NOTE 7 – SIGNIFICANT CUSTOMERS

Water and Wastewater

Revenues related to the provision of water for the oil and gas industry to one customer accounted for approximately 93% and 87% of the Company’s water and wastewater revenues for the three months ended May 31, 2019 and 2018, respectively. Revenues related to the provision of water for the oil and gas industry to two customers accounted for approximately 67% and 25%, respectively, of the Company’s water and wastewater revenues for the nine months ended May 31, 2019. Revenues related to the provision of water for the oil and gas industry to three customers represented approximately 71% 12% and 10%, respectively, of the Company’s water and wastewater revenues for the nine months ended May 31, 2018.

Land Development

Revenues from three customers represented 100% of the Company’s land development revenues for the three months ended May 31, 2019. The three customers represented 65%, 25% and 10%, respectively, of the Company’s land development revenues for the three months ended May 31, 2019. Revenues from three customers represented 100% of the Company’s land development revenues for the nine months ended May 31, 2019. The three customers represented 45%, 34% and 21%, respectively, of the Company’s land development revenues for the nine months ended May 31, 2019. No revenues were recognized from the Company’s land development activities for the three or nine months ended May 31, 2018.

Accounts Receivable

The Company had accounts receivable from the Rangeview District which accounted for 78% and 3% of the Company’s trade receivables balances at May 31, 2019 and August 31, 2018, respectively. The Company had accounts receivable from two other customers of approximately 43% and 30%, respectively, at August 31, 2018. Of the trade receivables from the Rangeview District as of May 31, 2019, approximately 94% is related to water tap sales and 6% is related to water and wastewater service sales.