Pure Cycle (PCYO) 10-Q14 Apr 232023 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, 2023	Apr. 11, 2023
Cover Page
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Feb. 28, 2023
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. 65, Suite A
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		24,054,843
Entity Central Index Key	0000276720
Current Fiscal Year End Date	--08-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022
Current assets:
Cash and cash equivalents	$ 7,224	$ 34,894
Investments in U.S. Treasury Bills	15,245
Trade accounts receivable, net	2,121	2,425
Income taxes receivable	1,610
Prepaid expenses and other assets	603	467
Total current assets	26,803	37,786
Restricted cash	2,331	2,328
Investments in water and water systems, net	58,368	58,763
Construction in progress	3,383	1,224
Single-family rental units	1,500	975
Land and mineral rights:
Held for development	8,082	6,773
Held for investment purposes	451	451
Other assets	2,485	2,463
Operating leases - right of use assets	103	138
Total assets	125,414	129,229
Current liabilities:
Accounts payable	656	849
Accrued liabilities	1,201	2,029
Accrued liabilities - related parties	596	560
Income taxes payable		2,530
Deferred lot sale revenues	3,473	4,275
Deferred water sales revenues	533	570
Debt, current portion	10	10
Total current liabilities	6,469	10,823
Participating interests in export water supply		323
Debt, less current portion	3,945	3,950
Deferred tax liability, net	1,170	1,075
Lease obligations - operating leases, less current portion	25	62
Total liabilities	11,609	16,233
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; 24,054,843 and 23,980,645 outstanding, respectively	80	80
Additional paid-in capital	174,611	174,150
Accumulated deficit	(60,886)	(61,234)
Total shareholders' equity	113,805	112,996
Total liabilities and shareholders' equity	125,414	129,229
Reimbursable public improvements and project management fees [Member]
Current assets:
Notes receivable - related parties, including accrued interest:	20,609	17,208
Other [Member]
Current assets:
Notes receivable - related parties, including accrued interest:	$ 1,299	$ 1,120

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022
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)	24,054,843	23,980,645
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, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Revenues:
Total revenues	$ 2,990	$ 4,664	$ 4,330	$ 8,936
Expenses:
Depletion and depreciation	461	352	839	706
Other	141	141	247	219
Total cost of revenues	1,401	1,507	2,727	2,891
General and administrative expenses	1,707	1,552	3,095	2,876
Depreciation	122	97	237	182
Operating (loss) income	(240)	1,508	(1,729)	2,987
Other income (expense):
Interest income - related party	263	525	510	888
Interest income - Investments	218	2	446	3
Oil and gas royalty income, net	67	110	183	207
Oil and gas lease income, net	19	48	38	96
Other, net	(1)	14	1,217	25
Interest expense, net	(47)	(13)	(97)	(21)
Income from operations before income taxes	279	2,194	568	4,185
Income tax expense	90	501	220	978
Net income	$ 189	$ 1,693	$ 348	$ 3,207
Earnings per common share - basic and diluted
Basic (in dollars per share)	$ 0.01	$ 0.07	$ 0.01	$ 0.13
Diluted (in dollars per share)	$ 0.01	$ 0.07	$ 0.01	$ 0.13
Weighted average common shares outstanding:
Weighted average common shares outstanding, Basic (in shares)	24,023,775	23,944,141	24,004,677	23,931,307
Weighted average common shares outstanding, Diluted (in shares)	24,142,300	24,184,161	24,114,089	24,194,579
Water Service Operations [Member]
Expenses:
Expenses	$ 402	$ 570	$ 881	$ 859
Metered Water Usage - Municipal Customers [Member]
Revenues:
Total revenues	83	69	204	180
Metered Water Usage-Commercial Customers [Member]
Revenues:
Total revenues	59	1,541	451	2,137
Wastewater Service Operations [Member]
Expenses:
Expenses	116	99	254	228
Wastewater Treatment Fees [Member]
Revenues:
Total revenues	78	64	141	119
Land Development Construction Costs [Member]
Expenses:
Expenses	188	295	331	826
Water and Wastewater Tap Fees [Member]
Revenues:
Total revenues	994	913	1,144	1,174
Lot Sales [Member]
Revenues:
Total revenues	1,391	1,629	1,904	4,574
Project Management Fees - Recognized [Member]
Revenues:
Total revenues	123	200	131	448
Single Family Rentals [Member]
Revenues:
Total revenues	31	26	56	34
Expenses:
Expenses	19	4	29	7
Special Facility Projects and Other [Member]
Revenues:
Total revenues	231	222	299	270
Project Management Costs [Member]
Expenses:
Expenses	$ 74	$ 46	$ 146	$ 46

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS 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, 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
Balance at Aug. 31, 2022		$ 80	174,150	(61,234)	112,996
Balance (in shares) at Aug. 31, 2022	432,513	23,980,645
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted stock grants			111		111
Restricted stock grants (in shares)		56,000
Stock granted for services			180		180
Stock granted for services (in shares)		18,198
Share-based compensation			170		170
Net income				348	348
Balance at Feb. 28, 2023		$ 80	174,611	(60,886)	113,805
Balance (in shares) at Feb. 28, 2023	432,513	24,054,843
Balance at Nov. 30, 2022		$ 80	174,243	(61,075)	113,248
Balance (in shares) at Nov. 30, 2022	432,513	23,986,645
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted stock grants			99		99
Restricted stock grants (in shares)		50,000
Stock granted for services			180		180
Stock granted for services (in shares)		18,198
Share-based compensation			89		89
Net income				189	189
Balance at Feb. 28, 2023		$ 80	$ 174,611	$ (60,886)	$ 113,805
Balance (in shares) at Feb. 28, 2023	432,513	24,054,843

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022
Cash flows from operating activities:
Net income	$ 348	$ 3,207
Adjustments to reconcile net income to net cash used by operating activities:
Depreciation and depletion	1,076	888
Share-based compensation expense	461	371
Trade accounts receivable	304	(506)
Deferred income taxes	95	(205)
Deferred water sales revenue	(37)	29
Amortized discount on U.S. Treasury Bills	(245)
Prepaid expenses	(136)	(596)
Other assets and liabilities	(137)	2
Deferred lot sale revenues	(802)	(792)
Accounts payable and accrued liabilities	(1,063)	(3,341)
Taxes payable / receivable	(4,140)	(4,076)
Land under development		(472)
Net cash used by operating activities	(7,856)	(13,685)
Cash flows from investing activities:
Purchase of U.S. Treasury Bills	(15,000)
Construction costs of single-family rentals	(1,579)	(142)
Investments in water and water systems	(1,613)	(463)
Investments in future development phases at Sky Ranch	(1,309)	(1,948)
Payments received on note receivable - related party, other		304
Purchase of property and equipment	(194)
Net cash used by investing activities	(19,695)	(2,249)
Cash flows from financing activities:
Payments to contingent liability holders	(111)	(1)
Payments on notes payable	(5)
Proceeds from option exercises		34
Proceeds from notes payable		1,000
Net cash (used) provided by financing activities	(116)	1,033
Net change in cash, cash equivalents and restricted cash	(27,667)	(14,901)
Cash, cash equivalents and restricted cash - beginning of period	37,222	22,444
Cash, cash equivalents and restricted cash - end of period	9,555	7,543
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	7,224	5,215
Restricted cash	2,331	2,328
Total cash, cash equivalents and restricted cash	9,555	7,543
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for income taxes	4,265	5,260
Cash paid for interest	98
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Change in reimbursable public improvements included in accounts payable and accrued liabilities	586	668
Issuance of stock for compensation	111
Rangeview District [Member]
Adjustments to reconcile net income to net cash used by operating activities:
Additions to note receivable - related party	(179)	(25)
Sky Ranch CAB [Member]
Adjustments to reconcile net income to net cash used by operating activities:
Additions to note receivable - related party	$ (3,401)	$ (8,169)

PRESENTATION OF INTERIM INFORMA

PRESENTATION OF INTERIM INFORMATION	6 Months Ended
PRESENTATION OF INTERIM INFORMATION	Feb. 28, 2023
PRESENTATION OF INTERIM INFORMATION
PRESENTATION OF INTERIM INFORMATION	NOTE 1 – PRESENTATION OF INTERIM INFORMATION The accompanying unaudited consolidated financial statements have been prepared by Pure Cycle Corporation ( Company Pure Cycle 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 2022 Annual Report SEC 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, dollar amount of reimbursable costs and collectability of reimbursable costs, costs of revenue for lot sales, share-based compensation, 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. Reclassifications The Company has reclassified certain prior year information to conform to the current year presentation.

INVESTMENTS

INVESTMENTS	6 Months Ended
INVESTMENTS	Feb. 28, 2023
INVESTMENTS.
INVESTMENTS	NOTE 2 – INVESTMENTS Management determines the appropriate classification of its investments in U.S. Treasury debt securities at the time of purchase and re-evaluates such determinations each reporting period. U.S. Treasury debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. On February 28, 2023, the Company had $15.2 million of investments classified as held-to-maturity, which are comprised entirely of Treasury Bills with maturity dates in March 2023. On February 28, 2023, the Company had under $0.1 million in unamortized discount on Treasury Bills. Investments are being carried at amortized cost.

REIMBURSABLE PUBLIC IMPROVEMENT

REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB	6 Months Ended
	Feb. 28, 2023
REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB
REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB	NOTE 3 – REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB The Sky Ranch Community Authority Board ( Sky Ranch CAB The notes receivable – related party, reimbursable public improvements is due to the Company from the Sky Ranch CAB and reports the balances owed by the Sky Ranch CAB to Pure Cycle for public improvements paid for by Pure Cycle which are reimbursable from the Sky Ranch CAB, project management fees related to the Company’s management of the construction of the public improvements, and interest accrued on the unpaid balances related to the ongoing development of the Sky Ranch master planned community. Pure Cycle 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 repayment of those improvements was probable, along with the project management fees and interest on those costs. Upon that determination, Pure Cycle began recording the reimbursable public improvements as a receivable from the Sky Ranch CAB (as opposed to the costs being 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, Pure Cycle 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, 2023, Pure Cycle spent $1.7 million and $2.8 million on public improvements which are payable by the Sky Ranch CAB to Pure Cycle. Since Pure Cycle believes the amounts are probable of collection, they have been added to the note receivable from the Sky Ranch CAB. Additionally, for the three and six months ended February 28, 2023, project management fees of $0.1 million and $0.1 million and interest income on the outstanding note receivable of $0.3 million and $0.5 million were also added to the note receivable. No payments were made on the note receivable during the three and six months ended February 28, 2023 and 2022. Pursuant to the agreements with the Sky Ranch CAB, any payments received are initially applied to interest. 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. The following table summarizes the activity and balances associated with the note receivable from the Sky Ranch CAB: Three Months Ended February 28, 2023 February 28, 2022 Beginning balance $ 18,487 $ 29,517 Additions 2,122 3,446 Payments received — — Ending balance $ 20,609 $ 32,963 Six Months Ended February 28, 2023 February 28, 2022 Beginning balance $ 17,208 $ 24,794 Additions 3,401 8,169 Payments received — — Ending balance $ 20,609 $ 32,963 The note receivable from the Sky Ranch CAB accrues interest at 6% per annum. Public improvements which are not probable of reimbursement at the time of being incurred are considered contract fulfillment costs and are recorded 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, at each reporting period. 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.

REVENUES, FEES AND OTHER INCOME

REVENUES, FEES AND OTHER INCOME ITEMS	6 Months Ended
REVENUES, FEES AND OTHER INCOME ITEMS	Feb. 28, 2023
REVENUES, FEES AND OTHER INCOME ITEMS
REVENUES, FEES AND OTHER INCOME ITEMS	NOTE 4 – REVENUES, FEES AND OTHER INCOME ITEMS Water and wastewater tap fees, metered water usage and wastewater treatment fees, lot sales, and project management revenue The Company’s revenue is primarily generated from sales of water and wastewater taps, metered water and wastewater usage, and the sale of lots to homebuilders. Detailed descriptions of the policies related to revenue recognition are included in Note 2 to the 2022 Annual Report. The following describes significant components of revenue for the three and six months ended February 28, 2023 and 2022. Water and wastewater tap fees During the six months ended February 28, 2023 and 2022, the Company sold a total of 39 and 36 water taps generating $1.0 million and just under $1.0 million in tap fee revenues. During the six months ended February 28, 2023 and 2022, the Company sold a total of 36 and 36 wastewater taps generating $0.2 million and $0.2 million in tap fee revenues. The water taps were all sold at Sky Ranch and Wild Pointe, and the wastewater taps were all sold at Sky Ranch. Sale of finished lots Project management services Single-family rental revenue In November 2021, the Company began renting single-family homes from lots it retained and constructed homes on, 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 . three Special facility projects and other revenue Pure Cycle receives fees from customers including municipalities and area water providers for contract operations services. These fees are recognized as earned, typically monthly, plus charges for additional work performed. Additionally, the Company performs certain construction activities at Sky Ranch. The activities performed include construction and maintenance services. The revenue for both types of services are invoiced and recognized as special facility projects revenue. For the three months ended February 28, 2023 and 2022, the Company recognized $0.2 million and $0.2 million of special facility projects and other revenue, an immaterial amount of which is from work performed for the Sky Ranch CAB, a related party. For the six months ended February 28, 2023 and 2022, the Company recognized $0.3 million and $0.3 million of special facility projects and other revenue, an immaterial amount of which is from work performed for the Sky Ranch CAB, a related party. Deferred revenue Changes and balances of the Company’s deferred revenue accounts by segment are as follows: Three Months Ended February 28, 2023 (In thousands) Water and Wastewater Resource Development Land Development Total Balance at November 30, 2022 $ 552 $ 3,889 $ 4,441 Revenue recognized (19) (1,492) (1,511) Revenue deferred - 1,076 1,076 Balance at February 28, 2023 $ 533 $ 3,473 $ 4,006 Three Months Ended February 28, 2022 Water and Wastewater Resource Development Land Development Total 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 Six Months Ended February 28, 2023 (In thousands) Water and Wastewater Resource Development Land Development Total Balance at August 31, 2022 $ 570 $ 4,275 $ 4,845 Revenue recognized (37) (2,029) (2,066) Revenue deferred - 1,227 1,227 Balance at February 28, 2023 $ 533 $ 3,473 $ 4,006 Six Months Ended February 28, 2022 (In thousands) Water and Wastewater Resource Development Land Development Total 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 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 lot sales over time as construction activities progress and not necessarily 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.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
FAIR VALUE MEASUREMENTS	Feb. 28, 2023
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	NOTE 5 – 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 carrying value for certain of the Company’s financial instruments (i.e., cash and cash equivalents, investments in U.S. Treasury Bills, restricted cash, accounts receivable, notes receivable from related parties, accounts payable, accrued liabilities, the SFR Note and the Lost Creek Note, each as defined in Note 7 below) materially approximate their fair value because of their short-term nature and generally negligible credit losses. As of February 28, 2023 and August 31, 2022, the Company had no assets or liabilities measured at fair value on a recurring basis. As of August 31, 2022, the Company had one Level 3 liability, which was the contingent portion of the CAA. There were no transfers between Level 1, 2 or 3 categories during the three and six months ended February 28, 2023 or 2022.

WATER, LAND AND OTHER FIXED ASS

WATER, LAND AND OTHER FIXED ASSETS	6 Months Ended
WATER, LAND AND OTHER FIXED ASSETS	Feb. 28, 2023
WATER, LAND AND OTHER FIXED ASSETS
WATER, LAND AND OTHER FIXED ASSETS	NOTE 6 – 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 2022 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, 2023 August 31, 2022 Accumulated Accumulated Depreciation Depreciation (In thousands) Costs and Depletion Costs and Depletion Rangeview water system $ 19,923 $ (2,451) $ 19,881 $ (2,099) Rangeview water supply 14,931 (18) 14,809 (17) Water supply – Other 7,612 (1,901) 7,612 (1,739) Sky Ranch water rights and other costs 7,764 (1,387) 7,764 (1,280) Sky Ranch pipeline 5,740 (1,080) 5,740 (984) Lost Creek water supply 7,327 — 7,041 — Fairgrounds water and water system 2,900 (1,459) 2,900 (1,415) Wild Pointe service rights 1,632 (1,165) 1,632 (1,082) Totals 67,829 (9,461) 67,379 (8,616) Net investments in water and water systems $ 58,368 $ 58,763 During the six months ended February 28, 2023, the Company acquired three deep water wells in the Lost Creek Designated Groundwater Basin for $0.3 million. Construction in Progress The construction in progress account 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 costs incurred related to the construction of 10 homes to be used in Pure Cycle’s single-family rental business and water facilities being constructed, which the Company anticipates will be placed in service during the next 12 months. During the three and six months ended February 28, 2023, the Company incurred $1.5 million and $2.7 million of costs related to construction of single-family rental units and water and wastewater construction projects. During the three and six months ended February 28, 2023, the Company capitalized $0.6 million and $0.6 million of costs as projects were completed and placed into service. Single-Family Rental Homes During the six months ended February 28, 2022, the Company completed construction of the first three units being utilized in its single-family rental business. The costs of the units are capitalized and when applicable are depreciated over periods not exceeding thirty-years, which is dependent on the asset type. All three units were placed in service and leased effective November 1, 2021. During the year ended August 31, 2022, the Company contracted for construction of 11 additional rental homes to be used in the rental business. The Company began construction on one single-family detached unit in March 2022 which was completed in December 2022 and rented effective December 15, 2022. For the remaining 10 units, comprised of single-family detached houses and paired homes, construction began in the summer of 2022 with estimated completion dates in the third and fourth quarter of fiscal 2023. During the three and six months ended February 28, 2023, the Company incurred costs of $1.0 million and $2.0 million related to the construction of these 11 units. Costs for the 10 units still under construction are included in the construction in progress account as of February 28, 2023. At February 28, 2023, the Company had reserved a total of 46 lots in Phase 2 (ten of which are in Phase 2A and under construction as of February 28, 2023) of Sky Ranch to build additional rental units. On March 8, 2023, and March 16, 2023, the Company amended two home builder agreements, which amendments included the Company retaining an additional 19 units in Phases 2B-D, which brings the total lots reserved in Phase 2 to 65 homes.

DEBT AND OTHER LONG-TERM OBLIGA

DEBT AND OTHER LONG-TERM OBLIGATIONS	6 Months Ended
DEBT AND OTHER LONG-TERM OBLIGATIONS	Feb. 28, 2023
DEBT AND OTHER LONG-TERM OBLIGATIONS
DEBT AND OTHER LONG-TERM OBLIGATIONS	NOTE 7 – DEBT AND OTHER LONG-TERM OBLIGATIONS As of February 28, 2023, the scheduled maturities of the Company’s loans are as follows: (In thousands) Scheduled principal payments Within 1 year $ 14 Year 2 14 Year 3 258 Year 4 1,329 Year 5 312 Thereafter 2,064 3,991 Deferred financing costs (36) Net 3,955 Less current maturities (10) Debt, less current portion $ 3,945 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 ● Floating per annum interest rate equal to the Western Edition of the “Wall Street Journal” Prime Rate plus 0.5% , which has a floor of 3.75% and a ceiling of 4.25% ( 4.25% as of February 28, 2023). 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 which began January 1, 2022 ● Fifty-three principal and interest payments each month which began July 1, 2022 in the amount of $4,600 each ● Estimated final principal and interest balloon payment of $0.9 million payable on December 1, 2026 ● Secured by three single-family rental homes ● Required minimum debt service coverage ratio of 1.10 , measured annually based on audited financial statements (which the Company satisfied as of August 31, 2022), 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 Company is working with its primary bank to provide similar financing for the rental units currently under construction. As of February 28, 2023, these loans have not been finalized. Lost Creek Note On June 28, 2022, the Company entered a loan with its primary bank to fund the acquisition of 370 acre-feet of water rights the Company acquired on June 27, 2022, in the Lost Creek Designated Groundwater Basin area of Colorado ( Lost Creek Note Working Capital Line of Credit On January 31, 2022, the Company entered a Business Loan Agreement ( Working Capital LOC Letters of Credit At February 28, 2023, the Company has four Irrevocable Letters of Credit ( LOCs Participating Interest in Export Water Refer to Note 6 in the 2022 Annual Report for additional details regarding the “CAA.” The CAA, which was used to acquire the Company’s Rangeview Water Supply, included contractual payments when the Company sells “Export Water.” To reduce the long-term impacts of the CAA, in the past the Company has acquired portions of the obligation from the third-party holders. During the six months ended February 28, 2023, the Company acquired the remaining $0.9 million of total CAA interests (of which $0.3 million was reflected on the Company’s balance sheet and the remaining was deemed contingent and not reflected on the balance sheet) for $0.1 million in cash. The Company recorded a gain of $0.2 million on the acquisition which is included in other income.

EMPLOYEE STOCK PLANS

EMPLOYEE STOCK PLANS	6 Months Ended
EMPLOYEE STOCK PLANS	Feb. 28, 2023
EMPLOYEE STOCK PLANS.
EMPLOYEE STOCK PLANS	NOTE 8 – EMPLOYEE STOCK PLANS 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 2004 Incentive Plan The following table summarizes the combined stock option activity for the 2004 Incentive Plan and 2014 Equity Plan for the periods noted: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Approximate Aggregate Intrinsic Value (in thousands) Outstanding at August 31, 2022 712,500 $ 8.75 5.7 $ 1,489 Granted — $ — Exercised — $ — Forfeited / Expired — $ — Outstanding at February 28, 2023 712,500 $ 8.75 5.0 $ 0.9 Outstanding at August 31, 2021 714,500 $ 7.80 6.1 $ 5,107 Granted 105,000 $ 13.37 Net settlement exercised (58,167) $ 7.67 Forfeited / Expired (3,333) $ 10.45 Outstanding at February 28, 2022 758,000 $ 8.58 5.1 $ 2,639 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 stock options, with an exercise price of $5.66 per share, where the option holder used cash to exercise the options. There were no options exercised during the three and six months ended February 28, 2023. The following table summarizes the combined activity and value of non-vested options under the 2004 Equity Plan and 2014 Incentive Plan for the periods presented: Number of Options Weighted Average Grant Date Fair Value Non-vested options outstanding at August 31, 2022 232,998 $ 4.47 Granted — $ — Vested (101,998) $ 4.40 Forfeited — $ — Non-vested options outstanding at February 28, 2023 131,000 $ 4.54 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 All non-vested options are expected to vest. On January 11, 2023, the Company’s six non-employee Board members were each granted 3,033 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 $9.89. 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, 2023. Additionally, on January 11, 2023, the Company’s board awarded an executive officer 50,000 shares of restricted stock. The shares vested 20% at the grant date, and 20% of the shares will vest on each anniversary of the grant date over four years. The shares are eligible to vote and participate in any dividend or stock splits approved by the Company On September 14, 2022, the Company issued certain employees 6,000 shares of restricted stock. These shares vested 20% at the September 14, 2022 grant date, and 20% vest each anniversary of the grant date for four years. The shares are eligible to vote and participate in any dividend or stock splits approved by the Company. 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. For the three and six months ended February 28, 2023, the Company recognized $0.4 million and $0.5 million of stock-based compensation expense. For the three and six months ended February 28, 2022, the Company recognized $0.3 million and $0.4 million of stock-based compensation expense. At February 28, 2023, the Company had unrecognized compensation expenses totaling $0.5 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 years.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
RELATED PARTY TRANSACTIONS	Feb. 28, 2023
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 9 – RELATED PARTY TRANSACTIONS The Rangeview Metropolitan District The Rangeview Metropolitan District ( Rangeview District The Rangeview District and the Company have entered into two loan agreements. In 1995, the Company extended a loan to the Rangeview District for borrowings of up to $0.25 million, which is unsecured, and bears interest based on the prevailing prime rate plus 2% (9.0% at February 28, 2023). The maturity date of the loan is December 31, 2023, at which time it automatically renews through December 31, 2024. Beginning in January 2014, the Rangeview District and the Company entered into a funding agreement that 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 among the Rangeview District, the Company, and the State Board of Land Commissioners remains in effect. The February 28, 2023, balance in notes receivable - related parties, other totaled $1.3 million, which included borrowings of just under $1.2 million and accrued interest of less than $0.1 million. As of August 31, 2022, the principal and interest on both loan agreements totaled $1.1 million, which included $1.1 million of borrowings and less than $0.1 million of accrued interest. During the three and six months ended February 28, 2023 and 2022, the Company did not receive any interest or principal payments from the Rangeview District. Additionally, the Company provides funding to the Rangeview District for the Rangeview District’s participation in the “Wise Partnership.” The WISE Partnership and capitalized terms related to WISE not defined herein are defined in the 2022 Annual Report. During the three months ended February 28, 2023 and 2022, the Company, through the Rangeview District, received metered water deliveries of 56 acre-feet and 245 acre-feet of WISE water, paying $0.1 million and $0.5 million for this water. During the six months ended February 28, 2023 and 2022, the Company, through the Rangeview District, received metered water deliveries of 111 acre-feet and 250 acre-feet of WISE water, paying $0.2 million and $0.5 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 approximately $6.13 per thousand gallons and such rate remained in effect through calendar 2022. As of January 1, 2023, WISE water was approximately $6.48 per thousand gallons and such rate will remain in effect through calendar 2023. Sky Ranch Community Authority Board The Sky Ranch CAB and the Company’s agreements with the Sky Ranch CAB are described in greater detail in Note 15 to the 2022 Annual Report. 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 funds 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, 2023, 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 $20.6 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 $4.3 million for construction of public improvements to the Sky Ranch CAB during the remainder of fiscal 2023 related to Phase 2A and Phase 2B of the Sky Ranch development. In fiscal 2022, through a competitive bidding process, the Sky Ranch CAB awarded the Company a contract to construct fencing around Phase 2A of the Sky Ranch Master Planned Community. The contracted bid price is $0.3 million, which is being recognized as revenue as the construction of the fence progresses. During the three and six months ended February 28, 2023, the Company recognized less than $0.1 million and $0.1 million of revenue related to this contract. Nelson Pipeline Constructors LLC Through a competitive bidding process, the Sky Ranch CAB awarded Nelson Pipeline Constructors, LLC ( Nelson

SIGNIFICANT CUSTOMERS

SIGNIFICANT CUSTOMERS	6 Months Ended
SIGNIFICANT CUSTOMERS	Feb. 28, 2023
SIGNIFICANT CUSTOMERS.
SIGNIFICANT CUSTOMERS	NOTE 10 – SIGNIFICANT CUSTOMERS The Company has significant customers in its operations. The table below presents the percentage of total revenue for the reported customers for the six months ended February 28, 2023 and 2022. For water and wastewater customers, the Company provides services on behalf of the Rangeview District for which the significant end users include all Sky Ranch homes in the aggregate combined with the Sky Ranch CAB and two oil & gas operators. The home builders at Sky Ranch account for lot purchase revenue but also for water and wastewater tap fee revenues. Six Months Ended % of Total Revenue Generated From: February 28, 2023 February 28, 2022 Sky Ranch homes and Sky Ranch CAB in the aggregate 18 % 8 % Challenger 17 % 18 % Lennar 13 % 19 % KB Home 12 % 12 % Two and one oil & gas operators 6 % 17 % Richmond - % 12 % As of February 28, 2023, 49% of the trade accounts receivable balance is owed by KB Home related to their first milestone payment for Phase 2B, and 30% is owed by the Rangeview District for tap fees, water usage and wastewater treatment fees. The entire amount owed by KB Home and the Rangeview District were remitted to the Company after February 28, 2023.

ACCRUED LIABILITIES

ACCRUED LIABILITIES	6 Months Ended
ACCRUED LIABILITIES	Feb. 28, 2023
ACCRUED LIABILITIES.
ACCRUED LIABILITIES	NOTE 11 – ACCRUED LIABILITIES (In thousands) February 28, 2023 August 31, 2022 Accrued compensation $ 560 $ 1,325 Other operating payables 136 308 Property taxes 360 164 Operating lease obligation, current 77 76 Professional fees 34 115 WISE water 21 32 Rental deposits 13 9 Total accrued liabilities $ 1,201 $ 2,029 Land development costs due to the Sky Ranch CAB $ 586 $ 536 Due to Rangeview Metropolitan District 10 24 Total accrued liabilities - related parties $ 596 $ 560

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
SEGMENT INFORMATION	Feb. 28, 2023
SEGMENT INFORMATION
SEGMENT INFORMATION	NOTE 12 – SEGMENT INFORMATION The Company reports two operating segments which meet segment disclosure requirements, the water and wastewater resource development segment and the land development segment. The single-family rentals, 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, operating, and maintaining infrastructure to divert, treat and distribute that water and collect, treat and reuse reclaimed wastewater. The land development segment includes all activities necessary to develop and sell finished lots, which for the three and six months ended February 28, 2023 and 2022, 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 two required segments and the single-family rentals that the Company believes will become a segment for the periods presented: Three Months Ended February 28, 2023 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 1,445 $ 1,514 $ 31 $ 2,990 Cost of revenue 659 262 19 940 Depreciation and depletion 461 — — 461 Total cost of revenue 1,120 262 19 1,401 Segment profit $ 325 $ 1,252 $ 12 $ 1,589 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 Six Months Ended February 28, 2023 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 2,239 $ 2,035 $ 56 $ 4,330 Cost of revenue 1,382 477 29 1,888 Depreciation and depletion 839 — — 839 Total cost of revenue 2,221 477 29 2,727 Segment (loss) profit $ 18 $ 1,558 $ 27 $ 1,603 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 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 (In thousands) February 28, 2023 August 31, 2022 Water and wastewater resource development $ 63,349 $ 63,064 Land development 30,276 25,522 Single-family rental 3,688 1,715 Corporate 28,101 38,928 Total assets $ 125,414 $ 129,229

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
EARNINGS PER SHARE	Feb. 28, 2023
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 13 – EARNINGS PER SHARE Earnings per share ( EPS Three Months Ended Six Months Ended (In thousands, except share and per share amounts) February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Net income $ 189 $ 1,693 $ 348 $ 3,207 Basic weighted average common shares 24,023,775 23,944,141 24,004,677 23,931,307 Effect of dilutive securities 118,525 240,020 109,412 263,272 Weighted average shares applicable to diluted earnings per share 24,142,300 24,184,161 24,114,089 24,194,579 Earnings per share - basic $ 0.01 $ 0.07 $ 0.01 $ 0.13 Earnings per share - diluted $ 0.01 $ 0.07 $ 0.01 $ 0.13

INCOME TAXES

INCOME TAXES	6 Months Ended
INCOME TAXES	Feb. 28, 2023
INCOME TAXES
INCOME TAXES	NOTE 14 – 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, 2023, 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 considering any items requiring discrete recognition. Income tax information for the three and six months ended February 28, 2023 and 2022 is as follows: Three Months Ended Six Months Ended (In thousands) February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Effective income tax rate 32.3 % 22.8 % 38.7 % 23.4 % Income tax expense: Current $ 161 $ 712 $ 125 $ 1,183 Deferred (71) (211) 95 (205) Total $ 90 $ 501 $ 220 $ 978 Income taxes paid: Federal $ 3,471 $ 910 $ 3,471 $ 4,360 State 794 900 794 900 Total $ 4,265 $ 1,810 $ 4,265 $ 5,260 The effective income tax rate for the three and six months ended February 28, 2023, was impacted by adjustments related to reconciling items between the Company’s books and tax returns.

PRESENTATION OF INTERIM INFOR_2

PRESENTATION OF INTERIM INFORMATION (Policies)	6 Months Ended
PRESENTATION OF INTERIM INFORMATION (Policies)	Feb. 28, 2023
PRESENTATION OF INTERIM INFORMATION
Basis of Presentation	The accompanying unaudited consolidated financial statements have been prepared by Pure Cycle Corporation ( Company Pure Cycle 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 2022 Annual Report SEC
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, dollar amount of reimbursable costs and collectability of reimbursable costs, costs of revenue for lot sales, share-based compensation, 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.
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)	6 Months Ended
	Feb. 28, 2023
REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB
Summary of activity and balances associated with note receivable	Three Months Ended February 28, 2023 February 28, 2022 Beginning balance $ 18,487 $ 29,517 Additions 2,122 3,446 Payments received — — Ending balance $ 20,609 $ 32,963 Six Months Ended February 28, 2023 February 28, 2022 Beginning balance $ 17,208 $ 24,794 Additions 3,401 8,169 Payments received — — Ending balance $ 20,609 $ 32,963

REVENUES, FEES AND OTHER INCO_2

REVENUES, FEES AND OTHER INCOME ITEMS (Tables)	6 Months Ended
REVENUES, FEES AND OTHER INCOME ITEMS (Tables)	Feb. 28, 2023
REVENUES, FEES AND OTHER INCOME ITEMS
Deferred Revenue and Changes in Deferred Revenue	Changes and balances of the Company’s deferred revenue accounts by segment are as follows: Three Months Ended February 28, 2023 (In thousands) Water and Wastewater Resource Development Land Development Total Balance at November 30, 2022 $ 552 $ 3,889 $ 4,441 Revenue recognized (19) (1,492) (1,511) Revenue deferred - 1,076 1,076 Balance at February 28, 2023 $ 533 $ 3,473 $ 4,006 Three Months Ended February 28, 2022 Water and Wastewater Resource Development Land Development Total 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 Six Months Ended February 28, 2023 (In thousands) Water and Wastewater Resource Development Land Development Total Balance at August 31, 2022 $ 570 $ 4,275 $ 4,845 Revenue recognized (37) (2,029) (2,066) Revenue deferred - 1,227 1,227 Balance at February 28, 2023 $ 533 $ 3,473 $ 4,006 Six Months Ended February 28, 2022 (In thousands) Water and Wastewater Resource Development Land Development Total 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

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, 2023
WATER, LAND AND OTHER FIXED ASSETS
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, 2023 August 31, 2022 Accumulated Accumulated Depreciation Depreciation (In thousands) Costs and Depletion Costs and Depletion Rangeview water system $ 19,923 $ (2,451) $ 19,881 $ (2,099) Rangeview water supply 14,931 (18) 14,809 (17) Water supply – Other 7,612 (1,901) 7,612 (1,739) Sky Ranch water rights and other costs 7,764 (1,387) 7,764 (1,280) Sky Ranch pipeline 5,740 (1,080) 5,740 (984) Lost Creek water supply 7,327 — 7,041 — Fairgrounds water and water system 2,900 (1,459) 2,900 (1,415) Wild Pointe service rights 1,632 (1,165) 1,632 (1,082) Totals 67,829 (9,461) 67,379 (8,616) Net investments in water and water systems $ 58,368 $ 58,763

DEBT AND OTHER LONG-TERM OBLI_2

DEBT AND OTHER LONG-TERM OBLIGATIONS (Tables)	6 Months Ended
DEBT AND OTHER LONG-TERM OBLIGATIONS (Tables)	Feb. 28, 2023
DEBT AND OTHER LONG-TERM OBLIGATIONS
Schedule of maturities of notes payable	As of February 28, 2023, the scheduled maturities of the Company’s loans are as follows: (In thousands) Scheduled principal payments Within 1 year $ 14 Year 2 14 Year 3 258 Year 4 1,329 Year 5 312 Thereafter 2,064 3,991 Deferred financing costs (36) Net 3,955 Less current maturities (10) Debt, less current portion $ 3,945

EMPLOYEE STOCK PLANS (Tables)

EMPLOYEE STOCK PLANS (Tables)	6 Months Ended
EMPLOYEE STOCK PLANS (Tables)	Feb. 28, 2023
EMPLOYEE STOCK PLANS.
Stock Option Activity	The following table summarizes the combined stock option activity for the 2004 Incentive Plan and 2014 Equity Plan for the periods noted: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Approximate Aggregate Intrinsic Value (in thousands) Outstanding at August 31, 2022 712,500 $ 8.75 5.7 $ 1,489 Granted — $ — Exercised — $ — Forfeited / Expired — $ — Outstanding at February 28, 2023 712,500 $ 8.75 5.0 $ 0.9 Outstanding at August 31, 2021 714,500 $ 7.80 6.1 $ 5,107 Granted 105,000 $ 13.37 Net settlement exercised (58,167) $ 7.67 Forfeited / Expired (3,333) $ 10.45 Outstanding at February 28, 2022 758,000 $ 8.58 5.1 $ 2,639
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 for the periods presented: Number of Options Weighted Average Grant Date Fair Value Non-vested options outstanding at August 31, 2022 232,998 $ 4.47 Granted — $ — Vested (101,998) $ 4.40 Forfeited — $ — Non-vested options outstanding at February 28, 2023 131,000 $ 4.54 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

SIGNIFICANT CUSTOMERS (Tables)

SIGNIFICANT CUSTOMERS (Tables)	6 Months Ended
SIGNIFICANT CUSTOMERS (Tables)	Feb. 28, 2023
SIGNIFICANT CUSTOMERS.
Significant Customers	Six Months Ended % of Total Revenue Generated From: February 28, 2023 February 28, 2022 Sky Ranch homes and Sky Ranch CAB in the aggregate 18 % 8 % Challenger 17 % 18 % Lennar 13 % 19 % KB Home 12 % 12 % Two and one oil & gas operators 6 % 17 % Richmond - % 12 %

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	6 Months Ended
ACCRUED LIABILITIES (Tables)	Feb. 28, 2023
ACCRUED LIABILITIES.
Accrued Liabilities	(In thousands) February 28, 2023 August 31, 2022 Accrued compensation $ 560 $ 1,325 Other operating payables 136 308 Property taxes 360 164 Operating lease obligation, current 77 76 Professional fees 34 115 WISE water 21 32 Rental deposits 13 9 Total accrued liabilities $ 1,201 $ 2,029 Land development costs due to the Sky Ranch CAB $ 586 $ 536 Due to Rangeview Metropolitan District 10 24 Total accrued liabilities - related parties $ 596 $ 560

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
SEGMENT INFORMATION (Tables)	Feb. 28, 2023
SEGMENT INFORMATION
Segment Information	The tables below present the measure of profit and assets used to assess the performance of the two required segments and the single-family rentals that the Company believes will become a segment for the periods presented: Three Months Ended February 28, 2023 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 1,445 $ 1,514 $ 31 $ 2,990 Cost of revenue 659 262 19 940 Depreciation and depletion 461 — — 461 Total cost of revenue 1,120 262 19 1,401 Segment profit $ 325 $ 1,252 $ 12 $ 1,589 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 Six Months Ended February 28, 2023 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 2,239 $ 2,035 $ 56 $ 4,330 Cost of revenue 1,382 477 29 1,888 Depreciation and depletion 839 — — 839 Total cost of revenue 2,221 477 29 2,727 Segment (loss) profit $ 18 $ 1,558 $ 27 $ 1,603 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 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 (In thousands) February 28, 2023 August 31, 2022 Water and wastewater resource development $ 63,349 $ 63,064 Land development 30,276 25,522 Single-family rental 3,688 1,715 Corporate 28,101 38,928 Total assets $ 125,414 $ 129,229

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
EARNINGS PER SHARE (Tables)	Feb. 28, 2023
EARNINGS PER SHARE
Earnings Per Share	Three Months Ended Six Months Ended (In thousands, except share and per share amounts) February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Net income $ 189 $ 1,693 $ 348 $ 3,207 Basic weighted average common shares 24,023,775 23,944,141 24,004,677 23,931,307 Effect of dilutive securities 118,525 240,020 109,412 263,272 Weighted average shares applicable to diluted earnings per share 24,142,300 24,184,161 24,114,089 24,194,579 Earnings per share - basic $ 0.01 $ 0.07 $ 0.01 $ 0.13 Earnings per share - diluted $ 0.01 $ 0.07 $ 0.01 $ 0.13

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
INCOME TAXES (Tables)	Feb. 28, 2023
INCOME TAXES
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 considering any items requiring discrete recognition. Income tax information for the three and six months ended February 28, 2023 and 2022 is as follows: Three Months Ended Six Months Ended (In thousands) February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Effective income tax rate 32.3 % 22.8 % 38.7 % 23.4 % Income tax expense: Current $ 161 $ 712 $ 125 $ 1,183 Deferred (71) (211) 95 (205) Total $ 90 $ 501 $ 220 $ 978 Income taxes paid: Federal $ 3,471 $ 910 $ 3,471 $ 4,360 State 794 900 794 900 Total $ 4,265 $ 1,810 $ 4,265 $ 5,260

INVESTMENTS (Details)

INVESTMENTS (Details) $ in Thousands	Feb. 28, 2023 USD ($)
Schedule of Held-to-Maturity Securities [Line Items]
Investments classified as held-to-maturity	$ 15,245
US Treasury Securities [Member]
Schedule of Held-to-Maturity Securities [Line Items]
Investments classified as held-to-maturity	15,200
US Treasury Securities [Member] \| Maximum [Member]
Schedule of Held-to-Maturity Securities [Line Items]
Debt instrument unamortized discount	$ 100

REIMBURSABLE PUBLIC IMPROVEME_3

REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB (Details) - Sky Ranch CAB [Member] $ in Millions	3 Months Ended		6 Months Ended
	Feb. 28, 2023 USD ($) payment	Feb. 28, 2022 USD ($) payment	Feb. 28, 2023 USD ($) payment	Feb. 28, 2022 USD ($) payment
Related Party Transaction [Line Items]
Interest rate			6%
Reimbursable public improvement costs	$ 1.7	$ 2.7	$ 2.8	$ 6.8
Project Management Fees Receivable, Related Party	0.1	0.2	0.1	0.4
Interest Income, Related Party	$ 0.3	$ 0.5	$ 0.5	$ 0.9
Number of milestone payments \| payment	0	0	0	0

REIMBURSABLE PUBLIC IMPROVEME_4

REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB - Note Receivable (Details) - Sky Ranch CAB [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Related Party Transaction [Line Items]
Beginning balance	$ 18,487	$ 29,517	$ 17,208	$ 24,794
Additions	2,122	3,446	3,401	8,169
Ending balance	$ 20,609	$ 32,963	$ 20,609	$ 32,963

REVENUES, FEES AND OTHER INCO_3

REVENUES, FEES AND OTHER INCOME ITEMS (Details) $ in Thousands			1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 16, 2023 item agreement	Mar. 08, 2023 agreement item	Nov. 30, 2021	Feb. 28, 2023 USD ($) item home	Feb. 28, 2022 USD ($) item home	Feb. 28, 2023 USD ($) item home	Feb. 28, 2022 USD ($) home item	Aug. 31, 2022 home
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues \| $				$ 2,990	$ 4,664	$ 4,330	$ 8,936
Single Family Rental Homes [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Number of additional rental homes constructed \| home				10	10	10	10	11
Number of rented single family detached homes				4		4
Single family houses construction completed \| home							3
Single Family Rental Homes [Member] \| Minimum [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Expected delivery period for lots sold						3 years
Single Family Rental Homes [Member] \| Maximum [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Expected delivery period for lots sold						5 years
Lot Sales [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues \| $				$ 1,391	$ 1,629	$ 1,904	$ 4,574
Finished Lot [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues \| $				1,400	1,600	1,900	4,600
Water and Wastewater Tap Fees [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues \| $				$ 994	$ 913	1,144	1,174
Water Tap Fees [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues \| $						$ 1,000	$ 1,000
Number of water and wastewater taps sold				35	27	39	36
Water Tap Fees [Member] \| Minimum [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues \| $				$ 800
Water Tap Fees [Member] \| Maximum [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues \| $					$ 800
Wastewater Tap Fees [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues \| $				$ 200	$ 100	$ 200	$ 200
Number of water and wastewater taps sold				32	27	36	36
Project Management Fees - Recognized [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues \| $				$ 123	$ 200	$ 131	$ 448
Single Family Rentals [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues \| $				31	26	$ 56	34
Number of lots						69
Number of home builder agreements \| agreement	2	2
Lease term			1 year
Number of lots reserved for single family rental units	19	19
Number of lots reserved for future rental use single family rental units	55
Single Family Rentals [Member] \| Maximum [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues \| $				$ 100	100	$ 100	100
Phase 1 Development
Revenue Recognition and Reimbursable Costs [Abstract]
Number of lots						509
Phase 2 Development
Revenue Recognition and Reimbursable Costs [Abstract]
Number of lots						850
Number of sub-phases for second phase of development of Sky Ranch						4
Phase 2 Development \| Subsequent Event [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Number of lots reserved for single family rental units	65
Phase 2 Development \| Single Family Rental Homes [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Number of lots reserved for single family rental units						46
Phase 2A
Revenue Recognition and Reimbursable Costs [Abstract]
Completion of sub phase 2A of second development (as Percent)				87%		87%
Number of lots to be constructed in a subphase						229
Number of lots reserved for single family rental units						10
Phase 2A \| Single Family Rental Homes [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Number of lots reserved for single family rental units						10
Phase 2B
Revenue Recognition and Reimbursable Costs [Abstract]
Number of lots to be constructed in a subphase						211
Expected delivery period for lots sold						1 year
Phase 2B \| Subsequent Event [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Number of home builder agreements \| agreement	2	2
Number of lots reserved for single family rental units	19	19
Phase 2C
Revenue Recognition and Reimbursable Costs [Abstract]
Number of lots to be constructed in a subphase						204
Phase 2D
Revenue Recognition and Reimbursable Costs [Abstract]
Number of lots to be constructed in a subphase						206
Sky Ranch CAB [Member] \| Single Family Rental Homes [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Number of lots reserved for single family rental units						36
Sky Ranch CAB [Member] \| Special Facility Projects and Other Revenue [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Special facility projects and other revenue from related parties \| $				$ 200	$ 200	$ 300	$ 300

REVENUES, FEES AND OTHER INCO_4

REVENUES, FEES AND OTHER INCOME ITEMS - Changes in Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Deferred Revenue [Abstract]
Balance	$ 4,441	$ 3,102	$ 4,845	$ 2,405
Revenue recognized	(1,511)	(1,830)	(2,066)	(4,916)
Revenue deferred	1,076	370	1,227	4,153
Balance	4,006	1,642	4,006	1,642
Water and Wastewater Resource Development Segment [Member]
Deferred Revenue [Abstract]
Balance	552	271	570	410
Revenue recognized	(19)	(202)	(37)	(341)
Revenue deferred		370		370
Balance	533	439	533	439
Land Development Segment [Member]
Deferred Revenue [Abstract]
Balance	3,889	2,831	4,275	1,995
Revenue recognized	(1,492)	(1,628)	(2,029)	(4,575)
Revenue deferred	1,076		1,227	3,783
Balance	$ 3,473	$ 1,203	$ 3,473	$ 1,203

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - item	Feb. 28, 2023	Aug. 31, 2022
Fair Value, Recurring
Fair Value Measurements [Abstract]
Number of assets	0	0
Number of liabilities	0	0
Significant Unobservable Inputs (Level 3) [Member]
Fair Value Measurements [Abstract]
Number of liabilities		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, 2023	Aug. 31, 2022
Investment in Water and Water Systems [Abstract]
Water And Water Systems, Gross	$ 67,829	$ 67,379
Accumulated depreciation and depletion	(9,461)	(8,616)
Net investments in water and water systems	58,368	58,763
Rangeview Water System [Member]
Investment in Water and Water Systems [Abstract]
Water And Water Systems, Gross	19,923	19,881
Accumulated depreciation and depletion	(2,451)	(2,099)
Rangeview Water Supply [Member]
Investment in Water and Water Systems [Abstract]
Water And Water Systems, Gross	14,931	14,809
Accumulated depreciation and depletion	(18)	(17)
Water Supply - Other [Member]
Investment in Water and Water Systems [Abstract]
Water And Water Systems, Gross	7,612	7,612
Accumulated depreciation and depletion	(1,901)	(1,739)
Sky Ranch Water Rights and Other Costs [Member]
Investment in Water and Water Systems [Abstract]
Water And Water Systems, Gross	7,764	7,764
Accumulated depreciation and depletion	(1,387)	(1,280)
Sky Ranch Pipeline [Member]
Investment in Water and Water Systems [Abstract]
Water And Water Systems, Gross	5,740	5,740
Accumulated depreciation and depletion	(1,080)	(984)
Lost Creek Water Supply [Member]
Investment in Water and Water Systems [Abstract]
Water And Water Systems, Gross	7,327	7,041
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	(1,459)	(1,415)
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	$ (1,165)	$ (1,082)

WATER, LAND AND OTHER FIXED A_4

WATER, LAND AND OTHER FIXED ASSETS (Details) $ in Millions			3 Months Ended	6 Months Ended		12 Months Ended
WATER, LAND AND OTHER FIXED ASSETS (Details) $ in Millions	Mar. 16, 2023 item agreement	Mar. 08, 2023 agreement item	Feb. 28, 2023 USD ($) home	Feb. 28, 2023 USD ($) home item	Feb. 28, 2022 home	Aug. 31, 2022 home
Single Family Rental Homes And Water And Wastewater Construction Project
Investment in Water and Water Systems [Abstract]
Construction cost incurred for construction in progress \| $			$ 1.5	$ 2.7
Single Family Rental Homes [Member]
Investment in Water and Water Systems [Abstract]
Construction cost incurred for construction in progress \| $			1	2
Construction cost capitalized \| $			$ 0.6	$ 0.6
Number of additional rental homes constructed \| home			10	10	10	11
Single family houses construction completed \| home					3
Number of Single Family Rental Houses Construction Contracted \| home				11
Number of Units of Single Family Rental House Construction Commenced \| home						1
Remaining number of units of single family rental house construction in progress				10
Number of single family rental houses unit construction Yet to Commence \| home						10
Single Family Rental Homes [Member] \| Maximum [Member]
Investment in Water and Water Systems [Abstract]
Estimated Useful lives					30 years
Lost Creek Water Supply [Member]
Investment in Water and Water Systems [Abstract]
Number of water wells acquired				3
Cost of water and land portions of asset acquisition \| $			$ 0.3	$ 0.3
Phase 2 Development \| Subsequent Event [Member]
Investment in Water and Water Systems [Abstract]
Number of Lots Reserved for Single Family Rental Units	65
Phase 2 Development \| Single Family Rental Homes [Member]
Investment in Water and Water Systems [Abstract]
Number of Lots Reserved for Single Family Rental Units				46
Phase 2A
Investment in Water and Water Systems [Abstract]
Number of Lots Reserved for Single Family Rental Units				10
Phase 2A \| Single Family Rental Homes [Member]
Investment in Water and Water Systems [Abstract]
Number of Lots Reserved for Single Family Rental Units				10
Phase 2B \| Subsequent Event [Member]
Investment in Water and Water Systems [Abstract]
Number of Lots Reserved for Single Family Rental Units	19	19
Number Of Home Builder Agreements \| agreement	2	2
Single Family Rentals [Member]
Investment in Water and Water Systems [Abstract]
Number of Lots Reserved for Single Family Rental Units	19	19
Number Of Home Builder Agreements \| agreement	2	2
Sky Ranch CAB [Member] \| Single Family Rental Homes [Member]
Investment in Water and Water Systems [Abstract]
Number of Lots Reserved for Single Family Rental Units				36

DEBT AND OTHER LONG-TERM OBLI_3

DEBT AND OTHER LONG-TERM OBLIGATIONS - Maturities (Details) $ in Thousands	Feb. 28, 2023 USD ($)
DEBT AND OTHER LONG-TERM OBLIGATIONS
Within 1 year	$ 14
Year 2	14
Year 3	258
Year 4	1,329
Year 5	312
Thereafter	2,064
Gross	3,991
Deferred financing costs	(36)
Net	3,955
Less current maturities	(10)
Debt, less current portion	$ 3,945

DEBT AND OTHER LONG-TERM OBLI_4

DEBT AND OTHER LONG-TERM OBLIGATIONS (Details)			6 Months Ended
DEBT AND OTHER LONG-TERM OBLIGATIONS (Details)	Jan. 31, 2022 USD ($)	Nov. 29, 2021 USD ($) installment item	Feb. 28, 2023 USD ($) LetterOfCredit	Aug. 31, 2022 USD ($)
Debt Instrument [Line Items]
Number of Single Family Homes Being Constructed \| item		3
Number Of Letters Of Credit \| LetterOfCredit			4
Letters of Credit Outstanding, Amount			$ 2,300,000
Annual fee percentage			1%
Participating interests liability				$ 323,000
Rangeview Water Supply [Member]
Debt Instrument [Line Items]
Acquired amount			$ 900,000
Participating interests liability			300,000
Cash payment for a CAA obligations			100,000
Gain on acquisition			$ 200,000
Line of Credit [Member]
Debt Instrument [Line Items]
Effective interest rate			8.25%
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%
Single-Family Rental Home Notes [Member]
Debt Instrument [Line Items]
Effective interest rate			4.25%
Floor interest rate		3.75%
Ceiling interest rate		4.25%
Additional interest rate		2%
Debt Instrument, Number of Interest Only Payments \| installment		6
Debt Instrument, Number of Principal and Interest Payments \| installment		53
Debt Instrument, Periodic Payment		$ 4,600
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid		$ 900,000
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_5

DEBT AND OTHER LONG-TERM OBLIGATIONS - Lost Creek Loan (Details) - Lost Creek Loan [Member]	Jun. 28, 2022 USD ($) M acre ft
Debt Instrument [Line Items]
Water Rights Acquired In Volume \| acre ft	370
Debt Instrument, Face Amount	$ 3,000,000
Debt Instrument, Term	10 years
Monthly interest only payments	$ 12,000
Debt Instrument, Number of Interest Only Payments \| M	36
Debt Instrument, Amortization Period	30 years
Debt Instrument, Interest Rate, Stated Percentage	4.90%
Maximum [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid	$ 800,000
Payment Beginning on July 28, 2025 [Member]
Debt Instrument [Line Items]
Debt Instrument, Number of Principal and Interest Payments \| M	24
Debt Instrument, Periodic Payment	$ 42,000
Payment Beginning on July 28, 2027 [Member]
Debt Instrument [Line Items]
Monthly interest only payments	$ 32,000
Debt Instrument, Number of Principal and Interest Payments \| M	59

EMPLOYEE STOCK PLANS - Stock Op

EMPLOYEE STOCK PLANS - Stock Option Activity (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022	Aug. 31, 2022	Aug. 31, 2021
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)	838,755		838,755		912,953
2004 Incentive Plan and 2014 Equity Plan [Member]
Number of Options [Roll Forward]
Outstanding, beginning of period (in shares)			712,500	714,500	714,500
Granted (in shares)				105,000
Exercised (in shares)	0		0	(58,167)
Forfeited or expired (in shares)				(3,333)
Outstanding, end of period (in shares)	712,500	758,000	712,500	758,000	712,500	714,500
Weighted Average Exercise Price [Roll Forward]
Outstanding, beginning of period (in dollars per share)			$ 8.75	$ 7.80	$ 7.80
Granted (in dollars per share)				13.37
Exercised (in dollars per share)				7.67
Forfeited or expired (in dollars per share)				10.45
Outstanding, end of period (in dollars per share)	$ 8.75	$ 8.58	$ 8.75	$ 8.58	$ 8.75	$ 7.80
Stock Options [Abstract]
Weighted average remaining contractual term			5 years		5 years 8 months 12 days	6 years 1 month 6 days
Weighted average remaining contractual term, options exercisable				5 years 1 month 6 days
Approximate aggregate intrinsic value, outstanding	$ 900	$ 2,639,000	$ 900	$ 2,639,000	$ 1,489,000	$ 5,107,000
Net Settlement Stock Options [Member] \| 2014 Equity Plan [Member]
Stock Options [Abstract]
Shares issued (in shares)		17,422		23,889
Options cancelled (in shares)		21,578		28,278
Restricted Stock [Member] \| 2014 Equity Plan [Member]
Number of Options [Roll Forward]
Exercised (in shares)		(6,000)		(6,000)
Weighted Average Exercise Price [Roll Forward]
Exercised (in dollars per share)		$ 5.66		$ 5.66

EMPLOYEE STOCK PLANS - Non-Vest

EMPLOYEE STOCK PLANS - Non-Vested Options (Details) $ / shares in Units, $ in Thousands				3 Months Ended		6 Months Ended
	Jan. 11, 2023 item $ / shares shares	Sep. 14, 2022 shares	Jan. 12, 2022 item $ / shares shares	Feb. 28, 2023 USD ($) $ / shares shares	Feb. 28, 2022 USD ($) $ / shares shares	Feb. 28, 2023 USD ($) $ / shares shares	Feb. 28, 2022 USD ($) $ / shares shares
Stock Options [Abstract]
Share-based compensation expense \| $						$ 461	$ 371
Employees [Member]
Stock Options [Abstract]
Restricted shares		6,000
Employees [Member] \| Vesting at grant date
Stock Options [Abstract]
Vesting rights percentage		20%
Employees [Member] \| Vesting at anniversary
Stock Options [Abstract]
Vesting rights percentage		20%
Vesting period		4 years
2014 Equity Plan [Member]
Stock Options [Abstract]
Share-based compensation expense \| $				$ 400	$ 300	500	$ 400
Unrecognized compensation expenses \| $				500		$ 500
Weighted-average period for options expected to vest						2 years
2014 Equity Plan [Member] \| Non-Employee Board Members [Member]
Number of Options [Roll Forward]
Granted (in shares)	3,033		2,000
Stock Options [Abstract]
Number of Board Members \| item	6		6
Stock price (in dollars per share) \| $ / shares	$ 9.89		$ 13.23
Share-based compensation expense \| $				$ 200	$ 200
2014 Equity Plan [Member] \| Executive Officer [Member]
Stock Options [Abstract]
Restricted shares	50,000
2014 Equity Plan [Member] \| Executive Officer [Member] \| Vesting at grant date
Stock Options [Abstract]
Vesting rights percentage	20%
2014 Equity Plan [Member] \| Executive Officer [Member] \| Vesting at anniversary
Stock Options [Abstract]
Vesting rights percentage	20%
Vesting period	4 years
2004 Incentive Plan and 2014 Equity Plan [Member]
Number of Options [Roll Forward]
Non-vested options outstanding, beginning of period (in shares)						232,998	218,333
Granted (in shares)							105,000
Vested (in shares)						(101,998)	(87,002)
Forfeited (in shares)							(3,333)
Non-vested options outstanding, end of period (in shares)				131,000	232,998	131,000	232,998
Weighted Average Grant Date Fair Value [Abstract]
Non-vested options outstanding, beginning of period (in dollars per share) \| $ / shares						$ 4.47	$ 4.04
Granted (in dollars per share) \| $ / shares							5.16
Vested (in dollars per share) \| $ / shares						4.40	4.21
Forfeited (in dollars per share) \| $ / shares							4.21
Non-vested options outstanding, end of period (in dollars per share) \| $ / shares				$ 4.54	$ 4.47	$ 4.54	$ 4.47

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
RELATED PARTY TRANSACTIONS (Details) $ in Thousands	Feb. 28, 2023 USD ($) agreement acre ft	Feb. 28, 2022 USD ($) acre ft	Feb. 28, 2023 USD ($) agreement acre ft	Feb. 28, 2022 USD ($) acre ft	Aug. 31, 2022 USD ($)	Jan. 01, 2023 $ / gal	Jan. 01, 2022 $ / gal
Related Party Transactions [Abstract]
Investments in the WISE infrastructure	$ 58,368		$ 58,368		$ 58,763
Number Of Loan Agreements \| agreement	2		2
Facilities Funding and Acquisition Agreement [Member]
Related Party Transactions [Abstract]
Interest rate			6%
Rangeview District [Member] \| WISE Partnership [Member]
Related Party Transactions [Abstract]
Volume of received metered water \| acre ft	56	245	111	250
Payments for water	$ 100	$ 500	$ 200	$ 500
Water rate \| $ / gal						6.48	6.13
Rangeview District [Member] \| Loan Receivable [Member]
Related Party Transactions [Abstract]
Debt Instrument, Interest Rate, Stated Percentage	9%		9%
Rangeview District [Member] \| Loan Receivable [Member] \| Maximum [Member]
Related Party Transactions [Abstract]
Loan extended, Maximum Capacity	$ 250		$ 250
Rangeview District [Member] \| Loan Receivable [Member] \| Prime Rate [Member]
Related Party Transactions [Abstract]
Basis spread on variable rate			2%
Rangeview District [Member] \| Note Receivable [Member]
Related Party Transactions [Abstract]
Debt Instrument, Interest Rate, Stated Percentage	8%		8%
Notes receivable	$ 1,300		$ 1,300		1,100
Borrowings under notes receivable	1,200		1,200		1,100
Rangeview District [Member] \| Note Receivable [Member] \| Maximum [Member]
Related Party Transactions [Abstract]
Accrued interest on notes receivable	100		$ 100		100
Sky Ranch CAB [Member]
Related Party Transactions [Abstract]
Interest rate			6%
Notes receivable	20,600		$ 20,600
Revenue recognized for contracted bid price					$ 300
Revenue			100
Sky Ranch CAB [Member] \| Scenario, Plan [Member]
Related Party Transactions [Abstract]
Fund for construction of public improvements	4,300		4,300
Sky Ranch CAB [Member] \| Maximum [Member]
Related Party Transactions [Abstract]
Revenue	$ 100
Sky Ranch CAB [Member] \| Nelson Pipeline Constructors, LLC [Member]
Related Party Transactions [Abstract]
Amount of payment to construct utility pipelines			$ 900	$ 8,100

SIGNIFICANT CUSTOMERS (Details)

SIGNIFICANT CUSTOMERS (Details) - Customer Concentration Risk [Member] - customer	6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022
Revenue [Member] \| Sky Ranch homes and Sky Ranch CAB in the aggregate[Member]
Concentration Risk [Line Items]
Concentration risk percentage	18%	8%
Revenue [Member] \| Challenger [Member]
Concentration Risk [Line Items]
Concentration risk percentage	17%	18%
Revenue [Member] \| Lennar [Member]
Concentration Risk [Line Items]
Concentration risk percentage	13%	19%
Revenue [Member] \| KB Home [Member]
Concentration Risk [Line Items]
Concentration risk percentage	12%	12%
Revenue [Member] \| Oil & gas operators [Member]
Concentration Risk [Line Items]
Concentration risk percentage	6%	17%
Revenue [Member] \| Richmond [Member]
Concentration Risk [Line Items]
Concentration risk percentage		12%
Revenue [Member] \| Water and Wastewater Resource Development Segment [Member] \| Oil & gas operators [Member]
Concentration Risk [Line Items]
Number of customers	2	1
Accounts Receivable [Member] \| KB Home [Member]
Concentration Risk [Line Items]
Concentration risk percentage	49%
Accounts Receivable [Member] \| Rangeview District [Member] \| Rangeview District [Member]
Concentration Risk [Line Items]
Concentration risk percentage	30%

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022
Accrued Liabilities, Current [Line Items]
Accrued compensation	$ 560	$ 1,325
Other operating payables	136	308
Property taxes	360	164
Operating lease obligations	$ 77	$ 76
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued Liabilities, Current	Accrued Liabilities, Current
Professional fees	$ 34	$ 115
WISE water	21	32
Rental deposits	13	9
Total accrued liabilities	1,201	2,029
Accrued liabilities - related parties	596	560
Sky Ranch CAB [Member]
Accrued Liabilities, Current [Line Items]
Accrued liabilities - related parties	586	536
Rangeview District [Member]
Accrued Liabilities, Current [Line Items]
Accrued liabilities - related parties	$ 10	$ 24

SEGMENT INFORMATION, Revenue by

SEGMENT INFORMATION, Revenue by Segments (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2023 USD ($)	Feb. 28, 2022 USD ($)	Feb. 28, 2023 USD ($) segment	Feb. 28, 2022 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| segment			2
Segment Information Abstract
Total revenues	$ 2,990	$ 4,664	$ 4,330	$ 8,936
Cost of revenue	940	1,155	1,888	2,185
Depreciation and depletion	461	352	839	706
Total cost of revenues	1,401	1,507	2,727	2,891
Segment profit	1,589	3,157	1,603	6,045
Water and Wastewater Resource Development Segment [Member]
Segment Information Abstract
Total revenues	1,445	2,809	2,239	3,880
Cost of revenue	659	810	1,382	1,306
Depreciation and depletion	461	352	839	706
Total cost of revenues	1,120	1,162	2,221	2,012
Segment profit	325	1,647	18	1,868
Land Development Segment [Member]
Segment Information Abstract
Total revenues	1,514	1,829	2,035	5,022
Cost of revenue	262	341	477	872
Total cost of revenues	262	341	477	872
Segment profit	1,252	1,488	1,558	4,150
Single Family Rentals [Member]
Segment Information Abstract
Total revenues	31	26	56	34
Cost of revenue	19	4	29	7
Total cost of revenues	19	4	29	7
Segment profit	$ 12	$ 22	$ 27	$ 27

SEGMENT INFORMATION, Corporate

SEGMENT INFORMATION, Corporate Assets (Details) - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022
Segment Reporting Information [Line Items]
Total assets	$ 125,414	$ 129,229
Corporate [Member]
Segment Reporting Information [Line Items]
Total assets	28,101	38,928
Water and Wastewater Resource Development Segment [Member]
Segment Reporting Information [Line Items]
Total assets	63,349	63,064
Land Development Segment [Member]
Segment Reporting Information [Line Items]
Total assets	30,276	25,522
Single Family Rentals [Member]
Segment Reporting Information [Line Items]
Total assets	$ 3,688	$ 1,715

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
EARNINGS PER SHARE
Anti-dilutive securities excluded from computation of earnings per share (in shares)	593,975	517,980	603,088	494,728
Earnings Per Share [Abstract]
Net Income	$ 189	$ 1,693	$ 348	$ 3,207
Weighted average common shares outstanding, Basic (in shares)	24,023,775	23,944,141	24,004,677	23,931,307
Effect of dilutive securities (in shares)	118,525	240,020	109,412	263,272
Weighted average common shares outstanding - Diluted	24,142,300	24,184,161	24,114,089	24,194,579
Earnings per share - basic (in dollars per share)	$ 0.01	$ 0.07	$ 0.01	$ 0.13
Earnings per share - diluted (in dollars per share)	$ 0.01	$ 0.07	$ 0.01	$ 0.13

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, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022	Aug. 31, 2023
Income Taxes [Abstract]
Effective income tax rate	32.30%	22.80%	38.70%	23.40%
Income Tax Expense (Benefit) [Abstract]
Current income tax expense	$ 161	$ 712	$ 125	$ 1,183
Deferred income tax expense	(71)	(211)	95	(205)
Income Taxes Paid [Abstract]
Cash paid for income taxes	4,265	1,810	4,265	5,260
Effective Income Tax Rate Reconciliation [Abstract]
Total income tax expense	90	501	220	978
Forecast [Member]
Income Taxes [Abstract]
Effective income tax rate					25%
Federal [Member]
Income Taxes Paid [Abstract]
Cash paid for income taxes	3,471	910	3,471	4,360
State [Member]
Income Taxes Paid [Abstract]
Cash paid for income taxes	$ 794	$ 900	$ 794	$ 900