Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v3.22.2
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