Pure Cycle Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

PRESENTATION OF INTERIM INFORMATION (Tables)

PRESENTATION OF INTERIM INFORMATION (Tables)

3 Months Ended

Nov. 30, 2019

PRESENTATION OF INTERIM INFORMATION [Abstract]

The following table summarizes all reimbursable costs incurred to date, payments made from the CAB and any outstanding reimbursable amounts.

	As of November 30, 2019
	Costs incurred to date		Payments repaid by CAB		Net costs incurred to date
Construction support activities	$	533,500	$	—	$	533,500
Project management services		869,900		—		869,900
Public Improvements		22,966,400		10,505,000		12,461,400
Accrued interest		1,031,700		—		1,031,700
Total reimbursable costs	$	25,401,500	$	10,505,000	$	14,896,500

Changes in Contract Asset and Deferred Revenue

The Company did not have a contract asset at November 30, 2019 or August 30, 2019. The contract asset at November 30, 2018, related solely to the Company’s land development activities.

Changes in contract asset were as follows:

	November 30, 2019		August 31, 2019
Balance, beginning of period	$	—	$	—
Recognition of revenue contract asset		—		1,020,146
Contract asset invoiced		—		(1,020,146	)
Balance, end of period	$	—	$	—

Deferred revenue by segment is as follows:

	November 30, 2019		August 31, 2019
Land development activities	$	1,143,771	$	3,991,535
Oil and gas leases and water sales payment		1,861,496		1,067,348
Balance, end of period	$	3,005,267	$	5,058,883

The current portion of deferred revenue for oil and gas leases and water sales payment as of November 30, 2019 and August 31, 2019, is $1,548,063 and $706,464, respectively. There were no water segment deferred revenues as of November 30, 2019 and August 31, 2019.

Changes in deferred revenue were as follows:

	November 30, 2019			August 31, 2019
Balance, beginning of period	$	5,058,883		$	1,846,630
Deferral of revenue		8,469,154			12,700,065
Recognition of unearned revenue		(10,522,770	)		(9,487,812	)
Balance, end of period	$	3,005,267		$	5,058,883