Pure Cycle (PCYO) 10-Q11 Apr 222022 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Feb. 28, 2022	Apr. 07, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Feb. 28, 2022
Entity File Number	000-08814
Entity Registrant Name	PURE CYCLE CORPORATION
Entity Incorporation, State or Country Code	CO
Entity Tax Identification Number	84-0705083
Entity Address, Address Line One	34501 E. Quincy Avenue, Bldg. 34
Entity Address, City or Town	Watkins
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80137
City Area Code	303
Local Phone Number	292 – 3456
Title of 12(b) Security	Common Stock 1/3 of $.01 par value
Trading Symbol	PCYO
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		23,958,522
Entity Central Index Key	0000276720
Current Fiscal Year End Date	--08-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2022
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Feb. 28, 2022	Aug. 31, 2021
Current assets:
Cash and cash equivalents	$ 5,215	$ 20,117
Trade accounts receivable, net	2,038	1,532
Prepaid expenses and other assets	975	458
Land under development	1,080	608
Notes receivable - reimbursable public improvements - related party	16,000	16,000
Total current assets	25,308	38,715
Restricted cash	2,328	2,327
Investments in water and water systems, net	53,250	53,786
Construction in progress	2,731	3,304
Single-family rental units	997
Land and mineral rights:
Held for development	7,872	5,924
Held for investment purposes	451	451
Other assets	2,494	2,591
Operating leases - right of use assets, less current portion	83	122
Total assets	113,361	117,177
Current liabilities:
Accounts payable	873	1,787
Accrued liabilities	1,005	1,224
Accrued liabilities - related parties	668	2,881
Income taxes payable	87	4,163
Deferred lot sale revenues	1,203	1,995
Deferred water sales revenues	439	410
Debt, current portion	12
Total current liabilities	4,287	12,460
Participating interests in export water supply	324	325
Debt, less current portion	988
Deferred tax liability, net	1,410	1,615
Lease obligations - operating leases, less current portion		37
Total liabilities	7,009	14,437
Commitments and contingencies
SHAREHOLDERS' EQUITY:
Series B preferred shares par value $0.001 per share, 25 million authorized; 432,513 issued and outstanding (liquidation preference of $432,513)
Common shares par value 1/3 of $.01 per share, 40.0 million authorized; 23,958,522 and 23,916,633 outstanding, respectively	80	80
Additional paid-in capital	173,918	173,513
Accumulated deficit	(67,646)	(70,853)
Total shareholders' equity	106,352	102,740
Total liabilities and shareholders' equity	113,361	117,177
Phase 1 Reimbursable Costs [Member]
Land and mineral rights:
Notes receivable - related parties, including accrued interest:	16,963	8,794
Other [Member]
Land and mineral rights:
Notes receivable - related parties, including accrued interest:	$ 884	$ 1,163

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Feb. 28, 2022	Aug. 31, 2021
SHAREHOLDERS' EQUITY:
Common stock, par value (in dollars per share)	$ 0.003	$ 0.003
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares outstanding (in shares)	23,958,522	23,916,633
Series B Preferred Stock [Member]
SHAREHOLDERS' EQUITY:
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares issued (in shares)	432,513	432,513
Preferred stock, shares outstanding (in shares)	432,513	432,513
Liquidation preference	$ 432,513	$ 432,513

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2022	Feb. 28, 2021	Feb. 28, 2022	Feb. 28, 2021
Revenues:
Revenues	$ 4,664	$ 4,739	$ 8,936	$ 9,607
Expenses:
Depletion and depreciation	352	354	706	719
Other	141	363	219	387
Total cost of revenues	1,507	1,263	2,891	4,008
General and administrative expenses	1,552	1,342	2,876	2,428
Depreciation	97	76	182	160
Operating income	1,508	2,058	2,987	3,011
Other income:
Interest income - related party	525	1,448	888	1,463
Recognition of public improvement reimbursables - related party		18,894		18,894
Reimbursement of construction costs - related party		485		485
Oil and gas royalty income, net	110	76	207	151
Oil and gas lease income, net	48	48	96	100
Other, net	14	10	25	20
Interest expense, net	(11)		(18)
Income from operations before income taxes	2,194	23,019	4,185	24,124
Income tax expense	501	5,667	978	5,927
Net income	$ 1,693	$ 17,352	$ 3,207	$ 18,197
Earnings per common share - basic and diluted
Basic (in dollars per share)	$ 0.07	$ 0.73	$ 0.13	$ 0.76
Diluted (in dollars per share)	$ 0.07	$ 0.72	$ 0.13	$ 0.76
Weighted average common shares outstanding:
Basic (in shares)	23,944,141	23,881,655	23,931,307	23,874,198
Diluted (in shares)	24,184,161	24,092,349	24,194,579	24,064,414
Water Service Operations [Member]
Expenses:
Expenses	$ 570	$ 213	$ 859	$ 758
Metered Water Usage - Municipal Customers [Member]
Revenues:
Revenues	83	74	404	241
Metered Water Usage-Commercial Customers [Member]
Revenues:
Revenues	1,527	583	1,913	1,782
Wastewater Service Operations [Member]
Expenses:
Expenses	99	64	228	156
Wastewater Treatment Fees [Member]
Revenues:
Revenues	64	51	119	93
Land Development Construction Costs [Member]
Expenses:
Expenses	295	269	826	1,988
Water and Wastewater Tap Fees [Member]
Revenues:
Revenues	913	1,583	1,174	2,666
Lot Sales [Member]
Revenues:
Revenues	1,629	515	4,574	2,871
Project Management Fees - Recognized [Member]
Revenues:
Revenues	200	1,548	448	1,548
Single Family Rentals [Member]
Revenues:
Revenues	26		34
Expenses:
Expenses	4		7
Special Facility Projects and Other [Member]
Revenues:
Revenues	222	$ 385	270	$ 406
Project Management Costs [Member]
Expenses:
Expenses	$ 46		$ 46

CONSOLIDATED STATEMENT OF SHARE

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Aug. 31, 2020		$ 80	$ 172,927	$ (90,963)	$ 82,044
Balance (in shares) at Aug. 31, 2020	432,513	23,856,098
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock option exercises			14		14
Stock option exercises (in shares)		20,277
Stock granted for services			136		136
Stock granted for services (in shares)		12,000
Share-based compensation			177		177
Net income				18,197	18,197
Balance at Feb. 28, 2021		$ 80	173,254	(72,766)	100,568
Balance (in shares) at Feb. 28, 2021	432,513	23,888,375
Balance at Nov. 30, 2020		$ 80	173,013	(90,118)	82,975
Balance (in shares) at Nov. 30, 2020	432,513	23,868,216
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock option exercises			14		14
Stock option exercises (in shares)		8,159
Stock granted for services			136		136
Stock granted for services (in shares)		12,000
Share-based compensation			91		91
Net income				17,352	17,352
Balance at Feb. 28, 2021		$ 80	173,254	(72,766)	100,568
Balance (in shares) at Feb. 28, 2021	432,513	23,888,375
Balance at Aug. 31, 2021		$ 80	173,513	(70,853)	102,740
Balance (in shares) at Aug. 31, 2021	432,513	23,916,633
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock option exercises			34		34
Stock option exercises (in shares)		29,889
Stock granted for services			159		159
Stock granted for services (in shares)		12,000
Share-based compensation			212		212
Net income				3,207	3,207
Balance at Feb. 28, 2022		$ 80	173,918	(67,646)	106,352
Balance (in shares) at Feb. 28, 2022	432,513	23,958,522
Balance at Nov. 30, 2021		$ 80	173,625	(69,339)	104,366
Balance (in shares) at Nov. 30, 2021	432,513	23,923,100
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock option exercises			34		34
Stock option exercises (in shares)		23,422
Stock granted for services			159		159
Stock granted for services (in shares)		12,000
Share-based compensation			100		100
Net income				1,693	1,693
Balance at Feb. 28, 2022		$ 80	$ 173,918	$ (67,646)	$ 106,352
Balance (in shares) at Feb. 28, 2022	432,513	23,958,522

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Feb. 28, 2022	Feb. 28, 2021
Cash flows from operating activities:
Net income	$ 3,207	$ 18,197
Adjustments to reconcile net income to net cash used by operating activities:
Depreciation and depletion	888	879
Share-based compensation expense	371	313
Deferred income taxes	(205)	71
Deferred water sales revenue	29	(2,346)
Land under development	(472)	108
Trade accounts receivable	(506)	(261)
Prepaid expenses	(596)	72
Deferred lot sale revenues	(792)
Accounts payable and accrued liabilities	(3,341)	(1,432)
Taxes payable net of taxes receivable	(4,076)	5,855
Other assets and liabilities	2	(56)
Recognition of public improvement reimbursables		(21,466)
Net cash used by operating activities	(13,685)	(87)
Cash flows from investing activities:
Net payments received on note receivable - related party, other	304
Investments in land held for development	(1,948)
Investments in water and water systems	(463)	(880)
Construction costs of single-family rentals	(142)
Purchase of property and equipment		(79)
Net cash used by investing activities	(2,249)	(959)
Cash flows from financing activities:
Proceeds from notes payable	1,000
Proceeds from option exercises	34	14
Payments to contingent liability holders	(1)	(2)
Net cash provided by financing activities	1,033	12
Net change in cash, cash equivalents and restricted cash	(14,901)	(1,034)
Cash, cash equivalents and restricted cash - beginning of period	22,444	21,797
Cash, cash equivalents and restricted cash - end of period	7,543	20,763
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	5,215	20,482
Restricted cash	2,328	281
Total cash, cash equivalents and restricted cash	7,543	20,763
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION AND NON-CASH ACTIVITIES
Income taxes paid	5,260
Change in reimbursable public improvements included in accounts payable and accrued liabilities	668
Transfer of land development costs to other assets		484
Transfer of land development costs to land under development		467
Change in land under development included in accounts payable and accrued liabilities		374
Change in investments in water and water systems included in accounts payable and accrued liabilities		90
Rangeview District [Member]
Adjustments to reconcile net income to net cash used by operating activities:
Change in note receivable from related party	(25)
Sky Ranch CAB [Member]
Adjustments to reconcile net income to net cash used by operating activities:
Change in note receivable from related party	(8,169)	$ (21)
Charter School Operator [Member]
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION AND NON-CASH ACTIVITIES
Sale of undeveloped land to charter school operator included with other income, net	$ 1,600

PRESENTATION OF INTERIM INFORMA

PRESENTATION OF INTERIM INFORMATION	3 Months Ended
PRESENTATION OF INTERIM INFORMATION	Feb. 28, 2022
PRESENTATION OF INTERIM INFORMATION [Abstract]
PRESENTATION OF INTERIM INFORMATION	NOTE 1 – PRESENTATION OF INTERIM INFORMATION The accompanying unaudited consolidated financial statements have been prepared by Pure Cycle Corporation (Company) and include all adjustments that are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows of the Company as of and for the three and six months ended February 28, 2022 and 2021. The August 31, 2021 balance sheet was derived from the Company’s audited consolidated financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted. It is suggested the accompanying consolidated financial statements and notes be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended August 31, 2021 (2021 Annual Report) filed with the Securities and Exchange Commission (SEC) on November 10, 2021. The results of operations for interim periods presented are not necessarily indicative of the operating results expected for the full fiscal year. Coronavirus (COVID-19) Since January 2020, the COVID-19 pandemic has caused substantial disruption in international and U.S. economies and markets. The impacts of the pandemic are continuing but have lessened as vaccines have become widely available in the U.S, although there have been periodic increases in the number of cases in the U.S. due to the spread of COVID-19 variants. The pandemic has resulted in government restrictions of various degrees and effective at various times, including stay-at-home orders, bans on travel, limitations on the size of gatherings, limitations on the operations of businesses deemed non-essential, closures of work facilities, schools, public buildings and businesses, cancellation of events (including entertainment events, conferences, and meetings), quarantines, mask mandates and social distancing measures. Due to the outbreak of COVID-19 and related restrictions, the second development phase of Sky Ranch was delayed due to the extended time taken to approve the platted lots through the county government. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used to account for certain items such as revenue recognition, reimbursable costs, costs of revenue for lot sales, share-based compensation, deferred tax asset valuation, and the useful lives and recoverability of long-lived assets. Actual results could differ from those estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment. During fiscal 2021, the Company determined the reimbursable public improvements, project management fees and interest income related to the Sky Ranch community being developed by the Company were probable of collectability. Historically, due to a lack of tax base and no operating history for the Sky Ranch Community Authority Board (Sky Ranch CAB), the Company was unable to estimate when or if it would receive payment for these items and deferred recognition of them until cash was received. As a result of an established and growing tax base resulting from the success of the initial development, increases in housing values in Colorado, added mill levies, and additional unencumbered fees received by the Sky Ranch CAB, the Company believes repayment of the public improvements, payment of the project management fees, and interest income are deemed probable. Based on this the Company has recognized these items in the consolidated financial statements. The timing and amount of potential payments have been estimated based on growth trends utilizing current assessed values and historic growth rates which have been projected to current and contracted lot sales through the contractual obligation period. Reclassifications The Company has reclassified certain prior year information to conform to the current year presentation .

REIMBURSABLE PUBLIC IMPROVEMENT

REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB	6 Months Ended
	Feb. 28, 2022
REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB
REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB	NOTE 2 – REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB The note receivable from the Sky Ranch CAB reports the balances owed by the Sky Ranch CAB to the Company for reimbursable public improvements, project management fees, and interest accrued on the unpaid balances related to the ongoing development of the Sky Ranch master planned community, which is described in greater detail in Note 1 and Note 14 to the 2021 Annual Report. The Company has advanced funds to the Sky Ranch CAB for the cost of public improvements at Sky Ranch which are the ultimate responsibility of the Sky Ranch CAB. During the second quarter of fiscal 2021, the Company determined that the Sky Ranch CAB would be able to repay the Company for those improvements, along with the project management fees and interest on these expenses. Upon that determination, the Company began recording the reimbursable public improvements as a receivable from the Sky Ranch CAB (as opposed to the costs being initially capitalized as land under development and subsequently expensed as land development construction costs) and began recognizing project management fee revenue and interest income on the entire note receivable from the Sky Ranch CAB. Prior to that date, payment was not deemed to be probable; therefore, the Company capitalized those costs as land under development and subsequently expensed the reimbursable public improvements and did not recognize any project management fees or interest income due to the uncertainty of collectability. During the three and six months ended February 28, 2022, the Company spent $2.7 million and $6.8 million on public improvements which are payable by the Sky Ranch CAB to the Company and added to the note receivable from the Sky Ranch CAB. Additionally, for the three and six months ended February 28, 2022, project management fees owed to the Company of $0.2 million and $0.4 million, and interest income on the outstanding note receivable of $0.5 million and $0.9 million were also added to the note receivable. Public improvements which are not probable of reimbursement at the time of being incurred are considered contract fulfillment costs and are expensed as land development construction costs as incurred. If public improvement costs are deemed probable of collection, the costs are recognized as notes receivable - related party. The Company assesses the collectability of the note receivable from the Sky Ranch CAB, which includes reimbursable public improvements, project management fees and the related interest income, when events or circumstances indicate the amounts may not be recoverable. The Sky Ranch CAB has an obligation to repay the Company, but the ability of the Sky Ranch CAB to do so before the contractual termination dates is dependent upon the establishment of a tax base or other fee generating activities sufficient to fund reimbursable costs incurred. The following table summarizes the activity and balances associated with the reimbursable public improvements, project management fees, and accrued interest, all of which are included in the note receivable from the Sky Ranch CAB: (In thousands) Balances at August 31, 2021 Activity during the six months ended February 28, 2022 Amounts payable by the Sky Ranch CAB at February 28, 2022 Phase 1 Reimbursable public improvements and other $ 17,645 $ 335 $ 17,980 Accrued interest 2,526 676 3,202 Project management services 1,570 16 1,586 Phase 1 reimbursable costs $ 21,741 $ 1,027 $ 22,768 Phase 2 Reimbursable public improvements and other $ 2,935 $ 6,498 $ 9,433 Accrued interest 33 212 245 Project management services 85 432 517 Phase 2 reimbursable costs $ 3,053 $ 7,142 $ 10,195 Total reimbursable costs $ 24,794 $ 8,169 $ 32,963 Total reimbursable costs $ 24,794 $ 8,169 $ 32,963 Less current portion 16,000 — 16,000 Non-current reimbursable costs $ 8,794 $ 8,169 $ 16,963 The note receivable from the Sky Ranch CAB accrues interest at 6% per annum.

REVENUES, FEES AND OTHER INCOME

REVENUES, FEES AND OTHER INCOME ITEMS	3 Months Ended
REVENUES, FEES AND OTHER INCOME ITEMS	Feb. 28, 2022
REVENUE [Abstract]
REVENUES, FEES AND OTHER INCOME ITEMS	NOTE 3 – REVENUES, FEES AND OTHER INCOME ITEMS Water, wastewater and land development revenue The Company’s revenue is primarily generated from the sale of lots to homebuilders, sales of water and wastewater taps, and metered water and wastewater usage. Detailed descriptions of the policies related to revenue recognition are included in Note 2 to the 2021 Annual Report. The following describes significant components of revenue for the three and six months ended February 28, 2022 and 2021. Sale of finished lots The Company also recognizes revenue from the sale of finished lots, whereby the home builder pays for a ready-to-build finished lot and the sales price is paid in a lump-sum upon completion of the finished lot that is permit ready. The Company recognizes revenues at the point in time of the closing of the sale of a finished lot in which control transfers to the builder as the transaction cycle is complete and the Company has no further obligations for the lot. For the three months ended February 28, 2022 and 2021, the Company recognized no revenue from ready-to-build finished lots. For the six months ended February 28, 2022 and 2021, the Company recognized $0 and $1.6 million from ready-to-build finished lots. Water and wastewater tap fees Project management services Single-family rental income In November 2021, the Company began renting single-family homes and began recognizing lease income related to these rental units. The Company generally rents its single-family properties under non-cancelable lease agreements with a term of one year . Undeveloped land sale and cash-in-lieu to school district During the six months ended February 28, 2022, the Company entered various agreements to sell approximately 32 acres of undeveloped land in Sky Ranch for $1.6 million to a charter school operator for the purpose of constructing and operating a charter school. Simultaneously, pursuant to dedication standards issued by Arapahoe County (the county where Sky Ranch is located), the Company agreed to a $1.6 million cash-in-lieu payment to the Bennett School District to assist the school district with providing education facilities to the Sky Ranch Master Planned Community. The land sale agreements include requirements for the Company to construct, or have constructed, certain improvements leading to the school site such as roads, sidewalks, and landscaping, all of which were already planned to be constructed as part of the overall master development of Sky Ranch. The Company determined the transaction was consummated in February 2022, when all pre-closing conditions were satisfied, and proceeds were received. Deferred revenue Changes and balances of the Company’s deferred revenue accounts by segment are as follows: Water and Wastewater Resource Development Land Development Total (In thousands) Three Months Ended February 28, 2022 Balance at November 30, 2021 $ 271 $ 2,831 $ 3,102 Revenue recognized (202) (1,628) (1,830) Revenue deferred 370 - 370 Balance at February 28, 2022 $ 439 $ 1,203 $ 1,642 Three Months Ended February 28, 2021 Balance at November 30, 2020 $ 713 $ 1,462 $ 2,175 Revenue recognized (453) (2,698) (3,151) Revenue deferred - 2,231 2,231 Balance at February 28, 2021 $ 260 $ 995 $ 1,255 Water and Wastewater Resource Development Land Development Total (In thousands) Six Months Ended February 28, 2022 Balance at August 31, 2021 $ 410 $ 1,995 $ 2,405 Revenue recognized (341) (4,575) (4,916) Revenue deferred 370 3,783 4,153 Balance at February 28, 2022 $ 439 $ 1,203 $ 1,642 Six Months Ended February 28, 2021 Balance at August 31, 2020 $ 1,965 $ 1,635 $ 3,600 Revenue recognized (1,705) (2,871) (4,576) Revenue deferred - 2,231 2,231 Balance at February 28, 2021 $ 260 $ 995 $ 1,255 The Company receives deposits or pre-payments from oil and gas operators to reserve water for use in future well drilling operations. When the operators use the water, the Company recognizes the revenue for these payments in the metered water usage from the commercial customers line on the statement of operations. The Company recognizes certain lot sales over time as construction activities progress for lots sold pursuant to lot development agreements and not when payment is received. For example, the Company may receive milestone payments before revenue can be recognized (i.e., prior to the Company completing cumulative progress which faithfully represents the transfer of goods and services to the customer) which results in the Company recording deferred revenue. The Company recognizes this revenue into income as construction activities progress, measured based on costs incurred compared to total estimated costs of the project, which management believes is a faithful representation of the transfer of goods and services to the customer. Revenue allocated to remaining performance obligations such as described above represents contracted revenue that has not yet been recognized, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. During November 2021, the Company received a milestone payment of $3.8 million for outstanding open contracts related to lot sales in the first subphase of the second development phase at Sky Ranch. This revenue is being recognized over time.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
FAIR VALUE MEASUREMENTS	Feb. 28, 2022
FAIR VALUE MEASUREMENTS [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 4 – FAIR VALUE MEASUREMENTS Fair value accounting guidance includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). The Company maintains policies and procedures to value instruments using what management believes to be the best and most relevant data available. The carrying value for certain of the Company’s financial instruments (i.e., cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities) approximates fair value because of their short-term nature and generally negligible credit losses. As of February 28, 2022, the Company has one Level 2 liability, the SFR Note (defined in Note 6) entered in November 2021, for which the Company has determined the valuation of the liability can be obtained from readily available pricing sources via independent providers for market transactions involving similar liabilities. As of August 31, 2021, the Company had no Level 2 assets or liabilities. There were no transfers between Level 1, 2 or 3 categories during the three or six months ended February 28, 2022 or 2021.

WATER, LAND AND OTHER FIXED ASS

WATER, LAND AND OTHER FIXED ASSETS	6 Months Ended
WATER, LAND AND OTHER FIXED ASSETS	Feb. 28, 2022
WATER, LAND AND OTHER FIXED ASSETS [Abstract]
WATER, LAND AND OTHER FIXED ASSETS	NOTE 5 – WATER, LAND AND OTHER FIXED ASSETS The Company’s water rights and current water and wastewater service agreements, including capitalized terms not defined herein, are more fully described in Note 4 to the 2021 Annual Report. Investment in Water and Water Systems The Company’s Investments in water and water systems consist of the following costs and accumulated depreciation and depletion: February 28, 2022 August 31, 2021 Accumulated Accumulated Depreciation Depreciation (In thousands) Costs and Depletion Costs and Depletion Rangeview water system $ 17,640 $ (1,779) $ 17,526 $ (1,470) Rangeview water supply 14,675 (17) 14,622 (17) Water supply – Other 7,566 (1,594) 7,569 (1,433) Sky Ranch water rights and other costs 7,327 (1,179) 7,338 (1,087) Sky Ranch pipeline 5,740 (889) 5,727 (793) Lost Creek water supply 3,374 — 3,374 — Fairgrounds water and water system 2,900 (1,371) 2,900 (1,327) Wild Pointe service rights 1,632 (775) 1,632 (775) Totals 60,854 (7,604) 60,688 (6,902) Net investments in water and water systems $ 53,250 $ 53,786 Construction in Progress Construction in progress represents costs incurred on various construction projects currently underway, that as of the balance sheet date have not been completed and placed into service. The construction in progress account consists primarily of water facilities being constructed which the Company anticipates will be placed in service during the next twelve months. During the six months ended February 28, 2022, the Company incurred (1) $0.5 million of costs related to its construction projects and (2) completed the three single-family rental units resulting in the transfer of $1.0 million of costs to a separate account for tracking the capitalized costs of the rental units. Single-Family Rental Homes During the six months ended February 28, 2022, the Company completed construction of the first three houses in its single-family rental business. The costs of the homes are capitalized and when applicable are depreciated over periods not exceeding thirty-years, which is dependent on the asset type. All three houses were placed in service and leased effective November 1, 2021. During the six months ended February 28, 2022, the Company contracted for construction of the fourth house to be used in the rental business. This fourth house is also located in the first development phase of Sky Ranch and construction is beginning in March 2022 with an estimated completion near the start of fiscal 2023. The Company has reserved 46 lots in the second development phase of Sky Ranch to build additional rental units. As of February 28, 2022, the Company had not started construction on any of the units in the second development phase.

DEBT AND OTHER LONG-TERM OBLIGA

DEBT AND OTHER LONG-TERM OBLIGATIONS	3 Months Ended
DEBT AND OTHER LONG-TERM OBLIGATIONS	Feb. 28, 2022
DEBT AND OTHER LONG-TERM OBLIGATIONS [Abstract]
DEBT AND OTHER LONG-TERM OBLIGATIONS	NOTE 6 – DEBT AND OTHER LONG-TERM OBLIGATIONS Single-Family Rental Home Note Payable On November 29, 2021, PCY Holdings, LLC, a wholly owned subsidiary of the Company, entered a Promissory Note (SFR Note) with its primary bank to reimburse amounts expended for the construction of the first three single-family rental units. The SFR note has the following terms: ● Initial principal amount of $1.0 million ● Floating per annum interest rate equal to the Western Edition of the “Wall Street Journal” Prime Rate plus 0.5% ( 3.75% as of February 28, 2022), which has a floor of 3.75% and a ceiling of 4.25% . In the event of default, the interest rate on the SFR Note would be increased by adding an additional 2.0% ● Maturity date of December 1, 2026 ● Six interest only payments beginning January 1, 2022 ● Fifty-three principal and interest payments each month beginning July 1, 2022 in the amount of $4,633.05 each ● Estimated final principal and interest balloon payment of $916,239.49 payable on December 1, 2026 ● Secured by the three single-family rental homes ● Required minimum debt service coverage ratio of 1.10 , measured annually based on audited financial statements, calculated as net operating income less distributions divided by required principal and interest payments, with net operating income defined as net income plus interest, depreciation, and amortization. The scheduled maturities of the SFR Note for each of the twelve-month periods ending February 28 are as follows (in thousands): (In thousands) Scheduled principal payments Within 1 year $ 12 Year 2 19 Year 3 19 Year 4 20 Year 5 930 Thereafter - $ 1,000 Working Capital Line of Credit On January 31, 2022, the Company entered into a Business Loan Agreement (Working Capital LOC) with its primary bank to provide a $5.0 million operating line of credit. The Working Capital LOC has a two-year maturity, monthly interest only payments if the line is drawn upon with unpaid principal and interest due at maturity, and a floating per annum interest rate equal to the Wall Street Journal Prime Rate plus 0.5% (3.75% as of February 28, 2022), which has a floor of 3.75%. In the event of default, the interest rate on the Working Capital LOC would be increased by adding an additional 2.0%. As of February 28, 2022, the Company has not drawn on the Working Capital LOC. Lot Construction Obligations In October 2020, November 2020, and February 2021, the Company entered separate contracts with KB Home, Melody (a DR Horton Company), Challenger Homes, and Lennar Colorado, LLC to sell 804 single-family attached and detached residential lots at Sky Ranch. This is the second development phase of Sky Ranch which incorporates approximately 250 acres, will be completed in four sub-phases, and is platted to include a total of 850 residential lots. The 46 lots not currently under contract to home builders are being retained for use in the Company’s single-family rental business. Pursuant to the contracts with the homebuilders, the Company and the Sky Ranch CAB are obligated to complete all construction activities required to deliver finished lots (i.e., lots ready for home construction) to the builders, including but not limited to grading, construction of wet and dry utilities, streets, curbs, and landscaping. In February 2021, the Company began construction on the first subphase of the second development phase, which includes a total of 229 lots, 10 of which are being retained for use in the single-family rental business, and 219 of which are sold under contracts to the four homebuilders listed above. As of February 28, 2022, the Company received plats for all 229 lots and had substantially completed grading and all wet utilities, with construction of streets, sidewalks, and dry utilities underway. The Company expects to deliver the first 219 completed lots to the homebuilders during the summer of 2022. From the start of the second development phase through February 28, 2022, the Company has spent $11.8 million on construction activities in the second development phase, of which $9.4 million was for public improvements which the Company believes it will be reimbursed by the Sky Ranch CAB. In the next eighteen months the Company anticipates spending an additional $8.7 million to complete the 229 finished lots, including the 10 lots for the single-family rental business, in the first subphase of the second development phase, of which $7.1 million is estimated to be for public improvements which the Company believes will be reimbursed by the Sky Ranch CAB. The Company believes it will take three years to complete construction for all 850 lots included in the four subphases of the second development phase and sell the 804 finished lots and complete 46 lots for the Company’s single family rental business depending on the market conditions and permitting process. As described in Note 3 above, the Company entered into a development agreement with a charter school operator, which includes requirements to construct, or have constructed, various defined off-site improvements, which will provide access and drainage to the school and the overall Sky Ranch development. The Company, as part of its overall master development plan for Sky Ranch, expected to build this infrastructure whether the school site was located at this location or not, so this does not change its overall cost projections for the master planned community. The Company believes it will spend $4.0 million for the infrastructure defined in the development agreement, which it believes will qualify as public improvements and be reimbursable by the Sky Ranch CAB.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
SHAREHOLDERS' EQUITY	Feb. 28, 2022
SHAREHOLDERS' EQUITY [Abstract]
SHAREHOLDERS' EQUITY	NOTE 7 – SHAREHOLDERS’ EQUITY The Company reserved 1.6 million shares of common stock for issuance to employees and directors pursuant to the Company’s 2014 Equity Incentive Plan (2014 Equity Plan). As of February 28, 2022 and August 31, 2021, there were 889,576 and 974,965 shares available for grant under the 2014 Equity Plan. Prior to the effective date of the 2014 Equity Plan, the Company granted options and stock awards to eligible participants under its 2004 Incentive Plan (2004 Incentive Plan), which expired on April 11, 2014. No additional awards may be granted pursuant to the 2004 Incentive Plan. The following table summarizes the combined stock option activity for the 2004 Incentive Plan and 2014 Equity Plan for the three months ended February 28, 2022: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Approximate Aggregate Intrinsic Value (in thousands) Outstanding at August 31, 2021 714,500 $ 7.80 6.1 $ 5,107 Granted 105,000 $ 13.37 Exercised (58,167) $ 7.67 Forfeited / Expired (3,333) $ 10.45 Outstanding at February 28, 2022 758,000 $ 8.58 5.1 $ 2,639 Options exercisable at February 28, 2022 525,002 $ 7.41 4.9 $ 2,330 On January 12, 2022, the Company’s six non-employee Board members were each granted 2,000 shares of unrestricted stock. The fair market value of the unrestricted shares for share-based compensation expense is equal to the closing price of the Company's common stock on the date of grant of $13.23. There is no vesting requirement for the unrestricted stock grants and the Company recognized the full expense of $0.2 million during the three months ended February 28, 2022. During the three and six months ended February 28, 2022, the Company had net settlement exercises of stock options, whereby the optionee did not pay cash for the options exercised but instead received the number of shares equal to the difference between the exercise price and the market price on the date of exercise. During the three months ended February 28, 2022, net settlement exercises resulted in 17,422 shares being issued and 21,578 options being cancelled in settlement of the shares issued. During the six months ended February 28, 2022, net settlement exercises resulted in 23,889 shares being issued and 28,278 options being cancelled in settlement of shares issued. During the three and six months ended February 28, 2022, the Company issued 6,000 shares of common stock upon the exercise of stock options, with an exercise price of $5.66, where the option holder used cash to exercise the options. On January 13, 2021, the Company’s six non-employee Board members were each granted 2,000 shares of unrestricted stock. The fair market value of the unrestricted shares for share-based compensation expense is equal to the closing price of the Company's common stock on the date of grant of $11.33. There is no vesting requirement for the unrestricted stock grants and the Company recognized the full expense of $0.1 million during the three months ended February 28, 2021. During the three and six months ended February 28, 2021, the Company had net settlement exercises of stock options, whereby the optionee did not pay cash for the options but instead received the number of shares equal to the difference between the exercise price and the market price on the date of exercise. During the three months ended February 28, 2021, net settlement exercises resulted in 3,159 shares being issued and 3,341 options being cancelled in settlement of shares issued. During the six months ended February 28, 2021, net settlement exercises resulted in 15,277 shares being issued and 9,223 options being cancelled in settlement of shares issued. The following table summarizes the combined activity and value of non-vested options under the 2004 Equity Plan and 2014 Incentive Plan as for the three months ended February 28, 2022: Number of Options Weighted Average Grant Date Fair Value Non-vested options outstanding at August 31, 2021 218,333 $ 4.04 Granted 105,000 $ 5.16 Vested (87,002) $ 4.21 Forfeited (3,333) $ 4.21 Non-vested options outstanding at February 28, 2022 232,998 $ 4.47 (a) All non-vested options are expected to vest. For the three months ended February 28, 2022 and 2021, the Company recorded $0.3 million and $0.2 million of stock-based compensation expense, which includes the amounts expensed related to the unrestricted stock granted to the Company’s Board members. For the six months ended February 28, 2022 and 2021, the Company recorded $0.4 million and $0.3 million of stock-based compensation expense, which includes the amounts expensed related to the unrestricted stock granted to the Company’s Board members. At February 28, 2022, the Company had unrecognized compensation expenses totaling $0.8 million relating to non-vested options that are expected to vest. The weighted-average period over which these options are expected to vest is approximately two and a half years

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
RELATED PARTY TRANSACTIONS	Feb. 28, 2022
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 8 – RELATED PARTY TRANSACTIONS The Rangeview District The Rangeview District and the Company’s agreements with the Rangeview District are described in greater detail in Note 14 to the 2021 Annual Report. Pursuant to these agreements, the Company provides funding to the Rangeview District for operations, construction and the Rangeview District’s participation in the “Wise Partnership.” The WISE Partnership and capitalized terms related to WISE not defined herein are defined in Note 7 to the 2021 Annual Report. During the three months ended February 28, 2022 and 2021, the Company, through the Rangeview District, received metered water deliveries of 245 acre-feet and 35 acre-feet of WISE water, paying $0.5 million and less than $0.1 million for this water. During the six months ended February 28, 2022 and 2021, the Company, through the Rangeview District, received metered water deliveries of 250 acre-feet and 172 acre-feet of WISE water, paying $0.5 million and $0.3 million for this water. The cost of WISE water to the members is based on the water rates charged by Aurora Water and can be adjusted each January 1. As of January 1, 2022, WISE water was $6.13 per thousand gallons and such rate will remain in effect through calendar 2022. To date, the Company has capitalized the construction funding pursuant to the WISE Financing Agreement because the funding has been provided to build assets which provide capacity in the WISE infrastructure. The Company’s total investment in the WISE infrastructure as of February 28, 2022, is $6.3 million. As detailed in Note 14 to the 2021 Annual Report, the Rangeview District and the Company have entered into two loan agreements. The first loan provided for borrowings of up to $250,000, is unsecured, and bears interest based on the prevailing prime rate plus 2% (5.25% at February 28, 2022). The maturity date of the loan is December 31, 2022, at which time it will automatically renew for another 12-month term. The second loan allows the Company to continue to provide funding to the Rangeview District for day-to-day operations and accrue the funding into a note that bears interest at a rate of 8% per annum and remains in full force and effect for so long as the 2014 Amended and Restated Lease Agreement remains in effect. As of February 28, 2022, the principal and interest on both loan agreements totaled $0.9 million ($0.8 million of principal and $0.1 million of accrued interest). As of August 31, 2021, the principal and interest on both loan agreements totaled $1.2 million ($0.7 million of principal and $0.5 million of accrued interest). During the six months ended February 28, 2022, the Company received interest and principal payments totaling $0.5 million from the Rangeview District. Sky Ranch Community Authority Board The Sky Ranch Districts and the Sky Ranch CAB are quasi-municipal corporations and political subdivisions of Colorado formed for the purpose of providing service to Sky Ranch. The Sky Ranch CAB was formed to, among other things, design, construct, finance, operate and maintain certain public improvements for the benefit of the property within the boundaries and/or service area of the Sky Ranch Districts. For the public improvements to be constructed and/or acquired, it is necessary for each Sky Ranch District, directly or through the Sky Ranch CAB, to be able to fund the improvements and pay its ongoing operations and maintenance expenses related to the provision of services that benefit the property. To fund these improvements, the Company and the Sky Ranch CAB entered into various funding agreements obligating the Company to advance funding to the Sky Ranch CAB for specified public improvements constructed from 2018 to 2023. All amounts owed under the agreements bear interest at a rate of 6% per annum. Any advances not paid or reimbursed by the Sky Ranch CAB by December 31, 2058 for the first phase and December 31, 2060 for the second phase, shall be deemed forever discharged and satisfied in full. As of February 28, 2022, the balance of the Company’s advances to the Sky Ranch CAB for improvements, including interest, net of reimbursements from the Sky Ranch CAB total $33.0 million. The advances have been used by the Sky Ranch CAB to pay for construction of public improvements. The Company submits specific costs for reimbursement to the Sky Ranch CAB that have been certified by an independent third-party. The Company anticipates providing additional funding of approximately $4.0 million for construction of public improvements to the Sky Ranch CAB during the remainder of fiscal 2022 related to the first subphase of the second development phase at Sky Ranch. In addition to the note receivable, the Sky Ranch CAB is obligated to reimburse the Company $0.5 million of construction costs incurred in connection with public improvements for the Southeast Metropolitan Stormwater Supply Authority (SEMSWA). This was repaid to the Company in March 2022. Nelson Pipeline Constructors LLC Through a competitive bidding process, the Sky Ranch CAB awarded Nelson Pipeline Constructors, LLC (Nelson) a contract to construct the wet utility pipelines in the second development phase of Sky Ranch. During the six months ended February 28, 2022, the Sky Ranch CAB paid Nelson $8.1 million related to this contract. Nelson is majority owned by the chairman of the Company’s board of directors.

SIGNIFICANT CUSTOMERS

SIGNIFICANT CUSTOMERS	3 Months Ended
SIGNIFICANT CUSTOMERS	Feb. 28, 2022
SIGNIFICANT CUSTOMERS [Abstract]
SIGNIFICANT CUSTOMERS	NOTE 9 – SIGNIFICANT CUSTOMERS The Company has significant customers in its operations. The percentages presented below represent the reported customers percentage of the Company’s total revenue for the six months ended February 28, 2022. For water and wastewater customers, the Company primarily provides services on behalf of the Rangeview District. The significant end users include all Sky Ranch homes in the aggregate and the Sky Ranch CAB (8%) and one oil & gas operator (17%). The home builders at Sky Ranch account for lot purchase revenue but also for water and wastewater tap fees revenues. Those home builders provide a significant amount of revenue to the Company and include Lennar (19%), Challenger (18%), KB Home (12%) and Richmond (12%).

ACCRUED LIABILITIES

ACCRUED LIABILITIES	3 Months Ended
ACCRUED LIABILITIES	Feb. 28, 2022
ACCRUED LIABILITIES [Abstract]
ACCRUED LIABILITIES	NOTE 10 – ACCRUED LIABILITIES (In thousands) February 28, 2022 August 31, 2021 Accrued compensation $ 514 $ 729 Other operating payables 245 248 WISE water 115 62 Operating lease obligations 79 84 Property taxes 20 50 Professional fees 23 51 Rental deposits 9 — Total accrued liabilities $ 1,005 $ 1,224 Land development costs due to the Sky Ranch CAB $ 668 $ 2,243 Due to Rangeview Metropolitan District — 638 Total accrued liabilities - related parties $ 668 $ 2,881

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
SEGMENT INFORMATION	Feb. 28, 2022
SEGMENT INFORMATION [Abstract]
SEGMENT INFORMATION	NOTE 11 – SEGMENT INFORMATION The Company reports two operating segments which meet GAAP segment disclosure requirements, namely the water and wastewater resource development segment and the land development segment. The single-family rental operations, although not currently material to operations and not a required segment disclosure, is presented within the operating segment information below for informational purposes. The water and wastewater resource development segment includes providing water and wastewater 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 reclaimed 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, 2022 and 2021, was done exclusively at the Company’s Sky Ranch Master Planned Community. The single-family rental business includes the monthly rental fees received from the renters under the non-cancellable annual leases. The tables below present the measure of profit and assets used to assess the performance of the segment for the periods presented: Three Months Ended February 28, 2022 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 2,809 $ 1,829 $ 26 $ 4,664 Cost of revenue 810 341 4 1,155 Depreciation and depletion 352 — — 352 Total cost of revenue 1,162 341 4 1,507 Segment profit $ 1,647 $ 1,488 $ 22 $ 3,157 Three Months Ended February 28, 2021 (In thousands) Water and wastewater resource development Land development Single-family rental Total 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 Segment profit $ 1,682 $ 1,794 $ — $ 3,476 Six Months Ended February 28, 2022 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 3,880 $ 5,022 $ 34 $ 8,936 Cost of revenue 1,306 872 7 2,185 Depreciation and depletion 706 — — 706 Total cost of revenue 2,012 872 7 2,891 Segment profit $ 1,868 $ 4,150 $ 27 $ 6,045 Six Months Ended February 28, 2021 (In thousands) Water and wastewater resource development Land development Single-family rental Total 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 Segment profit $ 3,168 $ 2,431 $ — $ 5,599 The following table summarizes the Company’s total assets by segment. The assets consist of water rights and water and wastewater systems in the Company’s water and wastewater resource development segment; land, land development costs and deposits in the Company’s land development segment; and the cost of the homes in the single-family rental line. The Company’s other assets (“Corporate”) primarily consist of cash, cash equivalents, restricted cash, equipment, and related party notes receivables. (In thousands) February 28, 2022 August 31, 2021 Water and wastewater resource development $ 57,470 $ 57,791 Land development 44,159 32,844 Single-family rental 1,546 — Corporate 10,186 26,542 Total assets $ 113,361 $ 117,177

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
EARNINGS PER SHARE	Feb. 28, 2022
EARNINGS PER SHARE [Abstract]
EARNINGS PER SHARE	NOTE 12 – EARNINGS PER SHARE The Company’s earnings per share (EPS) was calculated by dividing net income attributable to common shareholders by the weighted-average shares of common stock outstanding during the period. Certain outstanding options are excluded from the diluted EPS calculation because they are anti-dilutive (i.e., their assumed conversion into common stock would increase rather than decrease EPS). For the three months ended February 28, 2022 and 2021, the Company excluded 105,000 options and 0 options because their impact was anti-dilutive. For the six months ended February 28, 2022 and 2021, the Company did not have any anti-dilutive options. Three Months Ended Six Months Ended (In thousands, except share and per share amounts) February 28, 2022 February 28, 2021 February 28, 2022 February 28, 2021 Net income $ 1,693 $ 17,352 $ 3,207 $ 18,197 Basic weighted average common shares 23,944,141 23,881,655 23,931,307 23,874,198 Effect of dilutive securities 240,020 210,694 263,272 190,216 Weighted average shares applicable to diluted earnings per share 24,184,161 24,092,349 24,194,579 24,064,414 Earnings per share - basic $ 0.07 $ 0.73 $ 0.13 $ 0.76 Earnings per share - diluted $ 0.07 $ 0.72 $ 0.13 $ 0.76

INCOME TAXES

INCOME TAXES	3 Months Ended
INCOME TAXES	Feb. 28, 2022
INCOME TAXES [Abstract]
INCOME TAXES	NOTE 13 – INCOME TAXES The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items. As of February 28, 2022, the Company is estimating an annual effective tax rate of approximately 25%. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to various factors. The provision for income taxes is recorded at the end of each interim period based on the Company’s best estimate of its effective income tax rate expected to be applicable for the full fiscal year taking into account any items requiring discrete recognition. Income tax information for the three and six months ended February 28, 2022 and 2021 is as follows: Three Months Ended Six Months Ended (In thousands) February 28, 2022 February 28, 2021 February 28, 2022 February 28, 2021 Effective income tax rate 22.8 % 24.6 % 23.4 % 24.6 % Income tax expense (benefit): Current $ 712 $ 5,723 $ 1,183 $ 5,856 Deferred (211) (56) (205) 71 Total $ 501 $ 5,667 $ 978 $ 5,927 Income taxes paid: Federal $ 910 $ — $ 4,360 $ — State 900 — 900 — Total $ 1,810 $ — $ 5,260 $ — Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax liability as of February 28, 2022 and August 31, 2021 are as follows: (In thousands) February 28, 2022 August 31, 2021 Deferred tax assets (liabilities): Depreciation and depletion $ (2,178) $ (2,360) Non-qualified stock options 546 547 Deferred revenues 108 41 Accrued compensation 87 141 Other 27 16 Net deferred tax liability $ (1,410) $ (1,615)

PRESENTATION OF INTERIM INFOR_2

PRESENTATION OF INTERIM INFORMATION (Policies)	3 Months Ended
PRESENTATION OF INTERIM INFORMATION (Policies)	Feb. 28, 2022
PRESENTATION OF INTERIM INFORMATION [Abstract]
Basis of Presentation	The accompanying unaudited consolidated financial statements have been prepared by Pure Cycle Corporation (Company) and include all adjustments that are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows of the Company as of and for the three and six months ended February 28, 2022 and 2021. The August 31, 2021 balance sheet was derived from the Company’s audited consolidated financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted. It is suggested the accompanying consolidated financial statements and notes be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended August 31, 2021 (2021 Annual Report) filed with the Securities and Exchange Commission (SEC) on November 10, 2021. The results of operations for interim periods presented are not necessarily indicative of the operating results expected for the full fiscal year.
Coronavirus (COVID-19)	Coronavirus (COVID-19) Since January 2020, the COVID-19 pandemic has caused substantial disruption in international and U.S. economies and markets. The impacts of the pandemic are continuing but have lessened as vaccines have become widely available in the U.S, although there have been periodic increases in the number of cases in the U.S. due to the spread of COVID-19 variants. The pandemic has resulted in government restrictions of various degrees and effective at various times, including stay-at-home orders, bans on travel, limitations on the size of gatherings, limitations on the operations of businesses deemed non-essential, closures of work facilities, schools, public buildings and businesses, cancellation of events (including entertainment events, conferences, and meetings), quarantines, mask mandates and social distancing measures. Due to the outbreak of COVID-19 and related restrictions, the second development phase of Sky Ranch was delayed due to the extended time taken to approve the platted lots through the county government.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used to account for certain items such as revenue recognition, reimbursable costs, costs of revenue for lot sales, share-based compensation, deferred tax asset valuation, and the useful lives and recoverability of long-lived assets. Actual results could differ from those estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment. During fiscal 2021, the Company determined the reimbursable public improvements, project management fees and interest income related to the Sky Ranch community being developed by the Company were probable of collectability. Historically, due to a lack of tax base and no operating history for the Sky Ranch Community Authority Board (Sky Ranch CAB), the Company was unable to estimate when or if it would receive payment for these items and deferred recognition of them until cash was received. As a result of an established and growing tax base resulting from the success of the initial development, increases in housing values in Colorado, added mill levies, and additional unencumbered fees received by the Sky Ranch CAB, the Company believes repayment of the public improvements, payment of the project management fees, and interest income are deemed probable. Based on this the Company has recognized these items in the consolidated financial statements. The timing and amount of potential payments have been estimated based on growth trends utilizing current assessed values and historic growth rates which have been projected to current and contracted lot sales through the contractual obligation period.
Reclassifications	Reclassifications The Company has reclassified certain prior year information to conform to the current year presentation .

REIMBURSABLE PUBLIC IMPROVEME_2

REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB (Tables)	3 Months Ended
	Feb. 28, 2022
REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB
Schedule of reimbursable Costs	The following table summarizes the activity and balances associated with the reimbursable public improvements, project management fees, and accrued interest, all of which are included in the note receivable from the Sky Ranch CAB: (In thousands) Balances at August 31, 2021 Activity during the six months ended February 28, 2022 Amounts payable by the Sky Ranch CAB at February 28, 2022 Phase 1 Reimbursable public improvements and other $ 17,645 $ 335 $ 17,980 Accrued interest 2,526 676 3,202 Project management services 1,570 16 1,586 Phase 1 reimbursable costs $ 21,741 $ 1,027 $ 22,768 Phase 2 Reimbursable public improvements and other $ 2,935 $ 6,498 $ 9,433 Accrued interest 33 212 245 Project management services 85 432 517 Phase 2 reimbursable costs $ 3,053 $ 7,142 $ 10,195 Total reimbursable costs $ 24,794 $ 8,169 $ 32,963 Total reimbursable costs $ 24,794 $ 8,169 $ 32,963 Less current portion 16,000 — 16,000 Non-current reimbursable costs $ 8,794 $ 8,169 $ 16,963

REVENUES, FEES AND OTHER INCO_2

REVENUES, FEES AND OTHER INCOME ITEMS (Tables)	3 Months Ended
REVENUES, FEES AND OTHER INCOME ITEMS (Tables)	Feb. 28, 2022
REVENUE [Abstract]
Deferred Revenue and Changes in Deferred Revenue	Changes and balances of the Company’s deferred revenue accounts by segment are as follows: Water and Wastewater Resource Development Land Development Total (In thousands) Three Months Ended February 28, 2022 Balance at November 30, 2021 $ 271 $ 2,831 $ 3,102 Revenue recognized (202) (1,628) (1,830) Revenue deferred 370 - 370 Balance at February 28, 2022 $ 439 $ 1,203 $ 1,642 Three Months Ended February 28, 2021 Balance at November 30, 2020 $ 713 $ 1,462 $ 2,175 Revenue recognized (453) (2,698) (3,151) Revenue deferred - 2,231 2,231 Balance at February 28, 2021 $ 260 $ 995 $ 1,255 Water and Wastewater Resource Development Land Development Total (In thousands) Six Months Ended February 28, 2022 Balance at August 31, 2021 $ 410 $ 1,995 $ 2,405 Revenue recognized (341) (4,575) (4,916) Revenue deferred 370 3,783 4,153 Balance at February 28, 2022 $ 439 $ 1,203 $ 1,642 Six Months Ended February 28, 2021 Balance at August 31, 2020 $ 1,965 $ 1,635 $ 3,600 Revenue recognized (1,705) (2,871) (4,576) Revenue deferred - 2,231 2,231 Balance at February 28, 2021 $ 260 $ 995 $ 1,255

WATER, LAND AND OTHER FIXED A_2

WATER, LAND AND OTHER FIXED ASSETS (Tables)	6 Months Ended
WATER, LAND AND OTHER FIXED ASSETS (Tables)	Feb. 28, 2022
WATER, LAND AND OTHER FIXED ASSETS [Abstract]
Investments in Water and Water Systems	The Company’s Investments in water and water systems consist of the following costs and accumulated depreciation and depletion: February 28, 2022 August 31, 2021 Accumulated Accumulated Depreciation Depreciation (In thousands) Costs and Depletion Costs and Depletion Rangeview water system $ 17,640 $ (1,779) $ 17,526 $ (1,470) Rangeview water supply 14,675 (17) 14,622 (17) Water supply – Other 7,566 (1,594) 7,569 (1,433) Sky Ranch water rights and other costs 7,327 (1,179) 7,338 (1,087) Sky Ranch pipeline 5,740 (889) 5,727 (793) Lost Creek water supply 3,374 — 3,374 — Fairgrounds water and water system 2,900 (1,371) 2,900 (1,327) Wild Pointe service rights 1,632 (775) 1,632 (775) Totals 60,854 (7,604) 60,688 (6,902) Net investments in water and water systems $ 53,250 $ 53,786

DEBT AND OTHER LONG-TERM OBLI_2

DEBT AND OTHER LONG-TERM OBLIGATIONS (Tables)	3 Months Ended
DEBT AND OTHER LONG-TERM OBLIGATIONS (Tables)	Feb. 28, 2022
DEBT AND OTHER LONG-TERM OBLIGATIONS [Abstract]
Schedule of maturities of notes payable	The scheduled maturities of the SFR Note for each of the twelve-month periods ending February 28 are as follows (in thousands): (In thousands) Scheduled principal payments Within 1 year $ 12 Year 2 19 Year 3 19 Year 4 20 Year 5 930 Thereafter - $ 1,000

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	6 Months Ended
SHAREHOLDERS' EQUITY (Tables)	Feb. 28, 2022
SHAREHOLDERS' EQUITY [Abstract]
Stock Option Activity	The following table summarizes the combined stock option activity for the 2004 Incentive Plan and 2014 Equity Plan for the three months ended February 28, 2022: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Approximate Aggregate Intrinsic Value (in thousands) Outstanding at August 31, 2021 714,500 $ 7.80 6.1 $ 5,107 Granted 105,000 $ 13.37 Exercised (58,167) $ 7.67 Forfeited / Expired (3,333) $ 10.45 Outstanding at February 28, 2022 758,000 $ 8.58 5.1 $ 2,639 Options exercisable at February 28, 2022 525,002 $ 7.41 4.9 $ 2,330
Non-Vested Options	The following table summarizes the combined activity and value of non-vested options under the 2004 Equity Plan and 2014 Incentive Plan as for the three months ended February 28, 2022: Number of Options Weighted Average Grant Date Fair Value Non-vested options outstanding at August 31, 2021 218,333 $ 4.04 Granted 105,000 $ 5.16 Vested (87,002) $ 4.21 Forfeited (3,333) $ 4.21 Non-vested options outstanding at February 28, 2022 232,998 $ 4.47 (a) All non-vested options are expected to vest.

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	3 Months Ended
ACCRUED LIABILITIES (Tables)	Feb. 28, 2022
ACCRUED LIABILITIES [Abstract]
Accrued Liabilities	(In thousands) February 28, 2022 August 31, 2021 Accrued compensation $ 514 $ 729 Other operating payables 245 248 WISE water 115 62 Operating lease obligations 79 84 Property taxes 20 50 Professional fees 23 51 Rental deposits 9 — Total accrued liabilities $ 1,005 $ 1,224 Land development costs due to the Sky Ranch CAB $ 668 $ 2,243 Due to Rangeview Metropolitan District — 638 Total accrued liabilities - related parties $ 668 $ 2,881

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
SEGMENT INFORMATION (Tables)	Feb. 28, 2022
SEGMENT INFORMATION [Abstract]
Segment Information	The tables below present the measure of profit and assets used to assess the performance of the segment for the periods presented: Three Months Ended February 28, 2022 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 2,809 $ 1,829 $ 26 $ 4,664 Cost of revenue 810 341 4 1,155 Depreciation and depletion 352 — — 352 Total cost of revenue 1,162 341 4 1,507 Segment profit $ 1,647 $ 1,488 $ 22 $ 3,157 Three Months Ended February 28, 2021 (In thousands) Water and wastewater resource development Land development Single-family rental Total 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 Segment profit $ 1,682 $ 1,794 $ — $ 3,476 Six Months Ended February 28, 2022 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 3,880 $ 5,022 $ 34 $ 8,936 Cost of revenue 1,306 872 7 2,185 Depreciation and depletion 706 — — 706 Total cost of revenue 2,012 872 7 2,891 Segment profit $ 1,868 $ 4,150 $ 27 $ 6,045 Six Months Ended February 28, 2021 (In thousands) Water and wastewater resource development Land development Single-family rental Total 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 Segment profit $ 3,168 $ 2,431 $ — $ 5,599 The following table summarizes the Company’s total assets by segment. The assets consist of water rights and water and wastewater systems in the Company’s water and wastewater resource development segment; land, land development costs and deposits in the Company’s land development segment; and the cost of the homes in the single-family rental line. The Company’s other assets (“Corporate”) primarily consist of cash, cash equivalents, restricted cash, equipment, and related party notes receivables. (In thousands) February 28, 2022 August 31, 2021 Water and wastewater resource development $ 57,470 $ 57,791 Land development 44,159 32,844 Single-family rental 1,546 — Corporate 10,186 26,542 Total assets $ 113,361 $ 117,177

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
EARNINGS PER SHARE (Tables)	Feb. 28, 2022
EARNINGS PER SHARE [Abstract]
Earnings per Share	Three Months Ended Six Months Ended (In thousands, except share and per share amounts) February 28, 2022 February 28, 2021 February 28, 2022 February 28, 2021 Net income $ 1,693 $ 17,352 $ 3,207 $ 18,197 Basic weighted average common shares 23,944,141 23,881,655 23,931,307 23,874,198 Effect of dilutive securities 240,020 210,694 263,272 190,216 Weighted average shares applicable to diluted earnings per share 24,184,161 24,092,349 24,194,579 24,064,414 Earnings per share - basic $ 0.07 $ 0.73 $ 0.13 $ 0.76 Earnings per share - diluted $ 0.07 $ 0.72 $ 0.13 $ 0.76

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
INCOME TAXES (Tables)	Feb. 28, 2022
INCOME TAXES [Abstract]
Provision for Income Taxes	The provision for income taxes is recorded at the end of each interim period based on the Company’s best estimate of its effective income tax rate expected to be applicable for the full fiscal year taking into account any items requiring discrete recognition. Income tax information for the three and six months ended February 28, 2022 and 2021 is as follows: Three Months Ended Six Months Ended (In thousands) February 28, 2022 February 28, 2021 February 28, 2022 February 28, 2021 Effective income tax rate 22.8 % 24.6 % 23.4 % 24.6 % Income tax expense (benefit): Current $ 712 $ 5,723 $ 1,183 $ 5,856 Deferred (211) (56) (205) 71 Total $ 501 $ 5,667 $ 978 $ 5,927 Income taxes paid: Federal $ 910 $ — $ 4,360 $ — State 900 — 900 — Total $ 1,810 $ — $ 5,260 $ —
Deferred Tax Assets (Liabilities)	Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax liability as of February 28, 2022 and August 31, 2021 are as follows: (In thousands) February 28, 2022 August 31, 2021 Deferred tax assets (liabilities): Depreciation and depletion $ (2,178) $ (2,360) Non-qualified stock options 546 547 Deferred revenues 108 41 Accrued compensation 87 141 Other 27 16 Net deferred tax liability $ (1,410) $ (1,615)

REIMBURSABLE PUBLIC IMPROVEME_3

REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Feb. 28, 2022	Feb. 28, 2022	Feb. 28, 2021
Related Party Transaction [Line Items]
Less current portion - beginning balance		$ 16,000
Less current portion - ending balance	$ 16,000	16,000
Phase 1 Reimbursable Costs [Member]
Related Party Transaction [Line Items]
Non-current reimbursable costs - beginning balance		8,794
Non-current reimbursable costs - ending balance	$ 16,963	16,963
Sky Ranch CAB [Member]
Related Party Transaction [Line Items]
Interest rate	6.00%
Notes receivable - beginning balance		24,794
Activity		8,169	$ 21
Notes receivable - ending balance	$ 32,963	32,963
Less current portion - beginning balance		16,000
Activity - current		0
Less current portion - ending balance	16,000	16,000
Non-current reimbursable costs - beginning balance		8,794
Activity - Non-current		8,169
Non-current reimbursable costs - ending balance	16,963	16,963
Reimbursable public improvement costs	2,700	6,800
Project Management Fees Receivable, Related Party	200	400
Interest Income, Related Party	500	900
Sky Ranch CAB [Member] \| Phase 1 Reimbursable Costs [Member]
Related Party Transaction [Line Items]
Notes receivable - beginning balance		21,741
Activity		1,027
Notes receivable - ending balance	22,768	22,768
Sky Ranch CAB [Member] \| Phase 1 Reimbursable Public Improvements And Construction Support Activities And Accrued Interest [Member]
Related Party Transaction [Line Items]
Notes receivable - beginning balance		17,645
Activity		335
Notes receivable - ending balance	17,980	17,980
Sky Ranch CAB [Member] \| Phase 1 Accrued Interest [Member]
Related Party Transaction [Line Items]
Notes receivable - beginning balance		2,526
Activity		676
Notes receivable - ending balance	3,202	3,202
Sky Ranch CAB [Member] \| Phase 1 Project Management Services [Member]
Related Party Transaction [Line Items]
Notes receivable - beginning balance		1,570
Activity		16
Notes receivable - ending balance	1,586	1,586
Sky Ranch CAB [Member] \| Phase 2 Reimbursable Costs [Member]
Related Party Transaction [Line Items]
Notes receivable - beginning balance		3,053
Activity		7,142
Notes receivable - ending balance	10,195	10,195
Sky Ranch CAB [Member] \| Phase 2 Public Improvements [Member]
Related Party Transaction [Line Items]
Notes receivable - beginning balance		2,935
Activity		6,498
Notes receivable - ending balance	9,433	9,433
Sky Ranch CAB [Member] \| Phase2 Accrued Interest [Member]
Related Party Transaction [Line Items]
Notes receivable - beginning balance		33
Activity		212
Notes receivable - ending balance	245	245
Sky Ranch CAB [Member] \| Phase2 Project Management Services [Member]
Related Party Transaction [Line Items]
Notes receivable - beginning balance		85
Activity		432
Notes receivable - ending balance	$ 517	$ 517

REVENUES, FEES AND OTHER INCO_3

REVENUES, FEES AND OTHER INCOME ITEMS (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2022USD ($)item	Feb. 28, 2021USD ($)item	Feb. 28, 2022USD ($)itema	Feb. 28, 2021USD ($)item
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues	$ 4,664	$ 4,739	$ 8,936	$ 9,607
Lease term			1 year
Number of lots reserved for single family rental units \| item			46
Lot Sales [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues	1,629	515	$ 4,574	2,871
Finished Lot [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues	1,600	500	4,600	2,900
Ready to Build Finished Lot [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues	0	0	0	1,600
Water and Wastewater Tap Fees [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues	$ 913	$ 1,583	$ 1,174	$ 2,666
Number of water and wastewater taps sold \| item	27	51	36	87
Project Management Fees - Recognized [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues	$ 200	$ 1,548	$ 448	$ 1,548
Sky Ranch CAB [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
First phase of construction completion (as a percent)	99.90%		99.90%
First sub phase of second development phase construction completion (as a percent)	57.50%		57.50%
Additional costs to be incurred through the end of calendar year 2021	$ 7,100	$ 4,000	$ 7,100	$ 4,000
Charter School Operator [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Number of acres of undeveloped land \| a			32
Amount of sale of undeveloped land			$ 1,600

REVENUES, FEES AND OTHER INCO_4

REVENUES, FEES AND OTHER INCOME ITEMS - Changes in Deferred Revenue (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Nov. 30, 2021	Feb. 28, 2022	Feb. 28, 2021	Feb. 28, 2022	Feb. 28, 2021
Deferred Revenue [Abstract]
Balance		$ 3,102	$ 2,175	$ 2,405	$ 3,600
Revenue recognized		(1,830)	(3,151)	(4,916)	(4,576)
Revenue deferred		370	2,231	4,153	2,231
Balance	$ 3,102	1,642	1,255	1,642	1,255
Water and Wastewater Resource Development Segment [Member]
Deferred Revenue [Abstract]
Balance		271	713	410	1,965
Revenue recognized		(202)	(453)	(341)	(1,705)
Revenue deferred		370		370
Balance	271	439	260	439	260
Land Development Segment [Member]
Deferred Revenue [Abstract]
Balance		2,831	1,462	1,995	1,635
Revenue recognized		(1,628)	(2,698)	(4,575)	(2,871)
Revenue deferred			2,231	3,783	2,231
Balance	2,831	$ 1,203	$ 995	$ 1,203	$ 995
Sky Ranch CAB [Member]
Deferred Revenue [Abstract]
Final payment received	$ 3,800

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) $ in Thousands	3 Months Ended		6 Months Ended
FAIR VALUE MEASUREMENTS (Details) $ in Thousands	Feb. 28, 2022USD ($)item	Feb. 28, 2021USD ($)	Feb. 28, 2022USD ($)item	Feb. 28, 2021USD ($)
Fair Value Measurements [Abstract]
Transfers from Level 1 to Level 2	$ 0	$ 0	$ 0	$ 0
Transfers from Level 2 to Level 1	0	0	0	0
Transfers into (out of) Level 3	$ 0	$ 0	$ 0	$ 0
Level 2 [Member]
Fair Value Measurements [Abstract]
Number of liabilities \| item	1		1

WATER, LAND AND OTHER FIXED A_3

WATER, LAND AND OTHER FIXED ASSETS - Schedule of investment in water and water systems (Details) - USD ($) $ in Thousands	Feb. 28, 2022	Aug. 31, 2021
Investment in Water and Water Systems [Abstract]
Water And Water Systems, Gross	$ 60,854	$ 60,688
Accumulated depreciation and depletion	(7,604)	(6,902)
Net investments in water and water systems	53,250	53,786
Rangeview Water System [Member]
Investment in Water and Water Systems [Abstract]
Water And Water Systems, Gross	17,640	17,526
Accumulated depreciation and depletion	(1,779)	(1,470)
Rangeview Water Supply [Member]
Investment in Water and Water Systems [Abstract]
Water And Water Systems, Gross	14,675	14,622
Accumulated depreciation and depletion	(17)	(17)
Water Supply - Other [Member]
Investment in Water and Water Systems [Abstract]
Water And Water Systems, Gross	7,566	7,569
Accumulated depreciation and depletion	(1,594)	(1,433)
Sky Ranch Water Rights and Other Costs [Member]
Investment in Water and Water Systems [Abstract]
Water And Water Systems, Gross	7,327	7,338
Accumulated depreciation and depletion	(1,179)	(1,087)
Sky Ranch Pipeline [Member]
Investment in Water and Water Systems [Abstract]
Water And Water Systems, Gross	5,740	5,727
Accumulated depreciation and depletion	(889)	(793)
Lost Creek Water Supply [Member]
Investment in Water and Water Systems [Abstract]
Water And Water Systems, Gross	3,374	3,374
Accumulated depreciation and depletion	0	0
Fairgrounds Water And Water System [Member]
Investment in Water and Water Systems [Abstract]
Water And Water Systems, Gross	2,900	2,900
Accumulated depreciation and depletion	(1,371)	(1,327)
Wild Pointe Service Rights [Member]
Investment in Water and Water Systems [Abstract]
Water And Water Systems, Gross	1,632	1,632
Accumulated depreciation and depletion	$ (775)	$ (775)

WATER, LAND AND OTHER FIXED A_4

WATER, LAND AND OTHER FIXED ASSETS (Details) $ in Thousands	6 Months Ended
WATER, LAND AND OTHER FIXED ASSETS (Details) $ in Thousands	Feb. 28, 2022USD ($)	Feb. 28, 2022USD ($)	Feb. 28, 2022USD ($)item	Feb. 28, 2022USD ($)home
Investment in Water and Water Systems [Abstract]
Construction costs incurred		$ 500
Single-family rental units	$ 997	997	$ 997	$ 997
Number of Lots Reserved for Single Family Rental Units \| item			46
Single Family Rental Homes [Member]
Investment in Water and Water Systems [Abstract]
Single-family rental units	$ 1,000	$ 1,000	$ 1,000	$ 1,000
Single family houses construction completed			3	3
Single Family Rental Homes [Member] \| Maximum [Member]
Investment in Water and Water Systems [Abstract]
Useful life	30 years

DEBT AND OTHER LONG-TERM OBLI_3

DEBT AND OTHER LONG-TERM OBLIGATIONS (Details)	Jan. 31, 2022USD ($)	Nov. 29, 2021USD ($)iteminstallment	Feb. 28, 2022item
Debt Instrument [Line Items]
Number of Single Family Homes Being Constructed \| item			3
Line of Credit [Member]
Debt Instrument [Line Items]
Effective interest rate			3.75%
Floor interest rate	3.75%
Line of Credit Facility, Maximum Borrowing Capacity	$ 5,000,000
Debt Instrument, Term	2 years
Debt Instrument , Percentage of Default Interest Rate	2.00%
Single-Family Rental Home Notes [Member]
Debt Instrument [Line Items]
Principal amount		$ 1,000,000
Effective interest rate			3.75%
Floor interest rate		3.75%
Ceiling interest rate		4.25%
Additional interest rate		2.00%
Number of interest only payments \| installment		6
Number of principal and interest payments \| installment		53
Periodic interest and principal payments		$ 4,633.05
Balloon payment		$ 916,239.49
Single family rental homes secured for debt \| item		3
Debt service coverage ratio		1.10
Prime Rate [Member] \| Line of Credit [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Prime Rate [Member] \| Single-Family Rental Home Notes [Member]
Debt Instrument [Line Items]
Basis spread on variable rate		0.50%

DEBT AND OTHER LONG-TERM OBLI_4

DEBT AND OTHER LONG-TERM OBLIGATIONS - Maturities of the SFR Note (Details) - Single-Family Rental Home Notes [Member] $ in Thousands	Feb. 28, 2022USD ($)
Debt Instrument [Line Items]
Within 1 year	$ 12
Year 2	19
Year 3	19
Year 4	20
Year 5	930
Total	$ 1,000

DEBT AND OTHER LONG-TERM OBLI_5

DEBT AND OTHER LONG-TERM OBLIGATIONS - Lot Construction Obligations (Details) $ in Millions	1 Months Ended	6 Months Ended
	Feb. 28, 2021USD ($)item	Feb. 28, 2022USD ($)aitem
Debt Instrument [Line Items]
Number of residential lots sold in second phase of Sky Ranch		804
Area of land included in second phase of development of Sky Ranch \| a		250
Phase 2 - Number of sub-phases for development		4
Number of residential lots included in second phase of Sky Ranch		850
Number of lots not currently under contract to home builders		46
Number of lots in first sub phase of second development phase	229	229
Number of lots retained for use in single family rent business	10	10
Finished lots sold	219	219
Costs incurred till date for second development phase \| $		$ 11.8
Period in which the additional construction costs to be incurred		18 months
Additional construction costs \| $		$ 8.7
Period for completion of construction of second development phase		3 years
Homebuilders [Member]
Debt Instrument [Line Items]
Number of customers	4
Sky Ranch CAB [Member]
Debt Instrument [Line Items]
Reimbursable Costs, Cost Incurred to Date \| $		$ 9.4
Reimbursable Costs, Expected Cost Remaining \| $	$ 4	7.1
Charter School Operator [Member]
Debt Instrument [Line Items]
Amount of expected infrastructure expense \| $		$ 4

SHAREHOLDERS' EQUITY, Stock Opt

SHAREHOLDERS' EQUITY, Stock Option Activity (Details) $ / shares in Units, $ in Thousands	Jan. 12, 2022item$ / sharesshares	Jan. 13, 2021item$ / sharesshares	Feb. 28, 2022USD ($)$ / sharesshares	Feb. 28, 2021USD ($)shares	Feb. 28, 2022USD ($)$ / sharesshares	Feb. 28, 2021USD ($)shares	Aug. 31, 2021USD ($)$ / sharesshares
Stock Options [Abstract]
Share-based compensation expense \| $					$ 371	$ 313
2014 Equity Plan [Member]
Shareholders' Equity [Abstract]
Shares reserved for issuance (in shares)			1,600,000		1,600,000
Shares available for grant (in shares)			889,576		889,576		974,965
Number of Options [Roll Forward]
Exercised (in shares)			(6,000)		(6,000)
Weighted Average Exercise Price [Roll Forward]
Exercised (in dollars per share) \| $ / shares			$ 5.66		$ 5.66
2014 Equity Plan [Member] \| Non-Employee Board Members [Member]
Number of Options [Roll Forward]
Granted (in shares)	2,000	2,000
Stock Options [Abstract]
Number of board members \| item	6	6
Stock price (in dollars per share) \| $ / shares	$ 13.23	$ 11.33
Share-based compensation expense \| $			$ 200	$ 100
2004 Incentive Plan and 2014 Equity Plan [Member]
Number of Options [Roll Forward]
Outstanding, beginning of period (in shares)					714,500
Granted (in shares)					105,000
Exercised (in shares)					(58,167)
Net settlement exercised (in shares)					(3,333)
Outstanding, end of period (in shares)			758,000		758,000		714,500
Options exercisable (in shares)			525,002		525,002
Weighted Average Exercise Price [Roll Forward]
Outstanding, beginning of period (in dollars per share) \| $ / shares					$ 7.80
Granted (in dollars per share) \| $ / shares					13.37
Exercised (in dollars per share) \| $ / shares					7.67
Net settlement exercised (in dollars per share) \| $ / shares					10.45
Outstanding, end of period (in dollars per share) \| $ / shares			$ 8.58		8.58		$ 7.80
Options exercisable (in dollars per share) \| $ / shares			$ 7.41		$ 7.41
Stock Options [Abstract]
Weighted average remaining contractual term			5 years 1 month 6 days				6 years 1 month 6 days
Weighted average remaining contractual term, options exercisable			4 years 10 months 24 days
Approximate aggregate intrinsic value, outstanding \| $			$ 2,639		$ 2,639		$ 5,107
Approximate aggregate intrinsic value, options exercisable \| $			2,330		2,330
Share-based compensation expense \| $			$ 300	$ 200	$ 400	$ 300
Shares issued (in shares)			17,422	3,159	23,889	15,277
Options cancelled (in shares)			21,578	3,341	28,278	9,223

SHAREHOLDERS' EQUITY, Non-Veste

SHAREHOLDERS' EQUITY, Non-Vested Options (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2022	Feb. 28, 2021	Feb. 28, 2022	Feb. 28, 2021
Stock Options [Abstract]
Share-based compensation expense			$ 371	$ 313
2004 Incentive Plan and 2014 Equity Plan [Member]
Number of Options [Roll Forward]
Non-vested options outstanding, beginning of period (in shares)			218,333
Granted (in shares)			105,000
Vested (in shares)			(87,002)
Forfeited (in shares)			(3,333)
Non-vested options outstanding, end of period (in shares)	232,998		232,998
Weighted Average Grant Date Fair Value [Abstract]
Non-vested options outstanding, beginning of period (in dollars per share)			$ 4.04
Granted (in dollars per share)			5.16
Vested (in dollars per share)			4.21
Forfeited (in dollars per share)			4.21
Non-vested options outstanding, end of period (in dollars per share)	$ 4.47		$ 4.47
Stock Options [Abstract]
Share-based compensation expense	$ 300	$ 200	$ 400	$ 300
Unrecognized compensation expenses	$ 800		$ 800
Weighted-average period for options expected to vest			2 years 6 months

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details)	3 Months Ended		6 Months Ended
RELATED PARTY TRANSACTIONS (Details)	Feb. 28, 2022USD ($)agreementacre ft	Feb. 28, 2021USD ($)acre ft	Feb. 28, 2022USD ($)agreementacre ft	Feb. 28, 2021USD ($)acre ft	Jan. 31, 2022$ / gal	Aug. 31, 2021USD ($)
Related Party Transactions [Abstract]
Investments in the WISE infrastructure	$ 53,250,000		$ 53,250,000			$ 53,786,000
Number Of Loan Agreements \| agreement	2		2
South Metropolitan Water Supply Authority [Member] \| Phase 1 Reimbursable Costs [Member]
Related Party Transactions [Abstract]
Costs incurred to date	$ 500,000		$ 500,000
Facilities Funding and Acquisition Agreement [Member]
Related Party Transactions [Abstract]
Interest rate			6.00%
Rangeview District [Member] \| WISE Partnership [Member]
Related Party Transactions [Abstract]
Volume of received metered water \| acre ft	245	35	250	172
Payments for water	$ 500,000	$ 100,000	$ 500,000	$ 300,000
Water rate \| $ / gal					6.13
Investments in the WISE infrastructure	6,300,000		6,300,000
Rangeview District [Member] \| Loan Receivable [Member]
Related Party Transactions [Abstract]
Maximum borrowing capacity	250,000		$ 250,000
Interest rate			5.25%
Renewal term			12 months
Rangeview District [Member] \| Loan Receivable [Member] \| Prime Rate [Member]
Related Party Transactions [Abstract]
Basis spread on variable rate			2.00%
Rangeview District [Member] \| Note Receivable [Member]
Related Party Transactions [Abstract]
Interest rate			8.00%
Notes receivable	900,000		$ 900,000			1,200,000
Borrowings under notes receivable	800,000		800,000			700,000
Accrued interest on notes receivable	$ 100,000		100,000			500,000
Interest Received			500,000
Sky Ranch CAB [Member]
Related Party Transactions [Abstract]
Interest rate	6.00%
Notes receivable	$ 32,963,000		32,963,000			24,794,000
Fund for construction of public improvements	7,100,000	$ 4,000,000	7,100,000	$ 4,000,000
Costs incurred to date	9,400,000		9,400,000
Sky Ranch CAB [Member] \| Phase 1 Reimbursable Costs [Member]
Related Party Transactions [Abstract]
Notes receivable	$ 22,768,000		22,768,000			$ 21,741,000
Sky Ranch CAB [Member] \| Nelson Pipeline Constructors, LLC [Member]
Related Party Transactions [Abstract]
Amount of payment to construct utility pipelines			$ 8,100,000

SIGNIFICANT CUSTOMERS (Details)

SIGNIFICANT CUSTOMERS (Details) - Customer Concentration Risk [Member] - Revenue [Member]	6 Months Ended
	Feb. 28, 2022customer
Water and Wastewater Resource Development Segment [Member] \| Sky Ranch Homes [Member]
Concentration Risk [Line Items]
Concentration risk percentage	8.00%
Water and Wastewater Resource Development Segment [Member] \| Oil and Gas Operator [Member]
Concentration Risk [Line Items]
Concentration risk percentage	17.00%
Number of customers	1
Land Development Segment [Member] \| Lennar [Member]
Concentration Risk [Line Items]
Concentration risk percentage	19.00%
Land Development Segment [Member] \| Challenger [Member]
Concentration Risk [Line Items]
Concentration risk percentage	18.00%
Land Development Segment [Member] \| Kb Home [Member]
Concentration Risk [Line Items]
Concentration risk percentage	12.00%
Land Development Segment [Member] \| Richmond [Member]
Concentration Risk [Line Items]
Concentration risk percentage	12.00%

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	Feb. 28, 2022	Aug. 31, 2021
Accrued Liabilities, Current [Line Items]
Accrued compensation	$ 514	$ 729
Other operating payables	245	248
WISE water	115	62
Operating lease obligations	79	84
Property taxes	20	50
Professional fees	23	51
Rental deposits	9
Total accrued liabilities	1,005	1,224
Accrued liabilities - related parties	668	2,881
Sky Ranch CAB [Member]
Accrued Liabilities, Current [Line Items]
Accrued liabilities - related parties	$ 668	2,243
Rangeview District [Member]
Accrued Liabilities, Current [Line Items]
Accrued liabilities - related parties		$ 638

SEGMENT INFORMATION, Revenue by

SEGMENT INFORMATION, Revenue by Segments (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2022USD ($)segment	Feb. 28, 2021USD ($)	Feb. 28, 2022USD ($)	Feb. 28, 2021USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| segment	2
Segment Information [Abstract]
Total revenue	$ 4,664	$ 4,739	$ 8,936	$ 9,607
Cost of revenue	1,155	909	2,185	3,289
Depletion and depreciation	352	354	706	719
Total cost of revenues	1,507	1,263	2,891	4,008
Segment profit	3,157	3,476	6,045	5,599
Water and Wastewater Resource Development Segment [Member]
Segment Information [Abstract]
Total revenue	2,809	2,676	3,880	5,188
Cost of revenue	810	640	1,306	1,301
Depletion and depreciation	352	354	706	719
Total cost of revenues	1,162	994	2,012	2,020
Segment profit	1,647	1,682	1,868	3,168
Land Development Segment [Member]
Segment Information [Abstract]
Total revenue	1,829	2,063	5,022	4,419
Cost of revenue	341	269	872	1,988
Total cost of revenues	341	269	872	1,988
Segment profit	1,488	$ 1,794	4,150	$ 2,431
Single Family Rentals [Member]
Segment Information [Abstract]
Total revenue	26		34
Cost of revenue	4		7
Total cost of revenues	4		7
Segment profit	$ 22		$ 27

SEGMENT INFORMATION, Corporate

SEGMENT INFORMATION, Corporate Assets (Details) - USD ($) $ in Thousands	Feb. 28, 2022	Aug. 31, 2021
Segment Reporting Information [Line Items]
Total assets	$ 113,361	$ 117,177
Corporate [Member]
Segment Reporting Information [Line Items]
Total assets	10,186	26,542
Water and Wastewater Resource Development Segment [Member]
Segment Reporting Information [Line Items]
Total assets	57,470	57,791
Land Development Segment [Member]
Segment Reporting Information [Line Items]
Total assets	44,159	$ 32,844
Single Family Rentals [Member]
Segment Reporting Information [Line Items]
Total assets	$ 1,546

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2022	Feb. 28, 2021	Feb. 28, 2022	Feb. 28, 2021
EARNINGS PER SHARE [Abstract]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	105,000	0
Earnings Per Share [Abstract]
Net income	$ 1,693	$ 17,352	$ 3,207	$ 18,197
Basic weighted average common shares (in shares)	23,944,141	23,881,655	23,931,307	23,874,198
Effect of dilutive securities (in shares)	240,020	210,694	263,272	190,216
Weighted average shares applicable to diluted earnings per share (in shares)	24,184,161	24,092,349	24,194,579	24,064,414
Earnings per share - basic (in dollars per share)	$ 0.07	$ 0.73	$ 0.13	$ 0.76
Earnings per share - diluted (in dollars per share)	$ 0.07	$ 0.72	$ 0.13	$ 0.76

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Feb. 28, 2022	Feb. 28, 2021	Feb. 28, 2022	Feb. 28, 2021	Aug. 31, 2022	Aug. 31, 2021
Income Taxes [Abstract]
Effective income tax rate	22.80%	24.60%	23.40%	24.60%
Income Tax Expense (Benefit) [Abstract]
Current	$ 712	$ 5,723	$ 1,183	$ 5,856
Deferred	(211)	(56)	(205)	71
Total	501	$ 5,667	978	$ 5,927
Income Taxes Paid [Abstract]
Income taxes paid	1,810		5,260
Deferred Tax Assets (Liabilities) [Abstract]
Depreciation and depletion	(2,178)		(2,178)			$ (2,360)
Non-qualified stock options	546		546			547
Deferred revenues	108		108			41
Accrued compensation	87		87			141
Other	27		27			16
Net deferred tax liability	(1,410)		(1,410)			$ (1,615)
Forecast [Member]
Income Taxes [Abstract]
Effective income tax rate					25.00%
Federal [Member]
Income Taxes Paid [Abstract]
Income taxes paid	910		4,360
State [Member]
Income Taxes Paid [Abstract]
Income taxes paid	$ 900		$ 900