Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v3.19.1
SEGMENT INFORMATION
 6 Months Ended
Feb. 28, 2019
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 the Chief Executive Officer.

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

The wholesale water and wastewater services business includes selling 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 lots (see Note 2 – Summary of Significant Accounting Policies in Part II, Item 8 of the 2018 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 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 February 28,
    
Six Month Ended February 28
  
   
2019
    
2018
    
2019
    
2018
  
Wholesale water and wastewater services
  
$
684,038
    
$
844,661
    
$
2,375,391
    
$
1,854,793
  
Land development activities
    
1,946,381
      
—
      
3,327,577
      
-
  
Total revenues
  
$
2,630,419
    
$
844,661
    
$
5,702,968
    
$
1,854,793
  

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

   
Three Months Ended February 28,
    
Six Months Ended February 28,
  
   
2019
    
2018
    
2019
    
2018
  
Wholesale water and wastewater services
  
$
257,509
    
$
564,924
    
$
1,420,582
    
$
1,080,204
  
Land development activities
    
116,783
      
—
      
199,655
      
-
  
Corporate
    
(470,317
)
    
(464,762
)
    
(1,082,290
)
    
(1,076,653
)
Total pretax income (loss)
  
$
(96,025
)
  
$
100,162
    
$
537,947
    
$
3,551
  

The following table summarizes total assets for the Company’s wholesale water and wastewater services business and land development business 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, 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.

   
February 28, 2019
    
August 31, 2018
  
Wholesale water and wastewater services
  
$
41,993,268
    
$
36,721,884
  
Land development activities
    
16,732,957
      
9,497,106
  
Corporate
    
15,619,708
      
25,687,625
  
Total assets
  
$
74,345,933
    
$
71,906,615