Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v3.23.4
SEGMENT INFORMATION
3 Months Ended
Nov. 30, 2023
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, which water is provided by the Company 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 months ended November 30, 2023 and 2022, 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 two required segments and the single-family rentals that the Company believes will become a segment for the periods presented:

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Three Months Ended November 30, 2023

(In thousands)

    

Water and wastewater resource development

    

Land development

​

Single-family rental

    

    Total

Total revenue

    

$

3,281

    

$

1,996

​

$

109

    

$

5,386

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​

​

​

​

​

​

​

​

​

​

​

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Cost of revenue

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858

​

 

767

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57

​

 

1,682

Depreciation and depletion

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362

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—

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—

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362

Total cost of revenue

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1,220

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767

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57

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2,044

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​

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​

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​

​

​

​

​

​

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Segment (loss) profit

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$

2,061

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$

1,229

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$

52

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$

3,342

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Three Months Ended November 30, 2022

(In thousands)

    

Water and wastewater resource development

    

Land development

​

Single-family rental

    

    Total

Total revenue

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$

794

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$

521

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$

25

​

$

1,340

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​

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​

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​

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​

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​

​

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Cost of revenue

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723

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215

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10

​

 

948

Depreciation and depletion

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378

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—

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—

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378

Total cost of revenue

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1,101

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215

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10

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1,326

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​

​

​

​

​

​

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Segment profit

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$

(307)

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$

306

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$

15

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$

14

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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, short term investments, restricted cash, equipment, and related party notes receivable.  Related party notes receivable were not previously presented as Corporate assets and the totals listed as of August 31, 2023 have been updated to reflect the Company’s new presentation.

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(In thousands)

    

November 30, 2023

    

August 31, 2023

Water and wastewater resource development

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$

65,803

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$

63,129

Land development

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​

10,359

​

​

7,710

Single-family rental

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​

5,251

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​

5,128

Corporate

​

​

55,916

​

​

57,249

Total assets

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$

137,329

​

$

133,216

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