Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Nov. 30, 2021 | Jan. 07, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Nov. 30, 2021 | |
Entity File Number | 000-08814 | |
Entity Registrant Name | PURE CYCLE CORPORATION | |
Entity Incorporation, State or Country Code | CO | |
Entity Tax Identification Number | 84-0705083 | |
Entity Address, Address Line One | 34501 E. Quincy Avenue, Bldg. 34 | |
Entity Address, City or Town | Watkins | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80137 | |
City Area Code | 303 | |
Local Phone Number | 292 – 3456 | |
Title of 12(b) Security | Common Stock 1/3 of $.01 par value | |
Trading Symbol | PCYO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 23,941,968 | |
Entity Central Index Key | 0000276720 | |
Current Fiscal Year End Date | --08-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 12,914 | $ 20,117 |
Trade accounts receivable, net | 1,217 | 1,532 |
Prepaid expenses and other assets | 289 | 458 |
Land under development | 1,030 | 608 |
Notes receivable - reimbursable public improvements - related party | 16,000 | 16,000 |
Total current assets | 31,450 | 38,715 |
Restricted cash | 2,328 | 2,327 |
Water And Water Systems, Net | 53,506 | 53,786 |
Construction in progress | 3,016 | 3,304 |
Single-family rental units | 1,008 | |
Land and mineral rights: | ||
Held for development | 7,343 | 5,924 |
Held for investment purposes | 451 | 451 |
Other assets | 2,569 | 2,591 |
Operating leases - right of use assets, less current portion | 102 | 122 |
Total assets | 116,351 | 117,177 |
Current liabilities: | ||
Accounts payable | 2,019 | 1,787 |
Accrued liabilities | 669 | 1,224 |
Accrued liabilities - related parties | 2,049 | 2,881 |
Income taxes payable | 1,185 | 4,163 |
Deferred lot sale revenues | 2,831 | 1,995 |
Deferred oil and gas lease payment and water sales payment | 271 | 410 |
Debt | 7 | |
Total current liabilities | 9,031 | 12,460 |
Participating interests in export water supply | 325 | 325 |
Debt, less current portion | 993 | |
Deferred tax liability, net | 1,621 | 1,615 |
Lease obligations - operating leases, less current portion | 15 | 37 |
Total liabilities | 11,985 | 14,437 |
Commitments and contingencies | ||
SHAREHOLDERS' EQUITY: | ||
Series B preferred shares par value $0.001 per share, 25 million authorized; 432,513 issued and outstanding (liquidation preference of $432,513) | ||
Common shares par value 1/3 of $.01 per share, 40 million authorized; 23,923,100 and 23,916,633 outstanding, respectively | 80 | 80 |
Additional paid-in capital | 173,625 | 173,513 |
Accumulated deficit | (69,339) | (70,853) |
Total shareholders' equity | 104,366 | 102,740 |
Total liabilities and shareholders' equity | 116,351 | 117,177 |
Phase 1 Reimbursable Costs [Member] | ||
Land and mineral rights: | ||
Notes receivable - related parties, including accrued interest | 13,517 | 8,794 |
Other [Member] | ||
Land and mineral rights: | ||
Notes receivable - related parties, including accrued interest | $ 1,061 | $ 1,163 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 |
SHAREHOLDERS' EQUITY: | ||
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 outstanding (in shares) | 23,923,100 | 23,916,633 |
Series B Preferred Stock [Member] | ||
SHAREHOLDERS' EQUITY: | ||
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 - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Revenues: | ||
Revenues | $ 4,273 | $ 4,868 |
Expenses: | ||
Depletion and depreciation | (354) | (365) |
Other | (77) | (24) |
Total cost of revenues | (1,383) | (2,745) |
General and administrative expenses | (1,325) | (1,086) |
Depreciation | (85) | (84) |
Operating income | 1,480 | 953 |
Other income: | ||
Interest income - related party | 362 | 15 |
Oil and gas royalty income, net | 97 | 75 |
Oil and gas lease income, net | 48 | 52 |
Other | 11 | 10 |
Interest expense, net | (7) | |
Income from operations before income taxes | 1,991 | 1,105 |
Income tax expense | (477) | (260) |
Net income | $ 1,514 | $ 845 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.06 | $ 0.04 |
Diluted (in dollars per share) | $ 0.06 | $ 0.04 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 23,917,908 | 23,866,740 |
Diluted (in shares) | 24,219,236 | 24,036,479 |
Water Service Operations [Member] | ||
Expenses: | ||
Expenses | $ 289 | $ 545 |
Metered Water Usage - Municipal Customers [Member] | ||
Revenues: | ||
Revenues | 321 | 167 |
Metered Water Usage - Oil and Gas Operations [Member] | ||
Revenues: | ||
Revenues | 386 | 1,199 |
Wastewater Service Operations [Member] | ||
Expenses: | ||
Expenses | 129 | 92 |
Wastewater Treatment Fees [Member] | ||
Revenues: | ||
Revenues | 55 | 42 |
Land Development Construction Costs [Member] | ||
Expenses: | ||
Expenses | 531 | 1,719 |
Water and Wastewater Tap Fees [Member] | ||
Revenues: | ||
Revenues | 261 | 1,083 |
Lot Sales [Member] | ||
Revenues: | ||
Revenues | 2,945 | 2,356 |
Project Management Fees - Recognized [Member] | ||
Revenues: | ||
Revenues | 248 | 0 |
Single Family Rentals [Member] | ||
Revenues: | ||
Revenues | 8 | |
Expenses: | ||
Expenses | 3 | |
Special Facility Projects and Other [Member] | ||
Revenues: | ||
Revenues | $ 49 | $ 21 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Aug. 31, 2020 | $ 0 | $ 80 | $ 172,927 | $ (90,963) | $ 82,044 |
Balance (in shares) at Aug. 31, 2020 | 432,513 | 23,856,098 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock option exercises | $ 0 | $ 0 | 0 | 0 | 0 |
Stock option exercises (in shares) | 0 | 12,118 | |||
Share-based compensation | $ 0 | $ 0 | 86 | 0 | 86 |
Net income | 0 | 0 | 0 | 845 | 845 |
Balance at Nov. 30, 2020 | $ 0 | $ 80 | 173,013 | (90,118) | 82,975 |
Balance (in shares) at Nov. 30, 2020 | 432,513 | 23,868,216 | |||
Balance at Aug. 31, 2021 | $ 80 | 173,513 | (70,853) | 102,740 | |
Balance (in shares) at Aug. 31, 2021 | 432,513 | 23,916,633 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock option exercises (in shares) | 6,467 | ||||
Share-based compensation | 112 | 112 | |||
Net income | 1,514 | 1,514 | |||
Balance at Nov. 30, 2021 | $ 80 | $ 173,625 | $ (69,339) | $ 104,366 | |
Balance (in shares) at Nov. 30, 2021 | 432,513 | 23,923,100 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 1,514 | $ 845 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred lot sale revenues | 836 | (1,425) |
Depreciation and depletion | 439 | 449 |
Trade accounts receivable | 315 | 411 |
Prepaid expenses | 141 | (370) |
Share-based compensation expense | 112 | 86 |
Deferred income taxes | (6) | (126) |
Other assets and liabilities | (1) | 134 |
Deferred income - oil and gas lease and water sales payment | (139) | |
Land under development | (422) | (413) |
Accounts payable and accrued liabilities | (1,156) | 174 |
Taxes payable net of taxes receivable | (2,978) | |
Net cash (used) provided by operating activities | (5,954) | 6 |
Cash flows from investing activities: | ||
Investments in water and water systems | (652) | (468) |
Investments in land under development | (1,419) | |
Construction costs of single-family rentals | (142) | |
Purchase of property and equipment | (35) | (31) |
Net cash used by investing activities | (2,248) | (499) |
Cash flows from financing activities: | ||
Proceeds from notes payable | 1,000 | |
Payments to contingent liability holders | (1) | |
Net cash provided (used) by financing activities | 1,000 | (1) |
Net change in cash, cash equivalents and restricted cash | (7,202) | (494) |
Cash, cash equivalents and restricted cash - beginning of period | 22,444 | 21,797 |
Cash, cash equivalents and restricted cash - end of period | 15,242 | 21,303 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | 12,914 | 21,303 |
Restricted cash | 2,328 | |
Total cash, cash equivalents and restricted cash | 15,242 | 21,303 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION AND NON-CASH ACTIVITIES | ||
Income taxes paid | 3,450 | |
Change in reimbursable public improvements included in accounts payable and accrued liabilities | 2,049 | |
Change in land under development costs included in accounts payable and accrued liabilities | 894 | |
Change in investments in water and water systems included in accounts payable and accrued liabilities | 297 | |
Rangeview District [Member] | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Change in note receivable from related party, net | 102 | $ (11) |
Sky Ranch CAB [Member] | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Change in note receivable from related party, net | $ (4,723) |
PRESENTATION OF INTERIM INFORMA
PRESENTATION OF INTERIM INFORMATION | 3 Months Ended |
Nov. 30, 2021 | |
PRESENTATION OF INTERIM INFORMATION [Abstract] | |
PRESENTATION OF INTERIM INFORMATION | NOTE 1 – PRESENTATION OF INTERIM INFORMATION The accompanying unaudited consolidated financial statements have been prepared by Pure Cycle Corporation (Company) and include all adjustments that are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows of the Company as of and for the three months ended November 30, 2021 and 2020. The August 31, 2021 balance sheet was derived from the Company’s audited consolidated financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted. It is suggested the accompanying consolidated financial statements and notes be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended August 31, 2021 (2021 Annual Report) filed with the Securities and Exchange Commission (SEC) on November 10, 2021. The results of operations for interim periods presented are not necessarily indicative of the operating results expected for the full fiscal year. Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Since January 2020, the COVID-19 pandemic has caused substantial disruption in international and U.S. economies and markets. The impacts of the pandemic are continuing in 2021 but began to lessen as vaccines became widely available in the U.S, although there have been periodic increases in the number of cases in the U.S. due to vaccine hesitancy and the spread of COVID-19 variants. The pandemic has resulted in government restrictions of various degrees and effective at various times, including stay-at-home orders, bans on travel, limitations on the size of gatherings, limitations on the operations of businesses deemed non-essential, closures of work facilities, schools, public buildings and businesses, cancellation of events (including entertainment events, conferences, and meetings), quarantines, mask mandates and social distancing measures. Due to the outbreak of COVID-19 and related restrictions, the second development phase of Sky Ranch was delayed due to the extended time taken to approve the platted lots through the county government. Use of Estimates The preparation of financial statements in conformity with 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, costs of revenue for lot sales, share-based compensation, deferred tax asset valuation, and the useful lives and recoverability of long-lived assets. Actual results could differ from those estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to COVID-19. During fiscal 2021, the Company determined the reimbursable public improvements, project management fees and interest income related to the Sky Ranch community being developed by the Company are probable of payment. Historically, due to a lack of tax base and no operating history for the Sky Ranch Community Authority Board (Sky Ranch CAB), the Company was unable to estimate when or if it would receive payment for these items and deferred recognition of them until cash was received. As a result of an established and growing tax base resulting from the success of the initial development, added mill levies, and additional unencumbered fees received by the Sky Ranch CAB, the Company believes repayment of the public improvements, payment of the project management fees, and interest income are deemed probable. Based on this the Company has recognized these items in the consolidated financial statements. The timing and amount of potential payments have been estimated based on growth trends utilizing current assessed values and historic growth rates which have been projected to current and contracted lot sales through the contractual obligation period. Reclassifications The Company has reclassified certain prior year information to conform to the current year presentation . |
REIMBURSABLE PUBLIC IMPROVEMENT
REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB | 3 Months Ended |
Nov. 30, 2021 | |
REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB | |
REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB | NOTE 2 – REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB The Note receivable from the Sky Ranch CAB reports the balances owed by the Sky Ranch CAB to the Company for reimbursable public improvements, project management fees, and interest accrued on the unpaid balances related to the ongoing development of the Sky Ranch master planned community, which is described in greater detail in Note 1 and Note 14 to the Company’s 2021 Annual Report. The Company has paid for the cost of public improvements at Sky Ranch which are the ultimate responsibility of the Sky Ranch CAB. During the second quarter of fiscal 2021, the Company determined that the Sky Ranch CAB would be able to repay the company for those improvements, along with the project management fees and interest on these expenses. Upon that determination, the Company began recording the reimbursable public improvements as a receivable from the Sky Ranch CAB (as opposed to the costs being initially capitalized as land under development and subsequently expensed as land development construction costs) and began recognizing project management fee revenue and interest income on the entire note receivable from the Sky Ranch CAB. Prior to that date, payment was not deemed to be probable; therefore, the Company capitalized those costs as land under development and subsequently expensed the reimbursable public improvements and did not recognize any project management fees or interest income due to the uncertainty of collectability. During the three months ended November 30, 2021, the note receivable – related party related to reimbursable public improvement costs the Company incurred on behalf of the Sky Ranch CAB of $4.1 million, project management fees owed to the Company of $0.2 million, and interest income on the outstanding amounts of $0.4 million which increased the note receivable balance by $4.7 million. Public improvements which are not probable of reimbursement at the time of being incurred are considered contract fulfillment costs and will be recognized in separate land under development accounts as funds are expended. Once collectability is deemed to be probable, the reimbursable public improvement costs will be reclassified from the land under development account and into notes receivable - related party. The Company assesses the collectability of the note receivable from the Sky Ranch CAB, which includes reimbursable public improvements, project management fees and the related interest income, when events or circumstances indicate the amounts may not be recoverable. The Sky Ranch CAB has an obligation to repay the Company, but the ability of the Sky Ranch CAB to do so before the contractual termination dates is dependent upon the establishment of a tax base or other fee generating activities sufficient to recover reimbursable costs incurred. The following table summarizes the activity and balances associated with the reimbursable public improvements, project management fees, and accrued interest, all of which are included in the note receivable from the Sky Ranch CAB: (In thousands) Balances at August 31, 2021 Activity during the three months ended November 30, 2021 Amounts payable by the Sky Ranch CAB at November 30, 2021 Phase 1 Reimbursable public improvements and other $ 17,645 $ 248 $ 17,893 Accrued interest 2,526 305 2,831 Project management services 1,570 10 1,580 Phase 1 reimbursable costs $ 21,741 $ 563 $ 22,304 Phase 2 Public improvements $ 2,935 $ 3,877 $ 6,812 Accrued interest 33 45 78 Project management services 85 238 323 Phase 2 reimbursable costs $ 3,053 $ 4,160 $ 7,213 Total reimbursable costs $ 24,794 $ 4,723 $ 29,517 The note receivable from the Sky Ranch CAB accrues interest at 6% per annum. |
REVENUE
REVENUE | 3 Months Ended |
Nov. 30, 2021 | |
REVENUE [Abstract] | |
REVENUE | NOTE 3 – REVENUE The Company’s revenue is primarily generated from the sale of lots to homebuilders, sales of water and wastewater taps, metered water and wastewater usage, and beginning in November 2021, from renting single-family homes. Detailed descriptions of the policies related to revenue recognition are included in Note 2 to the 2021 Annual Report. The following describes significant components of revenue for the three months ended November 30, 2021 and 2020. Sale of finished lots The Company also recognizes revenue from the sale of finished lots, whereby the home builder pays for a ready-to-build finished lot and the sales price is paid in a lump-sum upon completion of the finished lot that is permit ready. The Company recognizes revenues at the point in time of the closing of the sale of a finished lot in which control transfers to the builder as the transaction cycle is complete and the Company has no further obligations for the lot. The Company recognized $0 and $1.6 million from ready-to-build finished lots for the three months ended November 30, 2021 and 2020. Water and wastewater tap fees Project management services Single-family rental fees – Effective November 1, 2021, the Company began leasing three single-family homes it had constructed at Sky Ranch. Each home is rented pursuant to a separate twelve-month lease agreement that requires monthly payments during the term of the lease. The Company has begun construction on a fourth house and reserved 46 lots in the second development phase of Sky Ranch for rental units; therefore, the Company believes this could become a reportable operating segment in the future once its operations become material. Deferred Revenue Deferred revenue by segment is as follows: (In thousands) November 30, 2021 August 31, 2021 Land development segment $ 2,831 $ 1,995 Water and wastewater resource development segment 271 410 Balance, end of period $ 3,102 $ 2,405 Changes in deferred revenue were as follows: (In thousands) November 30, 2021 August 31, 2021 Balance at August 31, 2021 $ 2,405 $ 3,600 Deferral of revenue 3,783 6,884 Recognition of unearned revenue (3,086) (8,079) Balance at November 30, 2021 $ 3,102 $ 2,405 The Company recognizes certain lot sales over time as construction activities progress for lots sold pursuant to lot development agreements and not when payment is received. For example, the Company will frequently receive milestone payments before revenue can be recognized (i.e. prior to the Company completing cumulative progress which faithfully represents the transfer of goods and services to the customer) which results in the Company recording deferred revenue. The Company recognizes this revenue into income as construction activities progress, measured based on costs incurred to total expected costs of the project, which management believes is a faithful representation of the transfer of goods and services to the customer. Revenue allocated to remaining performance obligations such as described above represents contracted revenue that has not yet been recognized, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. During November 2021, the Company received a milestone payment of $3.8 million for outstanding open contracts related to lot sales in the first subphase of the second development phase at Sky Ranch. This revenue is being recognized over time. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Nov. 30, 2021 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 4 – FAIR VALUE MEASUREMENTS Fair value accounting guidance includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). The Company maintains policies and procedures to value instruments using what management believes to be the best and most relevant data available. The carrying value for certain of the Company’s financial instruments (i.e., cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities) approximates fair value because of their short-term nature and generally negligible credit losses. As of November 30, 2021, the Company has one Level 2 liability, the SFR Note (defined in Note 6) entered into in November 2021, for which the Company has determined the valuation of the liability can be obtained from readily available pricing sources via independent providers for market transactions involving similar liabilities. There were no transfers between Level 1, 2 or 3 categories during the three months ended November 30, 2021 or 2020. |
WATER, LAND AND OTHER FIXED ASS
WATER, LAND AND OTHER FIXED ASSETS | 3 Months Ended |
Nov. 30, 2021 | |
WATER, LAND AND OTHER FIXED ASSETS [Abstract] | |
WATER, LAND AND OTHER FIXED ASSETS | NOTE 5 – WATER, LAND AND OTHER FIXED ASSETS The Company’s water rights and current water and wastewater service agreements, including capitalized terms not defined herein, are more fully described in Note 4 to the 2021 Annual Report. Investment in Water and Water Systems The Company’s Investments in water and water systems consist of the following costs and accumulated depreciation and depletion: November 30, 2021 August 31, 2021 Accumulated Accumulated Depreciation Depreciation (In thousands) Costs and Depletion Costs and Depletion Rangeview water system $ 17,572 $ (1,624) $ 17,526 $ (1,470) Rangeview water supply 14,645 (17) 14,622 (17) Water supply – Other 7,504 (1,513) 7,569 (1,433) Sky Ranch water rights and other costs 7,377 (1,133) 7,338 (1,087) Sky Ranch pipeline 5,740 (841) 5,727 (793) Lost Creek water supply 3,388 — 3,374 — Fairgrounds water and water system 2,900 (1,349) 2,900 (1,327) Wild Pointe service rights 1,632 (775) 1,632 (775) Totals 60,758 (7,252) 60,688 (6,902) Net investments in water and water systems $ 53,506 $ 53,786 Construction in Progress Construction in progress represents costs incurred on various construction projects currently underway, that as of the balance sheet date have not been completed and placed into service. The construction in progress account consists primarily of water facilities being constructed that the Company anticipates will be placed in service during calendar year 2022. During the three months ended November 30, 2021, the Company incurred (1) $0.5 million of costs related to its construction projects and (2) completed the single-family rental units resulting in the transfer of $1.0 million of costs to a separate account for tracking the capitalized costs of the rental units. Single-Family Rental Homes During the three months ended November 30, 2021, the Company completed construction of the first three houses in its single-family rental business. The costs of constructing the homes and landscaping are capitalized and being depreciated over five The Company has reserved 46 lots in the second development phase of Sky Ranch to build additional rental units, but as of November 30, 2021, the Company has not started construction on any of these units. |
DEBT ASSOCIATED WITH THE SINGLE
DEBT ASSOCIATED WITH THE SINGLE-FAMILY RENTAL HOME NOTE PAYABLE AND OTHER LONG-TERM OBLIGATIONS | 3 Months Ended |
Nov. 30, 2021 | |
DEBT ASSOCIATED WITH THE SINGLE-FAMILY RENTAL HOME NOTE PAYABLE AND OTHER LONG-TERM OBLIGATIONS [Abstract] | |
DEBT ASSOCIATED WITH THE SINGLE-FAMILY RENTAL HOME NOTE PAYABLE AND OTHER LONG-TERM OBLIGATIONS | NOTE 6 – DEBT ASSOCIATED WITH THE SINGLE-FAMILY RENTAL HOME NOTE PAYABLE AND OTHER LONG-TERM OBLIGATIONS Single-Family Rental Home Note Payable On November 29, 2021, PCY Holdings, LLC a wholly owned subsidiary of the Company entered a Promissory Note (SFR Note) to reimburse amounts expended for the construction of the first three single-family rental units. The SFR note has the following terms: ● Initial principal amount of $1.0 million ● Floating per annum interest rate equal to the Western Edition of the “Wall Street Journal” Prime Rate plus 0.5% ( 3.75% as of November 30, 2021), which has a floor of 3.75% and a ceiling of 4.25% . In the event of default, the interest rate on the SFR Note would be increased by adding an additional 2.0% ● Maturity date of December 1, 2026 ● Six interest only payments beginning January 1, 2022 ● Fifty-three principal and interest payments each month beginning July 1, 2022 in the amount of $4,633.05 each ● Estimated final principal and interest balloon payment of $916,239.49 payable on December 1, 2026 ● Secured by the three single-family rental homes ● Required minimum debt service coverage ratio of 1.10 , measured annually based on audited financial statements, calculated as net operating income less distributions divided by required principal and interest payments, with net operating income defined as net income plus interest, depreciation, and amortization. The scheduled maturities of the SFR Note for each of the twelve-month periods ending November 30 are as follows (in thousands): Scheduled principal payments 2022 $ 7 2023 19 2024 19 2025 20 2026 19 Thereafter 916 $ 1,000 Lot Construction Obligations In October 2020, November 2020, and February 2021, the Company entered separate contracts with KB Home, Melody (a DR Horton Company), Challenger Homes, and Lennar Colorado, LLC to sell 804 single-family attached and detached residential lots at Sky Ranch. This is the second development phase of Sky Ranch which incorporates approximately 250 acres, will be completed in four sub-phases, and is platted to include a total of 850 residential lots. The 46 lots not currently under contract to home builders are being retained for use in the Company’s single-family rental business. Pursuant to the contracts with the homebuilders, the Company and the Sky Ranch CAB are obligated to complete all construction activities required to deliver finished lots (i.e. lots ready for home construction) to the builders, including but not limited to grading, construction of wet and dry utilities, streets, curbs, and landscaping. In February 2021, the Company began construction on the first subphase of the second development phase, which includes a total of 229 lots, 10 of which are being retained for use in the single-family rental business, and 219 of which are sold under contracts to the four homebuilders listed above. As of November 30, 2021, the Company received plats for all 229 lots and has substantially completed grading and all wet utilities, with construction of streets, sidewalks, and dry utilities underway. We expect to deliver the first 219 completed lots to the homebuilders during the summer of 2022. From the start of the second development phase through November 30, 2021, the Company has spent $8.8 million on construction activities in the second development phase, of which $6.8 million was for public improvements which the Company expects to be reimbursed by the Sky Ranch CAB. In the next eighteen months the Company anticipates spending an additional $11.7 million to complete 229 finished lots, including the 10 lots for the single-family rental business, in the first subphase of the second development phase, of which $10.4 million is estimated to be for public improvements which the Company believes will be reimbursed by the Sky Ranch CAB. The Company believes it will take three years to complete construction for all 850 lots included in the four subphases of the second development phase and sell the 804 finished lots depending on the market conditions and permitting process. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Nov. 30, 2021 | |
SHAREHOLDERS' EQUITY [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 7 – SHAREHOLDERS’ EQUITY The Company reserved 1.6 million shares of common stock for issuance to employees and directors pursuant to the Company’s 2014 Equity Incentive Plan (2014 Equity Plan). As of November 30, 2021 and August 31, 2021, there were 876,665 and 974,965 shares available for grant under the 2014 Equity Plan. Prior to the effective date of the 2014 Equity Plan, the Company granted options and stock awards to eligible participants under its 2004 Incentive Plan (2004 Incentive Plan), which expired on April 11, 2014. No additional awards may be granted pursuant to the 2004 Incentive Plan. The following table summarizes the combined stock option activity for the 2004 Incentive Plan and 2014 Equity Plan for the three months ended November 30, 2021: Approximate Weighted Average Aggregate Number Weighted Average Remaining Intrinsic Value of Options Exercise Price Contractual Term (in thousands) Outstanding at August 31, 2021 714,500 $ 7.80 6.06 $ 5,107 Granted 105,000 $ 13.37 Net settlement exercised (13,167) $ 7.81 Outstanding at November 30, 2021 806,333 $ 8.53 6.32 $ 4,864 Options exercisable at November 30, 2021 570,002 $ 7.42 5.18 $ 4,070 During the three months ended November 30, 2021, the Company had net settlement exercises of stock options, whereby the optionee did not pay cash for the options but instead received the number of shares equal to the difference between the exercise price and the market price on the date of exercise. Net settlement exercises during the three months ended November 30, 2021 resulted in 6,467 shares issued and 6,700 options cancelled in settlement of shares issued. The following table summarizes the combined activity and value of non-vested options under the 2004 Equity Plan and 2014 Incentive Plan as for the three months ended November 30, 2021: Weighted Average Number Grant Date of Options Fair Value Non-vested options outstanding at August 31, 2021 218,333 $ 4.04 Granted 105,000 $ 5.16 Vested (87,002) $ 4.21 Non-vested options outstanding at November 30, 2021 (a) 236,331 $ 4.48 (a) All non-vested options are expected to vest. For each of the three months ended November 30, 2021 and 2020, the Company recorded $0.1 million of stock-based compensation expense. At November 30, 2021, the Company had unrecognized compensation expenses totaling $1.0 million relating to non-vested options that are expected to vest. The weighted-average period over which these options are expected to vest is approximately two and a half years |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Nov. 30, 2021 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 8 – RELATED PARTY TRANSACTIONS The Rangeview District The Rangeview District and the Company’s agreements with the Rangeview District are described in greater detail in Note 14 to the 2021 Annual Report. Pursuant to these agreements, the Company provides funding to the Rangeview District for operations, construction and the Rangeview District’s participation in the “Wise Partnership.” During the three months ended November 30, 2021 and 2020, the Company, through the Rangeview District, received metered water deliveries of 11 and 166 acre-feet of WISE water, paying less than $0.1 million and $0.3 million for this water. The cost of the water to the members is based on the water rates charged by Aurora Water and can be adjusted each January 1. As of January 1, 2021, WISE water was $5.98 per thousand gallons and such rate will remain in effect through calendar 2021. Effective, January 1, 2022, WISE water is expected to increase to $6.13 per thousand gallons. To date, the Company has capitalized the construction funding pursuant to the WISE Financing Agreement because the funding has been provided to build assets which provide capacity in the WISE infrastructure. The Company’s total investment in the WISE infrastructure as of November 30, 2021, is $6.3 million. As detailed in Note 14 to the 2021 Annual Report, the Rangeview District and the Company have entered into two loan agreements. The first loan provided for borrowings of up to $250,000, is unsecured, and bears interest based on the prevailing prime rate plus 2% (5.25% at November 30, 2021). The maturity date of the loan is December 31, 2021, at which time it will automatically renew for another 12-month term. The second loan 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 2014 Amended and Restated Lease Agreement remains in effect. As of November 30, 2021, the principal and interest on both loan agreements totaled $1.1 million ($0.7 million of principal and $0.4 million of accrued interest). As of August 31, 2021, the principal and interest on both loan agreements totaled $1.2 million ($0.7 million of principal and $0.5 million of accrued interest). During the three months ended November 30, 2021, the Company received an interest payment of $0.1 million from the Rangeview District. Sky Ranch Community Authority Board The Sky Ranch Districts and the Sky Ranch 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 Sky Ranch CAB was formed 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. For the public improvements to be constructed and/or acquired, it is necessary for each Sky Ranch District, directly or through the Sky Ranch 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. To fund these improvements, the Company and the Sky Ranch CAB entered various funding agreements obligating the Company to advance funding to the Sky Ranch CAB for specified public improvements constructed from 2018 to 2023. All amounts owed under the agreements bear interest at a rate of 6% per annum. Any advances not paid or reimbursed by the Sky Ranch CAB by December 31, 2058 for first phase and December 31, 2060 for the second phase, shall be deemed forever discharged and satisfied in full. As of November 30, 2021, the balance of the Company’s advances to the Sky Ranch CAB for improvements, including interest, net of reimbursements from the Sky Ranch CAB totaled $29.5 million. The advances have been used by the Sky Ranch CAB to pay for construction of public improvements. The Company submits specific costs for reimbursement to the Sky Ranch CAB that have been certified by an independent third-party. The Company anticipates providing funding of $10.4 million for construction of public improvements to the Sky Ranch CAB in fiscal 2022 related to the first subphase of the second development phase at Sky Ranch. In addition to the note receivable, the Sky Ranch CAB is obligated to refund the Company $0.5 million for the reimbursement of construction costs from the Southeast Metropolitan Stormwater Supply Authority (SEMSWA). These costs will be distributed to the Sky Ranch CAB upon the acceptance of the stormwater infrastructure by SEMSWA in calendar year 2022. The Company records this reimbursable cost in Trade accounts receivable, net. Nelson Pipeline Constructors LLC Through a competitive bidding process the Sky Ranch CAB awarded Nelson Pipeline Constructors, LLC (Nelson) a contract to construct the wet utility pipelines in the second development phase of Sky Ranch. Nelson is a wholly-owned subsidiary of Nelson Infrastructure Services LLC, which is majority owned by the chairman of the Company’s board of directors. |
SIGNIFICANT CUSTOMERS
SIGNIFICANT CUSTOMERS | 3 Months Ended |
Nov. 30, 2021 | |
SIGNIFICANT CUSTOMERS [Abstract] | |
SIGNIFICANT CUSTOMERS | NOTE 9 – SIGNIFICANT CUSTOMERS The Company has significant customers in its operations. For the water and wastewater resource development segment, the Company primarily provides water and wastewater services on behalf of Rangeview District. The significant end users include all Sky Ranch homes in aggregate (21%) and one oil & gas operator (50%). For the land development segment and water and wastewater tap fees, which are reported within the water and wastewater resource development segment, significant customers include Lennar (30%), Challenger (28%) and KB Home (20%). |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 3 Months Ended |
Nov. 30, 2021 | |
ACCRUED LIABILITIES [Abstract] | |
ACCRUED LIABILITIES | NOTE 10 – ACCRUED LIABILITIES (In thousands) November 30, 2021 August 31, 2021 Land development costs due to the Sky Ranch CAB - related party $ 2,049 $ 2,243 Accrued compensation 329 729 Other operating payables 154 248 WISE water 15 62 Operating lease obligations 85 84 Property taxes 57 50 Professional fees 20 51 Rental deposits 9 — Due to Rangeview - related party — 638 Total $ 2,718 $ 4,105 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Nov. 30, 2021 | |
SEGMENT INFORMATION [Abstract] | |
SEGMENT INFORMATION | NOTE 11 – SEGMENT INFORMATION The Company is required to report two operating segments which meet GAAP segment disclosure requirements, namely the water and wastewater resource development segment and the land development segment. A potential third segment, the single-family rentals, although not currently material to operations is presented within the operating segment for informational purposes. The water and wastewater resource development business includes selling water services 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 reclaimed wastewater. The land development segment includes all the activities necessary to develop and sell finished lots, which as of and for the three months ended November 30, 2021 and 2020, was done exclusively at the Company’s Sky Ranch Master Planned Community. The tables below present the measure of profit and assets used to assess the performance of the segment for the periods presented: Three Months Ended November 30, 2021 Water and wastewater resource (In thousands) development Land development Single-family rental Total Total revenue $ 1,072 $ 3,193 $ 8 $ 4,273 Cost of revenue (495) (531) (3) (1,029) Depreciation and depletion (354) — — (354) Total cost of revenue (849) (531) (3) (1,383) Gross profit $ 223 $ 2,662 $ 5 $ 2,890 Three Months Ended November 30, 2020 Water and wastewater resource (In thousands) development Land development Single-family rentals Total Total revenue $ 2,512 $ 2,356 $ — $ 4,868 Cost of revenue (661) (1,719) — (2,380) Depreciation and depletion (365) — — (365) Total cost of revenue (1,026) (1,719) — (2,745) Gross profit $ 1,486 $ 637 $ — $ 2,123 The following table summarizes total assets for the Company’s water and wastewater resource development business and land development business by segment. The assets consist of water rights and water and wastewater systems in the Company’s water and wastewater resource development segment and land, inventories and deposits in the Company’s land development segment. The Company’s other assets (“Corporate”) primarily consist of cash, cash equivalents, restricted cash, equipment, and related party notes receivables. (In thousands) November 30, 2021 August 31, 2021 Water and wastewater resource development $ 57,158 $ 57,791 Land development 39,363 32,844 Single-family rental 1,008 — Corporate 18,822 26,542 Total assets $ 116,351 $ 117,177 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Nov. 30, 2021 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | NOTE 12 – EARNINGS PER SHARE The Company’s earnings per share (EPS) was calculated by dividing net income attributable to common shareholders by the weighted-average shares of common stock outstanding during the period. Certain outstanding options are excluded from the diluted EPS calculation because they are anti-dilutive (i.e., their assumed conversion into common stock would increase rather than decrease EPS). For the three months ended November 30, 2021 and 2020, the Company excluded 0 and 180,000 options as the impact was anti-dilutive. Three Months Ended November 30, November 30, (In thousands, except share and per share amounts) 2021 2020 Net income $ 1,514 $ 845 Basic weighted average common shares 23,917,908 23,866,740 Effect of dilutive securities 301,328 169,739 Weighted average shares applicable to diluted earnings per share 24,219,236 24,036,479 Earnings per share - basic and diluted $ 0.06 $ 0.04 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Nov. 30, 2021 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 13 – INCOME TAXES The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items. As of November 30, 2021, the Company is estimating an annual effective tax rate of approximately 25%. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to various factors. The provision for income taxes is recorded at the end of each interim period based on the Company’s best estimate of its effective income tax rate expected to be applicable for the full fiscal year taking into account any items requiring discrete recognition. Income tax information for the three months ended November 30, 2021 and 2020 are as follows: Three Months Ended November 30, November 30, (In thousands) 2021 2020 Effective income tax rate 24.0 % 24.6 % Income tax expense (benefit): Current $ 471 $ 134 Deferred 6 126 Total $ 477 $ 260 Income taxes paid: Federal $ 3,450 $ — State — — Total $ 3,450 $ — Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax liability as of November 30, 2021 and August 31, 2021 are as follows: (In thousands) November 30, 2021 August 31, 2021 Deferred tax assets (liabilities): Depreciation and depletion $ (2,282) $ (2,360) Non-qualified stock options 561 547 Accrued compensation 56 141 Deferred revenues 29 41 Other 15 16 Net deferred tax liability $ (1,621) $ (1,615) |
PRESENTATION OF INTERIM INFOR_2
PRESENTATION OF INTERIM INFORMATION (Policies) | 3 Months Ended |
Nov. 30, 2021 | |
PRESENTATION OF INTERIM INFORMATION [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements have been prepared by Pure Cycle Corporation (Company) and include all adjustments that are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows of the Company as of and for the three months ended November 30, 2021 and 2020. The August 31, 2021 balance sheet was derived from the Company’s audited consolidated financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted. It is suggested the accompanying consolidated financial statements and notes be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended August 31, 2021 (2021 Annual Report) filed with the Securities and Exchange Commission (SEC) on November 10, 2021. The results of operations for interim periods presented are not necessarily indicative of the operating results expected for the full fiscal year. |
Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") | Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Since January 2020, the COVID-19 pandemic has caused substantial disruption in international and U.S. economies and markets. The impacts of the pandemic are continuing in 2021 but began to lessen as vaccines became widely available in the U.S, although there have been periodic increases in the number of cases in the U.S. due to vaccine hesitancy and the spread of COVID-19 variants. The pandemic has resulted in government restrictions of various degrees and effective at various times, including stay-at-home orders, bans on travel, limitations on the size of gatherings, limitations on the operations of businesses deemed non-essential, closures of work facilities, schools, public buildings and businesses, cancellation of events (including entertainment events, conferences, and meetings), quarantines, mask mandates and social distancing measures. Due to the outbreak of COVID-19 and related restrictions, the second development phase of Sky Ranch was delayed due to the extended time taken to approve the platted lots through the county government. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with 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, costs of revenue for lot sales, share-based compensation, deferred tax asset valuation, and the useful lives and recoverability of long-lived assets. Actual results could differ from those estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to COVID-19. During fiscal 2021, the Company determined the reimbursable public improvements, project management fees and interest income related to the Sky Ranch community being developed by the Company are probable of payment. Historically, due to a lack of tax base and no operating history for the Sky Ranch Community Authority Board (Sky Ranch CAB), the Company was unable to estimate when or if it would receive payment for these items and deferred recognition of them until cash was received. As a result of an established and growing tax base resulting from the success of the initial development, added mill levies, and additional unencumbered fees received by the Sky Ranch CAB, the Company believes repayment of the public improvements, payment of the project management fees, and interest income are deemed probable. Based on this the Company has recognized these items in the consolidated financial statements. The timing and amount of potential payments have been estimated based on growth trends utilizing current assessed values and historic growth rates which have been projected to current and contracted lot sales through the contractual obligation period. |
Reclassifications | Reclassifications The Company has reclassified certain prior year information to conform to the current year presentation . |
REIMBURSABLE PUBLIC IMPROVEME_2
REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB | |
Schedule of reimbursable Costs | The following table summarizes the activity and balances associated with the reimbursable public improvements, project management fees, and accrued interest, all of which are included in the note receivable from the Sky Ranch CAB: (In thousands) Balances at August 31, 2021 Activity during the three months ended November 30, 2021 Amounts payable by the Sky Ranch CAB at November 30, 2021 Phase 1 Reimbursable public improvements and other $ 17,645 $ 248 $ 17,893 Accrued interest 2,526 305 2,831 Project management services 1,570 10 1,580 Phase 1 reimbursable costs $ 21,741 $ 563 $ 22,304 Phase 2 Public improvements $ 2,935 $ 3,877 $ 6,812 Accrued interest 33 45 78 Project management services 85 238 323 Phase 2 reimbursable costs $ 3,053 $ 4,160 $ 7,213 Total reimbursable costs $ 24,794 $ 4,723 $ 29,517 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
REVENUE [Abstract] | |
Deferred Revenue and Changes in Deferred Revenue | Deferred revenue by segment is as follows: (In thousands) November 30, 2021 August 31, 2021 Land development segment $ 2,831 $ 1,995 Water and wastewater resource development segment 271 410 Balance, end of period $ 3,102 $ 2,405 Changes in deferred revenue were as follows: (In thousands) November 30, 2021 August 31, 2021 Balance at August 31, 2021 $ 2,405 $ 3,600 Deferral of revenue 3,783 6,884 Recognition of unearned revenue (3,086) (8,079) Balance at November 30, 2021 $ 3,102 $ 2,405 |
WATER, LAND AND OTHER FIXED A_2
WATER, LAND AND OTHER FIXED ASSETS (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
WATER, LAND AND OTHER FIXED ASSETS [Abstract] | |
Investments in Water and Water Systems | The Company’s Investments in water and water systems consist of the following costs and accumulated depreciation and depletion: November 30, 2021 August 31, 2021 Accumulated Accumulated Depreciation Depreciation (In thousands) Costs and Depletion Costs and Depletion Rangeview water system $ 17,572 $ (1,624) $ 17,526 $ (1,470) Rangeview water supply 14,645 (17) 14,622 (17) Water supply – Other 7,504 (1,513) 7,569 (1,433) Sky Ranch water rights and other costs 7,377 (1,133) 7,338 (1,087) Sky Ranch pipeline 5,740 (841) 5,727 (793) Lost Creek water supply 3,388 — 3,374 — Fairgrounds water and water system 2,900 (1,349) 2,900 (1,327) Wild Pointe service rights 1,632 (775) 1,632 (775) Totals 60,758 (7,252) 60,688 (6,902) Net investments in water and water systems $ 53,506 $ 53,786 |
DEBT ASSOCIATED WITH THE SING_2
DEBT ASSOCIATED WITH THE SINGLE-FAMILY RENTAL HOME NOTE PAYABLE AND OTHER LONG-TERM OBLIGATIONS (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
DEBT ASSOCIATED WITH THE SINGLE-FAMILY RENTAL HOME NOTE PAYABLE AND OTHER LONG-TERM OBLIGATIONS [Abstract] | |
Schedule of maturities of notes payable | The scheduled maturities of the SFR Note for each of the twelve-month periods ending November 30 are as follows (in thousands): Scheduled principal payments 2022 $ 7 2023 19 2024 19 2025 20 2026 19 Thereafter 916 $ 1,000 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
SHAREHOLDERS' EQUITY [Abstract] | |
Stock Option Activity | The following table summarizes the combined stock option activity for the 2004 Incentive Plan and 2014 Equity Plan for the three months ended November 30, 2021: Approximate Weighted Average Aggregate Number Weighted Average Remaining Intrinsic Value of Options Exercise Price Contractual Term (in thousands) Outstanding at August 31, 2021 714,500 $ 7.80 6.06 $ 5,107 Granted 105,000 $ 13.37 Net settlement exercised (13,167) $ 7.81 Outstanding at November 30, 2021 806,333 $ 8.53 6.32 $ 4,864 Options exercisable at November 30, 2021 570,002 $ 7.42 5.18 $ 4,070 |
Non-Vested Options | The following table summarizes the combined activity and value of non-vested options under the 2004 Equity Plan and 2014 Incentive Plan as for the three months ended November 30, 2021: Weighted Average Number Grant Date of Options Fair Value Non-vested options outstanding at August 31, 2021 218,333 $ 4.04 Granted 105,000 $ 5.16 Vested (87,002) $ 4.21 Non-vested options outstanding at November 30, 2021 (a) 236,331 $ 4.48 (a) All non-vested options are expected to vest. |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
ACCRUED LIABILITIES [Abstract] | |
Accrued Liabilities | (In thousands) November 30, 2021 August 31, 2021 Land development costs due to the Sky Ranch CAB - related party $ 2,049 $ 2,243 Accrued compensation 329 729 Other operating payables 154 248 WISE water 15 62 Operating lease obligations 85 84 Property taxes 57 50 Professional fees 20 51 Rental deposits 9 — Due to Rangeview - related party — 638 Total $ 2,718 $ 4,105 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
SEGMENT INFORMATION [Abstract] | |
Segment Information | The tables below present the measure of profit and assets used to assess the performance of the segment for the periods presented: Three Months Ended November 30, 2021 Water and wastewater resource (In thousands) development Land development Single-family rental Total Total revenue $ 1,072 $ 3,193 $ 8 $ 4,273 Cost of revenue (495) (531) (3) (1,029) Depreciation and depletion (354) — — (354) Total cost of revenue (849) (531) (3) (1,383) Gross profit $ 223 $ 2,662 $ 5 $ 2,890 Three Months Ended November 30, 2020 Water and wastewater resource (In thousands) development Land development Single-family rentals Total Total revenue $ 2,512 $ 2,356 $ — $ 4,868 Cost of revenue (661) (1,719) — (2,380) Depreciation and depletion (365) — — (365) Total cost of revenue (1,026) (1,719) — (2,745) Gross profit $ 1,486 $ 637 $ — $ 2,123 The following table summarizes total assets for the Company’s water and wastewater resource development business and land development business by segment. The assets consist of water rights and water and wastewater systems in the Company’s water and wastewater resource development segment and land, inventories and deposits in the Company’s land development segment. The Company’s other assets (“Corporate”) primarily consist of cash, cash equivalents, restricted cash, equipment, and related party notes receivables. (In thousands) November 30, 2021 August 31, 2021 Water and wastewater resource development $ 57,158 $ 57,791 Land development 39,363 32,844 Single-family rental 1,008 — Corporate 18,822 26,542 Total assets $ 116,351 $ 117,177 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
EARNINGS PER SHARE [Abstract] | |
Earnings per Share | Three Months Ended November 30, November 30, (In thousands, except share and per share amounts) 2021 2020 Net income $ 1,514 $ 845 Basic weighted average common shares 23,917,908 23,866,740 Effect of dilutive securities 301,328 169,739 Weighted average shares applicable to diluted earnings per share 24,219,236 24,036,479 Earnings per share - basic and diluted $ 0.06 $ 0.04 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
INCOME TAXES [Abstract] | |
Provision for Income Taxes | The provision for income taxes is recorded at the end of each interim period based on the Company’s best estimate of its effective income tax rate expected to be applicable for the full fiscal year taking into account any items requiring discrete recognition. Income tax information for the three months ended November 30, 2021 and 2020 are as follows: Three Months Ended November 30, November 30, (In thousands) 2021 2020 Effective income tax rate 24.0 % 24.6 % Income tax expense (benefit): Current $ 471 $ 134 Deferred 6 126 Total $ 477 $ 260 Income taxes paid: Federal $ 3,450 $ — State — — Total $ 3,450 $ — |
Deferred Tax Assets (Liabilities) | Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax liability as of November 30, 2021 and August 31, 2021 are as follows: (In thousands) November 30, 2021 August 31, 2021 Deferred tax assets (liabilities): Depreciation and depletion $ (2,282) $ (2,360) Non-qualified stock options 561 547 Accrued compensation 56 141 Deferred revenues 29 41 Other 15 16 Net deferred tax liability $ (1,621) $ (1,615) |
REIMBURSABLE PUBLIC IMPROVEME_3
REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB (Details) $ in Thousands | 3 Months Ended |
Nov. 30, 2021USD ($) | |
Phase 1 Reimbursable Costs [Member] | |
Related Party Transaction [Line Items] | |
Notes receivable - beginning balance | $ 8,794 |
Notes receivable - ending balance | $ 13,517 |
Sky Ranch CAB [Member] | |
Related Party Transaction [Line Items] | |
Interest rate | 6.00% |
Notes receivable - beginning balance | $ 24,794 |
Activity | 4,723 |
Notes receivable - ending balance | 29,517 |
Reimbursable public improvement costs | 4,100 |
Project Management Fees Receivable, Related Party | 200 |
Interest Income, Related Party | 400 |
Sky Ranch CAB [Member] | Phase 1 Reimbursable Costs [Member] | |
Related Party Transaction [Line Items] | |
Notes receivable - beginning balance | 21,741 |
Activity | 563 |
Notes receivable - ending balance | 22,304 |
Sky Ranch CAB [Member] | Phase 1 Reimbursable Public Improvements And Construction Support Activities And Accrued Interest [Member] | |
Related Party Transaction [Line Items] | |
Notes receivable - beginning balance | 17,645 |
Activity | 248 |
Notes receivable - ending balance | 17,893 |
Sky Ranch CAB [Member] | Phase 1 Accrued Interest [Member] | |
Related Party Transaction [Line Items] | |
Notes receivable - beginning balance | 2,526 |
Activity | 305 |
Notes receivable - ending balance | 2,831 |
Sky Ranch CAB [Member] | Phase 1 Project Management Services [Member] | |
Related Party Transaction [Line Items] | |
Notes receivable - beginning balance | 1,570 |
Activity | 10 |
Notes receivable - ending balance | 1,580 |
Sky Ranch CAB [Member] | Phase 2 Reimbursable Costs [Member] | |
Related Party Transaction [Line Items] | |
Notes receivable - beginning balance | 3,053 |
Activity | 4,160 |
Notes receivable - ending balance | 7,213 |
Sky Ranch CAB [Member] | Phase 2 Public Improvements [Member] | |
Related Party Transaction [Line Items] | |
Notes receivable - beginning balance | 2,935 |
Activity | 3,877 |
Notes receivable - ending balance | 6,812 |
Sky Ranch CAB [Member] | Phase2 Accrued Interest [Member] | |
Related Party Transaction [Line Items] | |
Notes receivable - beginning balance | 33 |
Activity | 45 |
Notes receivable - ending balance | 78 |
Sky Ranch CAB [Member] | Phase2 Project Management Services [Member] | |
Related Party Transaction [Line Items] | |
Notes receivable - beginning balance | 85 |
Activity | 238 |
Notes receivable - ending balance | $ 323 |
REVENUE (Details)
REVENUE (Details) $ in Thousands | Nov. 01, 2021home | Nov. 30, 2021USD ($)item | Nov. 30, 2020USD ($)item |
Revenue Recognition and Reimbursable Costs [Abstract] | |||
Revenues | $ 4,273 | $ 4,868 | |
Number of single family homes leased | home | 3 | ||
Lease term | 12 months | ||
Number of lots reserved for single family rental units | item | 46 | ||
Lot Sales [Member] | |||
Revenue Recognition and Reimbursable Costs [Abstract] | |||
Revenues | $ 2,945 | 2,356 | |
Finished Lot [Member] | |||
Revenue Recognition and Reimbursable Costs [Abstract] | |||
Revenues | 2,900 | 800 | |
Ready to Build Finished Lot [Member] | |||
Revenue Recognition and Reimbursable Costs [Abstract] | |||
Revenues | 0 | 1,600 | |
Water and Wastewater Tap Fees [Member] | |||
Revenue Recognition and Reimbursable Costs [Abstract] | |||
Revenues | $ 261 | $ 1,083 | |
Number of water and wastewater taps sold | item | 9 | 36 | |
Project Management Fees - Recognized [Member] | |||
Revenue Recognition and Reimbursable Costs [Abstract] | |||
Revenues | $ 248 | $ 0 | |
Sky Ranch CAB [Member] | |||
Revenue Recognition and Reimbursable Costs [Abstract] | |||
First phase of construction completion (as a percent) | 99.50% | ||
First sub phase of second development phase construction completion (as a percent) | 43.40% | ||
Additional costs to be incurred through the end of calendar year 2021 | $ 10,400 |
REVENUE - Deferred Revenue by S
REVENUE - Deferred Revenue by Segment (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 | Aug. 31, 2020 |
Deferred Revenue [Abstract] | |||
Deferred revenue | $ 3,102 | $ 2,405 | $ 3,600 |
Land Development Segment [Member] | |||
Deferred Revenue [Abstract] | |||
Deferred revenue | 2,831 | 1,995 | |
Water and Wastewater Resource Development Segment [Member] | |||
Deferred Revenue [Abstract] | |||
Deferred revenue | $ 271 | $ 410 |
REVENUE - Changes in Deferred R
REVENUE - Changes in Deferred Revenue (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Nov. 30, 2021 | Nov. 30, 2021 | Aug. 31, 2021 | |
Deferred Revenue [Abstract] | |||
Balance | $ 2,405 | $ 3,600 | |
Deferral of revenue | 3,783 | 6,884 | |
Recognition of unearned revenue | (3,086) | (8,079) | |
Balance | $ 3,102 | $ 3,102 | $ 2,405 |
Sky Ranch CAB [Member] | |||
Deferred Revenue [Abstract] | |||
Final payment received | $ 3,800 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021USD ($)item | Nov. 30, 2020USD ($) | |
Fair Value Measurements [Abstract] | ||
Transfers from Level 1 to Level 2 | $ 0 | $ 0 |
Transfers from Level 2 to Level 1 | 0 | 0 |
Transfers into (out of) Level 3 | $ 0 | $ 0 |
Level 2 [Member] | ||
Fair Value Measurements [Abstract] | ||
Number of liabilities | item | 1 |
WATER, LAND AND OTHER FIXED A_3
WATER, LAND AND OTHER FIXED ASSETS - Schedule of investment in water and water systems (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 |
Investment in Water and Water Systems [Abstract] | ||
Water And Water Systems, Gross | $ 60,758 | $ 60,688 |
Accumulated depreciation and depletion | (7,252) | (6,902) |
Net investments in water and water systems | 53,506 | 53,786 |
Rangeview Water System [Member] | ||
Investment in Water and Water Systems [Abstract] | ||
Water And Water Systems, Gross | 17,572 | 17,526 |
Accumulated depreciation and depletion | (1,624) | (1,470) |
Rangeview Water Supply [Member] | ||
Investment in Water and Water Systems [Abstract] | ||
Water And Water Systems, Gross | 14,645 | 14,622 |
Accumulated depreciation and depletion | (17) | (17) |
Water Supply - Other [Member] | ||
Investment in Water and Water Systems [Abstract] | ||
Water And Water Systems, Gross | 7,504 | 7,569 |
Accumulated depreciation and depletion | (1,513) | (1,433) |
Sky Ranch Water Rights and Other Costs [Member] | ||
Investment in Water and Water Systems [Abstract] | ||
Water And Water Systems, Gross | 7,377 | 7,338 |
Accumulated depreciation and depletion | (1,133) | (1,087) |
Sky Ranch Pipeline [Member] | ||
Investment in Water and Water Systems [Abstract] | ||
Water And Water Systems, Gross | 5,740 | 5,727 |
Accumulated depreciation and depletion | (841) | (793) |
Lost Creek Water Supply [Member] | ||
Investment in Water and Water Systems [Abstract] | ||
Water And Water Systems, Gross | 3,388 | 3,374 |
Accumulated depreciation and depletion | 0 | 0 |
Fairgrounds Water And Water System [Member] | ||
Investment in Water and Water Systems [Abstract] | ||
Water And Water Systems, Gross | 2,900 | 2,900 |
Accumulated depreciation and depletion | (1,349) | (1,327) |
Wild Pointe Service Rights [Member] | ||
Investment in Water and Water Systems [Abstract] | ||
Water And Water Systems, Gross | 1,632 | 1,632 |
Accumulated depreciation and depletion | $ (775) | $ (775) |
WATER, LAND AND OTHER FIXED A_4
WATER, LAND AND OTHER FIXED ASSETS (Details) $ in Thousands | 3 Months Ended |
Nov. 30, 2021USD ($)itemhome | |
Investment in Water and Water Systems [Abstract] | |
Construction costs incurred | $ 500 |
Single-family rental units | $ 1,008 |
Number of Lots Reserved for Single Family Rental Units | item | 46 |
Single Family Rental Homes [Member] | |
Investment in Water and Water Systems [Abstract] | |
Single-family rental units | $ 1,000 |
Single family houses construction completed | home | 3 |
Single Family Rental Homes [Member] | Minimum [Member] | |
Investment in Water and Water Systems [Abstract] | |
Useful life | 5 years |
Single Family Rental Homes [Member] | Maximum [Member] | |
Investment in Water and Water Systems [Abstract] | |
Useful life | 30 years |
DEBT ASSOCIATED WITH THE SING_3
DEBT ASSOCIATED WITH THE SINGLE-FAMILY RENTAL HOME NOTE PAYABLE AND OTHER LONG-TERM OBLIGATIONS (Details) | Nov. 29, 2021USD ($)installmentitem | Nov. 30, 2021item |
Debt Instrument [Line Items] | ||
Number of Single Family Homes Being Constructed | item | 3 | |
Single-Family Rental Home Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 1,000,000 | |
Interest rate | 3.75% | |
Floor interest rate | 3.75% | |
Ceiling interest rate | 4.25% | |
Additional interest rate | 2.00% | |
Number of interest only payments | installment | 6 | |
Number of principal and interest payments | installment | 53 | |
Periodic interest and principal payments | $ 4,633.05 | |
Balloon payment | $ 916,239.49 | |
Single family rental homes secured for debt | item | 3 | |
Debt service coverage ratio | 1.10 | |
Prime Rate [Member] | Single-Family Rental Home Notes [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.50% |
DEBT ASSOCIATED WITH THE SING_4
DEBT ASSOCIATED WITH THE SINGLE-FAMILY RENTAL HOME NOTE PAYABLE AND OTHER LONG-TERM OBLIGATIONS - Maturities of the SFR Note (Details) - Single-Family Rental Home Notes [Member] $ in Thousands | Nov. 30, 2021USD ($) |
Debt Instrument [Line Items] | |
2022 | $ 7 |
2023 | 19 |
2024 | 19 |
2025 | 20 |
2026 | 19 |
Thereafter | 916 |
Total | $ 1,000 |
DEBT ASSOCIATED WITH THE SING_5
DEBT ASSOCIATED WITH THE SINGLE-FAMILY RENTAL HOME NOTE PAYABLE AND OTHER LONG-TERM OBLIGATIONS - Lot Construction Obligations (Details) $ in Millions | 1 Months Ended | 3 Months Ended |
Feb. 28, 2021item | Nov. 30, 2021USD ($)aitem | |
Debt Instrument [Line Items] | ||
Number of residential lots sold in second phase of Sky Ranch | 804 | |
Area of land included in second phase of development of Sky Ranch | a | 250 | |
Phase 2 - Number of sub-phases for development | 4 | |
Number of residential lots included in second phase of Sky Ranch | 850 | |
Number of lots not currently under contract to home builders | 46 | |
Number of lots in first sub phase of second development phase | 229 | 229 |
Number of lots retained for use in single family rent business | 10 | 10 |
Finished lots sold | 219 | 219 |
Costs incurred till date for second development phase | $ | $ 8.8 | |
Period in which the additional construction costs to be incurred | 18 months | |
Additional construction costs | $ | $ 11.7 | |
Period for completion of construction of second development phase | 3 years | |
Homebuilders [Member] | ||
Debt Instrument [Line Items] | ||
Number of customers | 4 | |
Sky Ranch CAB [Member] | ||
Debt Instrument [Line Items] | ||
Reimbursable Costs, Cost Incurred to Date | $ | $ 6.8 | |
Reimbursable Costs, Expected Cost Remaining | $ | $ 10.4 |
SHAREHOLDERS' EQUITY, Stock Opt
SHAREHOLDERS' EQUITY, Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | Aug. 31, 2021 | |
Stock Options [Abstract] | |||
Share-based compensation expense | $ 112 | $ 86 | |
2014 Equity Plan [Member] | |||
Shareholders' Equity [Abstract] | |||
Shares reserved for issuance (in shares) | 1,600,000 | ||
Shares available for grant (in shares) | 876,665 | 974,965 | |
2004 Incentive Plan and 2014 Equity Plan [Member] | |||
Number of Options [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 714,500 | ||
Granted (in shares) | 105,000 | ||
Net settlement exercised (in shares) | (13,167) | ||
Outstanding, end of period (in shares) | 806,333 | 714,500 | |
Options exercisable (in shares) | 570,002 | ||
Weighted Average Exercise Price [Roll Forward] | |||
Outstanding, beginning of period (in dollars per share) | $ 7.80 | ||
Granted (in dollars per share) | 13.37 | ||
Net settlement exercised (in dollars per share) | 7.81 | ||
Outstanding, end of period (in dollars per share) | 8.53 | $ 7.80 | |
Options exercisable (in dollars per share) | $ 7.42 | ||
Stock Options [Abstract] | |||
Weighted average remaining contractual term | 6 years 3 months 25 days | 6 years 21 days | |
Weighted average remaining contractual term, options exercisable | 5 years 2 months 4 days | ||
Approximate aggregate intrinsic value, outstanding | $ 4,864 | $ 5,107 | |
Approximate aggregate intrinsic value, options exercisable | 4,070 | ||
Share-based compensation expense | $ 100 | $ 100 | |
Shares issued (in shares) | 6,467 | ||
Options cancelled (in shares) | 6,700 |
SHAREHOLDERS' EQUITY, Non-Veste
SHAREHOLDERS' EQUITY, Non-Vested Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Stock Options [Abstract] | ||
Share-based compensation expense | $ 112 | $ 86 |
2004 Incentive Plan and 2014 Equity Plan [Member] | ||
Number of Options [Roll Forward] | ||
Non-vested options outstanding, beginning of period (in shares) | 218,333 | |
Granted (in shares) | 105,000 | |
Vested (in shares) | (87,002) | |
Non-vested options outstanding, end of period (in shares) | 236,331 | |
Weighted Average Grant Date Fair Value [Abstract] | ||
Non-vested options outstanding, beginning of period (in dollars per share) | $ 4.04 | |
Granted (in dollars per share) | 5.16 | |
Vested (in dollars per share) | 4.21 | |
Non-vested options outstanding, end of period (in dollars per share) | $ 4.48 | |
Stock Options [Abstract] | ||
Share-based compensation expense | $ 100 | $ 100 |
Unrecognized compensation expenses | $ 1,000 | |
Weighted-average period for options expected to vest | 2 years 6 months |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 3 Months Ended | |||||
Nov. 30, 2021USD ($)acre ft | Nov. 30, 2020USD ($)acre ft | Nov. 30, 2022agreement | Jan. 01, 2022$ / gal | Aug. 31, 2021USD ($) | Jan. 01, 2021$ / gal | |
Related Party Transactions [Abstract] | ||||||
Investments in the WISE infrastructure | $ 53,506,000 | $ 53,786,000 | ||||
Number Of Loan Agreements | agreement | 2 | |||||
South Metropolitan Water Supply Authority [Member] | Phase 1 Reimbursable Costs [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Costs incurred to date | $ 500,000 | |||||
Facilities Funding and Acquisition Agreement [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Interest rate | 6.00% | |||||
Rangeview District [Member] | WISE Partnership [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Volume of received metered water | acre ft | 11 | 166 | ||||
Payments for water | $ 100,000 | $ 300,000 | ||||
Water rate | $ / gal | 6.13 | 5.98 | ||||
Investments in the WISE infrastructure | 6,300,000 | |||||
Rangeview District [Member] | Loan Receivable [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Maximum borrowing capacity | $ 250,000 | |||||
Interest rate | 5.25% | |||||
Renewal term | 12 months | |||||
Rangeview District [Member] | Loan Receivable [Member] | Prime Rate [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Basis spread on variable rate | 2.00% | |||||
Rangeview District [Member] | Note Receivable [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Interest rate | 8.00% | |||||
Notes receivable | $ 1,100,000 | 1,200,000 | ||||
Borrowings under notes receivable | 700,000 | 700,000 | ||||
Accrued interest on notes receivable | 400,000 | $ 500,000 | ||||
Interest Received | $ 100,000 | |||||
Sky Ranch CAB [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Interest rate | 6.00% | |||||
Notes receivable | $ 29,500,000 | |||||
Fund for construction of public improvements | 10,400,000 | |||||
Costs incurred to date | $ 6,800,000 |
SIGNIFICANT CUSTOMERS (Details)
SIGNIFICANT CUSTOMERS (Details) - Customer Concentration Risk [Member] - Revenue [Member] | 3 Months Ended |
Nov. 30, 2021customer | |
Water and Wastewater Resource Development Segment [Member] | Sky Ranch Homes [Member] | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 21.00% |
Water and Wastewater Resource Development Segment [Member] | Oil and Gas Operator [Member] | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 50.00% |
Number of customers | 1 |
Land Development Segment [Member] | Lennar [Member] | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 30.00% |
Land Development Segment [Member] | Challenger [Member] | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 28.00% |
Land Development Segment [Member] | Kb Home [Member] | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 20.00% |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 |
Accrued Liabilities, Current [Line Items] | ||
Accrued liabilities - related parties | $ 2,049 | $ 2,881 |
Accrued compensation | 329 | 729 |
Other operating payables | 154 | 248 |
WISE water | 15 | 62 |
Operating lease obligations | 85 | 84 |
Property taxes | 57 | 50 |
Professional fees | 20 | 51 |
Rental deposits | 9 | |
Total | 2,718 | 4,105 |
Rangeview District [Member] | ||
Accrued Liabilities, Current [Line Items] | ||
Accrued liabilities - related parties | 638 | |
Sky Ranch CAB [Member] | ||
Accrued Liabilities, Current [Line Items] | ||
Accrued liabilities - related parties | $ 2,049 | $ 2,243 |
SEGMENT INFORMATION, Revenue by
SEGMENT INFORMATION, Revenue by Segments (Details) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021USD ($)segment | Nov. 30, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | segment | 2 | |
Segment Information [Abstract] | ||
Total revenue | $ 4,273 | $ 4,868 |
Cost of revenue | (1,029) | (2,380) |
Depreciation and depletion | (354) | (365) |
Total cost of revenues | (1,383) | (2,745) |
Gross profit | 2,890 | 2,123 |
Water and Wastewater Resource Development Segment [Member] | ||
Segment Information [Abstract] | ||
Total revenue | 1,072 | 2,512 |
Cost of revenue | (495) | (661) |
Depreciation and depletion | (354) | (365) |
Total cost of revenues | (849) | (1,026) |
Gross profit | 223 | 1,486 |
Land Development Segment [Member] | ||
Segment Information [Abstract] | ||
Total revenue | 3,193 | 2,356 |
Cost of revenue | (531) | (1,719) |
Total cost of revenues | (531) | (1,719) |
Gross profit | 2,662 | $ 637 |
Single Family Rentals [Member] | ||
Segment Information [Abstract] | ||
Total revenue | 8 | |
Cost of revenue | (3) | |
Total cost of revenues | (3) | |
Gross profit | $ 5 |
SEGMENT INFORMATION, Corporate
SEGMENT INFORMATION, Corporate Assets (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 116,351 | $ 117,177 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 18,822 | 26,542 |
Water and Wastewater Resource Development Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 57,158 | 57,791 |
Land Development Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 39,363 | $ 32,844 |
Single Family Rentals [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 1,008 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
EARNINGS PER SHARE [Abstract] | ||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 0 | 180,000 |
Earnings Per Share [Abstract] | ||
Net income | $ 1,514 | $ 845 |
Basic weighted average common shares (in shares) | 23,917,908 | 23,866,740 |
Effect of dilutive securities (in shares) | 301,328 | 169,739 |
Weighted average shares applicable to diluted earnings per share (in shares) | 24,219,236 | 24,036,479 |
Earnings per share - basic (in dollars per share) | $ 0.06 | $ 0.04 |
Earnings per share - diluted (in dollars per share) | $ 0.06 | $ 0.04 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Aug. 31, 2022 | Aug. 31, 2021 | |
Income Taxes [Abstract] | ||||
Effective income tax rate | 24.00% | 24.60% | ||
Income Tax Expense (Benefit) [Abstract] | ||||
Current | $ 471 | $ 134 | ||
Deferred | 6 | 126 | ||
Total | 477 | $ 260 | ||
Income Taxes Paid [Abstract] | ||||
Income taxes paid | 3,450 | |||
Deferred Tax Assets (Liabilities) [Abstract] | ||||
Depreciation and depletion | (2,282) | $ (2,360) | ||
Non-qualified stock options | 561 | 547 | ||
Accrued compensation | 56 | 141 | ||
Deferred revenues | 29 | 41 | ||
Other | 15 | 16 | ||
Net deferred tax liability | (1,621) | $ (1,615) | ||
Forecast [Member] | ||||
Income Taxes [Abstract] | ||||
Effective income tax rate | 25.00% | |||
Federal [Member] | ||||
Income Taxes Paid [Abstract] | ||||
Income taxes paid | $ 3,450 |