NOTE 7 – SIGNIFICANT CUSTOMERS

Water and Wastewater

Pursuant to the Rangeview Water Agreements (defined in Note 4 – Water and Land Assets in Part II, Item 8 of the 2019 Annual Report) and an Export Service Agreement entered into with the Rangeview District dated June 16, 2017, the Company provides water and wastewater services on the Rangeview District’s behalf to the Rangeview District’s customers. Sales to the Rangeview District accounted for 51% and 5% of the Company’s total water and wastewater revenues for the three months ended November 30, 2019 and 2018, respectively. The Rangeview District has one significant customer, the Ridgeview Youth Services Center. The Rangeview District’s significant customer accounted for 38% and 3% of the Company’s total water and wastewater revenues for the three months ended November 30, 2019 and 2018, respectively.

Revenues related to the provision of water for the oil and gas industry to one customer accounted for approximately 30% of the Company’s water and wastewater revenues for the three months ended November 30, 2019. Revenues related to the provision of water for the oil and gas industry to two customers represented approximately 52% and 42%, respectively, of the Company’s water and wastewater revenues for the three months ended November 30, 2018.

Land Development

Revenues from three customers represented 100% of the Company’s land development revenues for the three months ended November 30, 2019. The three customers represented 74%, 17% and 9%, respectively, of the Company’s land development revenues for the three months ended November 30, 2019. Revenues from two customers represented 100% of the Company’s land development revenues for the three months ended November 30, 2018. The two customers represented 66% and 34%, respectively, of the Company’s land development revenues for the three months ended November 30, 2018.

Accounts Receivable

The Company had accounts receivable from the Rangeview District which accounted for 74% and 40% of the Company’s trade receivables balances at November 30, 2019 and August 31, 2019, respectively. The Company had accounts receivable from one other customer which accounted for approximately 15% and 57% of its trade receivable balances at November 30, 2019 and August 31, 2019, respectively. Accounts receivable from the Rangeview District’s largest customer accounted for 6% and 5% of the Company’s water and wastewater trade receivables as of November 30, 2019 and August 31, 2019, respectively.