Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
May 31, 2022 | Jul. 07, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | May 31, 2022 | |
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. 65, Suite A | |
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 $.01 par value | |
Trading Symbol | PCYO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 23,980,645 | |
Entity Central Index Key | 0000276720 | |
Current Fiscal Year End Date | --08-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | May 31, 2022 | Aug. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 5,422 | $ 20,117 |
Trade accounts receivable, net | 1,199 | 1,532 |
Prepaid expenses and other assets | 690 | 458 |
Land under development | 652 | 608 |
Notes receivable - related party, reimbursable public improvements | 16,000 | 16,000 |
Total current assets | 23,963 | 38,715 |
Restricted cash | 2,328 | 2,327 |
Investments in water and water systems, net | 53,114 | 53,786 |
Construction in progress | 3,292 | 3,304 |
Single-family rental units | 986 | |
Land and mineral rights: | ||
Held for development | 8,341 | 5,924 |
Held for investment purposes | 451 | 451 |
Other assets | 2,467 | 2,591 |
Operating leases - right of use assets, less current portion | 62 | 122 |
Total assets | 115,386 | 117,177 |
Current liabilities: | ||
Accounts payable | 2,360 | 1,787 |
Accrued liabilities | 925 | 1,224 |
Accrued liabilities - related parties | 445 | 2,881 |
Income taxes payable | 314 | 4,163 |
Deferred lot sale revenues | 889 | 1,995 |
Deferred water sales revenues | 392 | 410 |
Debt, current portion | 12 | |
Total current liabilities | 5,337 | 12,460 |
Participating interests in export water supply | 324 | 325 |
Debt, less current portion | 988 | |
Deferred tax liability, net | 1,428 | 1,615 |
Lease obligations - operating leases, less current portion | 37 | |
Total liabilities | 8,077 | 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, 40.0 million authorized; 23,980,645 and 23,916,633 outstanding, respectively | 80 | 80 |
Additional paid-in capital | 174,038 | 173,513 |
Accumulated deficit | (66,809) | (70,853) |
Total shareholders' equity | 107,309 | 102,740 |
Total liabilities and shareholders' equity | 115,386 | 117,177 |
Phase 1 Reimbursable Costs [Member] | ||
Land and mineral rights: | ||
Notes receivable - related parties, including accrued interest: | 19,320 | 8,794 |
Other [Member] | ||
Land and mineral rights: | ||
Notes receivable - related parties, including accrued interest: | $ 1,062 | $ 1,163 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | May 31, 2022 | 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) | 23,980,645 | 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 | 9 Months Ended | ||
May 31, 2022 | May 31, 2021 | May 31, 2022 | May 31, 2021 | |
Revenues: | ||||
Revenues | $ 3,187 | $ 2,666 | $ 12,123 | $ 12,273 |
Expenses: | ||||
Depletion and depreciation | 349 | 358 | 1,055 | 1,077 |
Other | 79 | 65 | 298 | 453 |
Total cost of revenues | 1,394 | 940 | 4,285 | 4,949 |
General and administrative expenses | 1,074 | 1,325 | 3,950 | 3,753 |
Depreciation | 95 | 73 | 277 | 233 |
Operating income | 624 | 328 | 3,611 | 3,338 |
Other income: | ||||
Interest income - related party | 308 | 284 | 1,196 | 2,660 |
Recognition of public improvement reimbursables - related party | 17,262 | |||
Reimbursement of construction costs - related party | 485 | |||
Oil and gas royalty income, net | 123 | 97 | 330 | 248 |
Oil and gas lease income, net | 47 | 48 | 143 | 148 |
Other, net | 15 | 25 | 40 | 41 |
Interest expense, net | (34) | (52) | ||
Income from operations before income taxes | 1,083 | 782 | 5,268 | 24,182 |
Income tax expense | 246 | 158 | 1,224 | 5,906 |
Net income | $ 837 | $ 624 | $ 4,044 | $ 18,276 |
Earnings per common share - basic and diluted | ||||
Basic (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.17 | $ 0.77 |
Diluted (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.17 | $ 0.76 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 23,970,290 | 23,907,140 | 23,944,394 | 23,885,179 |
Diluted (in shares) | 24,124,586 | 24,184,395 | 24,183,500 | 24,104,408 |
Water Service Operations [Member] | ||||
Expenses: | ||||
Expenses | $ 560 | $ 316 | $ 1,419 | $ 1,074 |
Metered Water Usage - Municipal Customers [Member] | ||||
Revenues: | ||||
Revenues | 94 | 63 | 498 | 171 |
Metered Water Usage-Commercial Customers [Member] | ||||
Revenues: | ||||
Revenues | 549 | 147 | 2,462 | 2,062 |
Wastewater Service Operations [Member] | ||||
Expenses: | ||||
Expenses | 109 | 102 | 337 | 258 |
Wastewater Treatment Fees [Member] | ||||
Revenues: | ||||
Revenues | 66 | 51 | 185 | 144 |
Land Development Construction Costs [Member] | ||||
Expenses: | ||||
Expenses | 222 | 99 | 1,048 | 2,087 |
Water and Wastewater Tap Fees [Member] | ||||
Revenues: | ||||
Revenues | 1,273 | 1,856 | 2,447 | 4,522 |
Lot Sales [Member] | ||||
Revenues: | ||||
Revenues | 1,070 | 445 | 5,644 | 3,316 |
Project Management Fees - Recognized [Member] | ||||
Revenues: | ||||
Revenues | 81 | 23 | 529 | 1,571 |
Single Family Rentals [Member] | ||||
Revenues: | ||||
Revenues | 25 | 59 | ||
Expenses: | ||||
Expenses | 9 | 16 | ||
Special Facility Projects and Other [Member] | ||||
Revenues: | ||||
Revenues | 29 | $ 81 | 299 | $ 487 |
Project Management Costs [Member] | ||||
Expenses: | ||||
Expenses | $ 66 | $ 112 |
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] Revision of Prior Period, Adjustment [Member] | Accumulated Deficit [Member] | Revision of Prior Period, Adjustment [Member] | Total |
Balance at Aug. 31, 2020 | $ 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 | 62 | 62 | |||||
Stock option exercises (in shares) | 42,035 | ||||||
Stock granted for services | 136 | 136 | |||||
Stock granted for services (in shares) | 12,000 | ||||||
Share-based compensation | 268 | 268 | |||||
Net income | 18,276 | 18,276 | |||||
Balance at May. 31, 2021 | $ 80 | 173,393 | $ (545) | (72,687) | $ (545) | 100,786 | |
Balance (in shares) at May. 31, 2021 | 432,513 | 23,910,133 | |||||
Balance at Feb. 28, 2021 | $ 80 | 173,254 | (72,766) | 100,568 | |||
Balance (in shares) at Feb. 28, 2021 | 432,513 | 23,888,375 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock option exercises | 48 | 48 | |||||
Stock option exercises (in shares) | 21,758 | ||||||
Share-based compensation | 91 | 91 | |||||
Net income | 624 | 624 | |||||
Balance at May. 31, 2021 | $ 80 | 173,393 | $ (545) | (72,687) | $ (545) | 100,786 | |
Balance (in shares) at May. 31, 2021 | 432,513 | 23,910,133 | |||||
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 | 34 | 34 | |||||
Stock option exercises (in shares) | 52,012 | ||||||
Stock granted for services | 159 | 159 | |||||
Stock granted for services (in shares) | 12,000 | ||||||
Share-based compensation | 332 | 332 | |||||
Net income | 4,044 | 4,044 | |||||
Balance at May. 31, 2022 | $ 80 | 174,038 | (66,809) | 107,309 | |||
Balance (in shares) at May. 31, 2022 | 432,513 | 23,980,645 | |||||
Balance at Feb. 28, 2022 | $ 80 | 173,918 | (67,646) | 106,352 | |||
Balance (in shares) at Feb. 28, 2022 | 432,513 | 23,958,522 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock option exercises (in shares) | 22,123 | ||||||
Share-based compensation | 120 | 120 | |||||
Net income | 837 | 837 | |||||
Balance at May. 31, 2022 | $ 80 | $ 174,038 | $ (66,809) | $ 107,309 | |||
Balance (in shares) at May. 31, 2022 | 432,513 | 23,980,645 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 4,044 | $ 18,276 |
Adjustments to reconcile net income to net cash used by operating activities: | ||
Depreciation and depletion | 1,332 | 1,310 |
Share-based compensation expense | 491 | 404 |
Trade accounts receivable | 333 | (810) |
Deferred water sales revenue | (18) | (1,690) |
Land under development | (44) | (131) |
Other assets and liabilities | (57) | (59) |
Deferred income taxes | (187) | 623 |
Prepaid expenses | (311) | (13) |
Deferred lot sale revenues | (1,106) | (1,088) |
Accounts payable and accrued liabilities | (2,136) | (562) |
Taxes payable net of taxes receivable | (3,849) | 5,283 |
Reimbursable public improvements | (10,526) | |
Other | 101 | (34) |
Recognition of public improvement reimbursables, interest income and project management fees | (21,316) | |
Net cash (used) provided by operating activities | (11,933) | 193 |
Cash flows from investing activities: | ||
Construction costs of single-family rentals | (142) | |
Investments in water and water systems | (1,235) | (2,152) |
Investments in land held for development | (2,417) | |
Purchase of property and equipment | (101) | |
Net cash used by investing activities | (3,794) | (2,253) |
Cash flows from financing activities: | ||
Proceeds from notes payable | 1,000 | |
Proceeds from option exercises | 34 | 62 |
Payments to contingent liability holders | (1) | (3) |
Net cash provided by financing activities | 1,033 | 59 |
Net change in cash, cash equivalents and restricted cash | (14,694) | (2,001) |
Cash, cash equivalents and restricted cash - beginning of period | 22,444 | 21,797 |
Cash, cash equivalents and restricted cash - end of period | 7,750 | 19,796 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | 5,422 | 19,514 |
Restricted cash | 2,328 | 282 |
Total cash, cash equivalents and restricted cash | 7,750 | 19,796 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION AND NON-CASH ACTIVITIES | ||
Income taxes paid | 5,260 | |
Change in reimbursable public improvements included in accounts payable and accrued liabilities | $ 445 | |
Transfer of land development costs to other assets | 484 | |
Transfer of land development costs to land under development | 467 | |
Change in land under development included in accounts payable and accrued liabilities | 613 | |
Change in investments in water and water systems included in accounts payable and accrued liabilities | $ 298 |
PRESENTATION OF INTERIM INFORMA
PRESENTATION OF INTERIM INFORMATION | 9 Months Ended |
May 31, 2022 | |
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 and nine months ended May 31, 2022 and 2021. 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 (COVID-19) 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 but have lessened as vaccines have become widely available in the U.S, although there have been periodic increases in the number of cases in the U.S. due to 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. 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 were probable of collectability. 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, increases in housing values in Colorado, 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. Prior Period Adjustment in the three months ended May 31, 2021 consolidated financial statements During the three and nine months ended May 31, 2021, the Company discovered certain errors in the amounts reported for the three and six months ended February 28, 2021. Management concluded that although the errors were immaterial in the given periods, if corrected in the three months ended May 31, 2021, management believed these corrections would have a material impact on the results reported for the three months ended May 31, 2021, consolidated statement of operations, specifically the recognition of Public improvement reimbursables including interest income - related party. The Company’s President and the Chief Financial Officer evaluated the effects of the errors on the consolidated financial statements for the three and six months ended February 28, 2021, and each concluded that the errors were not material to those presented results. Based on this evaluation, the errors did not rise to the level of requiring a restatement of the financial information for the three and six months ended February 28, 2021, contained in the Form 10-Q as previously filed. Accordingly, management corrected these errors by adjusting opening accumulated deficit for the three-month period ended May 31, 2021, and retrospectively adjusted the cumulative periods for the impact of such errors in the financial statements presented for the three and nine months ended May 31, 2021. Additional information on the prior period adjustment reflected in the consolidated statement of shareholders’ equity for the three months ended May 31, 2021, can be found in Note 2 – Prior Period Adjustment in the Form 10-Q for the quarterly period ended May 31, 2021, filed with the SEC on July 9, 2021. 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 | 9 Months Ended |
May 31, 2022 | |
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, to reimburse the Company for public improvements paid for by the Company, project management fees, and interest accrued on the unpaid balances related to the ongoing development of the Sky Ranch master planned community. This is described in greater detail in Note 1 and Note 14 to the 2021 Annual Report. The Company has advanced funds to the Sky Ranch CAB for the cost of public improvements at Sky Ranch that 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 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 and nine months ended May 31, 2022, the Company spent $1.9 million and $8.8 million on public improvements which are payable by the Sky Ranch CAB to the Company and added to the note receivable from the Sky Ranch CAB. Additionally, for the three and nine months ended May 31, 2022, project management fees owed to the Company of $0.1 million and $0.5 million, and interest income on the outstanding note receivable of $0.3 million and $1.2 million were added to the note receivable. During the three months ended May 31, 2022, the Sky Ranch CAB made a $0.1 million interest payment on the note receivable. Public improvements which are not probable of reimbursement at the time of being incurred are considered contract fulfillment costs and are recorded as land development construction costs as incurred. If public improvement costs are deemed probable of collection, the costs are recognized as 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 fund 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 Nine Months Ended May 31, 2022 Amounts payable by the Sky Ranch CAB at May 31, 2022 Phase 1 Reimbursable public improvements and other $ 17,645 $ 342 $ 17,987 Accrued interest 2,526 804 3,330 Project management services 1,570 19 1,589 Phase 1 reimbursable costs $ 21,741 $ 1,165 $ 22,906 Phase 2 Reimbursable public improvements and other $ 2,935 $ 8,503 $ 11,438 Accrued interest 33 348 381 Project management services 85 510 595 Phase 2 reimbursable costs $ 3,053 $ 9,361 $ 12,414 Total reimbursable costs $ 24,794 $ 10,526 $ 35,320 Total reimbursable costs $ 24,794 $ 10,526 $ 35,320 Less current portion 16,000 — 16,000 Non-current reimbursable costs $ 8,794 $ 10,526 $ 19,320 The note receivable from the Sky Ranch CAB accrues interest at 6% per annum. During fiscal 2021, the Company, through information obtained from the Sky Ranch CAB board, determined it was probable the Sky Ranch CAB would issue bonds within twelve months, from which an estimated $16.0 million would be available to repay the Company. During the three months ended May 31, 2022, the Sky Ranch CAB board began the process of issuing its second round of bonds, which, based on the estimates provided by the underwriters of the bond, the Company believes will be issued by August 31, 2022. |
REVENUES, FEES AND OTHER INCOME
REVENUES, FEES AND OTHER INCOME ITEMS | 9 Months Ended |
May 31, 2022 | |
REVENUES, FEES AND OTHER INCOME ITEMS [Abstract] | |
REVENUES, FEES AND OTHER INCOME ITEMS | NOTE 3 – REVENUES, FEES AND OTHER INCOME ITEMS Water, wastewater and land development revenue The Company’s revenue is primarily generated from the sale of lots to homebuilders, sales of water and wastewater taps, and metered water and wastewater usage. 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 and nine months ended May 31, 2022 and 2021. 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. For the three months ended May 31, 2022 and 2021, the Company recognized no revenue from ready-to-build finished lots. For the nine months ended May 31, 2022 and 2021, the Company recognized $0 and $1.6 million from ready-to-build finished lots. Water and wastewater tap fees Project management services Single-family rental income In November 2021, the Company began renting single-family homes and began recognizing lease income related to these rental units. The Company generally rents its single-family properties under non-cancelable lease agreements with a term of one year . Undeveloped land sale and cash-in-lieu to school district During the nine months ended May 31, 2022, the Company entered various agreements to sell approximately 32 acres of undeveloped land in Sky Ranch for $1.6 million to a charter school operator for the purpose of constructing and operating a charter school. Pursuant to Arapahoe County land development regulations (the county where Sky Ranch is located), all land developments must dedicate land or make a cash-in-lieu payment to the school district in which the development is located. The amount to be paid is calculated pursuant to the County’s standards. Simultaneously with the sale of land to the charter school operator, the Company paid the Bennett School District $1.6 million as a cash-in-lieu payment, which is the calculated amount of the Sky Ranch cash-in-lieu requirement to the school district. The land sale agreements include requirements for the Company to construct, or have constructed, certain improvements leading to the school site such as roads, sidewalks, and landscaping, all of which were already planned to be constructed as part of the overall master development of Sky Ranch. The Company determined the transaction was consummated in February 2022, when all pre-closing conditions were satisfied, and proceeds were received by all parties. The cash-in-lieu payment and land sale were accounted for in other income, net. Deferred revenue Changes and balances of the Company’s deferred revenue accounts by segment are as follows: Water and Wastewater Resource Development Land Development Total (In thousands) Three Months Ended May 31, 2022 Balance at February 28, 2022 $ 439 $ 1,203 $ 1,642 Revenue recognized (49) (314) (363) Revenue deferred 2 - 2 Balance at May 31, 2022 $ 392 $ 889 $ 1,281 Three Months Ended May 31, 2021 Balance at February 28, 2021 $ 260 $ 995 $ 1,255 Revenue recognized (48) (540) (588) Revenue deferred 63 95 158 Balance at May 31, 2021 $ 275 $ 550 $ 825 Water and Wastewater Resource Development Land Development Total (In thousands) Nine Months Ended May 31, 2022 Balance at August 31, 2021 $ 410 $ 1,995 $ 2,405 Revenue recognized (390) (4,889) (5,279) Revenue deferred 372 3,783 4,155 Balance at May 31, 2022 $ 392 $ 889 $ 1,281 Nine Months Ended May 31, 2021 Balance at August 31, 2020 $ 1,965 $ 1,636 $ 3,601 Revenue recognized (1,753) (3,316) (5,069) Revenue deferred 63 2,230 2,293 Balance at May 31, 2021 $ 275 $ 550 $ 825 The Company receives deposits or pre-payments from oil and gas operators to reserve water for use in future well drilling operations. When the operators use the water, the Company recognizes the revenue for these payments in the metered water usage from the commercial customers line on the statement of operations. 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 may 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 compared to total estimated 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 Phase 2A at Sky Ranch. This revenue is being recognized over time. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
May 31, 2022 | |
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 May 31, 2022, the Company has one Level 2 liability, the SFR Note (defined in Note 6) entered 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. As of August 31, 2021, the Company had no Level 2 assets or liabilities. There were no transfers between Level 1, 2 or 3 categories during the three or nine months ended May 31, 2022 or 2021. |
WATER, LAND AND OTHER FIXED ASS
WATER, LAND AND OTHER FIXED ASSETS | 9 Months Ended |
May 31, 2022 | |
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: May 31, 2022 August 31, 2021 Accumulated Accumulated Depreciation Depreciation (In thousands) Costs and Depletion Costs and Depletion Rangeview water system $ 17,587 $ (1,925) $ 17,526 $ (1,470) Rangeview water supply 14,809 (17) 14,622 (17) Water supply – Other 7,634 (1,678) 7,569 (1,433) Sky Ranch water rights and other costs 7,375 (1,227) 7,338 (1,087) Sky Ranch pipeline 5,740 (936) 5,727 (793) Lost Creek water supply 3,388 — 3,374 — Fairgrounds water and water system 2,900 (1,393) 2,900 (1,327) Wild Pointe service rights 1,632 (775) 1,632 (775) Totals 61,065 (7,951) 60,688 (6,902) Net investments in water and water systems $ 53,114 $ 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 which the Company anticipates will be placed in service during the next twelve months. During the nine months ended May 31, 2022, the Company incurred (1) $1.2 million of costs related to its construction projects and (2) completed the three 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 nine months ended May 31, 2022, the Company completed construction of the first three houses being utilized in its single-family rental business. The costs of the homes are capitalized and when applicable are depreciated over periods not exceeding thirty-years, which is dependent on the asset type. All three houses were placed in service and leased effective November 1, 2021. During the nine months ended May 31, 2022, the Company contracted for construction of the fourth house to be used in the rental business. This fourth house is also located in the first development phase of Sky Ranch and construction began in March 2022 with an estimated completion in September 2023. During the three months ended May 31, 2022, the Company contracted for construction of ten houses, townhomes and paired homes to be used in the rental business. These houses are located in Phase 2A of Sky Ranch and construction is expected to begin in the summer of 2022 with estimated completion dates in the second and third quarter of fiscal 2023. The Company has reserved a total of 46 lots in the second development phase of Sky Ranch to build additional rental units. |
DEBT AND OTHER LONG-TERM OBLIGA
DEBT AND OTHER LONG-TERM OBLIGATIONS | 9 Months Ended |
May 31, 2022 | |
DEBT AND OTHER LONG-TERM OBLIGATIONS [Abstract] | |
DEBT AND OTHER LONG-TERM OBLIGATIONS | NOTE 6 – DEBT 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) with its primary bank 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% ( 4.25% as of May 31, 2022), 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 May 31 are as follows (in thousands): (In thousands) Scheduled principal payments Within 1 year $ 12 Year 2 14 Year 3 14 Year 4 15 Year 5 945 Thereafter - $ 1,000 The Company is working with its primary bank to provide similar financing for the fourth rental home currently under construction as well as the ten homes contracted for in Phase 2A. As of May 31, 2022, neither of these loans have been finalized. Working Capital Line of Credit On January 31, 2022, the Company entered into a Business Loan Agreement (Working Capital LOC) with its primary bank to provide a $5.0 million operating line of credit. The Working Capital LOC has a two-year maturity, monthly interest only payments if the line is drawn upon with unpaid principal and interest due at maturity, and a floating per annum interest rate equal to the Wall Street Journal Prime Rate plus 0.5% (4.5% as of May 31, 2022), which has a floor of 3.75%. In the event of default, the interest rate on the Working Capital LOC would be increased by adding an additional 2.0%. As of May 31, 2022, the Company has not drawn on the Working Capital LOC. 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 as noted above referred to as Phases 2A, 2B, 2C and 2D, 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 Phase 2A at Sky Ranch, which includes a total of 229 lots, ten 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 May 31, 2022, the Company had received plats for all 229 lots, had substantially completed grading and wet utilities, and had completed roughly half the streets, sidewalks, and dry utilities. As of May 31, 2022, the Company has delivered 40 finished lots to the homebuilders and expects to deliver the remaining 189 completed lots to the homebuilders during the summer of 2022. From the start of the second development phase through May 31, 2022, the Company has spent $13.6 million on construction activities in the second development phase, of which $11.3 million was for public improvements which the Company believes it will be reimbursed by the Sky Ranch CAB. In the next eighteen months, the Company anticipates spending an additional $6.8 million to complete all required infrastructure for the 229 finished lots, including the ten lots for the single-family rental business, which is the entirety of Phase 2A. Of this, $5.6 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 a total of three years to complete construction for all 850 lots included in the second development phase, sell the 804 finished lots, and complete 46 lots for the Company’s single family rental business depending on the market conditions and permitting process. As described in Note 3 above, the Company entered into a development agreement with a charter school operator, which includes requirements to construct, or have constructed, various defined off-site improvements, which will provide access and drainage to the school and the overall Sky Ranch development. The Company, as part of its overall master development plan for Sky Ranch, expected to build this infrastructure whether the school site was located at this location or not, so this does not change its overall cost projections for the master planned community. The Company believes it will spend $4.0 million for the infrastructure defined in the development agreement, which it believes will qualify as public improvements and be reimbursable by the Sky Ranch CAB. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
May 31, 2022 | |
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 May 31, 2022 and August 31, 2021, there were 912,953 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 nine months ended May 31, 2022: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Approximate Aggregate Intrinsic Value (in thousands) Outstanding at August 31, 2021 714,500 $ 7.80 6.1 $ 5,107 Granted 105,000 $ 13.37 Exercised (103,667) $ 6.87 Forfeited / Expired (3,333) $ 10.45 Outstanding at May 31, 2022 712,500 $ 8.75 6.3 $ 2,032 Options exercisable at May 31, 2022 479,502 $ 7.56 5.0 $ 1,794 On January 12, 2022, the Company’s six non-employee Board members were each granted 2,000 shares of unrestricted stock. The fair market value of the unrestricted shares for share-based compensation expense is equal to the closing price of the Company's common stock on the date of grant of $13.23. There is no vesting requirement for the unrestricted stock grants and the Company recognized the full expense of $0.2 million during the three months ended February 28, 2022. During the three and nine months ended May 31, 2022, the Company had net settlement exercises of stock options, whereby the optionee did not pay cash for the options exercised but instead received the number of shares equal to the difference between the exercise price and the market price on the date of exercise. During the three months ended May 31, 2022, net settlement exercises resulted in 22,123 shares being issued and 23,377 options being cancelled in settlement of the shares issued. During the nine months ended May 31, 2022, net settlement exercises resulted in 46,012 shares being issued and 51,655 options being cancelled in settlement of shares issued. During the three and nine months ended May 31, 2022, the Company issued 0 and 6,000 shares of common stock upon the exercise of stock options, with an exercise price of $5.66, where the option holder used cash to exercise the options. On January 13, 2021, the Company’s six non-employee Board members were each granted 2,000 shares of unrestricted stock. The fair market value of the unrestricted shares for share-based compensation expense is equal to the closing price of the Company's common stock on the date of grant of $11.33. There is no vesting requirement for the unrestricted stock grants and the Company recognized the full expense of $0.1 million during the three months ended February 28, 2021. During the three and nine months ended May 31, 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. During the three months ended May 31, 2021, net settlement exercises resulted in 8,758 shares being issued and 4,242 options being cancelled in settlement of shares issued. During the nine months ended May 31, 2021, net settlement exercises resulted in 24,035 shares being issued and 13,465 options being 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 nine months ended May 31, 2022: Number of Options Weighted Average Grant Date Fair Value Non-vested options outstanding at August 31, 2021 218,333 $ 4.04 Granted 105,000 $ 5.16 Vested (87,002) $ 4.21 Forfeited (3,333) $ 4.21 Non-vested options outstanding at May 31, 2022 232,998 $ 4.47 (a) All non-vested options are expected to vest. For the three months ended May 31, 2022 and 2021, the Company recorded $0.1 million and $0.1 million of stock-based compensation expense, which includes the amounts expensed related to the unrestricted stock granted to the Company’s Board members. For the nine months ended May 31, 2022 and 2021, the Company recorded $0.5 million and $0.4 million of stock-based compensation expense, which includes the amounts expensed related to the unrestricted stock granted to the Company’s Board members. At May 31, 2022, the Company had unrecognized compensation expenses totaling $0.7 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 | 9 Months Ended |
May 31, 2022 | |
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.” The WISE Partnership and capitalized terms related to WISE not defined herein are defined in Note 7 to the 2021 Annual Report. During the three months ended May 31, 2022 and 2021, the Company, through the Rangeview District, received metered water deliveries of 62 acre-feet and 100 acre-feet of WISE water, paying $0.1 million and $0.2 million for this water. During the nine months ended May 31, 2022 and 2021, the Company, through the Rangeview District, received metered water deliveries of 312 acre-feet and 301 acre-feet of WISE water, paying $0.6 million and $0.6 million for this water. The cost of WISE 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, 2022, WISE water was $6.13 per thousand gallons and such rate will remain in effect through calendar 2022. 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 May 31, 2022, 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% (6.0% at May 31, 2022). The maturity date of the loan is December 31, 2022, at which time it will automatically renew for another 12-month 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 Sky Ranch. 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 into 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 the first phase and December 31, 2060 for the second phase shall be deemed forever discharged and satisfied in full. As of May 31, 2022, the balance of the Company’s advances to the Sky Ranch CAB for improvements, including interest, net of reimbursements from the Sky Ranch CAB total $35.3 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 additional funding of approximately $3.0 million for construction of public improvements to the Sky Ranch CAB during the remainder of fiscal 2022 related to Phase 2A of the second development phase at Sky Ranch. 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. During the nine months ended May 31, 2022, the Sky Ranch CAB paid Nelson $8.1 million related to this contract. Nelson is majority owned by the chairman of the Company’s board of directors. |
SIGNIFICANT CUSTOMERS
SIGNIFICANT CUSTOMERS | 9 Months Ended |
May 31, 2022 | |
SIGNIFICANT CUSTOMERS [Abstract] | |
SIGNIFICANT CUSTOMERS | NOTE 9 – SIGNIFICANT CUSTOMERS The Company has significant customers in its operations. The percentages presented below represent the reported customers percentage of the Company’s total revenue for the nine months ended May 31, 2022. For water and wastewater customers, the Company primarily provides services on behalf of the Rangeview District. The significant end users include all Sky Ranch homes in the aggregate and the Sky Ranch CAB (4%) and one oil & gas operator (17%). The home builders at Sky Ranch account for lot purchase revenue but also for water and wastewater tap fees revenues. Those home builders provide a significant amount of revenue to the Company and include Lennar (19%), Challenger (22%), KB Home (11%) and Richmond (11%). Additionally, at May 31, 2022, 48% of the trade accounts receivable balance was owed by Challenger for finished lot milestone payments, which was paid in full in June 2022. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 9 Months Ended |
May 31, 2022 | |
ACCRUED LIABILITIES [Abstract] | |
ACCRUED LIABILITIES | NOTE 10 – ACCRUED LIABILITIES (In thousands) May 31, 2022 August 31, 2021 Accrued compensation $ 598 $ 729 Other operating payables 189 248 WISE water 20 62 Operating lease obligations 58 84 Property taxes 28 50 Professional fees 23 51 Rental deposits 9 — Total accrued liabilities $ 925 $ 1,224 Land development costs due to the Sky Ranch CAB $ 445 $ 2,243 Due to Rangeview Metropolitan District — 638 Total accrued liabilities - related parties $ 445 $ 2,881 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
May 31, 2022 | |
SEGMENT INFORMATION [Abstract] | |
SEGMENT INFORMATION | NOTE 11 – SEGMENT INFORMATION The Company reports two operating segments which meet GAAP segment disclosure requirements, namely the water and wastewater resource development segment and the land development segment. The single-family rental operations, although not currently material to operations and not a required segment disclosure, is presented within the operating segment information below for informational purposes. The water and wastewater resource development segment includes providing water and wastewater 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 nine months ended May 31, 2022 and 2021, was done exclusively at the Company’s Sky Ranch Master Planned Community. The single-family rental business includes the monthly rental fees received from the renters under the non-cancellable annual leases. 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 May 31, 2022 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 2,011 $ 1,151 $ 25 $ 3,187 Cost of revenue 748 288 9 1,045 Depreciation and depletion 349 — — 349 Total cost of revenue 1,097 288 9 1,394 Segment profit $ 914 $ 863 $ 16 $ 1,793 Three Months Ended May 31, 2021 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 2,198 $ 468 $ — $ 2,666 Cost of revenue 483 99 — 582 Depreciation and depletion 358 — — 358 Total cost of revenue 841 99 — 940 Segment profit $ 1,357 $ 369 $ — $ 1,726 Nine Months Ended May 31, 2022 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 5,891 $ 6,173 $ 59 $ 12,123 Cost of revenue 2,054 1,160 16 3,230 Depreciation and depletion 1,055 — — 1,055 Total cost of revenue 3,109 1,160 16 4,285 Segment profit $ 2,782 $ 5,013 $ 43 $ 7,838 Nine Months Ended May 31, 2021 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 7,386 $ 4,887 $ — $ 12,273 Cost of revenue 1,785 2,087 — 3,872 Depreciation and depletion 1,077 — — 1,077 Total cost of revenue 2,862 2,087 — 4,949 Segment profit $ 4,524 $ 2,800 $ — $ 7,324 The following table summarizes the Company’s total assets by segment. The assets consist of water rights and water and wastewater systems in the Company’s water and wastewater resource development segment; land, land development costs and deposits in the Company’s land development segment; and the cost of the homes in the single-family rental line. The Company’s other assets (“Corporate”) primarily consist of cash, cash equivalents, restricted cash, equipment, and related party notes receivables. (In thousands) May 31, 2022 August 31, 2021 Water and wastewater resource development $ 58,515 $ 57,791 Land development 45,909 32,844 Single-family rental 1,445 — Corporate 9,516 26,542 Total assets $ 115,386 $ 117,177 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
May 31, 2022 | |
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 May 31, 2022 and 2021, the Company excluded 190,000 options and 0 options because their impact was anti-dilutive. For the nine months ended May 31, 2022 and 2021, the Company excluded 105,000 options and 0 options because their impact was anti-dilutive. Three Months Ended Nine Months Ended (In thousands, except share and per share amounts) May 31, 2022 May 31, 2021 May 31, 2022 May 31, 2021 Net income $ 837 $ 624 $ 4,044 $ 18,276 Basic weighted average common shares 23,970,290 23,907,140 23,944,394 23,885,179 Effect of dilutive securities 154,296 277,255 239,106 219,229 Weighted average shares applicable to diluted earnings per share 24,124,586 24,184,395 24,183,500 24,104,408 Earnings per share - basic $ 0.03 $ 0.03 $ 0.17 $ 0.77 Earnings per share - diluted $ 0.03 $ 0.03 $ 0.17 $ 0.76 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
May 31, 2022 | |
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 May 31, 2022, 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 and nine months ended May 31, 2022 and 2021 is as follows: Three Months Ended Nine Months Ended (In thousands) May 31, 2022 May 31, 2021 May 31, 2022 May 31, 2021 Effective income tax rate 22.7 % 20.2 % 23.2 % 24.4 % Income tax expense (benefit): Current $ 227 $ (394) $ 1,411 $ 5,283 Deferred 19 552 (187) 623 Total $ 246 $ 158 $ 1,224 $ 5,906 Income taxes paid: Federal $ — $ — $ 4,360 $ — State — — 900 — Total $ — $ — $ 5,260 $ — 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 May 31, 2022 and August 31, 2021 are as follows: (In thousands) May 31, 2022 August 31, 2021 Deferred tax assets (liabilities): Depreciation and depletion $ (2,213) $ (2,360) Non-qualified stock options 540 547 Accrued compensation 121 141 Deferred revenues 96 41 Other 28 16 Net deferred tax liability $ (1,428) $ (1,615) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
May 31, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 14 – SUBSEQUENT EVENTS On June 27, 2022, the Company closed on the acquisition of approximately 370 acre-feet of water rights located in the Lost Creek basin in Weld County Colorado. The acquisition incorporated three water wells and related well permits, structures and various easements. The total purchase price was $3.6 million, which will be recorded in the Company’s financial statements during the fourth quarter of fiscal 2022. Lost Creek Loan On June 28, 2022, the Company entered into a loan with its primary bank to fund the acquisition of approximately 370 acre-feet of water rights the Company acquired on June 27, 2022, in the Lost Creek region of Colorado (Lost Creek Loan). The Lost Creek Loan has a principal balance of $3.0 million, a ten-year maturity, monthly interest only payments of $12,250 for thirty-six months beginning on July 28, 2022, twenty-four monthly principal and interest payments of $42,254 beginning on July 28, 2025, fifty-nine monthly principal and interest payments of $31,897 beginning on July 28, 2027, and a balloon payment of $757,818 plus unpaid and accrued interest due on June 28, 2032. The Lost Creek Loan has a thirty-year amortization period and a fixed per annum interest rate equal to 4.90%. |
PRESENTATION OF INTERIM INFOR_2
PRESENTATION OF INTERIM INFORMATION (Policies) | 9 Months Ended |
May 31, 2022 | |
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 and nine months ended May 31, 2022 and 2021. 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 (COVID-19) | Coronavirus (COVID-19) 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 but have lessened as vaccines have become widely available in the U.S, although there have been periodic increases in the number of cases in the U.S. due to 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. 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 were probable of collectability. 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, increases in housing values in Colorado, 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. |
Prior Period Adjustment and Reclassifications | Prior Period Adjustment in the three months ended May 31, 2021 consolidated financial statements During the three and nine months ended May 31, 2021, the Company discovered certain errors in the amounts reported for the three and six months ended February 28, 2021. Management concluded that although the errors were immaterial in the given periods, if corrected in the three months ended May 31, 2021, management believed these corrections would have a material impact on the results reported for the three months ended May 31, 2021, consolidated statement of operations, specifically the recognition of Public improvement reimbursables including interest income - related party. The Company’s President and the Chief Financial Officer evaluated the effects of the errors on the consolidated financial statements for the three and six months ended February 28, 2021, and each concluded that the errors were not material to those presented results. Based on this evaluation, the errors did not rise to the level of requiring a restatement of the financial information for the three and six months ended February 28, 2021, contained in the Form 10-Q as previously filed. Accordingly, management corrected these errors by adjusting opening accumulated deficit for the three-month period ended May 31, 2021, and retrospectively adjusted the cumulative periods for the impact of such errors in the financial statements presented for the three and nine months ended May 31, 2021. Additional information on the prior period adjustment reflected in the consolidated statement of shareholders’ equity for the three months ended May 31, 2021, can be found in Note 2 – Prior Period Adjustment in the Form 10-Q for the quarterly period ended May 31, 2021, filed with the SEC on July 9, 2021. 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) | 9 Months Ended |
May 31, 2022 | |
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 Nine Months Ended May 31, 2022 Amounts payable by the Sky Ranch CAB at May 31, 2022 Phase 1 Reimbursable public improvements and other $ 17,645 $ 342 $ 17,987 Accrued interest 2,526 804 3,330 Project management services 1,570 19 1,589 Phase 1 reimbursable costs $ 21,741 $ 1,165 $ 22,906 Phase 2 Reimbursable public improvements and other $ 2,935 $ 8,503 $ 11,438 Accrued interest 33 348 381 Project management services 85 510 595 Phase 2 reimbursable costs $ 3,053 $ 9,361 $ 12,414 Total reimbursable costs $ 24,794 $ 10,526 $ 35,320 Total reimbursable costs $ 24,794 $ 10,526 $ 35,320 Less current portion 16,000 — 16,000 Non-current reimbursable costs $ 8,794 $ 10,526 $ 19,320 |
REVENUES, FEES AND OTHER INCO_2
REVENUES, FEES AND OTHER INCOME ITEMS (Tables) | 9 Months Ended |
May 31, 2022 | |
REVENUES, FEES AND OTHER INCOME ITEMS [Abstract] | |
Deferred Revenue and Changes in Deferred Revenue | Changes and balances of the Company’s deferred revenue accounts by segment are as follows: Water and Wastewater Resource Development Land Development Total (In thousands) Three Months Ended May 31, 2022 Balance at February 28, 2022 $ 439 $ 1,203 $ 1,642 Revenue recognized (49) (314) (363) Revenue deferred 2 - 2 Balance at May 31, 2022 $ 392 $ 889 $ 1,281 Three Months Ended May 31, 2021 Balance at February 28, 2021 $ 260 $ 995 $ 1,255 Revenue recognized (48) (540) (588) Revenue deferred 63 95 158 Balance at May 31, 2021 $ 275 $ 550 $ 825 Water and Wastewater Resource Development Land Development Total (In thousands) Nine Months Ended May 31, 2022 Balance at August 31, 2021 $ 410 $ 1,995 $ 2,405 Revenue recognized (390) (4,889) (5,279) Revenue deferred 372 3,783 4,155 Balance at May 31, 2022 $ 392 $ 889 $ 1,281 Nine Months Ended May 31, 2021 Balance at August 31, 2020 $ 1,965 $ 1,636 $ 3,601 Revenue recognized (1,753) (3,316) (5,069) Revenue deferred 63 2,230 2,293 Balance at May 31, 2021 $ 275 $ 550 $ 825 |
WATER, LAND AND OTHER FIXED A_2
WATER, LAND AND OTHER FIXED ASSETS (Tables) | 9 Months Ended |
May 31, 2022 | |
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: May 31, 2022 August 31, 2021 Accumulated Accumulated Depreciation Depreciation (In thousands) Costs and Depletion Costs and Depletion Rangeview water system $ 17,587 $ (1,925) $ 17,526 $ (1,470) Rangeview water supply 14,809 (17) 14,622 (17) Water supply – Other 7,634 (1,678) 7,569 (1,433) Sky Ranch water rights and other costs 7,375 (1,227) 7,338 (1,087) Sky Ranch pipeline 5,740 (936) 5,727 (793) Lost Creek water supply 3,388 — 3,374 — Fairgrounds water and water system 2,900 (1,393) 2,900 (1,327) Wild Pointe service rights 1,632 (775) 1,632 (775) Totals 61,065 (7,951) 60,688 (6,902) Net investments in water and water systems $ 53,114 $ 53,786 |
DEBT AND OTHER LONG-TERM OBLI_2
DEBT AND OTHER LONG-TERM OBLIGATIONS (Tables) | 9 Months Ended |
May 31, 2022 | |
DEBT 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 May 31 are as follows (in thousands): (In thousands) Scheduled principal payments Within 1 year $ 12 Year 2 14 Year 3 14 Year 4 15 Year 5 945 Thereafter - $ 1,000 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
May 31, 2022 | |
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 nine months ended May 31, 2022: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Approximate Aggregate Intrinsic Value (in thousands) Outstanding at August 31, 2021 714,500 $ 7.80 6.1 $ 5,107 Granted 105,000 $ 13.37 Exercised (103,667) $ 6.87 Forfeited / Expired (3,333) $ 10.45 Outstanding at May 31, 2022 712,500 $ 8.75 6.3 $ 2,032 Options exercisable at May 31, 2022 479,502 $ 7.56 5.0 $ 1,794 |
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 nine months ended May 31, 2022: Number of Options Weighted Average Grant Date Fair Value Non-vested options outstanding at August 31, 2021 218,333 $ 4.04 Granted 105,000 $ 5.16 Vested (87,002) $ 4.21 Forfeited (3,333) $ 4.21 Non-vested options outstanding at May 31, 2022 232,998 $ 4.47 (a) All non-vested options are expected to vest. |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 9 Months Ended |
May 31, 2022 | |
ACCRUED LIABILITIES [Abstract] | |
Accrued Liabilities | (In thousands) May 31, 2022 August 31, 2021 Accrued compensation $ 598 $ 729 Other operating payables 189 248 WISE water 20 62 Operating lease obligations 58 84 Property taxes 28 50 Professional fees 23 51 Rental deposits 9 — Total accrued liabilities $ 925 $ 1,224 Land development costs due to the Sky Ranch CAB $ 445 $ 2,243 Due to Rangeview Metropolitan District — 638 Total accrued liabilities - related parties $ 445 $ 2,881 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
May 31, 2022 | |
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 May 31, 2022 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 2,011 $ 1,151 $ 25 $ 3,187 Cost of revenue 748 288 9 1,045 Depreciation and depletion 349 — — 349 Total cost of revenue 1,097 288 9 1,394 Segment profit $ 914 $ 863 $ 16 $ 1,793 Three Months Ended May 31, 2021 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 2,198 $ 468 $ — $ 2,666 Cost of revenue 483 99 — 582 Depreciation and depletion 358 — — 358 Total cost of revenue 841 99 — 940 Segment profit $ 1,357 $ 369 $ — $ 1,726 Nine Months Ended May 31, 2022 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 5,891 $ 6,173 $ 59 $ 12,123 Cost of revenue 2,054 1,160 16 3,230 Depreciation and depletion 1,055 — — 1,055 Total cost of revenue 3,109 1,160 16 4,285 Segment profit $ 2,782 $ 5,013 $ 43 $ 7,838 Nine Months Ended May 31, 2021 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 7,386 $ 4,887 $ — $ 12,273 Cost of revenue 1,785 2,087 — 3,872 Depreciation and depletion 1,077 — — 1,077 Total cost of revenue 2,862 2,087 — 4,949 Segment profit $ 4,524 $ 2,800 $ — $ 7,324 The following table summarizes the Company’s total assets by segment. The assets consist of water rights and water and wastewater systems in the Company’s water and wastewater resource development segment; land, land development costs and deposits in the Company’s land development segment; and the cost of the homes in the single-family rental line. The Company’s other assets (“Corporate”) primarily consist of cash, cash equivalents, restricted cash, equipment, and related party notes receivables. (In thousands) May 31, 2022 August 31, 2021 Water and wastewater resource development $ 58,515 $ 57,791 Land development 45,909 32,844 Single-family rental 1,445 — Corporate 9,516 26,542 Total assets $ 115,386 $ 117,177 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
May 31, 2022 | |
EARNINGS PER SHARE [Abstract] | |
Earnings per Share | Three Months Ended Nine Months Ended (In thousands, except share and per share amounts) May 31, 2022 May 31, 2021 May 31, 2022 May 31, 2021 Net income $ 837 $ 624 $ 4,044 $ 18,276 Basic weighted average common shares 23,970,290 23,907,140 23,944,394 23,885,179 Effect of dilutive securities 154,296 277,255 239,106 219,229 Weighted average shares applicable to diluted earnings per share 24,124,586 24,184,395 24,183,500 24,104,408 Earnings per share - basic $ 0.03 $ 0.03 $ 0.17 $ 0.77 Earnings per share - diluted $ 0.03 $ 0.03 $ 0.17 $ 0.76 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
May 31, 2022 | |
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 and nine months ended May 31, 2022 and 2021 is as follows: Three Months Ended Nine Months Ended (In thousands) May 31, 2022 May 31, 2021 May 31, 2022 May 31, 2021 Effective income tax rate 22.7 % 20.2 % 23.2 % 24.4 % Income tax expense (benefit): Current $ 227 $ (394) $ 1,411 $ 5,283 Deferred 19 552 (187) 623 Total $ 246 $ 158 $ 1,224 $ 5,906 Income taxes paid: Federal $ — $ — $ 4,360 $ — State — — 900 — Total $ — $ — $ 5,260 $ — |
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 May 31, 2022 and August 31, 2021 are as follows: (In thousands) May 31, 2022 August 31, 2021 Deferred tax assets (liabilities): Depreciation and depletion $ (2,213) $ (2,360) Non-qualified stock options 540 547 Accrued compensation 121 141 Deferred revenues 96 41 Other 28 16 Net deferred tax liability $ (1,428) $ (1,615) |
REIMBURSABLE PUBLIC IMPROVEME_3
REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
May 31, 2022 | May 31, 2022 | Aug. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Less current portion - beginning balance | $ 16,000 | ||
Less current portion - ending balance | $ 16,000 | 16,000 | |
Phase 1 Reimbursable Costs [Member] | |||
Related Party Transaction [Line Items] | |||
Non-current reimbursable costs - beginning balance | 8,794 | ||
Non-current reimbursable costs - ending balance | $ 19,320 | 19,320 | |
Sky Ranch CAB [Member] | |||
Related Party Transaction [Line Items] | |||
Interest rate | 6% | ||
Amount available for repayment | $ 16,000 | ||
Notes receivable - beginning balance | 24,794 | ||
Activity | 10,526 | ||
Notes receivable - ending balance | $ 35,320 | 35,320 | |
Less current portion - beginning balance | 16,000 | ||
Activity - current | 0 | ||
Less current portion - ending balance | 16,000 | 16,000 | |
Non-current reimbursable costs - beginning balance | 8,794 | ||
Activity - Non-current | 10,526 | ||
Non-current reimbursable costs - ending balance | 19,320 | 19,320 | |
Reimbursable public improvement costs | 1,900 | 8,800 | |
Project Management Fees Receivable, Related Party | 100 | 500 | |
Interest Income, Related Party | 300 | 1,200 | |
Proceeds from Related Party Debt | 100 | ||
Sky Ranch CAB [Member] | Phase 1 Reimbursable Costs [Member] | |||
Related Party Transaction [Line Items] | |||
Notes receivable - beginning balance | 21,741 | ||
Activity | 1,165 | ||
Notes receivable - ending balance | 22,906 | 22,906 | |
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 | 342 | ||
Notes receivable - ending balance | 17,987 | 17,987 | |
Sky Ranch CAB [Member] | Phase 1 Accrued Interest [Member] | |||
Related Party Transaction [Line Items] | |||
Notes receivable - beginning balance | 2,526 | ||
Activity | 804 | ||
Notes receivable - ending balance | 3,330 | 3,330 | |
Sky Ranch CAB [Member] | Phase 1 Project Management Services [Member] | |||
Related Party Transaction [Line Items] | |||
Notes receivable - beginning balance | 1,570 | ||
Activity | 19 | ||
Notes receivable - ending balance | 1,589 | 1,589 | |
Sky Ranch CAB [Member] | Phase 2 Reimbursable Costs [Member] | |||
Related Party Transaction [Line Items] | |||
Notes receivable - beginning balance | 3,053 | ||
Activity | 9,361 | ||
Notes receivable - ending balance | 12,414 | 12,414 | |
Sky Ranch CAB [Member] | Phase 2 Public Improvements [Member] | |||
Related Party Transaction [Line Items] | |||
Notes receivable - beginning balance | 2,935 | ||
Activity | 8,503 | ||
Notes receivable - ending balance | 11,438 | 11,438 | |
Sky Ranch CAB [Member] | Phase2 Accrued Interest [Member] | |||
Related Party Transaction [Line Items] | |||
Notes receivable - beginning balance | 33 | ||
Activity | 348 | ||
Notes receivable - ending balance | 381 | 381 | |
Sky Ranch CAB [Member] | Phase2 Project Management Services [Member] | |||
Related Party Transaction [Line Items] | |||
Notes receivable - beginning balance | 85 | ||
Activity | 510 | ||
Notes receivable - ending balance | $ 595 | $ 595 |
REVENUES, FEES AND OTHER INCO_3
REVENUES, FEES AND OTHER INCOME ITEMS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2022 USD ($) item | May 31, 2021 USD ($) item | May 31, 2022 USD ($) item a | May 31, 2021 USD ($) item | |
Revenue Recognition and Reimbursable Costs [Abstract] | ||||
Revenues | $ 3,187 | $ 2,666 | $ 12,123 | $ 12,273 |
Number of lots reserved for single family rental units | item | 46 | |||
Lot Sales [Member] | ||||
Revenue Recognition and Reimbursable Costs [Abstract] | ||||
Revenues | 1,070 | 445 | $ 5,644 | 3,316 |
Finished Lot [Member] | ||||
Revenue Recognition and Reimbursable Costs [Abstract] | ||||
Revenues | 1,000 | 500 | 5,600 | 1,700 |
Ready to Build Finished Lot [Member] | ||||
Revenue Recognition and Reimbursable Costs [Abstract] | ||||
Revenues | 0 | 0 | 0 | 1,600 |
Water and Wastewater Tap Fees [Member] | ||||
Revenue Recognition and Reimbursable Costs [Abstract] | ||||
Revenues | $ 1,273 | $ 1,856 | $ 2,447 | $ 4,522 |
Number of water and wastewater taps sold | item | 45 | 59 | 81 | 146 |
Project Management Fees - Recognized [Member] | ||||
Revenue Recognition and Reimbursable Costs [Abstract] | ||||
Revenues | $ 81 | $ 23 | $ 529 | $ 1,571 |
Project Management Fees - Recognized [Member] | Maximum [Member] | ||||
Revenue Recognition and Reimbursable Costs [Abstract] | ||||
Revenues | 100 | $ 100 | ||
Single Family Rentals [Member] | ||||
Revenue Recognition and Reimbursable Costs [Abstract] | ||||
Revenues | $ 25 | $ 59 | ||
Lease term | 1 year | |||
Single Family Rentals [Member] | Maximum [Member] | ||||
Revenue Recognition and Reimbursable Costs [Abstract] | ||||
Percent Of Total Revenue | 1% | |||
Sky Ranch CAB [Member] | ||||
Revenue Recognition and Reimbursable Costs [Abstract] | ||||
Number of sub-phases for second phase of development of Sky Ranch | item | 4 | |||
First sub phase of second development phase construction completion (as a percent) | 67% | 67% | ||
Charter School Operator [Member] | ||||
Revenue Recognition and Reimbursable Costs [Abstract] | ||||
Number of acres of undeveloped land | a | 32 | |||
Amount of sale of undeveloped land | $ 1,600 |
REVENUES, FEES AND OTHER INCO_4
REVENUES, FEES AND OTHER INCOME ITEMS - Changes in Deferred Revenue (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | May 31, 2022 | May 31, 2021 | May 31, 2022 | May 31, 2021 | |
Deferred Revenue [Abstract] | |||||
Balance | $ 1,642 | $ 1,255 | $ 2,405 | $ 3,601 | |
Revenue recognized | (363) | (588) | (5,279) | (5,069) | |
Revenue deferred | 2 | 158 | 4,155 | 2,293 | |
Balance | 1,281 | 825 | 1,281 | 825 | |
Water and Wastewater Resource Development Segment [Member] | |||||
Deferred Revenue [Abstract] | |||||
Balance | 439 | 260 | 410 | 1,965 | |
Revenue recognized | (49) | (48) | (390) | (1,753) | |
Revenue deferred | 2 | 63 | 372 | 63 | |
Balance | 392 | 275 | 392 | 275 | |
Land Development Segment [Member] | |||||
Deferred Revenue [Abstract] | |||||
Balance | 1,203 | 995 | 1,995 | 1,636 | |
Revenue recognized | (314) | (540) | (4,889) | (3,316) | |
Revenue deferred | 95 | 3,783 | 2,230 | ||
Balance | $ 889 | $ 550 | $ 889 | $ 550 | |
Sky Ranch CAB [Member] | |||||
Deferred Revenue [Abstract] | |||||
Final payment received | $ 3,800 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) | May 31, 2022 item |
Level 2 [Member] | |
Fair Value Measurements [Abstract] | |
Number of liabilities | 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 | May 31, 2022 | Aug. 31, 2021 |
Investment in Water and Water Systems [Abstract] | ||
Water And Water Systems, Gross | $ 61,065 | $ 60,688 |
Accumulated depreciation and depletion | (7,951) | (6,902) |
Net investments in water and water systems | 53,114 | 53,786 |
Rangeview Water System [Member] | ||
Investment in Water and Water Systems [Abstract] | ||
Water And Water Systems, Gross | 17,587 | 17,526 |
Accumulated depreciation and depletion | (1,925) | (1,470) |
Rangeview Water Supply [Member] | ||
Investment in Water and Water Systems [Abstract] | ||
Water And Water Systems, Gross | 14,809 | 14,622 |
Accumulated depreciation and depletion | (17) | (17) |
Water Supply - Other [Member] | ||
Investment in Water and Water Systems [Abstract] | ||
Water And Water Systems, Gross | 7,634 | 7,569 |
Accumulated depreciation and depletion | (1,678) | (1,433) |
Sky Ranch Water Rights and Other Costs [Member] | ||
Investment in Water and Water Systems [Abstract] | ||
Water And Water Systems, Gross | 7,375 | 7,338 |
Accumulated depreciation and depletion | (1,227) | (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 | (936) | (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 | (1,393) | (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 | 9 Months Ended | |||
May 31, 2022 USD ($) home | May 31, 2022 USD ($) | May 31, 2022 USD ($) | May 31, 2022 USD ($) item | May 31, 2022 USD ($) home | |
Investment in Water and Water Systems [Abstract] | |||||
Construction costs incurred | $ 1,200 | ||||
Single-family rental units | $ 986 | $ 986 | 986 | $ 986 | $ 986 |
Number of Single Family Rental Houses Construction Contracted | home | 10 | ||||
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 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 |
Single family houses construction completed | 3 | 3 | |||
Single Family Rental Homes [Member] | Maximum [Member] | |||||
Investment in Water and Water Systems [Abstract] | |||||
Useful life | 30 years |
DEBT AND OTHER LONG-TERM OBLI_3
DEBT AND OTHER LONG-TERM OBLIGATIONS (Details) | 3 Months Ended | ||
Jan. 31, 2022 USD ($) | Nov. 29, 2021 USD ($) installment item | May 31, 2022 home item | |
Debt Instrument [Line Items] | |||
Number of Single Family Homes Being Constructed | item | 3 | ||
Number of Single Family Rental Houses Construction Contracted | home | 10 | ||
Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 4.50% | ||
Floor interest rate | 3.75% | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | ||
Debt Instrument, Term | 2 years | ||
Debt Instrument , Percentage of Default Interest Rate | 2% | ||
Single-Family Rental Home Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 1,000,000 | ||
Effective interest rate | 4.25% | ||
Floor interest rate | 3.75% | ||
Ceiling interest rate | 4.25% | ||
Additional interest rate | 2% | ||
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] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Prime Rate [Member] | Single-Family Rental Home Notes [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.50% |
DEBT AND OTHER LONG-TERM OBLI_4
DEBT AND OTHER LONG-TERM OBLIGATIONS - Maturities of the SFR Note (Details) - Single-Family Rental Home Notes [Member] $ in Thousands | May 31, 2022 USD ($) |
Debt Instrument [Line Items] | |
Within 1 year | $ 12 |
Year 2 | 14 |
Year 3 | 14 |
Year 4 | 15 |
Year 5 | 945 |
Total | $ 1,000 |
DEBT AND OTHER LONG-TERM OBLI_5
DEBT AND OTHER LONG-TERM OBLIGATIONS - Lot Construction Obligations (Details) $ in Millions | 1 Months Ended | 9 Months Ended | 18 Months Ended | |
Feb. 28, 2021 item | May 31, 2022 USD ($) a item | Nov. 30, 2023 USD ($) item | Aug. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||
Number of residential lots sold in second phase of Sky Ranch | 804 | |||
Number of lots in first sub phase of second development phase | 229 | |||
Period in which the additional construction costs to be incurred | 18 months | |||
Period for completion of construction of second development phase | 3 years | |||
Sky Ranch CAB [Member] | ||||
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 | |||
Number of lots retained for use in single family rent business | 10 | |||
Finished lots sold | 219 | 189 | ||
Number of finished lots delivered | 40 | |||
Costs incurred till date for second development phase | $ | $ 13.6 | |||
Reimbursable Costs, Cost Incurred to Date | $ | 11.3 | |||
Amount of expected infrastructure expense | $ | $ 4 | |||
Sky Ranch CAB [Member] | Scenario, Plan [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of lots in first sub phase of second development phase | 229 | |||
Number of lots retained for use in single family rent business | 10 | |||
Additional construction costs | $ | $ 6.8 | |||
Reimbursable Costs, Expected Cost Remaining | $ | $ 5.6 | $ 3 | ||
Sky Ranch CAB [Member] | Homebuilders [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of customers | 4 |
SHAREHOLDERS' EQUITY, Stock Opt
SHAREHOLDERS' EQUITY, Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jan. 12, 2022 item $ / shares shares | Jan. 13, 2021 item $ / shares shares | May 31, 2022 USD ($) $ / shares shares | Feb. 28, 2022 USD ($) | May 31, 2021 USD ($) shares | Feb. 28, 2021 USD ($) | May 31, 2022 USD ($) $ / shares shares | May 31, 2021 USD ($) shares | Aug. 31, 2021 USD ($) $ / shares shares | |
Stock Options [Abstract] | |||||||||
Share-based compensation expense | $ | $ 491 | $ 404 | |||||||
2014 Equity Plan [Member] | |||||||||
Shareholders' Equity [Abstract] | |||||||||
Shares reserved for issuance (in shares) | 1,600,000 | 1,600,000 | |||||||
Shares available for grant (in shares) | 912,953 | 912,953 | 974,965 | ||||||
Weighted Average Exercise Price [Roll Forward] | |||||||||
Exercised (in dollars per share) | $ / shares | $ 5.66 | $ 5.66 | |||||||
2014 Equity Plan [Member] | Non-Employee Board Members [Member] | |||||||||
Number of Options [Roll Forward] | |||||||||
Granted (in shares) | 2,000 | 2,000 | |||||||
Stock Options [Abstract] | |||||||||
Number of board members | item | 6 | 6 | |||||||
Stock price (in dollars per share) | $ / shares | $ 13.23 | $ 11.33 | |||||||
Share-based compensation expense | $ | $ 200 | $ 100 | |||||||
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 | ||||||||
Exercised (in shares) | (103,667) | ||||||||
Net settlement exercised (in shares) | (3,333) | ||||||||
Outstanding, end of period (in shares) | 712,500 | 712,500 | 714,500 | ||||||
Options exercisable (in shares) | 479,502 | 479,502 | |||||||
Weighted Average Exercise Price [Roll Forward] | |||||||||
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 7.80 | ||||||||
Granted (in dollars per share) | $ / shares | 13.37 | ||||||||
Exercised (in dollars per share) | $ / shares | 6.87 | ||||||||
Net settlement exercised (in dollars per share) | $ / shares | 10.45 | ||||||||
Outstanding, end of period (in dollars per share) | $ / shares | $ 8.75 | 8.75 | $ 7.80 | ||||||
Options exercisable (in dollars per share) | $ / shares | $ 7.56 | $ 7.56 | |||||||
Stock Options [Abstract] | |||||||||
Weighted average remaining contractual term | 6 years 3 months 18 days | 6 years 1 month 6 days | |||||||
Weighted average remaining contractual term, options exercisable | 5 years | ||||||||
Approximate aggregate intrinsic value, outstanding | $ | $ 2,032 | $ 2,032 | $ 5,107 | ||||||
Approximate aggregate intrinsic value, options exercisable | $ | 1,794 | 1,794 | |||||||
Share-based compensation expense | $ | $ 100 | $ 100 | $ 500 | $ 400 | |||||
Shares issued (in shares) | 22,123 | 8,758 | 46,012 | 24,035 | |||||
Options cancelled (in shares) | 23,377 | 4,242 | 51,655 | 13,465 | |||||
2004 Incentive Plan [Member] | |||||||||
Number of Options [Roll Forward] | |||||||||
Exercised (in shares) | 0 | (6,000) |
SHAREHOLDERS' EQUITY, Non-Veste
SHAREHOLDERS' EQUITY, Non-Vested Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2022 | May 31, 2021 | May 31, 2022 | May 31, 2021 | |
Stock Options [Abstract] | ||||
Share-based compensation expense | $ 491 | $ 404 | ||
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) | |||
Forfeited (in shares) | (3,333) | |||
Non-vested options outstanding, end of period (in shares) | 232,998 | 232,998 | ||
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 | |||
Forfeited (in dollars per share) | 4.21 | |||
Non-vested options outstanding, end of period (in dollars per share) | $ 4.47 | $ 4.47 | ||
Stock Options [Abstract] | ||||
Share-based compensation expense | $ 100 | $ 100 | $ 500 | $ 400 |
Unrecognized compensation expenses | $ 700 | $ 700 | ||
Weighted-average period for options expected to vest | 2 years 6 months |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 3 Months Ended | 9 Months Ended | ||||||
May 31, 2022 USD ($) agreement acre ft | May 31, 2021 USD ($) acre ft | May 31, 2022 USD ($) agreement acre ft | May 31, 2021 USD ($) acre ft | Nov. 30, 2023 USD ($) | Aug. 31, 2022 USD ($) | Jan. 31, 2022 $ / gal | Aug. 31, 2021 USD ($) | |
Related Party Transactions [Abstract] | ||||||||
Investments in the WISE infrastructure | $ 53,114,000 | $ 53,114,000 | $ 53,786,000 | |||||
Number Of Loan Agreements | agreement | 2 | 2 | ||||||
Facilities Funding and Acquisition Agreement [Member] | ||||||||
Related Party Transactions [Abstract] | ||||||||
Interest rate | 6% | |||||||
Rangeview District [Member] | WISE Partnership [Member] | ||||||||
Related Party Transactions [Abstract] | ||||||||
Volume of received metered water | acre ft | 62 | 100 | 312 | 301 | ||||
Payments for water | $ 100,000 | $ 200,000 | $ 600,000 | $ 600,000 | ||||
Water rate | $ / gal | 6.13 | |||||||
Investments in the WISE infrastructure | 6,300,000 | 6,300,000 | ||||||
Rangeview District [Member] | Loan Receivable [Member] | ||||||||
Related Party Transactions [Abstract] | ||||||||
Maximum borrowing capacity | 250,000 | $ 250,000 | ||||||
Interest rate | 6% | |||||||
Renewal term | 12 months | |||||||
Rangeview District [Member] | Loan Receivable [Member] | Prime Rate [Member] | ||||||||
Related Party Transactions [Abstract] | ||||||||
Basis spread on variable rate | 2% | |||||||
Rangeview District [Member] | Note Receivable [Member] | ||||||||
Related Party Transactions [Abstract] | ||||||||
Interest rate | 8% | |||||||
Notes receivable | 1,100,000 | $ 1,100,000 | 1,200,000 | |||||
Borrowings under notes receivable | 1,000,000 | 1,000,000 | 700,000 | |||||
Accrued interest on notes receivable | 500,000 | |||||||
Interest Received | 500,000 | |||||||
Rangeview District [Member] | Note Receivable [Member] | Maximum [Member] | ||||||||
Related Party Transactions [Abstract] | ||||||||
Accrued interest on notes receivable | $ 100,000 | 100,000 | ||||||
Sky Ranch CAB [Member] | ||||||||
Related Party Transactions [Abstract] | ||||||||
Interest rate | 6% | |||||||
Notes receivable | $ 35,320,000 | 35,320,000 | 24,794,000 | |||||
Costs incurred to date | 11,300,000 | 11,300,000 | ||||||
Sky Ranch CAB [Member] | Scenario, Plan [Member] | ||||||||
Related Party Transactions [Abstract] | ||||||||
Fund for construction of public improvements | $ 5,600,000 | $ 3,000,000 | ||||||
Sky Ranch CAB [Member] | Phase 1 Reimbursable Costs [Member] | ||||||||
Related Party Transactions [Abstract] | ||||||||
Notes receivable | $ 22,906,000 | 22,906,000 | $ 21,741,000 | |||||
Sky Ranch CAB [Member] | Nelson Pipeline Constructors, LLC [Member] | ||||||||
Related Party Transactions [Abstract] | ||||||||
Amount of payment to construct utility pipelines | $ 8,100,000 |
SIGNIFICANT CUSTOMERS (Details)
SIGNIFICANT CUSTOMERS (Details) - Customer Concentration Risk [Member] - customer | 9 Months Ended | |
May 31, 2022 | May 31, 2022 | |
Revenue [Member] | Water and Wastewater Resource Development Segment [Member] | Sky Ranch Homes [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 4% | |
Revenue [Member] | Water and Wastewater Resource Development Segment [Member] | Oil and Gas Operator [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 17% | |
Number of customers | 1 | |
Revenue [Member] | Land Development Segment [Member] | Lennar [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 19% | |
Revenue [Member] | Land Development Segment [Member] | Challenger [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 22% | |
Revenue [Member] | Land Development Segment [Member] | Kb Home [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 11% | |
Revenue [Member] | Land Development Segment [Member] | Richmond [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 11% | |
Accounts Receivable [Member] | Challenger [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 48% |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | May 31, 2022 | Aug. 31, 2021 |
Accrued Liabilities, Current [Line Items] | ||
Accrued compensation | $ 598 | $ 729 |
Other operating payables | 189 | 248 |
WISE water | 20 | 62 |
Operating lease obligations | $ 58 | $ 84 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Property taxes | $ 28 | $ 50 |
Professional fees | 23 | 51 |
Rental deposits | 9 | |
Total accrued liabilities | 925 | 1,224 |
Accrued liabilities - related parties | 445 | 2,881 |
Sky Ranch CAB [Member] | ||
Accrued Liabilities, Current [Line Items] | ||
Accrued liabilities - related parties | $ 445 | 2,243 |
Rangeview District [Member] | ||
Accrued Liabilities, Current [Line Items] | ||
Accrued liabilities - related parties | $ 638 |
SEGMENT INFORMATION, Revenue by
SEGMENT INFORMATION, Revenue by Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2022 USD ($) | May 31, 2021 USD ($) | May 31, 2022 USD ($) segment | May 31, 2021 USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | segment | 2 | |||
Segment Information [Abstract] | ||||
Total revenue | $ 3,187 | $ 2,666 | $ 12,123 | $ 12,273 |
Cost of revenue | 1,045 | 582 | 3,230 | 3,872 |
Depreciation and depletion | 349 | 358 | 1,055 | 1,077 |
Total cost of revenues | 1,394 | 940 | 4,285 | 4,949 |
Segment profit | 1,793 | 1,726 | 7,838 | 7,324 |
Water and Wastewater Resource Development Segment [Member] | ||||
Segment Information [Abstract] | ||||
Total revenue | 2,011 | 2,198 | 5,891 | 7,386 |
Cost of revenue | 748 | 483 | 2,054 | 1,785 |
Depreciation and depletion | 349 | 358 | 1,055 | 1,077 |
Total cost of revenues | 1,097 | 841 | 3,109 | 2,862 |
Segment profit | 914 | 1,357 | 2,782 | 4,524 |
Land Development Segment [Member] | ||||
Segment Information [Abstract] | ||||
Total revenue | 1,151 | 468 | 6,173 | 4,887 |
Cost of revenue | 288 | 99 | 1,160 | 2,087 |
Total cost of revenues | 288 | 99 | 1,160 | 2,087 |
Segment profit | 863 | $ 369 | 5,013 | $ 2,800 |
Single Family Rentals [Member] | ||||
Segment Information [Abstract] | ||||
Total revenue | 25 | 59 | ||
Cost of revenue | 9 | 16 | ||
Total cost of revenues | 9 | 16 | ||
Segment profit | $ 16 | $ 43 |
SEGMENT INFORMATION, Corporate
SEGMENT INFORMATION, Corporate Assets (Details) - USD ($) $ in Thousands | May 31, 2022 | Aug. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 115,386 | $ 117,177 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 9,516 | 26,542 |
Water and Wastewater Resource Development Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 58,515 | 57,791 |
Land Development Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 45,909 | $ 32,844 |
Single Family Rentals [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 1,445 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2022 | May 31, 2021 | May 31, 2022 | May 31, 2021 | |
EARNINGS PER SHARE [Abstract] | ||||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 190,000 | 0 | 105,000 | 0 |
Earnings Per Share [Abstract] | ||||
Net income | $ 837 | $ 624 | $ 4,044 | $ 18,276 |
Basic weighted average common shares (in shares) | 23,970,290 | 23,907,140 | 23,944,394 | 23,885,179 |
Effect of dilutive securities (in shares) | 154,296 | 277,255 | 239,106 | 219,229 |
Weighted average shares applicable to diluted earnings per share (in shares) | 24,124,586 | 24,184,395 | 24,183,500 | 24,104,408 |
Earnings per share - basic (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.17 | $ 0.77 |
Earnings per share - diluted (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.17 | $ 0.76 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
May 31, 2022 | May 31, 2021 | May 31, 2022 | May 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | |
Income Taxes [Abstract] | ||||||
Effective income tax rate | 22.70% | 20.20% | 23.20% | 24.40% | ||
Income Tax Expense (Benefit) [Abstract] | ||||||
Current | $ 227 | $ (394) | $ 1,411 | $ 5,283 | ||
Deferred | 19 | 552 | (187) | 623 | ||
Total | 246 | $ 158 | 1,224 | $ 5,906 | ||
Income Taxes Paid [Abstract] | ||||||
Income taxes paid | 5,260 | |||||
Deferred Tax Assets (Liabilities) [Abstract] | ||||||
Depreciation and depletion | (2,213) | (2,213) | $ (2,360) | |||
Non-qualified stock options | 540 | 540 | 547 | |||
Accrued compensation | 121 | 121 | 141 | |||
Deferred revenues | 96 | 96 | 41 | |||
Other | 28 | 28 | 16 | |||
Net deferred tax liability | $ (1,428) | (1,428) | $ (1,615) | |||
Forecast [Member] | ||||||
Income Taxes [Abstract] | ||||||
Effective income tax rate | 25% | |||||
Federal [Member] | ||||||
Income Taxes Paid [Abstract] | ||||||
Income taxes paid | 4,360 | |||||
State [Member] | ||||||
Income Taxes Paid [Abstract] | ||||||
Income taxes paid | $ 900 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] | Jun. 28, 2022 USD ($) M acre ft | Jun. 27, 2022 USD ($) item acre ft |
Lost Creek Loan [Member] | ||
Subsequent Event Abstract] | ||
Water Rights Acquired In Volume | acre ft | 370 | |
Debt Instrument, Face Amount | $ 3,000,000 | |
Debt Instrument, Term | 10 years | |
Monthly interest only payments | $ 12,250 | |
Debt Instrument, Number of Interest Only Payments | M | 36 | |
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $ 757,818 | |
Debt Instrument, Amortization Period | 30 years | |
Debt Instrument, Interest Rate, Stated Percentage | 4.90% | |
Lost Creek Loan [Member] | Payment Beginning on July 28, 2025 [Member] | ||
Subsequent Event Abstract] | ||
Debt Instrument, Periodic Payment | $ 42,254 | |
Debt Instrument, Number of Principal and Interest Payments | M | 24 | |
Lost Creek Loan [Member] | Payment Beginning on July 28, 2027 [Member] | ||
Subsequent Event Abstract] | ||
Debt Instrument, Periodic Payment | $ 31,897 | |
Debt Instrument, Number of Principal and Interest Payments | M | 59 | |
Lost Creek Water Supply [Member] | ||
Subsequent Event Abstract] | ||
Water Rights Acquired In Volume | acre ft | 370 | |
Number of water wells incorporated | item | 3 | |
Cost of water and land portions of asset acquisition | $ 3,600,000 |