Quarterly report [Sections 13 or 15(d)]

SEGMENT INFORMATION

v3.25.2
SEGMENT INFORMATION
9 Months Ended
May 31, 2025
SEGMENT INFORMATION  
SEGMENT INFORMATION

NOTE 11 – SEGMENT INFORMATION

The Company reports two operating segments which meet segment disclosure requirements, the water and wastewater resource development segment and the land development segment. The single-family rentals, 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. The Company delivers these services by using water rights owned or controlled by the Company and developing, operating, and maintaining infrastructure to divert, treat and distribute that water and collect, treat and reuse reclaimed wastewater. The land development segment includes all activities necessary to develop and sell finished lots, which for the three and nine months ended May 31, 2025 and 2024, 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-cancelable annual leases.

The tables below present the measure of profit and assets used to assess the performance of the two required segments and the single-family rentals that the Company believes will become a segment for the periods presented:

Three Months Ended May 31, 2025

(In thousands)

    

Water and wastewater resource development

    

Land development

Single-family rental

    

    Total

Total revenue

    

$

2,345

    

$

2,664

$

131

    

$

5,140

Cost of revenue

 

891

 

543

 

40

 

1,474

Depreciation and depletion

 

409

 

 

 

409

Total cost of revenue

 

1,300

 

543

 

40

 

1,883

Segment profit

$

1,045

$

2,121

$

91

$

3,257

Three Months Ended May 31, 2024

(In thousands)

    

Water and wastewater resource development

    

Land development

Single-family rental

    

    Total

Total revenue

$

2,465

$

5,016

$

123

$

7,604

Cost of revenue

 

911

 

1,346

 

71

 

2,328

Depreciation and depletion

 

410

 

 

 

410

Total cost of revenue

 

1,321

 

1,346

 

71

 

2,738

Segment profit

$

1,144

$

3,670

$

52

$

4,866

Nine Months Ended May 31, 2025

(In thousands)

    

Water and wastewater resource development

    

Land development

Single-family rental

    

    Total

Total revenue

    

$

8,026

    

$

6,488

$

373

    

$

14,887

Cost of revenue

 

2,636

 

2,420

 

133

 

5,189

Depreciation and depletion

 

1,248

 

 

 

1,248

Total cost of revenue

 

3,884

 

2,420

 

133

 

6,437

Segment (loss) profit

$

4,142

$

4,068

$

240

$

8,450

Nine Months Ended May 31, 2024

(In thousands)

    

Water and wastewater resource development

    

Land development

Single-family rental

    

    Total

Total revenue

$

7,562

$

8,268

$

357

$

16,187

Cost of revenue

 

2,547

 

2,362

 

161

 

5,070

Depreciation and depletion

 

1,132

 

 

 

1,132

Total cost of revenue

 

3,679

 

2,362

 

161

 

6,202

Segment profit

$

3,883

$

5,906

$

196

$

9,985

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 segment. The Company’s other assets (Corporate) primarily consist of cash, short term investments, restricted cash, equipment, and related party notes receivable.

(In thousands)

    

May 31, 2025

    

August 31, 2024

Water and wastewater resource development

$

68,588

$

64,616

Land development

11,497

8,521

Single-family rental

5,272

5,371

Corporate

66,382

68,846

Total assets

$

151,739

$

147,354