Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v3.20.4
SEGMENT INFORMATION
 3 Months Ended
Nov. 30, 2020
SEGMENT INFORMATION [Abstract]  
SEGMENT INFORMATION
NOTE 11 – SEGMENT INFORMATION

Because of the methods used by the Chief Operating Decision Maker (the “CODM”) to allocate resources, the Company has identified two operating segments which meet GAAP segment disclosure requirements, namely the water and wastewater resource development segment and the land development segment.

The water and wastewater resource development business includes selling water 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 wastewater. The land development segment includes all the activities necessary to develop and sell finished lots, which as of and for the three months ended November 30, 2020 and 2019, was done exclusively at the Company’s Sky Ranch Master Planned Community.

Oil and gas operations, although material in certain years, are deemed a passive activity as the CODM does not actively allocate resources to these projects; therefore, this is not classified as a reportable segment.

The tables below present the measure of profit and assets the CODM uses to assess the performance of the segment for the periods presented:

   
Three Months Ended November 30, 2020
  
   
Water and
wastewater resource
development
    
Land
development
    
Corporate
    
Total
  
   
(In thousands)
  
Total Revenue
  
$
2,512
    
$
2,356
    
$
—
    
$
4,868
  
Cost of revenue
    
(661
)
    
(1,719
)
    
—
      
(2,380
)
Depreciation and depletion
    
(365
)
    
—
      
—
      
(365
)
Total cost of revenue
    
(1,026
)
    
(1,719
)
    
—
      
(2,745
)
Gross Margin
    
1,486
      
637
      
—
      
2,123
  
Pretax operating income
  
$
1,486
    
$
637
    
$
(1,170
)
  
$
953
  

   
Three Months Ended November 30, 2019
  
   
Water and
wastewater
resource
development
    
Land
development
    
Corporate
    
Total
  
   
(In thousands)
  
Total Revenue
  
$
1,918
    
$
8,542
    
$
—
    
$
10,460
  
Cost of revenue
    
(304
)
    
(8,063
)
    
—
      
(8,367
)
Depreciation and depletion
    
(219
)
    
—
      
—
      
(219
)
Total cost of revenue
    
(523
)
    
(8,063
)
    
—
      
(8,586
)
Gross Margin
    
1,395
      
479
      
—
      
1,874
  
Reimbursement of construction costs
    
—
      
6,276
      
—
      
6,276
  
Gross Margin after reimbursables
  
$
1,395
    
$
6,755
    
$
—
    
$
8,150
  
Pretax operating income
  
$
1,395
    
$
479
    
$
(886
)
  
$
988
  

The following table summarizes total assets for the Company’s water and wastewater resource development business and land development business by segment.  The assets consist of water rights and water and wastewater systems in the Company’s water and wastewater resource development segment and land, inventories and deposits in the Company’s land development segment. The Company’s other assets (“Corporate”) primarily consist of cash and cash equivalents, equipment, mineral rights, related party notes receivables and an income tax receivable.

   
November 30, 2020
    
August 31, 2020
  
   
(In thousands)
  
Water and wastewater resource development
  
$
55,376
    
$
56,267
  
Land development
    
6,598
      
6,975
  
Corporate
    
26,979
      
26,519
  
Total assets
  
$
88,953
    
$
89,761