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)

6 Months Ended

Feb. 29, 2020

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 February 29, 2020
	Costs incurred to date		Payments repaid by CAB		Net costs incurred to date
Construction support activities	$	555,200	$	—	$	555,200
Project management services		1,304,400		—		1,304,400
Public Improvements		24,575,200		10,505,000		14,070,200
Accrued interest		1,031,900		—		1,031,900
Total reimbursable costs	$	27,466,700	$	10,505,000	$	16,961,700

Changes in Contract Asset and Deferred Revenue

The Company did not have a contract asset at February 29, 2020, February 28, 2019 or August 31, 2019.

Changes in contract asset were as follows:

	February 29, 2020		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:

	February 29, 2020		August 31, 2019
Land development activities	$	3,169,505	$	3,991,535
Oil and gas leases and water sales payment		2,544,388		1,067,348
Balance, end of period	$	5,713,893	$	5,058,883

The current portion of deferred revenue for oil and gas leases and water sales payment as of February 29, 2020 and August 31, 2019, is $2,283,763 and $706,464, respectively. There were no water segment deferred revenues as of February 28, 2019 and August 31, 2019.

Changes in deferred revenue were as follows:

	February 29, 2020			August 31, 2019
Balance, beginning of period	$	5,058,883		$	1,846,630
Deferral of revenue		14,758,101			12,700,065
Recognition of unearned revenue		(14,103,091	)		(9,487,812	)
Balance, end of period	$	5,713,893		$	5,058,883