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 87% and 22% of the Company’s total water and wastewater revenues for the three months ended February 29, 2020 and February 28, 2019 respectively. Sales to the Rangeview District accounted for 76% and 7% of the Company’s total water and wastewater revenues for the six months ended February 29, 2020 and February 28, 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 35%, 29% and 0%, respectively, of the Company’s total water and wastewater revenues for the three months ended February 29, 2020, and 16%, 0% and 0%, respectively, for the three months ended February 28, 2019. Ridgeview, Sky Ranch and Wild Pointe accounted for 31%, 15% and 14%, respectively, and 5%, 0% and 0%, respectively, for the six months ended February 28, 2019.

Revenues related to the provision of water for the oil and gas industry to one customer accounted for approximately 23% of the Company’s water and wastewater revenues for the three months ended February 29, 2020. Revenues related to the provision of water for the oil and gas industry to two customers represented approximately 52% and 21%, respectively, of the Company’s water and wastewater revenues for the three months ended February 28, 2019. Revenues related to the provision of water for the oil and gas industry to one customer represented approximately 23% of the Company’s water and wastewater revenues for the six months ended February 29, 2020. Revenues related to the provision of water for the oil and gas industry to two customers represented approximately and 48% and 43%, respectively, for the six months ended February 29, 2020 and February 28, 2019 .

Land Development

Revenues from three customers represented 100% of the Company’s land development revenues for the three months ended February 29, 2020. The three customers represented 62%, 28% and 10%, respectively, of the Company’s land development revenues for the three months ended February 29, 2020. Revenues from three customers represented 100% of the Company’s land development revenues for the three months ended February 28, 2019. The three customers represented 58%, 27% and 15%, respectively, of the Company’s land development revenues for the three months ended February 28, 2019.

Revenues from three customers represented 100% of the Company’s land development revenues for the six months ended February 29, 2020 and February 28, 2019. The three customers represented 61%, 27% and 12%, respectively, of the Company’s land development revenues for the six months ended February 29, 2020 and 61%, 30% and 9%, respectively, of the Company’s land development revenues for the six months ended February 28, 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 February 29, 2020 and August 31, 2019, respectively. The Company had accounts receivable from one other customer which accounted for approximately 14% and 57% of its trade receivable balances at February 29, 2020 and August 31, 2019, respectively. Accounts receivable from Ridgeview accounted for 5% and 5% of the Company’s water and wastewater trade receivables as of February 29, 2020 and August 31, 2019, respectively. Accounts receivable from Wild Pointe accounted for 41% and 0% of the Company’s water and wastewater trade receivables as of February 29, 2020 and August 31, 2019, respectively.