Pure Cycle (PCYO) 10-Q14 Jul 232023 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	May 31, 2023	Jul. 13, 2023
Cover Page
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	May 31, 2023
Document Transition Report	false
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	Q3
Document Fiscal Year Focus	2023
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	May 31, 2023	Aug. 31, 2022
Current assets:
Cash and cash equivalents	$ 26,000	$ 34,894
Trade accounts receivable, net	2,671	2,425
Land under development	721
Income taxes receivable	190
Prepaid expenses and other assets	392	467
Total current assets	29,974	37,786
Restricted cash	2,332	2,328
Investments in water and water systems, net	58,146	58,763
Construction in progress	4,929	1,224
Single-family rental units	1,395	975
Land and mineral rights:
Held for development	4,996	6,773
Held for investment purposes	451	451
Other assets	1,343	2,463
Operating leases - right of use assets	84	138
Total assets	128,165	129,229
Current liabilities:
Accounts payable	905	849
Income taxes payable		2,530
Deferred lot sale revenues	3,475	4,275
Deferred water sales revenues	13	570
Debt, current portion	10	10
Total current liabilities	6,146	10,823
Participating interests in export water supply		323
Debt, less current portion	3,942	3,950
Deferred tax liability, net	873	1,075
Lease obligations - operating leases, less current portion	6	62
Total liabilities	10,967	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	174,709	174,150
Accumulated deficit	(57,591)	(61,234)
Total shareholders' equity	117,198	112,996
Total liabilities and shareholders' equity	128,165	129,229
Related Party [Member]
Current liabilities:
Accrued liabilities	569	560
Nonrelated Party [Member]
Current liabilities:
Accrued liabilities	1,174	2,029
Reimbursable public improvements and project management fees [Member] \| Related Party [Member]
Land and mineral rights:
Notes receivable - related parties, including accrued interest:	23,118	17,208
Other [Member] \| Related Party [Member]
Land and mineral rights:
Notes receivable - related parties, including accrued interest:	$ 1,397	$ 1,120

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	May 31, 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		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
Revenues:
Total revenues	$ 6,879	$ 3,187	$ 11,209	$ 12,123
Expenses:
Depletion and depreciation	407	349	1,246	1,055
Other	71	79	318	298
Total cost of revenues	2,206	1,394	4,933	4,285
General and administrative expenses	805	1,074	3,900	3,950
Depreciation	111	95	348	277
Operating (loss) income	3,757	624	2,028	3,611
Other income (expense):
Interest income - Investments	281	5	727	8
Oil and gas royalty income, net	44	123	227	330
Oil and gas lease income, net	18	47	56	143
Other, net	40	10	1,257	32
Interest expense, net	(52)	(31)	(149)	(52)
Income from operations before income taxes	4,419	1,083	4,987	5,268
Income tax expense	1,124	246	1,344	1,224
Net income	$ 3,295	$ 837	$ 3,643	$ 4,044
Earnings per common share - basic and diluted
Basic (in dollars per share)	$ 0.14	$ 0.03	$ 0.15	$ 0.17
Diluted (in dollars per share)	$ 0.14	$ 0.03	$ 0.15	$ 0.17
Weighted average common shares outstanding:
Weighted average common shares outstanding, Basic (in shares)	24,054,843	23,970,290	24,021,582	23,944,394
Weighted average common shares outstanding, Diluted (in shares)	24,166,344	24,124,586	24,131,621	24,183,500
Related Party [Member]
Other income (expense):
Recognition of public improvement reimbursables	$ 331	$ 305	$ 841	$ 1,196
Water Service Operations [Member]
Expenses:
Expenses	576	560	1,457	1,419
Metered Water Usage - Municipal Customers [Member]
Revenues:
Total revenues	145	94	349	274
Metered Water Usage-Commercial Customers [Member]
Revenues:
Total revenues	2,145	549	2,596	2,686
Wastewater Service Operations [Member]
Expenses:
Expenses	96	109	350	337
Wastewater Treatment Fees [Member]
Revenues:
Total revenues	75	66	216	185
Land Development Construction Costs [Member]
Expenses:
Expenses	951	222	1,282	1,048
Water and Wastewater Tap Fees [Member]
Revenues:
Total revenues	1,256	1,273	2,400	2,447
Lot Sales [Member]
Revenues:
Total revenues	3,160	1,070	5,064	5,644
Project Management Fees - Recognized [Member]
Revenues:
Total revenues	42	81	173	529
Single Family Rentals [Member]
Revenues:
Total revenues	34	25	90	59
Expenses:
Expenses	24	9	53	16
Special Facility Projects and Other [Member]
Revenues:
Total revenues	22	29	321	299
Project Management Costs [Member]
Expenses:
Expenses	$ 81	$ 66	$ 227	$ 112

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)		52,012
Stock granted for services			159		159
Stock granted for services (in shares)		12,000
Share-based compensation			332		332
Net income				4,044	4,044
Balance at May. 31, 2022		$ 80	174,038	(66,809)	107,309
Balance (in shares) at May. 31, 2022	432,513	23,980,645
Balance at Feb. 28, 2022		$ 80	173,918	(67,646)	106,352
Balance (in shares) at Feb. 28, 2022	432,513	23,958,522
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock option exercises (in shares)		22,123
Share-based compensation			120		120
Net income				837	837
Balance at May. 31, 2022		$ 80	174,038	(66,809)	107,309
Balance (in shares) at May. 31, 2022	432,513	23,980,645
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			268		268
Net income				3,643	3,643
Balance at May. 31, 2023		$ 80	174,709	(57,591)	117,198
Balance (in shares) at May. 31, 2023	432,513	24,054,843
Balance at Feb. 28, 2023		$ 80	174,611	(60,886)	113,805
Balance (in shares) at Feb. 28, 2023	432,513	24,054,843
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation			98		98
Net income				3,295	3,295
Balance at May. 31, 2023		$ 80	$ 174,709	$ (57,591)	$ 117,198
Balance (in shares) at May. 31, 2023	432,513	24,054,843

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	May 31, 2023	May 31, 2022
Cash flows from operating activities:
Net income	$ 3,643	$ 4,044
Adjustments to reconcile net income to net cash used by operating activities:
Depreciation and depletion	1,594	1,332
Other assets and liabilities	922	(57)
Share-based compensation expense	559	491
Prepaid expenses	75	(311)
Deferred income taxes	(202)	(187)
Trade accounts receivable	(246)	333
Land under development	(249)	(44)
Amortized discount on U.S. Treasury Bills	(256)
Deferred water sales revenue	(557)	(18)
Accounts payable and accrued liabilities	(788)	(2,136)
Deferred lot sale revenues	(800)	(1,106)
Taxes payable / receivable	(2,720)	(3,849)
Net cash used by operating activities	(2,970)	(11,933)
Cash flows from investing activities:
Maturity of held-to-maturity investments in U.S. Treasury Bills	15,256
Purchase of property and equipment	(275)
Investments in future development phases at Sky Ranch	(937)	(2,417)
Investments in water and water systems	(1,374)	(1,235)
Construction costs of single-family rentals	(3,471)	(142)
Purchase of held-to-maturity investments in U.S. Treasury Bills	(15,000)
Net cash used by investing activities	(5,801)	(3,794)
Cash flows from financing activities:
Payments on notes payable	(8)
Payments to contingent liability holders	(111)	(1)
Proceeds from option exercises		34
Proceeds from notes payable		1,000
Net cash (used) provided by financing activities	(119)	1,033
Net change in cash, cash equivalents and restricted cash	(8,890)	(14,694)
Cash, cash equivalents and restricted cash - beginning of period	37,222	22,444
Cash, cash equivalents and restricted cash - end of period	28,332	7,750
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	26,000	5,422
Restricted cash	2,332	2,328
Total cash, cash equivalents and restricted cash	28,332	7,750
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for income taxes	4,265	5,260
Cash paid for interest	142
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Change in reimbursable public improvements included in accounts payable and accrued liabilities	569	445
Issuance of stock for compensation	111
Related Party [Member] \| Sky Ranch CAB [Member]
Adjustments to reconcile net income to net cash used by operating activities:
Net activity on note receivable - related party, reimbursable public improvements, other	(3,668)	(10,526)
Related Party [Member] \| Rangeview District [Member]
Adjustments to reconcile net income to net cash used by operating activities:
Net activity on note receivable - related party, reimbursable public improvements, other	$ (277)	$ 101

PRESENTATION OF INTERIM INFORMA

PRESENTATION OF INTERIM INFORMATION	9 Months Ended
PRESENTATION OF INTERIM INFORMATION	May 31, 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.

REIMBURSABLE PUBLIC IMPROVEMENT

REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB	9 Months Ended
	May 31, 2023
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 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 ( Sky Ranch Pursuant to the agreements with the Sky Ranch CAB, any payments received are initially applied to interest. During the nine months ended May 31, 2023 and 2022, the Sky Ranch CAB paid Pure Cycle $0.5 million and $0.1 million pursuant to the note. After May 31, 2023, but prior to the issuance of this Form 10-Q, the Sky Ranch CAB paid Pure Cycle $0.4 million pursuant to the note. During the three and nine months ended May 31, 2022, Pure Cycle spent $1.9 million and $8.8 million on public improvements which are payable by the Sky Ranch CAB to the Company and were added to the note receivable from the Sky Ranch CAB. Additionally, for the three and nine months ended May 31, 2022, project management fees owed to the Company of $0.1 million and $0.5 million, and interest income on the outstanding note receivable of $0.3 million and $1.2 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 May 31, 2023 May 31, 2022 Beginning balance $ 20,609 $ 32,963 Additions 2,996 2,457 Payments received (487) (100) Ending balance $ 23,118 $ 35,320 Nine Months Ended May 31, 2023 May 31, 2022 Beginning balance $ 17,208 $ 24,794 Additions 6,397 10,626 Payments received (487) (100) Ending balance $ 23,118 $ 35,320 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	9 Months Ended
REVENUES, FEES AND OTHER INCOME ITEMS	May 31, 2023
REVENUES, FEES AND OTHER INCOME ITEMS
REVENUES, FEES AND OTHER INCOME ITEMS	NOTE 3 – 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 nine months ended May 31, 2023 and 2022. Water and wastewater tap fees Metered water and wastewater usage fees – SFE Sale of finished lots 2023 2024 Project management services Single-family rental revenue In November 2021, Pure Cycle began renting single-family homes on lots it retained at Sky Ranch. Pure Cycle began recognizing lease income related to these rental units in November 2021. Pure Cycle generally rents its single-family properties under non-cancelable lease agreements with a term of one year . Pure Cycle has begun construction on 10 additional rental homes in Phase 2A, five of which were rented after May 31, 2023, but before the issuance of this Form 10-Q, and the remainder of which the Company believes will be available for rent before August 31, 2023. As of May 31, 2023, the Company had reserved 55 lots in Phases 2B, 2C and 2D of Sky Ranch for future rental units. When combined with the four units already built and rented and the 10 currently under construction, these additions will bring the total single-family rentals to 69. The Company expects to take 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 each of the three-month periods ended May 31, 2023 and 2022, the Company recognized less than $0.1 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 each of the nine-month periods ended May 31, 2023 and 2022, the Company recognized $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. Undeveloped land sale and cash-in-lieu to school district During the nine months ended May 31, 2022, Pure Cycle entered various agreements to sell 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. Pursuant to Arapahoe County land development regulations (the county where Sky Ranch is located), all land developments must dedicate land or make a cash-in-lieu payment to the school district in which the development is located. The amount to be paid is calculated pursuant to the County’s standards. Simultaneously with the sale of land to the charter school operator, the Company paid the Bennett School District $1.6 million as a cash-in-lieu payment, which is the calculated amount of the Sky Ranch cash-in-lieu requirement to the school district. 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 by all parties. The cash-in-lieu payment and land sale were accounted for in other income, net. Deferred revenue Changes and balances of the Company’s deferred revenue accounts by segment are as follows: Three Months Ended May 31, 2023 (In thousands) Water and Wastewater Resource Development Land Development Total Balance at February 28, 2023 $ 533 $ 3,473 $ 4,006 Revenue recognized (520) (3,160) (3,680) Revenue deferred - 3,162 3,162 Balance at May 31, 2023 $ 13 $ 3,475 $ 3,488 Three Months Ended May 31, 2022 Water and Wastewater Resource Development Land Development Total Balance at February 28, 2022 $ 439 $ 1,203 $ 1,642 Revenue recognized (49) (314) (363) Revenue deferred 2 - 2 Balance at May 31, 2022 $ 392 $ 889 $ 1,281 Nine Months Ended May 31, 2023 (In thousands) Water and Wastewater Resource Development Land Development Total Balance at August 31, 2022 $ 570 $ 4,275 $ 4,845 Revenue recognized (557) (5,057) (5,614) Revenue deferred - 4,257 4,257 Balance at May 31, 2023 $ 13 $ 3,475 $ 3,488 Nine Months Ended May 31, 2022 (In thousands) Water and Wastewater Resource Development Land Development Total Balance at August 31, 2021 $ 410 $ 1,995 $ 2,405 Revenue recognized (390) (4,889) (5,279) Revenue deferred 372 3,783 4,155 Balance at May 31, 2022 $ 392 $ 889 $ 1,281 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	9 Months Ended
FAIR VALUE MEASUREMENTS	May 31, 2023
FAIR VALUE MEASUREMENTS
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 carrying value for certain of the Company’s financial instruments (i.e., cash and cash equivalents, 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 6 below) materially approximate their fair value because of their short-term nature and generally negligible credit losses. As of May 31, 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 nine months ended May 31, 2023 or 2022.

WATER, LAND AND OTHER FIXED ASS

WATER, LAND AND OTHER FIXED ASSETS	9 Months Ended
WATER, LAND AND OTHER FIXED ASSETS	May 31, 2023
WATER, LAND AND OTHER FIXED ASSETS
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 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: May 31, 2023 August 31, 2022 Accumulated Accumulated Depreciation Depreciation (In thousands) Costs and Depletion Costs and Depletion Rangeview water system $ 20,001 $ (2,631) $ 19,881 $ (2,099) Rangeview water supply 15,039 (18) 14,809 (17) Water supply – Other 7,612 (1,983) 7,612 (1,739) Sky Ranch water rights and other costs 7,764 (1,440) 7,764 (1,280) Sky Ranch pipeline 5,740 (1,128) 5,740 (984) Lost Creek water supply 7,327 — 7,041 — Fairgrounds water and water system 2,900 (1,481) 2,900 (1,415) Wild Pointe service rights 1,632 (1,188) 1,632 (1,082) Totals 68,015 (9,869) 67,379 (8,616) Net investments in water and water systems $ 58,146 $ 58,763 During the nine months ended May 31, 2023, the Company acquired one alluvial well and 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 Pure Cycle anticipates will be placed in service during the next 12 months. During the three and nine months ended May 31, 2023, the Company incurred $1.7 million and $4.5 million of costs related to construction of single-family rental units and water and wastewater construction projects. During the three and nine months ended May 31, 2023, the Company capitalized $0.1 million and $0.7 million of costs as projects were completed and placed into service. Single-Family Rental Homes During the nine months ended May 31, 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 the 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 fourth quarter of fiscal 2023. During the three and nine months ended May 31, 2023, the Company incurred $1.2 million and $3.2 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 May 31, 2023. At May 31, 2023, the Company has reserved a total of 65 lots in Phase 2 of Sky Ranch (10 of which are in Phase 2A and under construction as of May 31, 2023) to build additional rental units.

DEBT AND OTHER LONG-TERM OBLIGA

DEBT AND OTHER LONG-TERM OBLIGATIONS	9 Months Ended
DEBT AND OTHER LONG-TERM OBLIGATIONS	May 31, 2023
DEBT AND OTHER LONG-TERM OBLIGATIONS
DEBT AND OTHER LONG-TERM OBLIGATIONS	NOTE 6 – DEBT AND OTHER LONG-TERM OBLIGATIONS As of May 31, 2023, the outstanding principal and deferred financing costs of the Company’s loans are as follows: (In thousands) May 31, 2023 Single-Family Rental Home Note Payable $ 987 Lost Creek Note Payable 3,000 Total outstanding principal 3,987 Deferred financing costs (35) Less current maturities, net of current deferred financing costs (10) Debt, less current portion $ 3,942 As of May 31, 2023, the scheduled maturities (i.e. principal payments) of the Company’s loans are as follows: (In thousands) Scheduled principal payments Within 1 year $ 14 Year 2 14 Year 3 352 Year 4 1,329 Year 5 283 Thereafter 1,995 Total principal payments $ 3,987 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 May 31, 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 from January 1, 2022 through June 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 on potential financing for the rental units currently under construction. As of May 31, 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 May 31, 2023, the Company has five 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 nine months ended May 31, 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	9 Months Ended
EMPLOYEE STOCK PLANS	May 31, 2023
EMPLOYEE STOCK PLANS.
EMPLOYEE STOCK PLANS	NOTE 7 – 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 May 31, 2023 712,500 $ 8.75 5.0 $ 1,226 Options exercisable at May 31, 2023 581,500 $ 8.17 4.4 $ 1,182 Outstanding at August 31, 2021 714,500 $ 7.80 6.1 $ 5,107 Granted 105,000 $ 13.37 Net settlement exercised (103,667) $ 6.87 Forfeited / Expired (3,333) $ 10.45 Outstanding at May 31, 2022 712,500 $ 8.75 6.3 $ 2,032 During the three and nine months ended May 31, 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 May 31, 2022, net settlement exercises resulted in 22,123 shares being issued and 23,377 options being cancelled in settlement of the shares issued. During the nine months ended May 31, 2022, net settlement exercises resulted in 46,012 shares being issued and 51,655 options being cancelled in settlement of shares issued. During the three and nine months ended May 31, 2022, the Company issued 0 and 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. There were no options exercised during the three and nine months ended May 31, 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 May 31, 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 May 31, 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 nine months ended May 31, 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 nine months ended May 31, 2022. For the three and nine months ended May 31, 2023, the Company recognized $0.1 million and $0.6 million of stock-based compensation expense. For the three and nine months ended May 31, 2022, the Company recognized $0.1 million and $0.5 million of stock-based compensation expense. At May 31, 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	9 Months Ended
RELATED PARTY TRANSACTIONS	May 31, 2023
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 8 – 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% (10.0% at May 31, 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 May 31, 2023, balance in notes receivable - related parties, other totaled $1.4 million, which included borrowings of $1.3 million and accrued interest of $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 nine months ended May 31, 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 May 31, 2023 and 2022, the Company, through the Rangeview District, received metered water deliveries of 87 acre-feet and 62 acre-feet of WISE water, paying $0.2 million and $0.1 million for this water. During the nine months ended May 31, 2023 and 2022, the Company, through the Rangeview District, received metered water deliveries of 199 acre-feet and 312 acre-feet of WISE water, paying $0.4 million and $0.6 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 May 31, 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 $23.1 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 $0.4 million, which is being recognized as revenue as the construction of the fence progresses. During the three and nine months ended May 31, 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	9 Months Ended
SIGNIFICANT CUSTOMERS	May 31, 2023
SIGNIFICANT CUSTOMERS.
SIGNIFICANT CUSTOMERS	NOTE 9 – 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 nine months ended May 31, 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. Nine Months Ended % of Total Revenue Generated From: May 31, 2023 May 31, 2022 Two and one oil & gas operators 20 % 17 % Challenger 17 % 22 % Lennar 17 % 19 % KB Home 12 % 11 % Sky Ranch homes and Sky Ranch CAB in the aggregate 6 % 4 % Richmond - % 11 % As of May 31, 2023, 89% of the reported trade accounts receivable balance is owed to Pure Cycle by the Rangeview District for tap fees, water usage and wastewater treatment fees. The entire amount owed by the Rangeview District was remitted to the Company after May 31, 2023. Richmond only built homes in Phase 1 of Sky Ranch, which is fully built out.

ACCRUED LIABILITIES

ACCRUED LIABILITIES	9 Months Ended
ACCRUED LIABILITIES	May 31, 2023
ACCRUED LIABILITIES.
ACCRUED LIABILITIES	NOTE 10 – ACCRUED LIABILITIES (In thousands) May 31, 2023 August 31, 2022 Accrued compensation $ 670 $ 1,325 Other operating payables 158 308 Property taxes 120 164 Operating lease obligation, current 78 76 Professional fees 37 115 WISE water 81 32 Rental deposits 30 9 Total accrued liabilities $ 1,174 $ 2,029 Land development costs due to the Sky Ranch CAB $ 569 $ 536 Due to Rangeview Metropolitan District — 24 Total accrued liabilities - related parties $ 569 $ 560

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
SEGMENT INFORMATION	May 31, 2023
SEGMENT INFORMATION
SEGMENT INFORMATION	NOTE 11 – 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 nine months ended May 31, 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 May 31, 2023 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 3,643 $ 3,202 $ 34 $ 6,879 Cost of revenue 743 1,032 24 1,799 Depreciation and depletion 407 — — 407 Total cost of revenue 1,150 1,032 24 2,206 Segment profit $ 2,493 $ 2,170 $ 10 $ 4,673 Three Months Ended May 31, 2022 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 2,011 $ 1,151 $ 25 $ 3,187 Cost of revenue 748 288 9 1,045 Depreciation and depletion 349 — — 349 Total cost of revenue 1,097 288 9 1,394 Segment profit $ 914 $ 863 $ 16 $ 1,793 Nine Months Ended May 31, 2023 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 5,882 $ 5,237 $ 90 $ 11,209 Cost of revenue 2,125 1,509 53 3,687 Depreciation and depletion 1,246 — — 1,246 Total cost of revenue 3,371 1,509 53 4,933 Segment (loss) profit $ 2,511 $ 3,728 $ 37 $ 6,276 Nine Months Ended May 31, 2022 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 5,891 $ 6,173 $ 59 $ 12,123 Cost of revenue 2,054 1,160 16 3,230 Depreciation and depletion 1,055 — — 1,055 Total cost of revenue 3,109 1,160 16 4,285 Segment profit $ 2,782 $ 5,013 $ 43 $ 7,838 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) May 31, 2023 August 31, 2022 Water and wastewater resource development $ 63,936 $ 63,064 Land development 29,352 25,522 Single-family rental 4,856 1,715 Corporate 30,021 38,928 Total assets $ 128,165 $ 129,229

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
EARNINGS PER SHARE	May 31, 2023
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 12 – EARNINGS PER SHARE Earnings per share ( EPS Three Months Ended Nine Months Ended (In thousands, except share and per share amounts) May 31, 2023 May 31, 2022 May 31, 2023 May 31, 2022 Net income $ 3,295 $ 837 $ 3,643 $ 4,044 Basic weighted average common shares 24,054,843 23,970,290 24,021,582 23,944,394 Effect of dilutive securities 111,501 154,296 110,039 239,106 Weighted average shares applicable to diluted earnings per share 24,166,344 24,124,586 24,131,621 24,183,500 Earnings per share - basic $ 0.14 $ 0.03 $ 0.15 $ 0.17 Earnings per share - diluted $ 0.14 $ 0.03 $ 0.15 $ 0.17

INCOME TAXES

INCOME TAXES	9 Months Ended
INCOME TAXES	May 31, 2023
INCOME TAXES
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 May 31, 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 nine months ended May 31, 2023 and 2022 is as follows: Three Months Ended Nine Months Ended (In thousands) May 31, 2023 May 31, 2022 May 31, 2023 May 31, 2022 Effective income tax rate 25.4 % 22.7 % 27.0 % 23.2 % Income tax expense: Current $ 1,420 $ 227 $ 1,546 $ 1,411 Deferred (296) 19 (202) (187) Total $ 1,124 $ 246 $ 1,344 $ 1,224 Income taxes paid: Federal $ — $ — $ 3,471 $ 4,360 State — — 794 900 Total $ — $ — $ 4,265 $ 5,260 The effective income tax rate for the three and nine months ended May 31, 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)	9 Months Ended
PRESENTATION OF INTERIM INFORMATION (Policies)	May 31, 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)	9 Months Ended
	May 31, 2023
REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB
Summary of activity and balances associated with note receivable	Three Months Ended May 31, 2023 May 31, 2022 Beginning balance $ 20,609 $ 32,963 Additions 2,996 2,457 Payments received (487) (100) Ending balance $ 23,118 $ 35,320 Nine Months Ended May 31, 2023 May 31, 2022 Beginning balance $ 17,208 $ 24,794 Additions 6,397 10,626 Payments received (487) (100) Ending balance $ 23,118 $ 35,320

REVENUES, FEES AND OTHER INCO_2

REVENUES, FEES AND OTHER INCOME ITEMS (Tables)	9 Months Ended
REVENUES, FEES AND OTHER INCOME ITEMS (Tables)	May 31, 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 May 31, 2023 (In thousands) Water and Wastewater Resource Development Land Development Total Balance at February 28, 2023 $ 533 $ 3,473 $ 4,006 Revenue recognized (520) (3,160) (3,680) Revenue deferred - 3,162 3,162 Balance at May 31, 2023 $ 13 $ 3,475 $ 3,488 Three Months Ended May 31, 2022 Water and Wastewater Resource Development Land Development Total Balance at February 28, 2022 $ 439 $ 1,203 $ 1,642 Revenue recognized (49) (314) (363) Revenue deferred 2 - 2 Balance at May 31, 2022 $ 392 $ 889 $ 1,281 Nine Months Ended May 31, 2023 (In thousands) Water and Wastewater Resource Development Land Development Total Balance at August 31, 2022 $ 570 $ 4,275 $ 4,845 Revenue recognized (557) (5,057) (5,614) Revenue deferred - 4,257 4,257 Balance at May 31, 2023 $ 13 $ 3,475 $ 3,488 Nine Months Ended May 31, 2022 (In thousands) Water and Wastewater Resource Development Land Development Total Balance at August 31, 2021 $ 410 $ 1,995 $ 2,405 Revenue recognized (390) (4,889) (5,279) Revenue deferred 372 3,783 4,155 Balance at May 31, 2022 $ 392 $ 889 $ 1,281

WATER, LAND AND OTHER FIXED A_2

WATER, LAND AND OTHER FIXED ASSETS (Tables)	9 Months Ended
WATER, LAND AND OTHER FIXED ASSETS (Tables)	May 31, 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: May 31, 2023 August 31, 2022 Accumulated Accumulated Depreciation Depreciation (In thousands) Costs and Depletion Costs and Depletion Rangeview water system $ 20,001 $ (2,631) $ 19,881 $ (2,099) Rangeview water supply 15,039 (18) 14,809 (17) Water supply – Other 7,612 (1,983) 7,612 (1,739) Sky Ranch water rights and other costs 7,764 (1,440) 7,764 (1,280) Sky Ranch pipeline 5,740 (1,128) 5,740 (984) Lost Creek water supply 7,327 — 7,041 — Fairgrounds water and water system 2,900 (1,481) 2,900 (1,415) Wild Pointe service rights 1,632 (1,188) 1,632 (1,082) Totals 68,015 (9,869) 67,379 (8,616) Net investments in water and water systems $ 58,146 $ 58,763

DEBT AND OTHER LONG-TERM OBLI_2

DEBT AND OTHER LONG-TERM OBLIGATIONS (Tables)	9 Months Ended
DEBT AND OTHER LONG-TERM OBLIGATIONS (Tables)	May 31, 2023
DEBT AND OTHER LONG-TERM OBLIGATIONS
Schedule of long-term debt	(In thousands) May 31, 2023 Single-Family Rental Home Note Payable $ 987 Lost Creek Note Payable 3,000 Total outstanding principal 3,987 Deferred financing costs (35) Less current maturities, net of current deferred financing costs (10) Debt, less current portion $ 3,942
Schedule of maturities of notes payable	(In thousands) Scheduled principal payments Within 1 year $ 14 Year 2 14 Year 3 352 Year 4 1,329 Year 5 283 Thereafter 1,995 Total principal payments $ 3,987

EMPLOYEE STOCK PLANS (Tables)

EMPLOYEE STOCK PLANS (Tables)	9 Months Ended
EMPLOYEE STOCK PLANS (Tables)	May 31, 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 May 31, 2023 712,500 $ 8.75 5.0 $ 1,226 Options exercisable at May 31, 2023 581,500 $ 8.17 4.4 $ 1,182 Outstanding at August 31, 2021 714,500 $ 7.80 6.1 $ 5,107 Granted 105,000 $ 13.37 Net settlement exercised (103,667) $ 6.87 Forfeited / Expired (3,333) $ 10.45 Outstanding at May 31, 2022 712,500 $ 8.75 6.3 $ 2,032
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 May 31, 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 May 31, 2022 232,998 $ 4.47

SIGNIFICANT CUSTOMERS (Tables)

SIGNIFICANT CUSTOMERS (Tables)	9 Months Ended
SIGNIFICANT CUSTOMERS (Tables)	May 31, 2023
SIGNIFICANT CUSTOMERS.
Significant Customers	Nine Months Ended % of Total Revenue Generated From: May 31, 2023 May 31, 2022 Two and one oil & gas operators 20 % 17 % Challenger 17 % 22 % Lennar 17 % 19 % KB Home 12 % 11 % Sky Ranch homes and Sky Ranch CAB in the aggregate 6 % 4 % Richmond - % 11 %

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	9 Months Ended
ACCRUED LIABILITIES (Tables)	May 31, 2023
ACCRUED LIABILITIES.
Accrued Liabilities	(In thousands) May 31, 2023 August 31, 2022 Accrued compensation $ 670 $ 1,325 Other operating payables 158 308 Property taxes 120 164 Operating lease obligation, current 78 76 Professional fees 37 115 WISE water 81 32 Rental deposits 30 9 Total accrued liabilities $ 1,174 $ 2,029 Land development costs due to the Sky Ranch CAB $ 569 $ 536 Due to Rangeview Metropolitan District — 24 Total accrued liabilities - related parties $ 569 $ 560

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
SEGMENT INFORMATION (Tables)	May 31, 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 May 31, 2023 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 3,643 $ 3,202 $ 34 $ 6,879 Cost of revenue 743 1,032 24 1,799 Depreciation and depletion 407 — — 407 Total cost of revenue 1,150 1,032 24 2,206 Segment profit $ 2,493 $ 2,170 $ 10 $ 4,673 Three Months Ended May 31, 2022 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 2,011 $ 1,151 $ 25 $ 3,187 Cost of revenue 748 288 9 1,045 Depreciation and depletion 349 — — 349 Total cost of revenue 1,097 288 9 1,394 Segment profit $ 914 $ 863 $ 16 $ 1,793 Nine Months Ended May 31, 2023 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 5,882 $ 5,237 $ 90 $ 11,209 Cost of revenue 2,125 1,509 53 3,687 Depreciation and depletion 1,246 — — 1,246 Total cost of revenue 3,371 1,509 53 4,933 Segment (loss) profit $ 2,511 $ 3,728 $ 37 $ 6,276 Nine Months Ended May 31, 2022 (In thousands) Water and wastewater resource development Land development Single-family rental Total Total revenue $ 5,891 $ 6,173 $ 59 $ 12,123 Cost of revenue 2,054 1,160 16 3,230 Depreciation and depletion 1,055 — — 1,055 Total cost of revenue 3,109 1,160 16 4,285 Segment profit $ 2,782 $ 5,013 $ 43 $ 7,838 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) May 31, 2023 August 31, 2022 Water and wastewater resource development $ 63,936 $ 63,064 Land development 29,352 25,522 Single-family rental 4,856 1,715 Corporate 30,021 38,928 Total assets $ 128,165 $ 129,229

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
EARNINGS PER SHARE (Tables)	May 31, 2023
EARNINGS PER SHARE
Earnings Per Share	Three Months Ended Nine Months Ended (In thousands, except share and per share amounts) May 31, 2023 May 31, 2022 May 31, 2023 May 31, 2022 Net income $ 3,295 $ 837 $ 3,643 $ 4,044 Basic weighted average common shares 24,054,843 23,970,290 24,021,582 23,944,394 Effect of dilutive securities 111,501 154,296 110,039 239,106 Weighted average shares applicable to diluted earnings per share 24,166,344 24,124,586 24,131,621 24,183,500 Earnings per share - basic $ 0.14 $ 0.03 $ 0.15 $ 0.17 Earnings per share - diluted $ 0.14 $ 0.03 $ 0.15 $ 0.17

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
INCOME TAXES (Tables)	May 31, 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 nine months ended May 31, 2023 and 2022 is as follows: Three Months Ended Nine Months Ended (In thousands) May 31, 2023 May 31, 2022 May 31, 2023 May 31, 2022 Effective income tax rate 25.4 % 22.7 % 27.0 % 23.2 % Income tax expense: Current $ 1,420 $ 227 $ 1,546 $ 1,411 Deferred (296) 19 (202) (187) Total $ 1,124 $ 246 $ 1,344 $ 1,224 Income taxes paid: Federal $ — $ — $ 3,471 $ 4,360 State — — 794 900 Total $ — $ — $ 4,265 $ 5,260

REIMBURSABLE PUBLIC IMPROVEME_3

REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB (Details) - Related Party [Member] - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jul. 14, 2023	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
Related Party Transaction [Line Items]
Interest income - related party		$ 331	$ 305	$ 841	$ 1,196
Sky Ranch CAB [Member]
Related Party Transaction [Line Items]
Interest rate				6%
Reimbursable public improvement costs		2,600	1,900	$ 5,400	8,800
Project Management Fees Receivable, Related Party			100	200	500
Interest income - related party		300	300	800	1,200
Proceeds from Interest Received		500	$ 100	$ 500	$ 100
Sky Ranch CAB [Member] \| Subsequent Event [Member]
Related Party Transaction [Line Items]
Proceeds from Interest Received	$ 400
Sky Ranch CAB [Member] \| Maximum [Member]
Related Party Transaction [Line Items]
Project Management Fees Receivable, Related Party		$ 100

REIMBURSABLE PUBLIC IMPROVEME_4

REIMBURSABLE PUBLIC IMPROVEMENTS AND NOTE RECEIVABLE FROM THE SKY RANCH CAB - Note Receivable (Details) - Related Party [Member] - Sky Ranch CAB [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
Related Party Transaction [Line Items]
Beginning balance	$ 20,609	$ 32,963	$ 17,208	$ 24,794
Additions	2,996	2,457	6,397	10,626
Payments received	(487)	(100)	(487)	(100)
Ending balance	$ 23,118	$ 35,320	$ 23,118	$ 35,320

REVENUES, FEES AND OTHER INCO_3

REVENUES, FEES AND OTHER INCOME ITEMS (Details) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Nov. 30, 2021	May 31, 2023 USD ($) item home	May 31, 2022 USD ($) item	May 31, 2023 USD ($) item home	May 31, 2022 USD ($) area item home	Jul. 14, 2023 home	Aug. 31, 2022 home
Revenue Recognition and Reimbursable Costs [Abstract]
Water usage, service fee, per single family equivalent number of persons in single family house		4		4
Revenues \| $		$ 6,879	$ 3,187	$ 11,209	$ 12,123
Single Family Rental Homes [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Number of additional rental homes constructed \| home		10		10			11
Number of rented single family detached homes		4		4
Single family houses construction completed \| home					3
Single Family Rental Homes [Member] \| Subsequent Event [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Number of additional rental homes rented \| home						5
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 \| $		$ 3,160	1,070	$ 5,064	$ 5,644
Finished Lot [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues \| $		3,200	1,000	5,100	5,600
Water and Wastewater Tap Fees [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues \| $		1,256	1,273	2,400	2,447
Water Tap Fees [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues \| $		$ 1,100	$ 1,100	$ 2,000	$ 2,000
Number of water and wastewater taps sold		44	45	85	81
Wastewater Tap Fees [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues \| $		$ 200	$ 200	$ 400	$ 400
Number of water and wastewater taps sold		43	45	79	81
Project Management Fees - Recognized [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues \| $		$ 42	$ 81	$ 173	$ 529
Project Management Fees - Recognized [Member] \| Maximum [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues \| $		100	100
Single Family Rentals [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues \| $		34	25	$ 90	59
Number of lots				69
Lease term	1 year
Single Family Rentals [Member] \| Maximum [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Revenues \| $		$ 100	100	$ 100	100
Single Family Rentals [Member] \| Single Family Rental Homes [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Number of additional rental homes constructed		10		10
Number of rented single family detached homes		4		4
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 \| Single Family Rental Homes [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Number of lots reserved for single family rental units				65
Phase 2A
Revenue Recognition and Reimbursable Costs [Abstract]
Completion Of Sub Phase		90%		90%
Number of lots to be constructed in a subphase				229
Expected delivery period for lots sold				1 year
Number of lots reserved for single family rental units				10
Phase 2B
Revenue Recognition and Reimbursable Costs [Abstract]
Completion Of Sub Phase		21%		21%
Number of lots to be constructed in a subphase				211
Expected delivery period for lots sold				1 year
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
Related Party [Member] \| Sky Ranch CAB [Member] \| Single Family Rental Homes [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Number of lots reserved for single family rental units				55
Related Party [Member] \| 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 \| $				$ 300	$ 300
Related Party [Member] \| Sky Ranch CAB [Member] \| Special Facility Projects and Other Revenue [Member] \| Maximum [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Special facility projects and other revenue from related parties \| $		$ 100	$ 100
Charter School Operator [Member]
Revenue Recognition and Reimbursable Costs [Abstract]
Number of acres of undeveloped land \| area					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	3 Months Ended		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
Deferred Revenue [Abstract]
Balance	$ 4,006	$ 1,642	$ 4,845	$ 2,405
Revenue recognized	(3,680)	(363)	(5,614)	(5,279)
Revenue deferred	3,162	2	4,257	4,155
Balance	3,488	1,281	3,488	1,281
Water and Wastewater Resource Development Segment [Member]
Deferred Revenue [Abstract]
Balance	533	439	570	410
Revenue recognized	(520)	(49)	(557)	(390)
Revenue deferred		2		372
Balance	13	392	13	392
Land Development Segment [Member]
Deferred Revenue [Abstract]
Balance	3,473	1,203	4,275	1,995
Revenue recognized	(3,160)	(314)	(5,057)	(4,889)
Revenue deferred	3,162		4,257	3,783
Balance	$ 3,475	$ 889	$ 3,475	$ 889

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - item	May 31, 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	May 31, 2023	Aug. 31, 2022
Investment in Water and Water Systems [Abstract]
Water And Water Systems, Gross	$ 68,015	$ 67,379
Accumulated depreciation and depletion	(9,869)	(8,616)
Net investments in water and water systems	58,146	58,763
Rangeview Water System [Member]
Investment in Water and Water Systems [Abstract]
Water And Water Systems, Gross	20,001	19,881
Accumulated depreciation and depletion	(2,631)	(2,099)
Rangeview Water Supply [Member]
Investment in Water and Water Systems [Abstract]
Water And Water Systems, Gross	15,039	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	(1,983)	(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	(1,440)	(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	(1,128)	(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	(1,481)	(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	$ (1,188)	$ (1,082)

WATER, LAND AND OTHER FIXED A_4

WATER, LAND AND OTHER FIXED ASSETS (Details) $ in Millions	3 Months Ended	9 Months Ended		12 Months Ended
WATER, LAND AND OTHER FIXED ASSETS (Details) $ in Millions	May 31, 2023 USD ($) home item	May 31, 2023 USD ($) item home	May 31, 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 \| $	$ 1.7	$ 4.5
Single Family Rental Homes [Member]
Investment in Water and Water Systems [Abstract]
Construction cost incurred for construction in progress \| $	1.2	3.2
Construction cost capitalized \| $	$ 0.1	$ 0.7
Number of additional rental homes constructed \| home	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 alluvial wells acquired		1
Number of water wells acquired		3
Cost of water and land portions of asset acquisition \| $	$ 0.3	$ 0.3
Phase 2 Development \| Single Family Rental Homes [Member]
Investment in Water and Water Systems [Abstract]
Number of Lots Reserved for Single Family Rental Units		65
Phase 2A
Investment in Water and Water Systems [Abstract]
Number of Lots Reserved for Single Family Rental Units		10
Single Family Rentals [Member] \| Single Family Rental Homes [Member]
Investment in Water and Water Systems [Abstract]
Number of additional rental homes constructed	10	10

DEBT AND OTHER LONG-TERM OBLI_3

DEBT AND OTHER LONG-TERM OBLIGATIONS - Outstanding principal and deferred financing costs (Details) $ in Thousands	May 31, 2023 USD ($)
Debt Instrument [Line Items]
Total outstanding principal	$ 3,987
Deferred financing costs	(35)
Less current maturities, net of current deferred financing costs	(10)
Debt, less current portion	3,942
Single-Family Rental Home Notes [Member]
Debt Instrument [Line Items]
Total outstanding principal	987
Lost Creek Loan [Member]
Debt Instrument [Line Items]
Total outstanding principal	$ 3,000

DEBT AND OTHER LONG-TERM OBLI_4

DEBT AND OTHER LONG-TERM OBLIGATIONS - Maturities (Details) $ in Thousands	May 31, 2023 USD ($)
DEBT AND OTHER LONG-TERM OBLIGATIONS
Within 1 year	$ 14
Year 2	14
Year 3	352
Year 4	1,329
Year 5	283
Thereafter	1,995
Total principal payments	$ 3,987

DEBT AND OTHER LONG-TERM OBLI_5

DEBT AND OTHER LONG-TERM OBLIGATIONS (Details)			9 Months Ended
DEBT AND OTHER LONG-TERM OBLIGATIONS (Details)	Jan. 31, 2022 USD ($)	Nov. 29, 2021 USD ($) item installment	May 31, 2023 USD ($) LetterOfCredit	Aug. 31, 2022 USD ($)
Debt Instrument [Line Items]
Number Of Letters Of Credit \| LetterOfCredit			5
Letters of Credit Outstanding, Amount			$ 2,400,000
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			9.25%
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]
Number of Single Family Homes Being Constructed \| item		3
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_6

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		9 Months Ended		12 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 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	(103,667)
Forfeited or expired (in shares)				(3,333)
Outstanding, end of period (in shares)	712,500	712,500	712,500	712,500	712,500	714,500
Options exercisable (in shares)	581,500		581,500
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)				6.87
Forfeited or expired (in dollars per share)				10.45
Outstanding, end of period (in dollars per share)	$ 8.75	$ 8.75	8.75	$ 8.75	$ 8.75	$ 7.80
Options exercisable (in dollars per share)	$ 8.17		$ 8.17
Stock Options [Abstract]
Weighted average remaining contractual term			5 years	6 years 3 months 18 days	5 years 8 months 12 days	6 years 1 month 6 days
Weighted average remaining contractual term, options exercisable			4 years 4 months 24 days
Approximate aggregate intrinsic value, outstanding	$ 1,226,000	$ 2,032,000	$ 1,226,000	$ 2,032,000	$ 1,489,000	$ 5,107,000
Approximate aggregate intrinsic value, options exercisable	$ 1,182,000		$ 1,182,000
Net Settlement Stock Options [Member] \| 2014 Equity Plan [Member]
Stock Options [Abstract]
Shares issued (in shares)		22,123		46,012
Options cancelled (in shares)		23,377		51,655
Restricted Stock [Member] \| 2014 Equity Plan [Member]
Number of Options [Roll Forward]
Exercised (in shares)		0		(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		9 Months Ended
	Jan. 11, 2023 item $ / shares shares	Sep. 14, 2022 shares	Jan. 12, 2022 item $ / shares shares	May 31, 2023 USD ($) $ / shares shares	May 31, 2022 USD ($) $ / shares shares	May 31, 2023 USD ($) $ / shares shares	May 31, 2022 USD ($) $ / shares shares
Stock Options [Abstract]
Share-based compensation expense \| $						$ 559	$ 491
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 \| $				$ 100	$ 100	600	500
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		9 Months Ended		12 Months Ended
RELATED PARTY TRANSACTIONS (Details) $ in Thousands	May 31, 2023 USD ($) agreement acre ft	May 31, 2022 USD ($) acre ft	May 31, 2023 USD ($) agreement acre ft	May 31, 2022 USD ($) acre ft	Aug. 31, 2022 USD ($)	Jan. 01, 2023 $ / gal	Jan. 01, 2022 $ / gal
Related Party Transaction [Line Items]
Investments in the WISE infrastructure	$ 58,146		$ 58,146		$ 58,763
Number Of Loan Agreements \| agreement	2		2
Facilities Funding and Acquisition Agreement [Member]
Related Party Transaction [Line Items]
Interest rate			6%
Related Party [Member] \| Sky Ranch CAB [Member]
Related Party Transaction [Line Items]
Interest rate			6%
Notes receivable	$ 23,100		$ 23,100
Revenue recognized for contracted bid price					400
Revenue			100
Related Party [Member] \| Sky Ranch CAB [Member] \| Scenario, Plan [Member]
Related Party Transaction [Line Items]
Fund for construction of public improvements	4,300		$ 4,300
Related Party [Member] \| Sky Ranch CAB [Member] \| Maximum [Member]
Related Party Transaction [Line Items]
Revenue	$ 100
Related Party [Member] \| WISE Partnership [Member] \| Rangeview District [Member]
Related Party Transaction [Line Items]
Volume of received metered water \| acre ft	87	62	199	312
Payments for water	$ 200	$ 100	$ 400	$ 600
Water Rate \| $ / gal						6.48	6.13
Related Party [Member] \| Loan Receivable [Member] \| Rangeview District [Member]
Related Party Transaction [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	10%		10%
Related Party [Member] \| Loan Receivable [Member] \| Rangeview District [Member] \| Maximum [Member]
Related Party Transaction [Line Items]
Loan extended, Maximum Capacity	$ 250		$ 250
Related Party [Member] \| Loan Receivable [Member] \| Prime Rate [Member] \| Rangeview District [Member]
Related Party Transaction [Line Items]
Basis spread on variable rate			2%
Related Party [Member] \| Note Receivable [Member]
Related Party Transaction [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	8%		8%
Related Party [Member] \| Note Receivable [Member] \| Rangeview District [Member]
Related Party Transaction [Line Items]
Notes receivable	$ 1,400		$ 1,400		1,100
Borrowings under notes receivable	1,300		1,300		1,100
Accrued interest on notes receivable	$ 100		100
Related Party [Member] \| Note Receivable [Member] \| Rangeview District [Member] \| Maximum [Member]
Related Party Transaction [Line Items]
Accrued interest on notes receivable					$ 100
Related Party [Member] \| Nelson Pipeline Constructors, LLC [Member] \| Sky Ranch CAB [Member]
Related Party Transaction [Line Items]
Amount of payment to construct utility pipelines			$ 1,100	$ 8,100

SIGNIFICANT CUSTOMERS (Details)

SIGNIFICANT CUSTOMERS (Details) - Customer Concentration Risk [Member] - customer	9 Months Ended
	May 31, 2023	May 31, 2022
Revenue [Member] \| Oil & gas operators [Member]
Concentration Risk [Line Items]
Concentration risk percentage	20%	17%
Revenue [Member] \| Challenger [Member]
Concentration Risk [Line Items]
Concentration risk percentage	17%	22%
Revenue [Member] \| Lennar [Member]
Concentration Risk [Line Items]
Concentration risk percentage	17%	19%
Revenue [Member] \| KB Home [Member]
Concentration Risk [Line Items]
Concentration risk percentage	12%	11%
Revenue [Member] \| Sky Ranch homes and Sky Ranch CAB in the aggregate[Member]
Concentration Risk [Line Items]
Concentration risk percentage	6%	4%
Revenue [Member] \| Richmond [Member]
Concentration Risk [Line Items]
Concentration risk percentage		11%
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] \| Rangeview District [Member] \| Related Party [Member] \| Rangeview District [Member]
Concentration Risk [Line Items]
Concentration risk percentage	89%

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	May 31, 2023	Aug. 31, 2022
Related Party [Member]
Accrued Liabilities, Current [Line Items]
Total accrued liabilities	$ 569	$ 560
Related Party [Member] \| Sky Ranch CAB [Member]
Accrued Liabilities, Current [Line Items]
Total accrued liabilities	569	536
Related Party [Member] \| Rangeview District [Member]
Accrued Liabilities, Current [Line Items]
Total accrued liabilities		24
Nonrelated Party [Member]
Accrued Liabilities, Current [Line Items]
Accrued compensation	670	1,325
Other operating payables	158	308
Property taxes	120	164
Operating lease obligations	$ 78	$ 76
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Total accrued liabilities	Total accrued liabilities
Professional fees	$ 37	$ 115
WISE water	81	32
Rental deposits	30	9
Total accrued liabilities	$ 1,174	$ 2,029

SEGMENT INFORMATION, Revenue by

SEGMENT INFORMATION, Revenue by Segments (Details) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2023 USD ($)	May 31, 2022 USD ($)	May 31, 2023 USD ($) segment	May 31, 2022 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| segment			2
Segment Information Abstract
Total revenues	$ 6,879	$ 3,187	$ 11,209	$ 12,123
Cost of revenue	1,799	1,045	3,687	3,230
Depreciation and depletion	407	349	1,246	1,055
Total cost of revenues	2,206	1,394	4,933	4,285
Segment profit	4,673	1,793	6,276	7,838
Water and Wastewater Resource Development Segment [Member] \| Operating Segments [Member]
Segment Information Abstract
Total revenues	3,643	2,011	5,882	5,891
Cost of revenue	743	748	2,125	2,054
Depreciation and depletion	407	349	1,246	1,055
Total cost of revenues	1,150	1,097	3,371	3,109
Segment profit	2,493	914	2,511	2,782
Land Development Segment [Member] \| Operating Segments [Member]
Segment Information Abstract
Total revenues	3,202	1,151	5,237	6,173
Cost of revenue	1,032	288	1,509	1,160
Total cost of revenues	1,032	288	1,509	1,160
Segment profit	2,170	863	3,728	5,013
Single Family Rentals [Member] \| Operating Segments [Member]
Segment Information Abstract
Total revenues	34	25	90	59
Cost of revenue	24	9	53	16
Total cost of revenues	24	9	53	16
Segment profit	$ 10	$ 16	$ 37	$ 43

SEGMENT INFORMATION, Corporate

SEGMENT INFORMATION, Corporate Assets (Details) - USD ($) $ in Thousands	May 31, 2023	Aug. 31, 2022
Segment Reporting Information [Line Items]
Total assets	$ 128,165	$ 129,229
Corporate [Member]
Segment Reporting Information [Line Items]
Total assets	30,021	38,928
Water and Wastewater Resource Development Segment [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Total assets	63,936	63,064
Land Development Segment [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Total assets	29,352	25,522
Single Family Rentals [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Total assets	$ 4,856	$ 1,715

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
EARNINGS PER SHARE
Anti-dilutive securities excluded from computation of earnings per share (in shares)	600,999	558,204	602,461	473,394
Earnings Per Share [Abstract]
Net Income	$ 3,295	$ 837	$ 3,643	$ 4,044
Weighted average common shares outstanding, Basic (in shares)	24,054,843	23,970,290	24,021,582	23,944,394
Effect of dilutive securities (in shares)	111,501	154,296	110,039	239,106
Weighted average common shares outstanding - Diluted	24,166,344	24,124,586	24,131,621	24,183,500
Earnings per share - basic (in dollars per share)	$ 0.14	$ 0.03	$ 0.15	$ 0.17
Earnings per share - diluted (in dollars per share)	$ 0.14	$ 0.03	$ 0.15	$ 0.17

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022	Aug. 31, 2023
Income Taxes [Abstract]
Effective income tax rate	25.40%	22.70%	27%	23.20%
Income Tax Expense (Benefit) [Abstract]
Current income tax expense	$ 1,420	$ 227	$ 1,546	$ 1,411
Deferred income tax expense	(296)	19	(202)	(187)
Income Taxes Paid [Abstract]
Cash paid for income taxes			4,265	5,260
Effective Income Tax Rate Reconciliation [Abstract]
Total income tax expense	$ 1,124	$ 246	1,344	1,224
Federal [Member]
Income Taxes Paid [Abstract]
Cash paid for income taxes			3,471	4,360
Federal [Member] \| Forecast [Member]
Income Taxes [Abstract]
Effective income tax rate					25%
State [Member]
Income Taxes Paid [Abstract]
Cash paid for income taxes			$ 794	$ 900