| SEGMENT INFORMATION |
NOTE 11 – SEGMENT INFORMATION
The Company reports three operating segments which meet segment disclosure requirements, the water and wastewater resource development segment, the land development segment, and the single-family rental segment.
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, 2026 and 2025 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 non-cancelable annual leases.
The tables below present the measure of profit and assets as well as the interest income and expense that the CODM uses to assess the performance of the segments for the periods presented:
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Three Months Ended May 31, 2026 |
(In thousands) |
|
Water and wastewater resource development |
|
Land development |
|
Single-family rental |
|
Corporate |
|
Total |
Total revenue |
|
$ |
4,659 |
|
$ |
3,332 |
|
$ |
231 |
|
$ |
— |
|
$ |
8,222 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
1,549 |
|
|
1,916 |
|
|
78 |
|
|
— |
|
|
3,543 |
Depreciation and depletion |
|
|
394 |
|
|
— |
|
|
— |
|
|
— |
|
|
394 |
Total cost of revenue |
|
|
1,943 |
|
|
1,916 |
|
|
78 |
|
|
— |
|
|
3,937 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit |
|
$ |
2,716 |
|
$ |
1,416 |
|
$ |
153 |
|
$ |
— |
|
$ |
4,285 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
943 |
|
$ |
943 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
$ |
33 |
|
$ |
— |
|
$ |
119 |
|
$ |
5 |
|
$ |
157 |
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|
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|
Three Months Ended May 31, 2025 |
(In thousands) |
|
Water and wastewater resource development |
|
Land development |
|
Single-family rental |
|
Corporate |
|
Total |
Total revenue |
|
$ |
2,129 |
|
$ |
2,880 |
|
$ |
131 |
|
$ |
— |
|
$ |
5,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
786 |
|
|
648 |
|
|
40 |
|
|
— |
|
|
1,474 |
Depreciation and depletion |
|
|
409 |
|
|
— |
|
|
— |
|
|
— |
|
|
409 |
Total cost of revenue |
|
|
1,195 |
|
|
648 |
|
|
40 |
|
|
— |
|
|
1,883 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit |
|
$ |
934 |
|
$ |
2,232 |
|
$ |
91 |
|
$ |
— |
|
$ |
3,257 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Interest income |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
627 |
|
$ |
627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
$ |
37 |
|
$ |
— |
|
$ |
67 |
|
$ |
(3) |
|
$ |
101 |
|
|
|
|
|
|
|
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|
|
|
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|
|
|
|
Nine Months Ended May 31, 2026 |
(In thousands) |
|
Water and wastewater resource development |
|
Land development |
|
Single-family rental |
|
Corporate |
|
Total |
Total revenue |
|
$ |
10,096 |
|
$ |
11,918 |
|
$ |
512 |
|
$ |
— |
|
$ |
22,526 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
3,414 |
|
|
4,433 |
|
|
175 |
|
|
— |
|
|
8,022 |
Depreciation and depletion |
|
|
1,184 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,184 |
Total cost of revenue |
|
|
4,598 |
|
|
4,433 |
|
|
175 |
|
|
— |
|
|
9,206 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Segment profit |
|
$ |
5,498 |
|
$ |
7,485 |
|
$ |
337 |
|
$ |
— |
|
$ |
13,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
2,798 |
|
$ |
2,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
$ |
106 |
|
$ |
— |
|
$ |
282 |
|
$ |
5 |
|
$ |
393 |
|
|
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|
Nine Months Ended May 31, 2025 |
(In thousands) |
|
Water and wastewater resource development |
|
Land development |
|
Single-family rental |
|
Corporate |
|
Total |
Total revenue |
|
$ |
7,520 |
|
$ |
6,994 |
|
$ |
373 |
|
$ |
— |
|
$ |
14,887 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
2,115 |
|
|
2,941 |
|
|
133 |
|
|
— |
|
|
5,189 |
Depreciation and depletion |
|
|
1,248 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,248 |
Total cost of revenue |
|
|
3,363 |
|
|
2,941 |
|
|
133 |
|
|
— |
|
|
6,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Segment profit |
|
$ |
4,157 |
|
$ |
4,053 |
|
$ |
240 |
|
$ |
— |
|
$ |
8,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Interest income |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
1,898 |
|
$ |
1,898 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
$ |
113 |
|
$ |
— |
|
$ |
205 |
|
$ |
1 |
|
$ |
319 |
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.
|
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|
(In thousands) |
|
May 31, 2026 |
|
August 31, 2025 |
Water and wastewater resource development |
|
$ |
75,414 |
|
$ |
69,366 |
Land development |
|
|
8,327 |
|
|
11,121 |
Single-family rental |
|
|
14,688 |
|
|
5,280 |
Corporate |
|
|
77,549 |
|
|
76,512 |
Total assets |
|
$ |
175,978 |
|
$ |
162,279 |
|