Pure Cycle Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Aug. 31, 2021

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

The following table summarizes the amounts the Company paid, what was repaid by the Sky Ranch CAB and amounts still owed to the Company by the Sky Ranch CAB:


	As of August 31, 2021
					Amounts payable to Pure
			Payments repaid by		Cycle by the Sky Ranch
	Costs incurred to date		Sky Ranch CAB		CAB

	(In thousands)
Phase 1
Public improvements	$	27,199	$	10,505	$	16,694
Accrued interest		2,926		400		2,526
Project management services		1,570		—		1,570
Construction support activities		951		—		951
Phase 1 reimbursable costs	$	32,646	$	10,905	$	21,741

Phase 2
Public improvements	$	2,935	$	—	$	2,935
Accrued interest		33		—		33
Project management services		85		—		85
Phase 2 reimbursable costs	$	3,053	$	—	$	3,053

Total reimbursable costs	$	35,699	$	10,905	$	24,794

Deferred Revenue and Changes in Deferred Revenue

As of August 31, 2021 and 2020, the Company’s deferred revenues along with the changes in the deferred revenues are as follows:


	August 31, 2021		August 31, 2020

	(In thousands)
Land development segment	$	1,995	$	1,635
Water and wastewater resource development segment		410		1,965
Balance, end of period	$	2,405	$	3,600


	August 31, 2021		August 31, 2020
	(In thousands)		(In thousands)
Balance, August 31, 2020	$	3,600	$	5,059
Deferral of revenue		6,884		24,643
Recognition of unearned revenue		(8,079)		(26,102)
Balance, August 31, 2021	$	2,405	$	3,600

When recognized, the amounts reflected as unearned revenue will be recorded in lot sales, metered water usage from oil and gas operations, or Other income oil and gas lease income, net in the Consolidated Statements of Operations and Comprehensive Income.