Pure Cycle Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

3. WATER AND LAND ASSETS

3. WATER AND LAND ASSETS

3 Months Ended

Nov. 30, 2016

Investments In Water Water Systems Land And Improvements

The Company’s water rights and current water and wastewater service agreements are more fully described in Note 4 – Water and Land Assets in Part II, Item 8 of the 2016 Annual Report. There have been no significant changes to the Company’s water rights or water and wastewater service agreements during the three months ended November 30, 2016.

The Company’s Investments in Water and Water Systems consist of the following costs and accumulated depreciation and depletion at November 30, 2016 and August 31, 2016:

	November 30, 2016					August 31, 2016
	Costs		Accumulated Depreciation and Depletion			Costs		Accumulated Depreciation and Depletion
Rangeview water supply	$	14,457,400	$	(9,600	)	$	14,444,600	$	(9,400	)
Sky Ranch water rights and other costs		6,691,400		(361,400	)		6,607,400		(334,500	)
Fairgrounds water and water system		2,899,800		(908,800	)		2,899,900		(886,800	)
Rangeview water system		1,637,500		(166,300	)		1,624,800		(152,800	)
Water supply – other		3,703,600		(323,600	)		3,703,000		(297,800	)
Construction in progress		825,900		-			723,500		-
Totals		30,215,600		(1,769,700	)		30,003,200		(1,681,300	)
Net investments in water and water systems	$	28,445,900				$	28,321,900

Capitalized terms in this section not defined herein are defined in Note 4 – Water and Land Assets to the 2016 Annual Report.

Depletion and Depreciation. The Company recorded depletion charges of $300 and $100 during the three months ended November 30, 2016 and 2015, respectively. During the three months ended November 30, 2016, the depletion was related entirely to the Rangeview and Sky Ranch water assets.

The Company recorded $115,700 and 94,500 of depreciation expense during the three months ended November 30, 2016 and 2015, respectively. These figures include depreciation for other equipment not included in the table above.