Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v3.20.2
SEGMENT INFORMATION
 9 Months Ended
May 31, 2020
SEGMENT INFORMATION [Abstract]  
SEGMENT INFORMATION
NOTE 10 – SEGMENT INFORMATION

An operating segment is defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Chief Operating Decision Maker (the “CODM”), or decision-making group, to evaluate performance and make operating decisions. The Company has identified its CODM as its Chief Executive Officer.

During the year 2018, the Company began construction of residential lots at Sky Ranch, which the Company has identified as a segment. Currently, the Company operates its wholesale water and wastewater services and land development activities at Sky Ranch as the Company's two operating segments.

The wholesale water and wastewater services business includes providing water service 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.

As part of the Company’s land development activities at Sky Ranch, the Company entered into contracts for the sale of residential lots (see Note 2 – Summary of Significant Accounting Policies in Part II, Item 8 of the 2019 Annual Report). The Company identified land development and lot sales as a separate segment beginning in the fiscal year 2018.

Oil and gas royalties and licenses are a passive activity (i.e. the Company’s CODM does not evaluate the performance of, or allocate resources specifically to, the oil and gas operations) and not an operating business activity and, therefore, are not classified as a segment.

The following table summarizes wholesale water and wastewater services and land development revenue information by segment:

 
 
Three Months Ended
    
Nine Months Ended
  
 
 
May 31, 2020
  
May 31, 2019
    
May 31, 2020
    
May 31, 2019
  
Wholesale water and wastewater services
  
$
1,153,951
    
$
2,476,570
    
$
4,326,207
    
$
4,851,961
  
Land development activities
    
696,170
      
2,708,093
      
11,503,523
      
6,035,670
  
Total revenues
  
$
1,850,121
    
$
5,184,663
    
$
15,829,730
    
$
10,887,631
  

The following table summarizes wholesale water and wastewater services and land development pretax income by segment:

   
Three Months Ended
    
Nine Months Ended
  
   
May 31, 2020
    
May 31, 2019
    
May 31, 2020
    
May 31, 2019
  
Wholesale water and wastewater services
  
$
603,158
    
$
1,802,340
    
$
2,621,356
    
$
3,222,922
  
Land development activities
    
140,390
      
120,021
      
7,342,810
      
319,676
  
Corporate
    
(707,273
)
    
(660,990
)
    
(1,925,548
)
    
(1,743,280
)
Total pretax income (loss)
  
$
36,275
    
$
1,261,371
    
$
8,038,618
    
$
1,799,318
  

The following table summarizes total assets by segment.  The assets consist of water rights and water and wastewater systems in the Company’s wholesale water and wastewater services segment. The assets consist of land, land development inventories and deposits in the Company’s land development segment.  The Company’s other assets primarily consist of cash and cash equivalents, equipment, mineral rights, related party notes receivables and a deferred tax asset.

   
May 31, 2020
    
August 31, 2019
  
Wholesale water and wastewater services
  
$
56,244,054
    
$
51,588,079
  
Land development activities
    
9,498,852
      
16,866,542
  
Corporate
    
22,466,167
      
15,266,783
  
Total assets
  
$
88,209,073
    
$
83,721,404