7. SIGNIFICANT CUSTOMERS |
3 Months Ended |
|---|---|
Nov. 30, 2016 | |
| Significant Customers | |
| SIGNIFICANT CUSTOMERS |
The Company sells wholesale water and wastewater services to the District pursuant to the Rangeview Water Agreements (defined in Note 4 – Water and Land Assets to the 2016 Annual Report). Sales to the District accounted for 39% and 70% of the Company’s total water and wastewater revenues for the three months ended November 30, 2016 and 2015, respectively. The District has one significant customer, the Ridgeview Youth Services Center. Pursuant to the Rangeview Water Agreements, the Company is providing water and wastewater services to this customer on behalf of the District. The District’s significant customer accounted for 31% and 61% of the Company’s total water and wastewater revenues for the three months ended November 30, 2016 and 2015, respectively.
Revenues related to the provision of water for the oil and gas industry to one customer accounted for 52% of the Company’s water and wastewater revenues for the three months ended November 30, 2016, respectively. The Company had no revenues related to the provision of water for the oil and gas industry for the three months ended November 30, 2015.
The Company had accounts receivable from the District which accounted for 50% and 74% of the Company’s wholesale water and wastewater trade receivables balances at November 30, 2016 and August 31, 2016, respectively. Accounts receivable from the District’s largest customer accounted for 42% and 63% of the Company’s water and wastewater trade receivables as of November 30, 2016 and August 31, 2016, respectively.
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