NOTE 7 – SIGNIFICANT CUSTOMERS

Water and Wastewater

Pursuant to the Rangeview Water Agreements (defined in Note 4 – Water and Land Assets in Part II, Item 8 of the 2019 Annual Report) and an Export Service Agreement entered into with the Rangeview District dated June 16, 2017, the Company provides water and wastewater services on the Rangeview District’s behalf to the Rangeview District’s customers. Sales to the Rangeview District accounted for 72% and 6% of the Company’s total water and wastewater revenues for the three months ended May 31, 2020 and 2019 respectively. Sales to the Rangeview District accounted for 68% and 5% of the Company’s total water and wastewater revenues for the nine months ended May 31, 2020 and 2019, respectively. The Rangeview District has three significant customers, the Ridgeview Youth Services Center (“Ridgeview”), Sky Ranch Community Development (“Sky Ranch”) and Elbert & Highway 86 Commercial District (“Wild Pointe”). The Rangeview District’s significant customers accounted for 21%, 39% and 10%, respectively, of the Company’s total water and wastewater revenues for the three months ended May 31, 2020, and 2%, 0% and 4%, respectively, for the three months ended May 31, 2019. Ridgeview, Sky Ranch and Wild Pointe accounted for 27%, 24% and 13%, respectively, and 3%, 0% and 2%, respectively, for the nine months ended May 31, 2020 and 2019.

Revenues related to the provision of water for the oil and gas industry to one customer accounted for 11% of the Company’s water and wastewater revenues for the three months ended May 31, 2020. Revenues related to the provision of water for the oil and gas industry to one customer represented 93% of the Company’s water and wastewater revenues for the three months ended May 31, 2019. Revenues related to the provision of water for the oil and gas industry to one customer represented approximately 19% of the Company’s water and wastewater revenues for the nine months ended May 31, 2020. Revenues related to the provision of water for the oil and gas industry to two customers represented 67% and 25%, respectively, for the nine months ended May 31, 2019.

Land Development

Revenues from two customers represented 100% of the Company’s lot sales revenues for the three months ended May 31, 2020. The two customers represented 67% and 33%, respectively, of the Company’s lot sales revenues for the three months ended May 31, 2020. Revenues from three customers represented 100% of the Company’s lot sales revenues for the three months ended May 31, 2019. The three customers represented 65%, 25% and 10%, respectively, of the Company’s lot sales revenues for the three months ended May 31, 2019.

Revenues from three customers represented 100% of the Company’s lot sales revenues for the nine months ended May 31, 2020 and May 31, 2019. The three customers represented 61%, 25% and 14%, respectively, of the Company’s land development revenues for the nine months ended May 31, 2020 and 45%, 34% and 21%, respectively, of the Company’s lot sales revenues for the nine months ended May 31, 2019.

Accounts Receivable

The Company had accounts receivable from the Rangeview District which accounted for 76% and 40% of the Company’s trade receivables balances at May 31, 2020 and August 31, 2019, respectively. The Company had accounts receivable from one other customer which accounted for approximately 10% and 57% of its trade receivable balances at May 31, 2020 and August 31, 2019, respectively. Accounts receivable from Ridgeview accounted for 7% and 5% of the Company’s water and wastewater trade receivables as of May 31, 2020 and August 31, 2019, respectively. Accounts receivable from Wild Pointe accounted for 18% and 0% of the Company’s water and wastewater trade receivables as of May 31, 2020 and August 31, 2019, respectively.