In June 2017, the Company entered into agreements with three national home builders, Richmond American Homes, KB Home and Taylor Morrison, for the sale of 506 single family lots in its first phase of Sky Ranch. The agreements provide for earnest money deposits and a 60-day due diligence investigation. The lot prices range from $67,500 to $75,000 depending on the lot size and specific terms and conditions of the agreement with each builder. The Company will be responsible for developing finished lots and believes it has adequate liquidity to fund the improvements needed to deliver finished lots to each builder. The Company considers lot sales to be a separate line of business and will disclose the sales as a separate segment from the wholesale water and wastewater business. This segment will include certain Sky Ranch Land assets totaling approximately $4.2 million, which are recorded on the balance sheet at May 31, 2017.