2018, 20 1 and 2018 w Share-based compensation expense for the fiscal years ended A ugust 31, 2019 and 2018, was At August 31, 2019 , the Warrants As of August 31 , 2019, (i) The date that all of the Export Water is sold or otherwise disposed of, (ii) The date that the CAA is terminated with respect to the original holder of the warrant, or (iii) The date on which the Company makes the final payment pursuant to Section 2.1(r) of the CAA. No warrants were exercised during fisca l 2019 and 2018. |
SIGNIFICANT CUSTOMERS
SIGNIFICANT CUSTOMERS | 12 Months Ended |
Aug. 31, 2019 | |
SIGNIFICANT CUSTOMERS [Abstract] | |
SIGNIFICANT CUSTOMERS | NOTE 9 – SIGNIFICANT CUSTOMERS Water and Wastewater Pursuant to the Rangeview Water Agreements and an Export Service Agreement entered into with the Rangeview District dated June 16, 2017, the Company provides water and wastewater services on the Rangeview District’s behalf to the Rangeview District’s customers. Sales to the Rangeview District accounted for 4% and 6% of the Company’s total water and wastewater revenues for the fiscal years ended August 31, 2019 and 2018, respectively. The Rangeview District had one significant customer, the Ridgeview Youth Services Center. The Rangeview District’s significant customer accounted for 3% and 4% of the Company’s total water and wastewater revenues for the fiscal years ended August 31, 2019 and 2018, respe Revenues from two customers represented approximately 72% and 16% of the Company’s water and wastewater revenues for the fiscal year ended August 31, 2019. Both customers are in the oil and gas industry. Revenues from one customer represented approximately 68% of the Company’s water and wastewater revenues for the fiscal year ended August 31, 2018. This customer was in the oil and gas industry. Land Development Revenues from three customers represented 100% (34%, 34% and 32%) of the Company’s land development revenues for the fiscal year ended August 31, 2019. Revenues from two customers represented 98% of the Company’s land development revenues for the fiscal year ended August 31, 2018. Of the two customers, one customer represented 66% and the second customer represented 32% of the Company’s land development revenues for the fiscal year ended August 31, 2018. The Company had accounts receivable from the Rangeview District which accounted for 40% and 3% of the Company’s trade receivables balances at August 31, 2019 and 2018, respectively. The Company had accounts receivable from one other customer which accounted for approximately 57% of its trade receivable balances at August 31, 2019. The Company had accounts receivable from two other customers which accounted for approximately 43% and 30% of its trade receivable balances at August 31, 2018, respectively. Accounts receivable from the Rangeview District’s largest customer accounted for 5% and 2% of the Company’s water and wastewater trade receivables as of August 31, 2019 and 2018, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Aug. 31, 2019 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 10 – INCOME TAXES Deferred income taxes reflect the tax effects of net operating loss carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets as of August 31 are as follows: For the Fiscal Years Ended August 31, 2019 2018 Deferred tax assets (liabilities): Net operating loss carryforwards $ 609,439 $ 2,009,800 AMT credit carryforward — 282,000 Accrued compensation 113,559 — Deferred revenues 149,895 28,600 Depreciation and depletion (46,408 ) (104,900 ) NQ stock options 410,633 — Other 46,128 80,500 Valuation allowance — (2,014,000 ) Net deferred tax asset $ 1,283,246 $ 282,000 The Company maintained a valuation allowance on the net deferred tax asset other than AMT credit carryforwards as of August 31, 2018. For the fiscal year ended August 31, 2019, the Company has determined it is more likely than not that the Company will realize its deferred tax assets, which consist primarily net operating loss carryforwards. The Company assessed the realizability of its deferred tax assets using all available evidence; considering both historical results and projections of profitability for the reasonably foreseeable future periods. As a result of the Company’s annual reassessment of its conclusions regarding the realization of its deferred tax assets at each financial reporting date, the Company concluded that its deferred tax assets are realizable, and therefore, the valuation allowance is no longer necessary. By releasing the valuation allowance, the Company recognized a deferred tax benefit of approximately $1,284,100 which positively impacted the Company's results of operations and financial position. Income taxes computed using the federal statutory income tax rate differs from the Company’s effective tax rate primarily due to the following for the fiscal years ended August 31: For the Fiscal Years Ended August 31, 2019 2018 Expected benefit from federal taxes at statutory rate of 21% and 34% for the years 2019 and 2018 $ 740,870 $ 34,100 State taxes, net of federal benefit 129,123 4,600 Permanent and other differences 10,388 97,800 Change in tax rate — 1,196,464 NOL true up 225,067 17,589 Temporary difference true up — 240,352 NQ stock options adjustment (348,441 ) — AMT credit carryforward — (282,000 ) Other (26,202 ) (17,705 ) Change in valuation allowance (2,014,000 ) (1,573,200 ) Total income tax expense / (benefit) $ (1,283,195 ) $ (282,000 ) At August 31, 2019 , th No net operating loss carryforwards expired during the fiscal year ended August 31 , 2019 or 2018. The Tax Act reduced the Company’s corporate federal tax rate from 34% to 21% effective January 1, 2018. As a result, the Company is required to re-measure its deferred tax assets and liabilities using the enacted rate at which it expects them to be recovered or settled. The effect of this re-measurement is recorded to income tax expense (benefit) in the year the tax law is enacted. The Company’s deferred tax asset and full valuation allowance was decreased by approximately $1.2 million as a result of the decreased corporate tax rate during the fiscal year ended August 31, 2018 |
401(K) PLAN
401(K) PLAN | 12 Months Ended |
Aug. 31, 2019 | |
401(K) PLAN [Abstract] | |
401(K) PLAN | NOTE 11 – 401(K) PLAN The Company maintains a Pure Cycle Corporation 401(k) Profit Sharing Plan (the “401(k) Plan”), a defined contribution retirement plan for the benefit of its employees. The 401(k) Plan is currently a salary deferral only plan, and at this time the Company does not match employee contributions. The Company pays the annual administrative fees of the 401(k) Plan, and the 401(k) Plan participants pay the investment fees. The 401(k) Plan is open to all employees, age 21 or older, who have been employees of the Company for at least six months. During the fiscal years ended August 31 , 2019 and 2018, th |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Aug. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 12 – COMMITMENTS AND CONTINGENCIES The Company has historically been involved in various claims, litigation and other legal proceedings that arise in the ordinary course of its business. The Company records an accrual for a loss contingency when its occurrence is probable and damages can be reasonably estimated based on the anticipated most likely outcome or the minimum amount within a range of possible outcomes. The Company makes such estimates based on information known about the claims and experience in contesting, litigating and settling similar claims. Disclosures are also provided for reasonably possible losses that could have a material effect on the Company’s financial position, results of operations or cash flows. The Company had no contingencies where the risk of material loss was reasonably possible as of August 31, 2019. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Aug. 31, 2019 | |
SEGMENT REPORTING [Abstract] | |
SEGMENT REPORTING | NOTE 13 – SEGMENT REPORTING An operating segment is defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Chief Operating Decision Maker (“CODM”), or decision-making group, to evaluate performance and make operating decisions. The Company has identified its CODM as the Chief Executive Officer. During the year 2018, the Company began construction of lots at Sky Ranch, which the Company has identified as a segment. Currently, the Company operates its wholesale water and wastewater services segment and land development activities at Sky Ranch as its two lines of business. The wholesale water and wastewater services business includes selling water service to customers, which water is provided by the Company using water rights owned or controlled by the Company, and developing infrastructure to divert, treat and distribute that water and collect, treat and reuse wastewater. As part of the Company’s land development activities at Sky Ranch, the Company entered into contracts for the sale of lots (see Note 2 – Summary of Significant Accounting Policies Oil and gas royalties and licenses are a passive activity and not an operating business activity and, therefore, are not classified as a segment. The following table summarizes wholesale water and wastewater services and land development revenue information by segment (1) For the Fiscal Years Ended August 31, 2019 2018 Wholesale water and wastewater services $ 8,405,520 $ 4,794,749 Land development activities 11,955,989 2,164,450 Total wholesale water and wastewater services and land development revenues $ 20,361,509 $ 6,959,199 (1) The Company had other income from non-segment sources (oil and gas, interest and other) of $529,293 and $441,407 for the fiscal years ended August 31, 2019 and 2018, respectively. The following table summarizes wholesale water and wastewater services and land development pretax income by segment: For the Fiscal Years Ended August 31, 2019 2018 Wholesale water and wastewater services $ 5,766,783 $ 2,646,988 Land development activities 651,027 150,610 Depreciation, general and administrative expenses (3,419,149 ) (3,106,325 ) Total income (loss) from operations $ 2,998,661 $ (308,727 ) The following table summarizes total assets for the Company’s wholesale water and wastewater services business and land development business by segment. The assets consist primarily of water rights and water and wastewater systems in the Company’s wholesale water and wastewater services segment and land, inventories and deposits in the Company’s land development segment. The Company’s other assets (“Corporate”) primarily consist of cash and cash equivalents, equipment, mineral rights, related party notes receivables and a deferred tax asset. August 31, 2019 August 31, 2018 Wholesale water and wastewater services $ 51,588,079 $ 36,721,884 Land development activities 16,866,542 9,497,106 Corporate 15,266,783 25,687,625 Total assets $ 83,721,404 $ 71,906,615 For the years ended August 31, 2019 and 2018, the Company had asset additions of $14.1 million and $2.9 million, respectively, in the wholesale water and wastewater services segment. For the years ended August 31, 2019 and 2018, the Company had asset additions of $18.6 million and $4.7 million, respectively, in the land development activities segment. The Company allocated $4.8 million from other water and wastewater to its land development activities segment in fiscal 2018. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Aug. 31, 2019 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 14 – RELATED PARTY TRANSACTIONS On December 16, 2009, the Company entered into a Participation Agreement with the Rangeview District, whereby the Company agreed to provide funding to the Rangeview District in connection with the Rangeview District joining the South Metro Water Supply Authority (“SMWSA”). The Company provided funding of $22,200 and $198,200 for the fiscal years ended August 31, 2019 and 2018, respectively. Through the WISE Financing Agreement, to date the Company has made payments totaling $3,533,300 to purchase certain rights to use existing water transmission and related infrastructure acquired by the WISE project and to construct the connection to the WISE system. The amounts are included in Investments in water and water systems Estimated WISE Costs For the Fiscal Years Ended August 31, 2020 2021 2022 2023 2024 Operations $ 44,235 $ 32,033 $ 32,033 $ 32,033 $ 32,033 Water delivery 430,350 858,000 858,000 858,000 858,000 Capital 2,296,138 50,000 50,000 50,000 50,000 Other 55,000 55,000 55,000 55,000 55,000 $ 2,825,723 $ 995,033 $ 995,033 $ 995,033 $ 995,033 The Company has outstanding notes receivable of $988,400 in the aggregate from the Rangeview District and the CAB, which are related parties, as discussed below: The Rangeview District is a quasi-municipal corporation and political subdivision of Colorado formed in 1986 for the purpose of providing water and wastewater service to the Lowry Range and other approved areas. The Rangeview District is governed by an elected board of directors. Eligible voters and persons eligible to serve as a director of the Rangeview District must own an interest in property within the boundaries of the Rangeview District. The Company owns certain rights and real property interests which encompass the current boundaries of the Rangeview District. Sky Ranch Metropolitan District Nos. 1, 3, 4 and 5 (the “Sky Ranch Districts”) and the CAB are quasi-municipal corporations and political subdivisions of Colorado formed for the purpose of providing service to the Company’s Sky Ranch property. The current members of the board of directors of the Rangeview District, each Sky Ranch District, and the CAB consist of three employees of the Company (including the Company’s President) and one independent board member. The Rangeview District In 1995, the Company extended a loan to the Rangeview District. The loan provided for borrowings of up to $250,000, is unsecured, and bears interest based on the prevailing prime rate plus 2% (7.25% at August 31, 2019). The maturity date of the loan is December 31, 2020. Beginning in January 2014, the Rangeview District and the Company entered into a funding agreement that allows the Company to continue to provide funding to the Rangeview District for day-to-day operations and accrue the funding into a note that bears interest at a rate of 8% per annum and remains in full force and effect for so long as the Lease remains in effect. Of the August 31, 2019 balance in Notes receivable - related parties Notes receivable - related parties Sky Ranch Metropolitan District Nos. 1, 3, 4 and 5 The Company had been providing funding to the Sky Ranch Districts, beginning in 2012 through 2016 by entering into annual Operation Funding Agreements with one of the Sky Ranch Districts obligating the Company to advance funding to the Sky Ranch District for the operation and maintenance expenses for the then-current calendar year. The Sky Ranch District paid the outstanding note receivable to the Company in November 2017. As of August 31, 2018, there was no outstanding balance under these agreements. In November 2014, but effective as of January 1, 2014, the Company entered into a Facilities Funding and Acquisition Agreement with a Sky Ranch District obligating the Company to either finance district improvements or to construct improvements on behalf of the Sky Ranch District subject to reimbursement. Each advance or reimbursable expense accrued interest at a rate of 6% per annum. No payments were required by the Sky Ranch District unless and until the Sky Ranch District issued bonds in an amount sufficient to reimburse the Company for all or a portion of the advances and costs incurred. The CAB agreed to repay the amounts owed by the Sky Ranch District under this agreement and the agreement was terminated pursuant to the 2018 FFAA (defined and described below). Sky Ranch Community Authority Board Pursuant to a certain Community Authority Board Establishment Agreement, as the same may be amended from time to time, Sky Ranch Metropolitan District No. 1 and Sky Ranch Metropolitan District No. 5 formed the CAB to, among other things, design, construct, finance, operate and maintain certain public improvements for the benefit of the property within the boundaries and/or service area of the Sky Ranch Districts. In order for the public improvements to be constructed and/or acquired, it is necessary for each Sky Ranch District, directly or through the CAB, to be able to fund the improvements and pay its ongoing operations and maintenance expenses related to the provision of services that benefit the property. In November 2017, but effective as of January 1, 2018, the Company entered into a Project Funding and Reimbursement Agreement (“PF Agreement”) with the CAB for the Sky Ranch property. The PF Agreement required the Company to fund an agreed upon list of public improvements for Sky Ranch with respect to earthwork, erosion control, streets, drainage and landscaping at an estimated cost of $13.2 million for calendar years 2018 and 2019. Each advance or reimbursable expense accrues interest at a rate of 6% per annum. On September 18, 2018, the parties entered into a series of agreements, including a Facilities Funding and Acquisition Agreement with an effective date of November 13, 2017 (the “2018 FFAA”), which supersedes and consolidates the previous agreements pursuant to which ● the CAB agreed to repay the amounts owed by Sky Ranch Metropolitan District No. 5 to the Company totaling $857,900, and the previous Facilities Funding and Acquisition Agreement entered into between the Company and Sky Ranch Metropolitan District No. 5 in 2014 was terminated; ● the PF Agreement and a June 2018 Funding Acquisition Agreement between the CAB and the Company totaling $2.4 million were terminated; ● the CAB acknowledged all amounts owed to the Company under the terminated agreements totaling $3.3 million, as well as amounts the Company incurred to finance the formation of the CAB; and ● the Company agreed to fund an agreed upon list of improvements to be constructed by the CAB with an estimated cost of $30,000,000 (including improvements already funded) on an as-needed basis for calendar years 2018–2023. All amounts owed under the terminated agreements and all amounts advanced under the 2018 FFAA, collectively totaling $20 million, bear interest at a rate of 6% per annum. No payment is required of the CAB for advances made to the CAB or expenses incurred related to construction of improvements unless and until the CAB and/or Sky Ranch Districts issue bonds in an amount sufficient to reimburse the Company for all or a portion of advances or other expenses incurred. The CAB agrees to exercise reasonable efforts to issue bonds to reimburse the Company subject to certain limitations. In addition, the CAB agrees to utilize any available moneys not otherwise pledged to payment of debt, used for operation and maintenance expenses, or otherwise encumbered, to reimburse the Company. Any advances not paid or reimbursed by the CAB by December 31, 2058, shall be deemed forever discharged and satisfied in full. In 2018, the Company advanced the CAB $2.3 million to begin construction of improvements on the Sky Ranch property. In 2019, the Company advanced the CAB $17.7 million for the Sky Ranch property. The advances have been used by the CAB to pay for construction of public improvements and have been recorded as Inventories and subsequently expensed through Land development construction costs In September 2018, effective as of November 13, 2017, the Company entered into an Operation Funding Agreement with the CAB obligating the Company to advance funding to the CAB for operation and maintenance expenses for the 2018 and 2019 calendar years. All payments are subject to annual appropriations by the CAB in its absolute discretion. The advances by the Company accrue interest at the rate of 6% per annum from the date of the advance. $27,100 of the balance of the Notes receivable – related parties Notes receivable – related parties |
UNAUDITED QUARTERLY FINANCIAL D
UNAUDITED QUARTERLY FINANCIAL DATA | 12 Months Ended |
Aug. 31, 2019 | |
UNAUDITED QUARTERLY FINANCIAL DATA [Abstract] | |
UNAUDITED QUARTERLY FINANCIAL DATA | NOTE 15 – UNAUDITED QUARTERLY FINANCIAL DATA Quarterly Results of Operations 2019 2018 Three Months Ended Three Months Ended In thousands, except per share data Nov 30 Feb 28 May 31 Aug 31 Nov 30 Feb 29 May 31 Aug 31 Total revenues $ 3,073 $ 2,630 $ 5,185 $ 9,474 $ 1,010 $ 845 $ 1,212 $ 3,892 Gross profit 1,246 374 1,922 2,876 580 631 683 904 Operating income (loss) 519 (276 ) 1,159 1,597 (200 ) (14 ) (88 ) (7 ) Net income (loss) $ 634 $ (96 ) $ 1,261 $ 3,012 $ (97 ) $ 100 $ 55 $ 357 Basic and diluted income (loss) per share $ 0.03 $ * $ 0.05 $ 0.13 * $ * $ * $ 0.01 * Amount is less than $.01 per share The following item had a significant impact on the Company’s net income (loss): ● In fiscal 2019, the Company sold approximately $4,238,300 ($1,285,000, $124,200, $1,308,500 and $1,520,600 in fiscal Q1, Q2, Q3 and Q4, respectively) in water related to oil and gas activities as compared to $4,044,300 ($846,400, $753,000, $1,022,300 and $1,422,600 in fiscal Q1, Q2, Q3 and Q4, respectively) in fiscal 2018. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Aug. 31, 2019 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | NOTE 16 – SUBSEQUENT EVENTS On October 25, 2019, the CAB filed a preliminary offering memorandum for the offering and issuance of tax-exempt, fixed rate senior bonds in the aggregate principal amount of approximately $10,820,000 and tax-exempt, fixed-rate subordinate bonds in the aggregate principal amount of approximately $1,765,000 (collectively, the “Bonds”). If the Bonds are sold successfully, approximately $10 million of the net proceeds from the Bonds are expected to be used to reimburse the Company for advances it made to the CAB pursuant to the 2018 FFAA to fund the construction of public improvements to the Sky Ranch property. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Aug. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of the Company include the accounts of Pure Cycle Corporation and its majority-owned and controlled subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) 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. Estimates are used to account for certain items such as revenue recognition, reimbursable costs and expenses, costs of revenue for lot sales, share-based compensation, deferred tax asset valuation, and the useful lives of assets. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all highly liquid debt instruments with original maturities of three months or less. The Company’s cash equivalents are comprised entirely of money market funds maintained at a reputable financial institution and U.S. Treasury debt securities. At various times during the fiscal year ended August 3 1, 2019, t |
Land Development Inventories | Land Development Inventories Inventories primarily include land held for development and sale. Inventories are stated at cost. Capitalized lot development costs at Sky Ranch are costs incurred to construct lots at Sky Ranch that meet the Company’s capitalization criteria for improvements to a lot and are capitalized as incurred. The Company capitalizes certain legal, engineering, design, permitting, land acquisition, and construction costs related to the development of lots at Sky Ranch. The Company uses the specific identification method for the purpose of accumulating land development costs and allocates costs to each lot to determine the cost basis for each lot sale. The Company records all land cost of sales over time based on inputs of costs incurred to date to total estimated costs to complete. In accordance with Accounting Standards Codification (“ASC”) Topic 360, Property, Plant and Equipment Fair Value Measurements |
Investments | Investments Management determines the appropriate classification of its investments in certificates of deposit and treasury securities at the time of purchase and reevaluates such determinations each reporting period. Certificates of deposit and debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. The Company has $192,800 of investments classified as held-to-maturity at August 31 , 2019 Accumulated other comprehensive income (loss). |
Concentration of Credit Risk and Fair Value | Concentration of Credit Risk and Fair Value Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents and investments. From time to time, the Company places its cash in money market instruments, certificates of deposit and U.S. government treasury obligations. To date, the Company has not experienced significant losses on any of these investments. The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate that value. |
Cash and Cash Equivalents | Cash and Cash Equivalents – |
Trade Accounts Receivable | Trade Accounts Receivable – |
Investments | Investments – Fair Value Measurements. |
Accounts Payable | Accounts Payable – |
Long-Term Financial Liabilities | Long-Term Financial Liabilities – Water and Land Assets Water and Land Assets Participating Interests in Export Water |
Notes Receivable - Related Parties | Notes Receivable – Related Parties – Notes receivable – related parties |
Off-Balance-Sheet Instruments | Off-Balance Sheet Instruments – Participating Interests in Export Water |
Cash Flows | Cash Flows The Company did not have any debt during the fiscal years ended August 31, 2019 and 2018, and therefore did not pay any interest during the fiscal years ended August 31, 2019 and 2018. The Company did not pay any income taxes during the fiscal year ended August 31, 2018. |
Trade Accounts Receivable | Trade Accounts Receivable The Company records accounts receivable net of allowances for uncollectible accounts. The Company has not recorded an allowance for uncollectible accounts in receivables from continuing operations for either of the periods ended August 31 , 2019 or 2018. The allowance for uncollectible accounts was determined based on a specific review of all past due accounts. |
Long-Lived Assets | Long-Lived Assets The Company reviews its long-lived assets 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 undiscounted net cash flows expected to be generated by the eventual use of 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 or fair value less costs to sell. The Company determined that no indicators were noted which would result in an impairment of the Company’s long-lived assets for the period ended August 31, 2019 and 2018. |
Capitalized Costs of Water and Wastewater Systems and Depreciation and Depletion Charges | Capitalized Costs of Water and Wastewater Systems and Depreciation and Depletion Charges Costs to construct water and wastewater systems that meet the Company’s capitalization criteria are capitalized as incurred, including interest, if applicable, and depreciated on a straight-line basis over their estimated useful lives of up to 30 years. The Company capitalizes design and construction costs related to construction activities, and it capitalizes certain legal, engineering and permitting costs relating to the adjudication and improvement of its water assets. The Company depletes its water assets that are being utilized on the basis of units produced (i.e., thousands of gallons sold) divided by the total volume of water adjudicated in the water decrees. |
Revenue Recognition | Revenue Recognition The Company disaggregates revenue by major product line as reported on the consolidated statements of operations and comprehensive income. The Company generates revenues through two lines of business. Revenues are derived through its wholesale water and wastewater business and through the sale of developed land primarily for residential lots, both of which businesses are described below. The Company generates revenues through its wholesale water and wastewater business predominantly from three sources: (i) monthly wholesale water usage fees and wastewater service fees, (ii) one-time water and wastewater tap fees and construction fees/Special Facility funding, and (iii) consulting fees. Because these items are separately delivered and distinct, the Company accounts for each of the items separately, as described below. Wholesale Water and Wastewater Fees (i) Monthly water usage and wastewater treatment fees – Water and Land Assets In addition to providing domestic water, the Company provides raw water for hydraulic fracturing to industrial customers in the oil and gas industry that are located in and adjacent to its service areas. Frack water revenues are recognized at a point in time upon delivering water to a customer. The Company delivered 356.1 million and 406.6 million gallons of water to customers during the years ended August 31, 2019 and 2018, respectively, of which 84% and 77% was used for oil and gas exploration, respectively. The Company recognizes wastewater treatment revenues monthly based on a flat monthly fee and actual usage charges. The monthly wastewater treatment fees are shown net of amounts retained by the Rangeview District. Costs of delivering water and providing wastewater service to customers are recognized as incurred. (ii) Water and wastewater tap fees and construction fees/Special Facility funding The Company recognizes water and wastewater tap fee revenues at the time the Company grants a right for the customer to connect to the water or wastewater service line to obtain service. The Company recognized $3,018,300 and $49,900 of water tap fee revenues during the years ended August 31, 2019 and 2018, respectively. The water tap fees recognized are based on the amounts billed to the Rangeview District and any amounts paid to third parties pursuant to the CAA as further described in Note 7 – Long-Term Obligations and Operating Lease The Company recognizes construction fees, including fees received to construct “Special Facilities,” over time as the construction is completed because the customer is generally able to use the property improvement to enhance the value of other assets during the construction period. Special Facilities are facilities that enable water to be delivered to a single customer and are not otherwise classified as a typical wholesale facility or retail facility. Temporary infrastructure required prior to construction of permanent water and wastewater systems or transmission pipelines to transfer water from one location to another are examples of Special Facilities. Management has determined that Special Facilities are separate and distinct performance obligations because these projects are contracted to construct a specific water and wastewater system or transmission pipeline and typically do not include multiple performance obligations in a contract with a customer. No Special Facilities revenue was recognized during the fiscal year ended August 31, 2019 or 2018. As of August 31, 2019 and 2018, the Company had no contract liabilities related to water tap and construction fee/Special Facility funding revenue. (iii) Consulting fees Land Development Activities The Company generates revenues through the sale of finished lots at its Sky Ranch development primarily from several sources of revenues: (i) the sale of finished lots, (ii) construction support activities, (iii) project management services, and (iv) reimbursable expenses incurred to develop certain public improvements. (i) Land development through the sale of finished lots The Company sells lots at Sky Ranch pursuant to distinct agreements with each builder. These agreements follow one of two formats. One format is the sale of a finished lot, whereby the purchaser pays for a ready-to-build finished lot and payment is a lump-sum payment upon completion of the finished lot. The Company will recognize revenues at the point in time of the closing of the sale of a finished lot in which control transfers to the builder and the builder is able to obtain a building permit, as the transaction cycle will be complete and the Company will have no further obligations for the lot. During the year ended August 31, 2019, the Company received payment and recognized revenue of $4,053,800 from one home builder in exchange for the delivery of 57 finished lots. No revenue was recognized for lot sales at a point in time during the year ended August 31, 2018. The Company’s second format is the sale of finished lots pursuant to a development agreement with builders, whereby the Company receives payments in stages that include (i) payment upon the delivery of platted lots (which requires the Company to deliver deeded title to individual lots), (ii) a second payment upon the completion of certain infrastructure milestones, and (iii) final payment upon the delivery of the finished lot. Ownership and control of the platted lots pass to the builders once the Company closes the sale of the platted lots. Because the builder (i.e., the customer) takes control of the lot at the first closing and subsequent improvements made by the Company improve the builder’s lot as construction progresses, the Company accounts for revenue over time with progress measured based upon costs incurred to date compared to total expected costs. Any revenue in excess of amounts entitled to be billed is reflected on the balance sheet as a contract asset, and amounts received in excess of revenue recognized are recorded as deferred revenue. As of August 31, 2019, the Company had received cumulative payments of approximately $14.0 million under the development agreements relating to 198 lots from two home builders, of which approximately $10.0 million of revenue was recognized over time based on the costs incurred to date compared to total expected costs for full completion of the 198 lots. For the years ended August 31, 2019 and 2018, the Company recognized approximately $7.9 million and approximately $2.1 million of lot sales over time, respectively. The Company had deferred revenues of $3,991,500 and $361,100 as of August 31, 2019 and 2018, respectively. The Company does not have any material significant payment terms as all payments are expected to be received within 12 months after the delivery of the platted lot. The Company adopted the practical expedient for financing components and does not need to account for a financing component of these lot sales as the delivery of lot sales is expected to occur within one year. (ii) Construction support activities Inventories Land development construction costs Related Party Transactions Inventories Inventories (iii) Project management services Pursuant to these agreements, the Company acts as the project manager and provides any and all services required to deliver the CAB-eligible improvements, including but not limited to CAB compliance; planning design and approvals; project administration; contractor agreements; and construction management and administration. The Company must submit to the CAB a monthly invoice, in a form acceptable to the CAB. The Company is responsible for all expenses it incurs in the performance of the agreements and is not entitled to any reimbursement or compensation except as defined in the agreements, unless otherwise approved in advance by the CAB in writing. The CAB is subject to annual budget and appropriation procedures and does not intend to create a multiple-fiscal year direct or indirect debt or other financial obligation. The Company receives a project management fee of five percent (5%) of actual construction costs of CAB-eligible improvements. The project management fee qualifies as a reimbursable cost to the Company. The project management fee is based only on the actual costs of the improvements; thus, items such as fees, permits, review fees, consultant or other soft costs, and land acquisition or any other costs that are not directly related to the cost of construction of CAB-eligible improvements are not included in the calculation of the project management fee. Soft costs and other costs that are not directly related to the construction of CAB-eligible improvements are included in Inventories (iv) Reimbursable expenses Related Party Transactions Inventories Land development construction costs The Company evaluated disaggregation of revenue and has determined that no additional disaggregation of revenue is necessary. |
Deferred Revenue | Deferred Revenue Deferred revenues as of August 31, 2019 Oil and Gas Lease Payments Deferred revenues from lot sales for the years ended August 31, 2019 and 2018 were $4.0 million and $361,100, respectively. The Company received an up-front payment of $167,200 in fiscal 2018, which is being recognized as income on a straight-line basis over three years (the term of the Bison Lease). The Company recognized lease income of $55,700 and $51,100 during the fiscal years ended August 31, 2019 and 2018, respectively, related to the up-front payment received pursuant to the Bison Lease. As of August 31, 2019, the Company has deferred revenues of $60,400 related to the Bison Lease that will be recognized into income ratably through September 2020. The Company received an up-front payment of $573,700 in fiscal 2019 for the OGOA, which is being recognized as income on a straight-line basis over three years (the term of the agreement). If after three years the operator has not spud at least one well on the oil and gas operations area, the operator may extend the right to the OGOA one additional year by paying $75,000 to the Company. The operator may only extend the OGOA for two additional years for a total of five years. The Company recognized lease income of $26,200 during the fiscal year ended August 31, 2019 related to the up-front payment received pursuant to the OGOA. As of August 31, 2019, the Company has deferred revenues of $547,500 related to the OGOA that will be recognized into income ratably through July 2022. The Company received an up-front payment of $425,800 in fiscal 2019, which will be recognized as income as industrial water is provided to the operator beginning in October 2019. None of this up-front payment was recognized in revenue as of August 31, 2019. Deferred revenues by segment is as follows: August 31, 2019 August 31, 2018 Wholesale water and wastewater services $ — $ — Land development activities 3,991,535 361,050 Oil and gas leases 1,067,348 116,111 Balance, end of period $ 5,058,883 $ 477,161 Changes in unearned revenue were as follows: August 31, 2019 August 31, 2018 Balance, beginning of period $ 477,161 $ 1,055,488 Cumulative effect of adoption of ASU 2014-09 — (1,055,488 ) Billings 24,943,231 2,667,200 Contract revenues recognized (20,361,509 ) (2,190,039 ) Balance, end of period $ 5,058,883 $ 477,161 Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized (“contracted not recognized revenue”), which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. At August 31, 2019, the Company had outstanding open contracts for $22,189,000, which primarily related to the sale of 506 lots at Sky Ranch. The Company expects to recognize approximately 70% of such revenue over the next 12 months. |
Inventories | Inventories Inventories primarily include land held for development and sale, which the Company has begun developing and are stated at cost. Capitalized lot development costs at Sky Ranch are costs incurred to construct finished lots at Sky Ranch that meet the Company’s capitalization criteria for improvements to a lot and are capitalized as incurred. The Company capitalizes certain legal, engineering, design, permitting, land acquisition, and construction costs related to the development of lots at Sky Ranch. The Company uses the specific identification method for purposes of accumulating land development costs and allocates costs to each lot to determine the cost basis for each lot sale. The Company will record all land cost of sales when a lot is completed and sold on a lot-by-lot basis. Costs included in Inventories Inventories In accordance with ASC 360, the Company measures land held for sale at the lower of the carrying value or net realizable value. In determining fair value, the Company primarily relies upon the most recent negotiated price that is a Level 2 input (see Note 3 – Fair Value Measurements |
Royalty and Other Obligations | Royalty and Other Obligations Revenues from the sale of Export Water are shown gross of royalties payable to the Land Board. Revenues from the sale of water on the Lowry Range are invoiced directly by the Rangeview District, and a percentage of such collections are then paid to the Company by the Rangeview District. Water revenue from such sales are shown net of royalties paid to the Land Board and amounts retained by the Rangeview District. |
Oil and Gas Lease Payments | Oil and Gas Lease Payments In July 2019, the Company received an up-front payment of $573,700 for the OGOA, which will be recognized as income on a straight-line basis over three years. If after three years the operator has not spud at least one well on the OGOA, the operator may extend the right to the OGOA one additional year by paying $75,000 to the Company. The operator may only extend the OGOA for two additional years for a total of five years. The Company recognizes the up-front payments on a straight-line basis over the terms of the respective agreements. During the fiscal years ended August 31, 2 019 and 2018 The Company entered into the Bison Lease, on September 20, 2017. Pursuant to the Bison Lease, the Company received an up-front payment of $167,200, which is being recognized as income on a straight-line basis over three years (the term of the Bison Lease). The Company recognized lease income of $55,700 and $51,100 during the fiscal years ended August 31, 2019 and 2018, respectively, related to the up-front payment received. As of August 31, 2019, the Company has deferred revenues of $60,400 of income related to the Bison Lease that will be recognized into income ratably through September 2020. As further described in Note 4 – Water and Land Assets , 2019, and 2018, Other income |
Share-Based Compensation | Share-based Compensation The Company maintains a stock option plan for the benefit of its employees and non-employee directors. The Company recognizes share-based compensation costs as expenses over the applicable vesting period of the stock award using the straight-line method. The compensation costs to be expensed are measured at the grant date based on the fair value of the award. The Company has adopted the alternative transition method for calculating the tax effects of share-based compensation, which allows for a simplified method of calculating the tax effects of employee share-based compensation. The Company has released its full valuation allowance on its deferred tax assets as of August 31, 2019. The impact on the income tax provision for the granting and exercise of stock options during the fiscal year ended August 31, 2019, 2018 t The Company recognized $336,200 and $324,800 of share-based compensation expenses during the fiscal 2019 and 2018, resp |
Income Taxes | Income Taxes The Company uses a “more-likely-than-not” threshold for the recognition and de-recognition of tax positions, including any potential interest and penalties relating to tax positions taken by the Company. The Company does not have any significant unrecognized tax benefits as of August 31 , 2019. The Company’s deferred tax asset and valuation allowance was decreased by approximately $1.2 million as a result of the decreased corporate tax rate that went into effect pursuant to H.R.1, commonly known as the Tax Cuts and Jobs Act (the “Tax Act”), signed into law on December 22, 2017. As of August 31, 2018, the Company has a $282,000 alternative minimum tax (“AMT”) deferred tax asset for which it does not have a valuation allowance. The Company expects to receive the AMT as a refund in future years. Most, if not all, of this credit will be refundable starting with the filing of the 2018 (fiscal year ended 2019) through 2021 (fiscal year ending 2022) tax returns, subject to limitations of Internal Revenue Code Section 382 (arises with ownership changes) and the sequestration limitation of the Balanced Budget Act of 1997. The Company will continue to evaluate the impact of the Tax Act and will record any resulting tax adjustments during fiscal 2020. The Company maintained a valuation allowance on the net deferred tax asset other than AMT credits as of August 31, 2018. The Company has determined it is more likely than not that the Company will realize its deferred tax assets. Such assets primarily consist of operating loss carryforwards. The Company assessed the realizability of its deferred tax asset using all available evidence. In particular, the Company considered both historical results and projections of profitability for the reasonably foreseeable future periods. The Company is required to reassess its conclusions regarding the realization of its deferred tax assets at each financial reporting date. As a result of the evaluation, the Company concluded that all of the valuation allowance is no longer necessary. By releasing the valuation allowance, the Company recognized a deferred tax benefit of approximately $1,284,100 which positively impacted the Company’s results of operations and financial position. The Company files income tax returns with the Internal Revenue Service and the State of Colorado. The tax years that remain subject to examination are fiscal 2015 through fiscal 2018. The Company does not believe that there will be any material changes in its unrecognized tax positions over the next 12 months. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. At August 31 , 2019, the Company did not have any accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense recognized during the fiscal year ended August 31, 2019 or 2018. |
Income (Loss) per Common Share | Income (Loss) per Common Share Income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares outstanding during each period. Common stock options of 206,860 and 169,770 common share equivalents as of August 31, 2019 and 2018, respectively, were included in the calculation of income per common share as dilutive common stock equivalents using the treasury stock method. Common stock options aggregating 50,000 common share equivalents as of August 31, 2019, have been excluded from the cal |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its consolidated financial statements and to ensure that there are proper controls in place to ascertain that the Company’s consolidated financial statements properly reflect the change. New pronouncements assessed by the Company recently are discussed below: In June 2018, the Financial Accounting Standards Board (the “FASB”) issued ASU 2018-07, Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting Compensation — Stock Compensation Equity — Equity-Based Payments to Non-Employees In February 2018, the FASB issued ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220); Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Deferred Revenue by Segment and Changes in Unearned Revenue | Deferred revenues by segment is as follows: August 31, 2019 August 31, 2018 Wholesale water and wastewater services $ — $ — Land development activities 3,991,535 361,050 Oil and gas leases 1,067,348 116,111 Balance, end of period $ 5,058,883 $ 477,161 Changes in unearned revenue were as follows: August 31, 2019 August 31, 2018 Balance, beginning of period $ 477,161 $ 1,055,488 Cumulative effect of adoption of ASU 2014-09 — (1,055,488 ) Billings 24,943,231 2,667,200 Contract revenues recognized (20,361,509 ) (2,190,039 ) Balance, end of period $ 5,058,883 $ 477,161 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table provides information on the assets and liabilities measured at fair value on a recurring basis as of August 31, 2019: Fair Val Fair Value Cost / Other Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Accumulated Unrealized Gains and (Losses) Certificates of deposit $ — $ — $ — $ — $ — $ — U.S. treasuries 4,996,000 4,992,100 — 4,996,000 — 3,900 Total $ 4,996,000 $ 4,992,100 $ — $ 4,996,000 $ — $ 3,900 The following table provides information on the assets and liabilities measured at fair value on a recurring basis as of August 31, 2018 Fair Value Measurement Using: Fair Value Cost / Other Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Accumulated Unrealized Gains and (Losses) Certificates of deposit $ — $ — $ — $ — $ — $ — U.S. treasuries 8,718,000 8,644,900 — 8,718,000 — 66,400 Subtotal $ 8,718,000 $ 8,644,900 $ — $ 8,718,000 $ — $ 66,400 |
WATER AND LAND ASSETS (Tables)
WATER AND LAND ASSETS (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
WATER AND LAND ASSETS [Abstract] | |
Water and Water Systems | The Company’s water and water systems consist of the following approximate costs and accumulated depreciation and depletion as of August 31: August 31, 2019 August 31, 2018 Costs Accumulated Depreciation and Depletion Costs Accumulated Depreciation and Depletion Rangeview water supply $ 14,823,800 $ (14,700 ) $ 14,813,800 $ (12,800 ) Sky Ranch water rights and other costs 7,371,500 (757,400 ) 8,514,100 (561,400 ) Fairgrounds water and water system 2,899,800 (1,151,000 ) 2,899,900 (1,062,900 ) Rangeview water system 5,617,800 (372,300 ) 1,655,600 (261,200 ) Water supply – other 4,758,200 (860,100 ) 4,337,200 (625,300 ) Wild Pointe service rights 1,631,800 (489,800 ) 1,631,700 (267,700 ) Sky Ranch pipeline 5,723,700 (411,600 ) 5,615,900 (222,000 ) Lost Creek water supply 3,324,000 — — — Construction in progress 8,176,600 — 267,000 — Totals 54,327,200 (4,056,900 ) 39,735,200 (3,013,300 ) Net investments in water and water systems $ 50,270,300 $ 36,721,900 |
Depletion and Depreciation | Assets Classes Estimated Useful Lives Wild Pointe Units of production depletion Rangeview water supply Units of production depletion Lost Creek water supply Units of production depletion Rangeview, Sky Ranch and WISE water systems 30 years ECCV wells 10 years Furniture and fixtures 5 years Trucks and heavy equipment 5 years Water system general (pumps, valves, etc.) 5 years Computers 3 years Water equipment 3 years Software 1 year |
Land and Mineral Interest Costs | As of August 31, the approximate costs allocated to the Company’s land and mineral interest are as follows: August 31, 2019 August 31, 2018 Sky Ranch land (1) $ 3,037,556 $ 3,037,557 Sky Ranch development costs 423,324 196,553 Lost Creek land 218,138 — Arkansas Valley mineral rights 1,425,459 1,425,459 Net land and mineral interests 5,104,477 4,659,569 (1) The Company transferred $585,700 of Sky Ranch land costs to Inventories related to the initial phase of development, consisting of 151 acres, which began in fiscal 2018. |
PARTICIPATING INTERESTS IN EX_2
PARTICIPATING INTERESTS IN EXPORT WATER (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
PARTICIPATING INTERESTS IN EXPORT WATER [Abstract] | |
Remaining Third Party Obligation | The Company is currently allocated approximately 88% of the total proceeds from the sale of Export Water after payment of the Land Board royalty. Additionally, as a result of the acquisitions, and the consideration from the cumulative sales of Export Water, as detailed in the table below, the remaining potential third-party obligation at August 31, 2019, is approximately $1 million: Export Water Proceeds Received Initial Export Water Proceeds to Pure Cycle Total Potential Third-party Obligation Participating Interests Liability Contingency Original balances $ — $ 218,500 $ 31,807,700 $ 11,090,600 $ 20,717,100 Activity from inception until August 31, 2016: Acquisitions — 28,042,500 (28,042,500 ) (9,790,000 ) (18,252,500 ) Relinquishment — 2,386,400 (2,386,400 ) (832,100 ) (1,554,300 ) Option payments - Sky Ranch and The Hills at Sky Ranch 110,400 (42,300 ) (68,100 ) (23,800 ) (44,300 ) Arapahoe County tap fees 533,000 (373,100 ) (159,900 ) (55,800 ) (104,100 ) Export Water sale payments 676,500 (540,300 ) (136,200 ) (47,300 ) (88,900 ) Balance at August 31, 2017 1,319,900 29,691,700 1,014,600 341,600 673,000 Fiscal 2018 activity: 60,800 (53,600 ) (7,200 ) (2,500 ) (4,700 ) Balance at August 31, 2018 1,380,700 29,638,100 1,007,400 339,100 668,300 Fiscal 2019 activity: Export Water sale payments 166,300 (146,500 ) (19,800 ) (6,900 ) (12,900 ) Balance at August 31, 2019 $ 1,547,000 $ 29,491,600 $ 987,600 $ 332,200 $ 655,400 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
SHAREHOLDERS' EQUITY [Abstract] | |
Variable Assumptions Used in Fair Value Calculations | The variable assumptions used in the fair value calculations using the Black-Scholes model are as follows: For the Fiscal Years Ended August 31, 2019 2018 Expected term (years) 5.80 5.80 Risk-free interest rate 2.93 % 2.41 % Expected volatility 41.83 % 57.88 % Expected dividend yield 0 % 0 % Weighted average grant-date fair value $ 4.60 $ 4.41 |
Stock Option Activity | The following table summarizes the combined stock option activity for the 2004 Incentive Plan and 2014 Equity Plan for the fiscal year ended August 31 , 2019: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Approximate Aggregate Intrinsic Value Outstanding at August 31, 2017 465,500 $ 4.88 6.30 $ 1,007,740 Granted 82,500 $ 8.05 Exercised (10,000 ) $ 7.50 Forfeited or expired (2,500 ) $ 7.50 Outstanding at August 31, 2018 535,500 $ 5.31 6.04 $ 3,180,990 Granted 82,500 $ 10.48 Exercised (62,500 ) $ 3.09 Forfeited or expired — $ — Outstanding at August 31, 2019 555,500 $ 6.33 6.27 $ 2,527,590 Options exercisable at August 31, 2019 403,000 $ 5.44 5.47 $ 2,180,299 |
Value of Non-vested Options | The following table summarizes the activity and value of non-vested options as of and for the fiscal year ended August 31, 2019 : Number of Options Weighted Average Grant Date Fair Value Non-vested options outstanding at August 31, 2018 155,833 $ 3.76 Granted 82,500 4.60 Vested (85,833 ) 3.46 Forfeited — — Non-vested options outstanding at August 31, 2019 152,500 $ 4.03 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
INCOME TAXES [Abstract] | |
Deferred Tax Assets | Significant components of the Company’s deferred tax assets as of August 31 are as follows: For the Fiscal Years Ended August 31, 2019 2018 Deferred tax assets (liabilities): Net operating loss carryforwards $ 609,439 $ 2,009,800 AMT credit carryforward — 282,000 Accrued compensation 113,559 — Deferred revenues 149,895 28,600 Depreciation and depletion (46,408 ) (104,900 ) NQ stock options 410,633 — Other 46,128 80,500 Valuation allowance — (2,014,000 ) Net deferred tax asset $ 1,283,246 $ 282,000 |
Income Tax Reconciliation | Income taxes computed using the federal statutory income tax rate differs from the Company’s effective tax rate primarily due to the following for the fiscal years ended August 31: For the Fiscal Years Ended August 31, 2019 2018 Expected benefit from federal taxes at statutory rate of 21% and 34% for the years 2019 and 2018 $ 740,870 $ 34,100 State taxes, net of federal benefit 129,123 4,600 Permanent and other differences 10,388 97,800 Change in tax rate — 1,196,464 NOL true up 225,067 17,589 Temporary difference true up — 240,352 NQ stock options adjustment (348,441 ) — AMT credit carryforward — (282,000 ) Other (26,202 ) (17,705 ) Change in valuation allowance (2,014,000 ) (1,573,200 ) Total income tax expense / (benefit) $ (1,283,195 ) $ (282,000 ) |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
SEGMENT REPORTING [Abstract] | |
Information by Segments | The following table summarizes wholesale water and wastewater services and land development revenue information by segment (1) For the Fiscal Years Ended August 31, 2019 2018 Wholesale water and wastewater services $ 8,405,520 $ 4,794,749 Land development activities 11,955,989 2,164,450 Total wholesale water and wastewater services and land development revenues $ 20,361,509 $ 6,959,199 (1) The Company had other income from non-segment sources (oil and gas, interest and other) of $529,293 and $441,407 for the fiscal years ended August 31, 2019 and 2018, respectively. The following table summarizes wholesale water and wastewater services and land development pretax income by segment: For the Fiscal Years Ended August 31, 2019 2018 Wholesale water and wastewater services $ 5,766,783 $ 2,646,988 Land development activities 651,027 150,610 Depreciation, general and administrative expenses (3,419,149 ) (3,106,325 ) Total income (loss) from operations $ 2,998,661 $ (308,727 ) The following table summarizes total assets for the Company’s wholesale water and wastewater services business and land development business by segment. The assets consist primarily of water rights and water and wastewater systems in the Company’s wholesale water and wastewater services segment and land, inventories and deposits in the Company’s land development segment. The Company’s other assets (“Corporate”) primarily consist of cash and cash equivalents, equipment, mineral rights, related party notes receivables and a deferred tax asset. August 31, 2019 August 31, 2018 Wholesale water and wastewater services $ 51,588,079 $ 36,721,884 Land development activities 16,866,542 9,497,106 Corporate 15,266,783 25,687,625 Total assets $ 83,721,404 $ 71,906,615 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
Related Party Transactions | Estimated WISE Costs For the Fiscal Years Ended August 31, 2020 2021 2022 2023 2024 Operations $ 44,235 $ 32,033 $ 32,033 $ 32,033 $ 32,033 Water delivery 430,350 858,000 858,000 858,000 858,000 Capital 2,296,138 50,000 50,000 50,000 50,000 Other 55,000 55,000 55,000 55,000 55,000 $ 2,825,723 $ 995,033 $ 995,033 $ 995,033 $ 995,033 |
UNAUDITED QUARTERLY FINANCIAL_2
UNAUDITED QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
UNAUDITED QUARTERLY FINANCIAL DATA [Abstract] | |
Quarterly Results of Operations | Quarterly Results of Operations 2019 2018 Three Months Ended Three Months Ended In thousands, except per share data Nov 30 Feb 28 May 31 Aug 31 Nov 30 Feb 29 May 31 Aug 31 Total revenues $ 3,073 $ 2,630 $ 5,185 $ 9,474 $ 1,010 $ 845 $ 1,212 $ 3,892 Gross profit 1,246 374 1,922 2,876 580 631 683 904 Operating income (loss) 519 (276 ) 1,159 1,597 (200 ) (14 ) (88 ) (7 ) Net income (loss) $ 634 $ (96 ) $ 1,261 $ 3,012 $ (97 ) $ 100 $ 55 $ 357 Basic and diluted income (loss) per share $ 0.03 $ * $ 0.05 $ 0.13 * $ * $ * $ 0.01 * Amount is less than $.01 per share |
ORGANIZATION (Details)
ORGANIZATION (Details) SquareFeet in Millions, $ in Millions | 12 Months Ended |
Aug. 31, 2019USD ($)aSegmentUnitSquareFeet | |
ORGANIZATION [Abstract] | |
Number of business segments | Segment | 2 |
Area of land (in acres) | a | 930 |
Number of single-family and multifamily residential units | Unit | 3,200 |
Number of square feet of commercial, retail, and industrial space | SquareFeet | 2 |
Working capital | $ 15.2 |
Cash and cash equivalents including investments | $ 9.7 |
Maximum [Member] | |
Water and Land Interests Period [Abstract] | |
Estimated useful lives | 30 years |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Investments (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Investments [Abstract] | ||
Held-to-maturity securities | $ 192,800 | $ 190,400 |
Treasury securities maturity period | 30 days |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Cash Flows (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Cash Flows [Abstract] | ||
Interest paid | $ 0 | $ 0 |
Income taxes paid | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Trade Accounts Receivable (Details) - USD ($) | Aug. 31, 2019 | Aug. 31, 2018 |
Trade Accounts Receivable [Abstract] | ||
Allowance for uncollectible accounts | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Capitalized Costs of Water and Wastewater Systems and Depreciation and Depletion Charges (Details) | 12 Months Ended |
Aug. 31, 2019 | |
Maximum [Member] | |
Capitalized Costs of Water and Wastewater Systems and Depletion and Depreciation of Water Assets [Abstract] | |
Estimated useful lives | 30 years |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Revenue Recognition (Details) gal in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Aug. 31, 2019USD ($)a | May 31, 2019USD ($) | Feb. 28, 2019USD ($) | Nov. 30, 2018USD ($) | Aug. 31, 2018USD ($) | May 31, 2018USD ($) | Feb. 28, 2018USD ($) | Nov. 30, 2017USD ($) | Aug. 31, 2019USD ($)aBusinessLineSourceHomeBuildersLotAgreementgal | Aug. 31, 2018USD ($)gal | Sep. 20, 2017USD ($) | Aug. 31, 2017USD ($) | |||
Revenue Recognition [Abstract] | ||||||||||||||
Number of business lines | BusinessLine | 2 | |||||||||||||
Number of revenue sources | Source | 3 | |||||||||||||
Total revenues | $ 9,474,000 | $ 5,185,000 | $ 2,630,000 | $ 3,073,000 | $ 3,892,000 | $ 1,212,000 | $ 845,000 | $ 1,010,000 | $ 20,361,509 | [1] | $ 6,959,199 | [1] | ||
Land [Abstract] | ||||||||||||||
Deferred revenue | $ 5,058,883 | 477,161 | $ 5,058,883 | 477,161 | $ 1,055,488 | |||||||||
Area of land (in acres) | a | 930 | 930 | ||||||||||||
Number of home builders | HomeBuilders | 3 | |||||||||||||
Contract revenues recognized | $ (20,361,509) | $ (2,190,039) | ||||||||||||
Construction support amount invoiced | $ 430,300 | |||||||||||||
Metered Water Usage [Member] | ||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||
Water delivered to customers | gal | 356.1 | 406.6 | ||||||||||||
Percentage of water used for oil and gas exploration | 84.00% | 77.00% | ||||||||||||
Total revenues | $ 4,654,344 | $ 4,555,912 | ||||||||||||
Wastewater Treatment Fees [Member] | ||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||
Total revenues | 35,818 | 46,199 | ||||||||||||
Water Tap Fees Recognized [Member] | ||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||
Total revenues | 3,544,737 | 49,948 | ||||||||||||
Water Tap Fees [Member] | ||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||
Total revenues | 3,018,300 | 49,900 | ||||||||||||
Wastewater Tap Fees [Member] | ||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||
Total revenues | 526,400 | 0 | ||||||||||||
Special Facility Funding Recognized [Member] | ||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||
Total revenues | 0 | 0 | ||||||||||||
Water Tap and Construction Fee [Member] | ||||||||||||||
Land [Abstract] | ||||||||||||||
Deferred revenue | $ 0 | 0 | 0 | 0 | ||||||||||
Other [Member] | ||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||
Total revenues | 170,621 | 168,190 | ||||||||||||
Consulting Fees [Member] | ||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||
Total revenues | 158,600 | 142,700 | ||||||||||||
Lot Sales [Member] | ||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||
Total revenues | 11,955,989 | 2,138,950 | ||||||||||||
Land [Abstract] | ||||||||||||||
Deferred revenue | 3,991,500 | 361,100 | 3,991,500 | 361,100 | ||||||||||
Lot Sales - Agreement with Purchaser [Member] | ||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||
Total revenues | $ 4,053,800 | 0 | ||||||||||||
Land [Abstract] | ||||||||||||||
Number of home builders | HomeBuilders | 1 | |||||||||||||
Number of finished lots sold | Lot | 57 | |||||||||||||
Lot Sales - Agreement with Builder [Member] | ||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||
Total revenues | $ 7,900,000 | 2,100,000 | ||||||||||||
Land [Abstract] | ||||||||||||||
Proceeds from sale of lots | $ 14,000,000 | |||||||||||||
Number of home builders | HomeBuilders | 2 | |||||||||||||
Number of platted lots sold | Lot | 198 | |||||||||||||
Contract revenues recognized | $ (10,000,000) | |||||||||||||
Expected delivery period for lots sold | 1 year | |||||||||||||
Project Management Services [Member] | ||||||||||||||
Land [Abstract] | ||||||||||||||
Number of service agreements | Agreement | 2 | |||||||||||||
Project management fee percentage | 5.00% | |||||||||||||
Project management services - accrued reimbursable amount | 860,300 | $ 860,300 | ||||||||||||
Bison Lease [Member] | ||||||||||||||
Land [Abstract] | ||||||||||||||
Deferred revenue | $ 60,400 | $ 167,200 | 60,400 | 167,200 | $ 167,200 | |||||||||
Contract revenues recognized | $ (55,700) | $ (51,100) | ||||||||||||
[1] | The Company had other income from non-segment sources (oil and gas, interest and other) of $529,293 and $441,407 for the fiscal years ended August 31, 2019 and 2018, respectively. |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Deferred Revenue (Details) | 12 Months Ended | |
Aug. 31, 2019USD ($)aLot | Aug. 31, 2018USD ($) | |
Changes in Unearned Revenue [Abstract] | ||
Balance, beginning of period | $ 477,161 | $ 1,055,488 |
Billings | 24,943,231 | 2,667,200 |
Contract revenues recognized | (20,361,509) | (2,190,039) |
Balance, end of period | 5,058,883 | 477,161 |
Sky Ranch [Member] | ||
Revenue, Performance Obligation [Abstract] | ||
Remaining performance obligation | $ 22,189,000 | |
Number of lots sold | Lot | 506 | |
Remaining performance obligation expected to be recognized in the next 12 months | 70.00% | |
ASU 2014-09 [Member] | ||
Changes in Unearned Revenue [Abstract] | ||
Cumulative effect of adoption of ASU 2014-09 | $ 0 | (1,055,488) |
Wholesale Water and Wastewater Services [Member] | ||
Changes in Unearned Revenue [Abstract] | ||
Balance, beginning of period | 0 | |
Balance, end of period | 0 | 0 |
Land Development Activities [Member] | ||
Changes in Unearned Revenue [Abstract] | ||
Balance, beginning of period | 361,050 | |
Balance, end of period | 3,991,535 | 361,050 |
Oil and Gas Leases [Member] | ||
Changes in Unearned Revenue [Abstract] | ||
Balance, beginning of period | 116,111 | |
Balance, end of period | $ 1,067,348 | 116,111 |
OGOA [Member] | ||
Land [Abstract] | ||
Mineral estate area owned (in acres) | a | 16 | |
Term period of lease | 3 years | |
Term for which operator may extend right | 1 year | |
Required payment from operator for extending right for one year | $ 75,000 | |
Number of additional years for which operator may extend lease | 2 years | |
Maximum term of lease | 5 years | |
Changes in Unearned Revenue [Abstract] | ||
Contract revenues recognized | $ (26,200) | 0 |
Balance, end of period | 547,500 | |
Conoco Phillips [Member] | ||
Changes in Unearned Revenue [Abstract] | ||
Balance, end of period | $ 425,800 | |
Bison Oil and Gas, LLP [Member] | ||
Land [Abstract] | ||
Mineral estate area owned (in acres) | a | 40 | |
Term period of lease | 3 years | |
Changes in Unearned Revenue [Abstract] | ||
Balance, beginning of period | $ 167,200 | |
Contract revenues recognized | (55,700) | (51,100) |
Balance, end of period | $ 60,400 | $ 167,200 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Oil and Gas Lease Payments (Details) | 12 Months Ended | |||||
Aug. 31, 2019USD ($)aWell | Aug. 31, 2018USD ($) | Aug. 31, 2011a | Jul. 31, 2019USD ($) | Sep. 20, 2017USD ($) | Aug. 31, 2017USD ($) | |
Oil and Gas Lease Payments [Abstract] | ||||||
Deferred revenue | $ 5,058,883 | $ 477,161 | $ 1,055,488 | |||
Contract revenues recognized | $ (20,361,509) | (2,190,039) | ||||
Number of drilling wells | Well | 2 | |||||
Oil and gas royalty income, net | $ 148,327 | 191,309 | ||||
OGOA [Member] | ||||||
Oil and Gas Lease Payments [Abstract] | ||||||
Term period of lease | 3 years | |||||
Mineral estate area owned (in acres) | a | 16 | |||||
Deferred revenue | $ 547,500 | $ 573,700 | ||||
Term for which operator may extend right | 1 year | |||||
Required payment from operator for extending right for one year | $ 75,000 | |||||
Number of additional years for which operator may extend lease | 2 years | |||||
Maximum term of lease | 5 years | |||||
Contract revenues recognized | $ (26,200) | 0 | ||||
Anadarko E&P Company, L.P [Member] | ||||||
Oil and Gas Lease Payments [Abstract] | ||||||
Term period of lease | 3 years | |||||
Mineral estate area owned (in acres) | a | 634 | |||||
Bison Oil and Gas, LLP [Member] | ||||||
Oil and Gas Lease Payments [Abstract] | ||||||
Term period of lease | 3 years | |||||
Mineral estate area owned (in acres) | a | 40 | |||||
Deferred revenue | $ 60,400 | 167,200 | $ 167,200 | |||
Contract revenues recognized | $ (55,700) | $ (51,100) | ||||
Bison Oil and Gas, LLP [Member] | OGOA [Member] | ||||||
Oil and Gas Lease Payments [Abstract] | ||||||
Deferred revenue | $ 573,700 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Share-based Compensation (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Share-Based Compensation [Abstract] | ||
Tax expense for granting and exercise of stock options | $ 82,900 | |
Deferred tax impact | $ 410,600 | |
Share-based compensation expense | $ 336,228 | $ 324,840 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Income Taxes (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Income Taxes [Abstract] | ||
(Decrease) in deferred tax assets | $ (1,200,000) | |
(Decrease) in valuation allowance | (1,200,000) | |
Deferred tax assets (AMT) | $ 0 | 282,000 |
Deferred tax benefit | 1,284,066 | 0 |
Accrued interest of unrecognized tax benefits | 0 | |
Accrued penalties of unrecognized tax benefits | 0 | |
Interest expense on unrecognized tax benefits | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Income (Loss) per Common Share (Details) - shares | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Loss per Common Share [Abstract] | ||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 206,860 | 169,770 |
Anti-dilutive securities excluded from calculation of loss per common share (in shares) | 50,000 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Recently Issued Accounting Pronouncements (Details) - ASU 2016-02 [Member] | Aug. 31, 2019USD ($) |
Assets and Liabilities, Lessee [Abstract] | |
Right-to use assets | $ 750,000 |
Lease liability | $ 750,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) | Aug. 31, 2019USD ($)AssetLiability | Aug. 31, 2018USD ($)AssetLiability |
Information on assets and liabilities measured at fair value [Abstract] | ||
Held-to-maturity securities | $ 192,800 | $ 190,400 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Number of assets or liabilities [Abstract] | ||
Number of assets | Asset | 0 | 0 |
Number of liabilities | Liability | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Number of assets or liabilities [Abstract] | ||
Number of assets | Asset | 1 | 7 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Number of assets or liabilities [Abstract] | ||
Number of liabilities | Liability | 1 | 1 |
Recurring [Member] | ||
Information on assets and liabilities measured at fair value [Abstract] | ||
Accumulated unrealized gains and (losses) | $ 3,900 | $ 66,400 |
Recurring [Member] | Certificates of Deposit [Member] | ||
Information on assets and liabilities measured at fair value [Abstract] | ||
Accumulated unrealized gains and (losses) | 0 | 0 |
Recurring [Member] | US Treasuries [Member] | ||
Information on assets and liabilities measured at fair value [Abstract] | ||
Accumulated unrealized gains and (losses) | 3,900 | 66,400 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Information on assets and liabilities measured at fair value [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Certificates of Deposit [Member] | ||
Information on assets and liabilities measured at fair value [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | US Treasuries [Member] | ||
Information on assets and liabilities measured at fair value [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Information on assets and liabilities measured at fair value [Abstract] | ||
Available-for-sale securities | 4,996,000 | 8,718,000 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Certificates of Deposit [Member] | ||
Information on assets and liabilities measured at fair value [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | US Treasuries [Member] | ||
Information on assets and liabilities measured at fair value [Abstract] | ||
Available-for-sale securities | 4,996,000 | 8,718,000 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Information on assets and liabilities measured at fair value [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Certificates of Deposit [Member] | ||
Information on assets and liabilities measured at fair value [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | US Treasuries [Member] | ||
Information on assets and liabilities measured at fair value [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Recurring [Member] | Fair Value [Member] | ||
Information on assets and liabilities measured at fair value [Abstract] | ||
Available-for-sale securities | 4,996,000 | 8,718,000 |
Recurring [Member] | Fair Value [Member] | Certificates of Deposit [Member] | ||
Information on assets and liabilities measured at fair value [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Recurring [Member] | Fair Value [Member] | US Treasuries [Member] | ||
Information on assets and liabilities measured at fair value [Abstract] | ||
Available-for-sale securities | 4,996,000 | 8,718,000 |
Recurring [Member] | Cost / Other Value [Member] | ||
Information on assets and liabilities measured at fair value [Abstract] | ||
Available-for-sale securities | 4,992,100 | 8,644,900 |
Recurring [Member] | Cost / Other Value [Member] | Certificates of Deposit [Member] | ||
Information on assets and liabilities measured at fair value [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Recurring [Member] | Cost / Other Value [Member] | US Treasuries [Member] | ||
Information on assets and liabilities measured at fair value [Abstract] | ||
Available-for-sale securities | $ 4,992,100 | $ 8,644,900 |
WATER AND LAND ASSETS, Investme
WATER AND LAND ASSETS, Investment in Water and Water Systems & Depletion and Depreciation (Details) - USD ($) | 12 Months Ended | ||||
Aug. 31, 2019 | Aug. 31, 2018 | Jun. 30, 2017 | Dec. 15, 2016 | Aug. 31, 2010 | |
Investment in Water and Water Systems [Abstract] | |||||
Costs | $ 54,327,200 | $ 39,735,200 | |||
Accumulated Depreciation and Depletion | (4,056,900) | (3,013,300) | |||
Net investments in water and water systems | 50,270,310 | 36,721,884 | |||
Depletion and Amortization [Abstract] | |||||
Depletion | 1,900 | 2,200 | |||
Depreciation | 1,278,900 | 900,500 | |||
Rangeview Water Supply [Member] | |||||
Investment in Water and Water Systems [Abstract] | |||||
Costs | 14,823,800 | 14,813,800 | |||
Accumulated Depreciation and Depletion | (14,700) | (12,800) | |||
Net investments in water and water systems | 18,400,000 | ||||
Sky Ranch Water Rights and Other Costs [Member] | |||||
Investment in Water and Water Systems [Abstract] | |||||
Costs | 7,371,500 | 8,514,100 | $ 7,371,500 | ||
Accumulated Depreciation and Depletion | (757,400) | (561,400) | |||
Fairgrounds Water And Water System [Member] | |||||
Investment in Water and Water Systems [Abstract] | |||||
Costs | 2,899,800 | 2,899,900 | |||
Accumulated Depreciation and Depletion | (1,151,000) | (1,062,900) | |||
Rangeview Water System [Member] | |||||
Investment in Water and Water Systems [Abstract] | |||||
Costs | 5,617,800 | 1,655,600 | |||
Accumulated Depreciation and Depletion | (372,300) | (261,200) | |||
Water Supply - Other [Member] | |||||
Investment in Water and Water Systems [Abstract] | |||||
Costs | 4,758,200 | 4,337,200 | |||
Accumulated Depreciation and Depletion | (860,100) | (625,300) | |||
Wild Pointe Service Rights [Member] | |||||
Investment in Water and Water Systems [Abstract] | |||||
Costs | 1,631,800 | 1,631,700 | $ 1,631,700 | ||
Accumulated Depreciation and Depletion | (489,800) | (267,700) | |||
Sky Ranch Pipeline [Member] | |||||
Investment in Water and Water Systems [Abstract] | |||||
Costs | 5,723,700 | 5,615,900 | $ 5,723,700 | ||
Accumulated Depreciation and Depletion | (411,600) | (222,000) | |||
Lost Creek water supply [Member] | |||||
Investment in Water and Water Systems [Abstract] | |||||
Costs | 3,324,000 | 0 | |||
Accumulated Depreciation and Depletion | 0 | 0 | |||
Construction in Progress [Member] | |||||
Investment in Water and Water Systems [Abstract] | |||||
Costs | 8,176,600 | 267,000 | |||
Accumulated Depreciation and Depletion | 0 | 0 | |||
Sky Ranch [Member] | |||||
Investment in Water and Water Systems [Abstract] | |||||
Estimated cost to complete construction of water reclamation facility | $ 12,000,000 | ||||
Rangeview, Sky Ranch and WISE Water Systems [Member] | |||||
Depletion and Amortization [Abstract] | |||||
Estimated useful lives | P30Y | ||||
ECCV Wells [Member] | |||||
Depletion and Amortization [Abstract] | |||||
Estimated useful lives | P10Y | ||||
Furniture and Fixtures [Member] | |||||
Depletion and Amortization [Abstract] | |||||
Estimated useful lives | P5Y | ||||
Trucks and Heavy Equipment [Member] | |||||
Depletion and Amortization [Abstract] | |||||
Estimated useful lives | P5Y | ||||
Water System General (Pumps, Valves, etc.) [Member] | |||||
Depletion and Amortization [Abstract] | |||||
Estimated useful lives | P5Y | ||||
Computers [Member] | |||||
Depletion and Amortization [Abstract] | |||||
Estimated useful lives | P3Y | ||||
Water Equipment [Member] | |||||
Depletion and Amortization [Abstract] | |||||
Estimated useful lives | P3Y | ||||
Software [Member] | |||||
Depletion and Amortization [Abstract] | |||||
Estimated useful lives | P1Y | ||||
Other Equipment [Member] | |||||
Depletion and Amortization [Abstract] | |||||
Depreciation | $ 312,600 | $ 251,200 |
WATER AND LAND ASSETS, Rangevie
WATER AND LAND ASSETS, Rangeview Water Supply and Water System (Details) | 12 Months Ended | |
Aug. 31, 2019USD ($)aServiceProviderMemberacre ft | Aug. 31, 2018USD ($) | |
Rangeview Water Supply and Water System [Abstract] | ||
Area of land (in acres) | a | 930 | |
Approximately investments in water and water systems | $ | $ 50,270,310 | $ 36,721,884 |
SMWA [Member] | ||
Rangeview Water Supply and Water System [Abstract] | ||
Number of members | Member | 10 | |
Investment in infrastructure | $ | $ 0 | |
Rangeview District [Member] | ||
Rangeview Water Supply and Water System [Abstract] | ||
Percentage of remaining gross revenue retained | 2.00% | |
Percentage of wastewater usage fees recognized as income | 10.00% | |
Rangeview Water Agreements [Member] | ||
Rangeview Water Supply and Water System [Abstract] | ||
Volume of water | 11,650 | |
Number of surrounding municipal water and wastewater service providers used as a benchmark for rates and charges | ServiceProvider | 3 | |
Royalty on tap fees percentage | 2.00% | |
Percentage of remaining gross revenue retained | 98.00% | |
Percentage of wastewater tap fees recognized as income | 100.00% | |
Percentage of wastewater usage fees recognized as income | 90.00% | |
Rangeview Water Agreements [Member] | Minimum [Member] | ||
Rangeview Water Supply and Water System [Abstract] | ||
Royalty as a percentage of gross revenues | 10.00% | |
Annual royalty payments | $ | $ 45,600 | |
Rangeview Water Agreements [Member] | Maximum [Member] | ||
Rangeview Water Supply and Water System [Abstract] | ||
Royalty as a percentage of gross revenues | 12.00% | |
Rangeview Water Agreements [Member] | Ground Water [Member] | ||
Rangeview Water Supply and Water System [Abstract] | ||
Volume of water | 10,000 | |
Aggregate gross volume | 165,000 | |
Additional volume of water | 13,685 | |
Rangeview Water Agreements [Member] | Export Water [Member] | Minimum [Member] | ||
Rangeview Water Supply and Water System [Abstract] | ||
Royalty as a percentage of gross revenues | 10.00% | |
Rangeview Water Agreements [Member] | Export Water [Member] | Maximum [Member] | ||
Rangeview Water Supply and Water System [Abstract] | ||
Royalty as a percentage of gross revenues | 12.00% | |
Rangeview Water Agreements [Member] | Surface Water [Member] | ||
Rangeview Water Supply and Water System [Abstract] | ||
Volume of water | 1,650 | |
Additional volume of water | 1,650 | |
Rangeview Water Agreements [Member] | SMWA [Member] | ||
Rangeview Water Supply and Water System [Abstract] | ||
Investment in infrastructure | $ | $ 419,200 | $ 0 |
Rangeview Water Supply [Member] | ||
Rangeview Water Supply and Water System [Abstract] | ||
Area of land (in acres) | a | 27,000 | |
Approximately investments in water and water systems | $ | $ 18,400,000 | |
Lowry Range [Member] | ||
Rangeview Water Supply and Water System [Abstract] | ||
Volume of water | 26,985 |
WATER AND LAND ASSETS, The Arap
WATER AND LAND ASSETS, The Arapahoe County Fairgrounds Water and Water System (Details) - Fairgrounds Water And Water System [Member] $ in Millions | 12 Months Ended |
Aug. 31, 2019USD ($)galacre ft | |
The Arapahoe County Fairgrounds Water and Water System [Abstract] | |
Capitalized costs | $ | $ 2.9 |
Capacity of water tank | gal | 500,000 |
Ground Water [Member] | |
The Arapahoe County Fairgrounds Water and Water System [Abstract] | |
Volume of water | acre ft | 321 |
WATER AND LAND ASSETS, The Lost
WATER AND LAND ASSETS, The Lost Creek Water Supply (Details) | 1 Months Ended | |
Aug. 31, 2019USD ($)aacre ft | Aug. 31, 2018USD ($) | |
The Lost Creek Water Supply [Abstract] | ||
Area of land (in acres) | a | 930 | |
Costs | $ 54,327,200 | $ 39,735,200 |
Lost Creek water supply [Member] | ||
The Lost Creek Water Supply [Abstract] | ||
Costs | 3,324,000 | $ 0 |
Cost of the water and land portions of the asset acquisition | 3,500,000 | |
Direct cost and fees for purchase of land and water | $ 42,200 | |
Lost Creek water supply [Member] | Ditch Water [Member] | ||
The Lost Creek Water Supply [Abstract] | ||
Volume of water | acre ft | 150 | |
Area of land (in acres) | a | 260 | |
Lost Creek water supply [Member] | Renewable Ground Water [Member] | ||
The Lost Creek Water Supply [Abstract] | ||
Volume of water | acre ft | 800 | |
Lost Creek water supply [Member] | Deep Ground Water [Member] | ||
The Lost Creek Water Supply [Abstract] | ||
Volume of water | acre ft | 70 |
WATER AND LAND ASSETS, Service
WATER AND LAND ASSETS, Service to Customers Not on the Lowry Range & O&G Leases (Details) | 12 Months Ended | |||||
Aug. 31, 2019USD ($)aConnection | Aug. 31, 2011a | Aug. 31, 2010USD ($)aacre ft | Aug. 31, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 15, 2016USD ($) | |
Service to Customers Not on the Lowry Range [Abstract] | ||||||
Area of land (in acres) | a | 930 | |||||
Costs | $ 54,327,200 | $ 39,735,200 | ||||
Sky Ranch Water Rights and Other Costs [Member] | ||||||
Service to Customers Not on the Lowry Range [Abstract] | ||||||
Area of land (in acres) | a | 930 | |||||
Volume of water | acre ft | 830 | |||||
Capitalized costs | $ 11,900,000 | |||||
Costs | 7,371,500 | 7,371,500 | 8,514,100 | |||
Direct cost and fees for purchase of land and water | $ 554,100 | |||||
Wild Pointe Service Rights [Member] | ||||||
Service to Customers Not on the Lowry Range [Abstract] | ||||||
Costs | $ 1,631,800 | 1,631,700 | $ 1,631,700 | |||
Percentage of wastewater tap fees recognized as income | 100.00% | |||||
Percentage of remaining gross revenue retained | 98.00% | |||||
Number of single family equivalent water connections | Connection | 200 | |||||
Sky Ranch Pipeline [Member] | ||||||
Service to Customers Not on the Lowry Range [Abstract] | ||||||
Costs | $ 5,723,700 | $ 5,615,900 | $ 5,723,700 | |||
Anadarko E&P Company, L.P [Member] | ||||||
Oil and Gas Lease Payments [Abstract] | ||||||
Mineral estate area owned (in acres) | a | 634 | |||||
Term period of lease | 3 years | |||||
Bison Oil and Gas, LLP [Member] | ||||||
Oil and Gas Lease Payments [Abstract] | ||||||
Mineral estate area owned (in acres) | a | 40 | |||||
Term period of lease | 3 years |
WATER AND LAND ASSETS, Land and
WATER AND LAND ASSETS, Land and Mineral Interests (Details) | Aug. 31, 2019USD ($)a | Aug. 31, 2018USD ($)a | Aug. 31, 2010a | |
Land and Mineral Interests [Abstract] | ||||
Area of land (in acres) | a | 930 | |||
Net land and mineral interests | $ 5,104,477 | $ 4,659,569 | ||
Sky Ranch [Member] | ||||
Land and Mineral Interests [Abstract] | ||||
Area of land (in acres) | a | 930 | |||
Mineral estate area owned (in acres) | a | 151 | |||
Land | [1] | 3,037,556 | $ 3,037,557 | |
Development costs | 423,324 | 196,553 | ||
Inventories | 585,700 | |||
Lost Creek Land [Member] | ||||
Land and Mineral Interests [Abstract] | ||||
Development costs | $ 218,138 | 0 | ||
Arkansas River Land [Member] | ||||
Land and Mineral Interests [Abstract] | ||||
Mineral estate area owned (in acres) | a | 13,900 | |||
Mineral Rights | $ 1,425,459 | $ 1,425,459 | ||
[1] | The Company transferred $585,700 of Sky Ranch land costs to Inventories related to the initial phase of development, consisting of 151 acres, which began in fiscal 2018. |
PARTICIPATING INTERESTS IN EX_3
PARTICIPATING INTERESTS IN EXPORT WATER (Details) - USD ($) | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
PARTICIPATING INTERESTS IN EXPORT WATER [Abstract] | |||
Percentage of original recorded liability compared to original total liability | 35.00% | ||
Percentage of payment remitted to CAA holders allocated to recorded liability account | 35.00% | ||
Percentage of payment remitted to CAA holders allocated to contingent obligation | 65.00% | ||
Percentage of net proceeds from sale of export water allocated | 88.00% | ||
Export Water Proceeds Received [Roll Forward] | |||
Balance at beginning of period | $ 1,380,700 | $ 1,319,900 | $ 0 |
Acquisitions | 0 | ||
Relinquishment | 0 | ||
Option payments - Sky Ranch and The Hills at Sky Ranch | 110,400 | ||
Arapahoe County tap fees | 533,000 | ||
Export water sale payments | 166,300 | 60,800 | 676,500 |
Balance at end of period | 1,547,000 | 1,380,700 | 1,319,900 |
Initial Export Water Proceeds To Pure Cycle [Roll Forward] | |||
Balance at beginning of period | 29,638,100 | 29,691,700 | 218,500 |
Acquisitions | 28,042,500 | ||
Relinquishment | 2,386,400 | ||
Option payments - Sky Ranch and The Hills at Sky Ranch | (42,300) | ||
Arapahoe County tap fees | (373,100) | ||
Export water sale payments | (146,500) | (53,600) | (540,300) |
Balance at end of period | 29,491,600 | 29,638,100 | 29,691,700 |
Total Potential Third-Party Obligation [Roll Forward] | |||
Balance at beginning of period | 1,007,400 | 1,014,600 | 31,807,700 |
Acquisitions | (28,042,500) | ||
Relinquishment | (2,386,400) | ||
Option payments - Sky Ranch and The Hills at Sky Ranch | (68,100) | ||
Arapahoe County tap fees | (159,900) | ||
Export water sale payments | (19,800) | (7,200) | (136,200) |
Balance at end of period | 987,600 | 1,007,400 | 1,014,600 |
Participating Interests Liability [Roll Forward] | |||
Balance at beginning of period | 339,035 | 341,600 | 11,090,600 |
Acquisitions | (9,790,000) | ||
Relinquishment | (832,100) | ||
Option payments - Sky Ranch and The Hills at Sky Ranch | (23,800) | ||
Arapahoe County tap fees | (55,800) | ||
Export water sale payments | (6,900) | (2,500) | (47,300) |
Balance at end of period | 332,140 | 339,035 | 341,600 |
Contingency [Roll Forward] | |||
Balance at beginning of period | 668,300 | 673,000 | 20,717,100 |
Acquisitions | (18,252,500) | ||
Relinquishment | (1,554,300) | ||
Option payments - Sky Ranch and The Hills at Sky Ranch | (44,300) | ||
Arapahoe County tap fees | (104,100) | ||
Export water sale payments | (12,900) | (4,700) | (88,900) |
Balance at end of period | 655,400 | $ 668,300 | $ 673,000 |
Export Water [Abstract] | |||
Expected future export water payouts | 6,500,000 | ||
Revenue receivables from sale of export water | $ 5,700,000 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) | Aug. 31, 2019 | Aug. 31, 2018 |
ACCRUED LIABILITIES [Abstract] | ||
Accrued liabilities | $ 3,428,418 | $ 849,538 |
Accrued compensation | 460,500 | 400,000 |
Estimated property taxes | 94,000 | 29,000 |
Professional fees | 70,000 | 59,000 |
Operating payables | 2,803,900 | $ 361,500 |
Operating payables to CAB | 1,399,600 | |
Payable to Rangeview District for construction costs related to wastewater facility | $ 930,900 |
LONG-TERM OBLIGATIONS AND OPE_2
LONG-TERM OBLIGATIONS AND OPERATING LEASE (Details) | 12 Months Ended | |
Aug. 31, 2019USD ($)Member | Aug. 31, 2018USD ($) | |
LONG-TERM OBLIGATIONS AND OPERATING LEASE [Abstract] | ||
Long-term debt | $ 0 | $ 0 |
SMWA [Member] | ||
WISE Partnership [Abstract] | ||
Number of other governmental or quasi-governmental water providers | Member | 9 | |
Number of members | Member | 10 | |
Investment in infrastructure | $ 0 | |
Rangeview District [Member] | WISE Partnership [Member] | ||
WISE Partnership [Abstract] | ||
Projected cost | $ 7,000,000 | |
Projected financing period | 5 years |
LONG-TERM OBLIGATIONS AND OPE_3
LONG-TERM OBLIGATIONS AND OPERATING LEASE, Operating Lease (Details) | 12 Months Ended |
Aug. 31, 2019USD ($)ft² | |
Operating Lease [Abstract] | |
Area of office and warehouse | ft² | 11,393 |
Operating lease term | 3 years |
Monthly base rent of operating lease | $ | $ 6,600 |
Operating lease extension term | 2 years |
Percentage of increase in primary base payment for operating lease | 12.50% |
SHAREHOLDERS' EQUITY, Preferred
SHAREHOLDERS' EQUITY, Preferred Stock (Details) - Series B Preferred Stock [Member] | 12 Months Ended |
Aug. 31, 2019USD ($)$ / shares | |
Preferred Stock [Abstract] | |
Liquidation preference (in dollars per share) | $ / shares | $ 1 |
Dividends receivable, threshold for proceeds or sale of export water rights | $ 432,513 |
Minimum [Member] | |
Preferred Stock [Abstract] | |
Proceeds from sale or disposition of export water rights, trigger for payment in dividends | $ 36,026,232 |
SHAREHOLDERS' EQUITY, Equity Co
SHAREHOLDERS' EQUITY, Equity Compensation Plan (Details) - USD ($) | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
2014 Equity Plan [Member] | |||
Stock Option Activity [Abstract] | |||
Reserved shares of common stock for issuance (in shares) | 1,600,000 | ||
Awards to purchase shares of common stock (in shares) | 402,000 | ||
Variable Assumptions Used in Fair Value Calculations [Abstract] | |||
Expected term | 5 years 9 months 18 days | 5 years 9 months 18 days | |
Risk-free interest rate | 2.93% | 2.41% | |
Expected volatility | 41.83% | 57.88% | |
Expected dividend yield | 0.00% | 0.00% | |
Weighted average grant-date fair value (in dollars per share) | $ 4.60 | $ 4.41 | |
2014 Equity Plan [Member] | President [Member] | |||
Stock Option Activity [Abstract] | |||
Expiration period | 10 years | 10 years | |
Number of Options [Roll Forward] | |||
Granted (in shares) | 50,000 | 50,000 | |
2014 Equity Plan [Member] | Non-employee Directors [Member] | |||
Stock Option Activity [Abstract] | |||
Expiration period | 10 years | 10 years | |
Number of Options [Roll Forward] | |||
Granted (in shares) | 32,500 | 32,500 | |
2004 Incentive Plan and 2014 Equity Plan [Member] | |||
Stock Option Activity [Abstract] | |||
Options expired (in shares) | 0 | (2,500) | |
Variable Assumptions Used in Fair Value Calculations [Abstract] | |||
Weighted average grant-date fair value (in dollars per share) | $ 4.60 | ||
Number of Options [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 535,500 | 465,500 | |
Granted (in shares) | 82,500 | 82,500 | |
Exercised (in shares) | (62,500) | (10,000) | |
Forfeited or expired (in shares) | 0 | (2,500) | |
Outstanding, end of period (in shares) | 555,500 | 535,500 | 465,500 |
Options exercisable (in shares) | 403,000 | ||
Weighted Average Exercise Price [Roll Forward] | |||
Outstanding, beginning of period (in dollars per share) | $ 5.31 | $ 4.88 | |
Granted (in dollars per share) | 10.48 | 8.05 | |
Exercised (in dollars per share) | 3.09 | 7.50 | |
Forfeited or expired (in dollars per share) | 0 | 7.50 | |
Outstanding, end of period (in dollars per share) | 6.33 | $ 5.31 | $ 4.88 |
Options exercisable (in dollars per share) | $ 5.44 | ||
Stock Options, Additional Disclosure [Abstract] | |||
Weighted average remaining contractual term | 6 years 3 months 7 days | 6 years 14 days | 6 years 3 months 18 days |
Weighted average remaining contractual term options exercisable | 5 years 5 months 19 days | ||
Approximate aggregate intrinsic value | $ 2,527,590 | $ 3,180,990 | $ 1,007,740 |
Approximate aggregate intrinsic value options exercisable | $ 2,180,299 | ||
2004 Incentive Plan and 2014 Equity Plan [Member] | Minimum [Member] | |||
Variable Assumptions Used in Fair Value Calculations [Abstract] | |||
Expected term | 5 years | ||
2004 Incentive Plan and 2014 Equity Plan [Member] | Maximum [Member] | |||
Variable Assumptions Used in Fair Value Calculations [Abstract] | |||
Expected term | 10 years |
SHAREHOLDERS' EQUITY, Combined
SHAREHOLDERS' EQUITY, Combined Activity and Value of Non-vested Options (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Weighted Average Grant Date Fair Value [Abstract] | ||
Forfeited (in dollars per share) | $ 4.60 | $ 4.41 |
Stock Options, Additional Disclosure [Abstract] | ||
Fair value of options vested | $ 297,100 | $ 210,700 |
Weighted average grant date fair value of options granted (in dollars per share) | $ 4.60 | $ 4.41 |
Share-based compensation expense | $ 336,228 | $ 324,840 |
Unrecognized compensation expenses | $ 284,000 | |
Weighted-average period for options expected to vest | 3 years | |
2004 Incentive Plan and 2014 Equity Plan [Member] | ||
Number of Options [Roll Forward] | ||
Non-vested options outstanding, beginning of period (in shares) | 155,833 | |
Granted (in shares) | 82,500 | 82,500 |
Vested (in shares) | (85,833) | |
Forfeited (in shares) | 0 | |
Non-vested options outstanding, end of period (in shares) | 152,500 | 155,833 |
Weighted Average Grant Date Fair Value [Abstract] | ||
Non-vested options outstanding, beginning of period (in dollars per share) | $ 3.76 | |
Granted (in dollars per share) | 4.60 | |
Vested (in dollars per share) | 3.46 | |
Forfeited (in dollars per share) | 0 | |
Non-vested options outstanding, end of period (in dollars per share) | 4.03 | $ 3.76 |
Stock Options, Additional Disclosure [Abstract] | ||
Weighted average grant date fair value of options granted (in dollars per share) | $ 0 |
SHAREHOLDERS' EQUITY, Warrants
SHAREHOLDERS' EQUITY, Warrants (Details) - $ / shares | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
SHAREHOLDERS' EQUITY [Abstract] | ||
Outstanding warrants to purchase common stock (in shares) | 92 | |
Warrants exercise price (in dollars per share) | $ 1.80 | |
Warrants expiration period | 6 months | |
Warrants exercised (in shares) | 0 | 0 |
SIGNIFICANT CUSTOMERS (Details)
SIGNIFICANT CUSTOMERS (Details) - Customer | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Sales [Member] | Water and Wastewater Services [Member] | Rangeview District [Member] | ||
Concentration Risk Percentage [Abstract] | ||
Concentration risk percentage | 4.00% | 6.00% |
Revenue [Member] | Water and Wastewater Services [Member] | ||
Concentration Risk Percentage [Abstract] | ||
Number of customers | 2 | |
Revenue [Member] | Water and Wastewater Services [Member] | Ridgeview Youth Services Center [Member] | ||
Concentration Risk Percentage [Abstract] | ||
Concentration risk percentage | 3.00% | 4.00% |
Number of customers | 1 | 1 |
Revenue [Member] | Water and Wastewater Services [Member] | Customer One [Member] | ||
Concentration Risk Percentage [Abstract] | ||
Concentration risk percentage | 72.00% | 68.00% |
Number of customers | 1 | |
Revenue [Member] | Water and Wastewater Services [Member] | Customer Two [Member] | ||
Concentration Risk Percentage [Abstract] | ||
Concentration risk percentage | 16.00% | |
Revenue [Member] | Land Development [Member] | ||
Concentration Risk Percentage [Abstract] | ||
Concentration risk percentage | 100.00% | 98.00% |
Number of customers | 3 | 2 |
Revenue [Member] | Land Development [Member] | Customer One [Member] | ||
Concentration Risk Percentage [Abstract] | ||
Concentration risk percentage | 34.00% | 66.00% |
Revenue [Member] | Land Development [Member] | Customer Two [Member] | ||
Concentration Risk Percentage [Abstract] | ||
Concentration risk percentage | 34.00% | 32.00% |
Revenue [Member] | Land Development [Member] | Customer Three [Member] | ||
Concentration Risk Percentage [Abstract] | ||
Concentration risk percentage | 32.00% | |
Accounts Receivable [Member] | Water and Wastewater Services [Member] | Rangeview District [Member] | ||
Concentration Risk Percentage [Abstract] | ||
Concentration risk percentage | 40.00% | 3.00% |
Accounts Receivable [Member] | Water and Wastewater Services [Member] | Ridgeview Youth Services Center [Member] | ||
Concentration Risk Percentage [Abstract] | ||
Concentration risk percentage | 5.00% | 2.00% |
Accounts Receivable [Member] | Land Development [Member] | ||
Concentration Risk Percentage [Abstract] | ||
Number of customers | 2 | |
Accounts Receivable [Member] | Land Development [Member] | Customer One [Member] | ||
Concentration Risk Percentage [Abstract] | ||
Concentration risk percentage | 43.00% | |
Accounts Receivable [Member] | Land Development [Member] | Customer Two [Member] | ||
Concentration Risk Percentage [Abstract] | ||
Concentration risk percentage | 30.00% | |
Accounts Receivable [Member] | Land Development [Member] | One Other Customer [Member] | ||
Concentration Risk Percentage [Abstract] | ||
Concentration risk percentage | 57.00% | |
Number of customers | 1 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Deferred tax assets (liabilities) [Abstract] | ||||
Net operating loss carryforwards | $ 2,009,800 | $ 609,439 | $ 2,009,800 | |
AMT credit carryforward | 282,000 | 0 | 282,000 | |
Accrued compensation | 0 | 113,559 | 0 | |
Deferred revenues | 28,600 | 149,895 | 28,600 | |
Depreciation and depletion | (104,900) | (46,408) | (104,900) | |
NQ Stock Options | 0 | 410,633 | 0 | |
Other | 80,500 | 46,128 | 80,500 | |
Valuation allowance | (2,014,000) | 0 | (2,014,000) | |
Net deferred tax asset | $ 282,000 | 1,283,246 | 282,000 | |
Effective Income Tax Rate Reconciliation [Abstract] | ||||
Expected benefit from federal taxes at statutory rate of 21% and 34% for the years 2019, 2018 and 2017 | 740,870 | 34,100 | ||
State taxes, net of federal benefit | 129,123 | 4,600 | ||
Permanent and other differences | 10,388 | 97,800 | ||
Change in tax rate | 0 | 1,196,464 | ||
NOL true up | 225,067 | 17,589 | ||
Temporary difference true up | 0 | 240,352 | ||
NQ stock options adjustment | (348,441) | 0 | ||
AMT credit carryforward | 0 | (282,000) | ||
Other | (26,202) | (17,705) | ||
Change in valuation allowance | (2,014,000) | (1,573,200) | ||
Total income tax expense / (benefit) | $ (1,283,195) | (282,000) | ||
Statutory federal tax rate | 34.00% | 21.00% | 21.00% | |
Deferred tax benefit | $ 1,284,066 | 0 | ||
Net Operating Loss Carryforwards [Abstract] | ||||
Net operating loss carryforwards | $ 2,500,000 | |||
(Decrease) in deferred tax assets | (1,200,000) | |||
(Decrease) in valuation allowance | $ (1,200,000) | |||
Federal [Member] | Minimum [Member] | ||||
Net Operating Loss Carryforwards [Abstract] | ||||
Operating loss carryforwards, expiry period | Aug. 31, 2036 | |||
Federal [Member] | Maximum [Member] | ||||
Net Operating Loss Carryforwards [Abstract] | ||||
Operating loss carryforwards, expiry period | Aug. 31, 2038 | |||
State [Member] | Minimum [Member] | ||||
Net Operating Loss Carryforwards [Abstract] | ||||
Operating loss carryforwards, expiry period | Aug. 31, 2035 | |||
State [Member] | Maximum [Member] | ||||
Net Operating Loss Carryforwards [Abstract] | ||||
Operating loss carryforwards, expiry period | Aug. 31, 2036 |
401(K) PLAN (Details)
401(K) PLAN (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
401(K) PLAN [Abstract] | ||
Administrative fees paid for plan | $ 6,000 | $ 5,900 |
SEGMENT REPORTING, Revenue by S
SEGMENT REPORTING, Revenue by Segments (Details) | 3 Months Ended | 12 Months Ended | |||||||||||
Aug. 31, 2019USD ($) | May 31, 2019USD ($) | Feb. 28, 2019USD ($) | Nov. 30, 2018USD ($) | Aug. 31, 2018USD ($) | May 31, 2018USD ($) | Feb. 28, 2018USD ($) | Nov. 30, 2017USD ($) | Aug. 31, 2019USD ($)BusinessLine | Aug. 31, 2018USD ($) | ||||
SEGMENT REPORTING [Abstract] | |||||||||||||
Number of business lines | BusinessLine | 2 | ||||||||||||
Revenues [Abstract] | |||||||||||||
Total revenues | $ 9,474,000 | $ 5,185,000 | $ 2,630,000 | $ 3,073,000 | $ 3,892,000 | $ 1,212,000 | $ 845,000 | $ 1,010,000 | $ 20,361,509 | [1] | $ 6,959,199 | [1] | |
Other income from non-segment sources | 529,293 | 441,407 | |||||||||||
Wholesale Water and Wastewater Services [Member] | |||||||||||||
Revenues [Abstract] | |||||||||||||
Total revenues | [1] | 8,405,520 | 4,794,749 | ||||||||||
Land Development Activities [Member] | |||||||||||||
Revenues [Abstract] | |||||||||||||
Total revenues | [1] | $ 11,955,989 | $ 2,164,450 | ||||||||||
[1] | The Company had other income from non-segment sources (oil and gas, interest and other) of $529,293 and $441,407 for the fiscal years ended August 31, 2019 and 2018, respectively. |
SEGMENT REPORTING, Wholesale Wa
SEGMENT REPORTING, Wholesale Water and Wastewater Services and Land Development Pretax Income (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2019 | Aug. 31, 2018 | |
Pretax income (loss) [Abstract] | ||||||||||
Depreciation, general and administrative expenses | $ (3,419,149) | $ (3,106,325) | ||||||||
Operating income (loss) | $ 1,597,000 | $ 1,159,000 | $ (276,000) | $ 519,000 | $ (7,000) | $ (88,000) | $ (14,000) | $ (200,000) | 2,998,661 | (308,727) |
Wholesale Water and Wastewater Services [Member] | ||||||||||
Pretax income (loss) [Abstract] | ||||||||||
Operating income (loss) | 5,766,783 | 2,646,988 | ||||||||
Land Development Activities [Member] | ||||||||||
Pretax income (loss) [Abstract] | ||||||||||
Operating income (loss) | $ 651,027 | $ 150,610 |
SEGMENT REPORTING, Corporate As
SEGMENT REPORTING, Corporate Assets (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Assets [Abstract] | ||
Total assets | $ 83,721,404 | $ 71,906,615 |
Corporate [Member] | ||
Assets [Abstract] | ||
Total assets | 15,266,783 | 25,687,625 |
Wholesale Water and Wastewater Services [Member] | ||
Assets [Abstract] | ||
Total assets | 51,588,079 | 36,721,884 |
Additions to assets | 14,100,000 | 2,900,000 |
Land Development Activities [Member] | ||
Assets [Abstract] | ||
Total assets | 16,866,542 | 9,497,106 |
Additions to assets | $ 18,600,000 | $ 4,700,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 12 Months Ended | ||
Aug. 31, 2019USD ($)EmployeeBoardMember | Aug. 31, 2018USD ($) | Sep. 18, 2018USD ($) | |
Estimated WISE Costs [Abstract] | |||
Estimated costs, 2020 | $ 2,825,723 | ||
Estimated costs, 2021 | 995,033 | ||
Estimated costs, 2022 | 995,033 | ||
Estimated costs, 2023 | 995,033 | ||
Estimated costs, 2024 | 995,033 | ||
Operations [Member] | |||
Estimated WISE Costs [Abstract] | |||
Estimated costs, 2020 | 44,235 | ||
Estimated costs, 2021 | 32,033 | ||
Estimated costs, 2022 | 32,033 | ||
Estimated costs, 2023 | 32,033 | ||
Estimated costs, 2024 | 32,033 | ||
Water Delivery [Member] | |||
Estimated WISE Costs [Abstract] | |||
Estimated costs, 2020 | 430,350 | ||
Estimated costs, 2021 | 858,000 | ||
Estimated costs, 2022 | 858,000 | ||
Estimated costs, 2023 | 858,000 | ||
Estimated costs, 2024 | 858,000 | ||
Capital [Member] | |||
Estimated WISE Costs [Abstract] | |||
Estimated costs, 2020 | 2,296,138 | ||
Estimated costs, 2021 | 50,000 | ||
Estimated costs, 2022 | 50,000 | ||
Estimated costs, 2023 | 50,000 | ||
Estimated costs, 2024 | 50,000 | ||
Other [Member] | |||
Estimated WISE Costs [Abstract] | |||
Estimated costs, 2020 | 55,000 | ||
Estimated costs, 2021 | 55,000 | ||
Estimated costs, 2022 | 55,000 | ||
Estimated costs, 2023 | 55,000 | ||
Estimated costs, 2024 | 55,000 | ||
Sky Ranch Community Authority Board [Member] | |||
Related Party Transactions [Abstract] | |||
Related party advances | $ 17,700,000 | $ 2,300,000 | |
Related party repayment amount | $ 857,900 | ||
Related party terminated amount | 3,300,000 | ||
Facilities Funding and Acquisition Agreement [Member] | |||
Related Party Transactions [Abstract] | |||
Interest rate | 6.00% | ||
Notes receivable | $ 27,100 | 25,500 | |
Notes receivable, principal | 25,500 | 25,500 | |
Notes receivable, accrued interest | 1,600 | 0 | |
Estimated cost | 30,000,000 | ||
Related party advances | 20,000,000 | ||
Related party terminated amount | $ 2,400,000 | ||
Rangeview District [Member] | WISE Partnership [Member] | |||
Related Party Transactions [Abstract] | |||
Funding pursuant to participation agreement | 22,200 | 198,200 | |
Investments in the WISE assets | $ 3,533,300 | ||
Rangeview District [Member] | Water and Wastewater Services [Member] | |||
Related Party Transactions [Abstract] | |||
Number of employee board of directors | Employee | 3 | ||
Number of independent board of directors | BoardMember | 1 | ||
Rangeview District [Member] | Water and Wastewater Services [Member] | Loans Receivable [Member] | |||
Related Party Transactions [Abstract] | |||
Interest rate | 7.25% | ||
Debt instrument maturity date | Dec. 31, 2020 | ||
Rangeview District [Member] | Water and Wastewater Services [Member] | Loans Receivable [Member] | Maximum [Member] | |||
Related Party Transactions [Abstract] | |||
Loan extended, maximum capacity | $ 250,000 | ||
Rangeview District [Member] | Water and Wastewater Services [Member] | Loans Receivable [Member] | Prime Rate [Member] | |||
Related Party Transactions [Abstract] | |||
Basis spread on variable rate | 2.00% | ||
Rangeview District [Member] | Water and Wastewater Services [Member] | Notes Receivable [Member] | |||
Related Party Transactions [Abstract] | |||
Interest rate | 8.00% | ||
Notes receivable | $ 961,300 | 880,700 | |
Notes receivable, principal | 546,500 | 484,000 | |
Notes receivable, accrued interest | 414,800 | 396,700 | |
Sky Ranch District [Member] | Water and Wastewater Services [Member] | Notes Receivable [Member] | |||
Related Party Transactions [Abstract] | |||
Loan outstanding | $ 0 | ||
Notes receivable | $ 0 | ||
Sky Ranch District [Member] | Sky Ranch Community Authority Board [Member] | |||
Related Party Transactions [Abstract] | |||
Interest rate | 6.00% | 6.00% | |
Estimated cost | $ 13,200,000 | $ 13,200,000 | |
Rangeview District and the CAB [Member] | |||
Related Party Transactions [Abstract] | |||
Notes receivable | $ 988,400 |
UNAUDITED QUARTERLY FINANCIAL_3
UNAUDITED QUARTERLY FINANCIAL DATA (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2019 | Aug. 31, 2018 | |||||||
Quarterly Results of Operations [Abstract] | ||||||||||||||||
Total revenues | $ 9,474,000 | $ 5,185,000 | $ 2,630,000 | $ 3,073,000 | $ 3,892,000 | $ 1,212,000 | $ 845,000 | $ 1,010,000 | $ 20,361,509 | [1] | $ 6,959,199 | [1] | ||||
Gross profit | 2,876,000 | 1,922,000 | 374,000 | 1,246,000 | 904,000 | 683,000 | 631,000 | 580,000 | 6,417,810 | 2,797,598 | ||||||
Operating income (loss) | 1,597,000 | 1,159,000 | (276,000) | 519,000 | (7,000) | (88,000) | (14,000) | (200,000) | 2,998,661 | (308,727) | ||||||
Net income (loss) | $ 3,012,000 | $ 1,261,000 | $ (96,000) | $ 634,000 | $ 357,000 | $ 55,000 | $ 100,000 | $ (97,000) | $ 4,811,148 | $ 414,680 | ||||||
Basic and diluted income (loss) per share (in dollars per share) | $ 0.13 | $ 0.05 | [2] | $ 0.03 | $ 0.01 | [2] | [2] | [2] | $ 0.20 | $ 0.02 | ||||||
Oil and Gas [Member] | ||||||||||||||||
Quarterly Results of Operations [Abstract] | ||||||||||||||||
Total revenues | $ 1,520,600 | $ 1,308,500 | $ 124,200 | $ 1,285,000 | $ 1,422,600 | $ 1,022,300 | $ 753,000 | $ 846,400 | $ 4,238,300 | $ 4,044,300 | ||||||
[1] | The Company had other income from non-segment sources (oil and gas, interest and other) of $529,293 and $441,407 for the fiscal years ended August 31, 2019 and 2018, respectively. | |||||||||||||||
[2] | Amount is less than $.01 per share |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] | Oct. 25, 2019USD ($) |
Debt Instruments [Abstract] | |
Net proceeds from sale of bonds | $ 10,000,000 |
Senior Bonds [Member] | |
Debt Instruments [Abstract] | |
Aggregate principal amount of bonds | 10,820,000 |
Subordinate Bonds [Member] | |
Debt Instruments [Abstract] | |
Aggregate principal amount of bonds | $ 1,765,000 |