Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v3.21.1
SEGMENT INFORMATION
 6 Months Ended
Feb. 28, 2021
SEGMENT INFORMATION [Abstract]  
SEGMENT INFORMATION
NOTE 12 – SEGMENT INFORMATION

Because of the methods used by the Chief Operating Decision Maker (the “CODM”) to allocate resources, the Company has identified two operating segments which meet GAAP segment disclosure requirements, namely the water and wastewater resource development segment and the land development segment. A third segment, Build-to-Rent (“BTR”), will be presented once material to operations.

The water and wastewater resource development business includes selling water services 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. The land development segment includes all the activities necessary to develop and sell finished lots, which as of and for the six months ended February 28, 2021 and February 29, 2020, was done exclusively at the Company’s Sky Ranch Master Planned Community.

Oil and gas operations, although material in certain years, are deemed a passive activity as the CODM does not actively allocate resources to these projects; therefore, this is not classified as a reportable segment.

The tables below present the measure of profit and assets the CODM uses to assess the performance of the segment for the periods presented:

   
Three Months Ended February 28, 2021
  
   
Water and
wastewater resource
development
    
Land
development
    
Corporate
    
Total
  
   
(In thousands)
  
Total revenue
  
$
2,676
    
$
2,063
    
$
—
    
$
4,739
  
Cost of revenue
    
(640
)
    
(269
)
    
—
      
(909
)
Depreciation and depletion
    
(354
)
    
—
      
—
      
(354
)
Total cost of revenue
    
(994
)
    
(269
)
    
—
      
(1,263
)
Gross margin
   $
1,682
     $
1,794
     $
—
     $
3,476
  

   
Three Months Ended February 29, 2020
  
   
Water and
wastewater resource
development
    
Land
development
    
Corporate
    
Total
  
   
(In thousands)
  
Total revenue
  
$
1,254
    
$
2,265
    
$
—
    
$
3,519
  
Cost of revenue
    
(248
)
    
(1,817
)
    
—
      
(2,065
)
Depreciation and depletion
    
(383
)
    
—
      
—
      
(383
)
Total cost of revenue
    
(631
)
    
(1,817
)
    
—
      
(2,448
)
Gross margin
  
$
623
    
$
448
    
$
—
    
$
1,071
  

   
Six Months Ended February 28, 2021
  
   
Water and
wastewater resource
development
    
Land
development
    
Corporate
    
Total
  
   
(In thousands)
  
Total revenue
  
$
5,188
    
$
4,419
    
$
—
    
$
9,607
  
Cost of revenue
    
(1,301
)
    
(1,988
)
    
—
      
(3,289
)
Depreciation and depletion
    
(719
)
    
—
      
—
      
(719
)
Total cost of revenue
    
(2,020
)
    
(1,988
)
    
—
      
(4,008
)
Gross margin
   $
3,168
     $
2,431
     $
—
     $
5,599
  

   
Six Months Ended February 29, 2020
  
   
Water and
wastewater resource
development
    
Land
development
    
Corporate
    
Total
  
   
(In thousands)
  
Total revenue
  
$
3,172
    
$
10,807
    
$
—
    
$
13,979
  
Cost of revenue
    
(552
)
    
(9,880
)
    
—
      
(10,432
)
Depreciation and depletion
    
(602
)
    
—
      
—
      
(602
)
Total cost of revenue
    
(1,154
)
    
(9,880
)
    
—
      
(11,034
)
Gross margin
   $
2,018
     $
927
     $
—
     $
2,945
  

The following table summarizes total assets for the Company’s water and wastewater resource development business and land development business by segment.  The assets consist of water rights and water and wastewater systems in the Company’s water and wastewater resource development segment and land, inventories and deposits in the Company’s land development segment. The Company’s other assets (“Corporate”) primarily consist of cash, cash equivalents and restricted cash, equipment, and related party notes receivables.

   
February 28, 2021
    
August 31, 2020
  
   
(In thousands)
  
Water and wastewater resource development
  
$
54,949
    
$
56,267
  
Land development
    
6,338
      
6,975
  
Corporate
    
47,239
      
26,519
  
Total assets
  
$
108,526
    
$
89,761