Pure Cycle Corp Files 10-Q for Period Ending November 30, 2023

TL;DR

<b>Pure Cycle Corp has filed its Q1 2024 10-Q, detailing financial positions and share-based compensation plans.</b>

AI Summary

PURE CYCLE CORP (PCYO) filed a Quarterly Report (10-Q) with the SEC on January 16, 2024. Pure Cycle Corp filed a 10-Q report for the period ending November 30, 2023. The filing covers the first quarter of fiscal year 2024. Key financial statement elements like common stock, retained earnings, and additional paid-in capital are detailed as of November 30, 2023, and prior periods. Information regarding share-based payment arrangements, including the Equity Incentive Plan 2014, is provided for employees, non-employee board members, and executive officers. The company is involved in water supply, with its principal business address in Watkins, Colorado.

Why It Matters

For investors and stakeholders tracking PURE CYCLE CORP, this filing contains several important signals. This filing provides investors with the latest financial snapshot of Pure Cycle Corp, crucial for understanding its current operational and financial health. Details on share-based compensation plans are important for evaluating potential dilution and executive incentives.

Risk Assessment

Risk Level: low — PURE CYCLE CORP shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate red flags, indicating a routine disclosure of financial information.

Analyst Insight

Monitor future filings for trends in financial performance and any updates to share-based compensation or new projects.

Key Numbers

• 20231130 — Period End Date (Conformed period of report)
• 20240116 — Filing Date (Filed as of date)
• 0831 — Fiscal Year End (Company fiscal year end)

Key Players & Entities

• PURE CYCLE CORP (company) — Filer name
• PCYO (company) — Ticker symbol
• 20231130 (date) — Conformed period of report
• 20240116 (date) — Filed as of date
• Watkins, CO (location) — Business address city and state
• 3032923456 (phone) — Business phone

Forward-Looking Statements

• Pure Cycle Corp will maintain a stable authorized share count for common and preferred stock in the near term. (PURE CYCLE CORP) — high confidence, target: 2024-08-31

FAQ

Industry Context

Pure Cycle Corp operates in the Water Supply industry, providing essential services related to water infrastructure and distribution.

Regulatory Implications

As a publicly traded company, Pure Cycle Corp is subject to SEC regulations, including the requirement to file quarterly reports (10-Q) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Review the full 10-Q document for detailed financial statements and footnotes.
2. Analyze the sections related to share-based compensation for potential impacts on shareholder equity.
3. Track any disclosures regarding new projects or operational developments within the water supply sector.

Key Dates

• 2023-11-30: Period End Date — End of the reporting period for the 10-Q filing.
• 2024-01-16: Filing Date — Date the 10-Q report was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides a comprehensive update on the company's financial performance and position during the quarter.)

Equity Incentive Plan 2014

A plan established by Pure Cycle Corp for granting equity-based compensation to employees and others. (Relevant for understanding potential stock dilution and executive compensation structures.)

Year-Over-Year Comparison

This is the initial 10-Q filing for the period ending November 30, 2023, providing a baseline for future comparisons.

Filing Documents

• pcyo-20231130x10q.htm (10-Q) — 1552KB
• pcyo-20231130xex31d1.htm (EX-31.1) — 13KB
• pcyo-20231130xex31d2.htm (EX-31.2) — 16KB
• pcyo-20231130xex32d1.htm (EX-32.1) — 7KB
• pcyo-20231130xex32d2.htm (EX-32.2) — 8KB
• pcyo-20231130x10q001.jpg (GRAPHIC) — 11KB
• 0001558370-24-000303.txt (&nbsp;) — 6924KB
• pcyo-20231130.xsd (EX-101.SCH) — 54KB
• pcyo-20231130_cal.xml (EX-101.CAL) — 54KB
• pcyo-20231130_def.xml (EX-101.DEF) — 272KB
• pcyo-20231130_lab.xml (EX-101.LAB) — 455KB
• pcyo-20231130_pre.xml (EX-101.PRE) — 364KB
• pcyo-20231130x10q_htm.xml (XML) — 1139KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 4

Consolidated Financial Statements

Item 1. Consolidated Financial Statements 4 Consolidated Balance Sheets: November 30, 2023 (unaudited) and August 31, 2023 4 Consolidated Statements of Income (unaudited): For the three months ended November 30, 2023 and 2022 5 Consolidated Statements of Shareholders' Equity (unaudited): For the three months ended November 30, 2023 and 2022 6 Consolidated Statements of Cash Flows (unaudited): For the three months ended November 30, 2023 and 2022 7 Notes to Condensed Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 19

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 26

Controls and Procedures

Item 4. Controls and Procedures 26

OTHER INFORMATION

PART II. OTHER INFORMATION 27

Issuer Purchases of Equity Securities

Item 2. Issuer Purchases of Equity Securities 27

Exhibits

Item 6. Exhibits 27

SIGNATURES

SIGNATURES 28 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Statements that are not historical facts contained in this Quarterly Report on Form 10-Q are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended ( Securities Act ), and Section 21E of the Securities Exchange Act of 1934, as amended ( Exchange Act ). The words "anticipate," "seek," "project," "future," "likely," "believe," "may," "should," "could," "will," "estimate," "expect," "plan," "intend" and similar expressions, as they relate to us, are intended to identify forward-looking statements. Forward-looking statements include statements relating to, among other things: future water supply needs in Colorado and how such needs will be met; anticipated revenue from our commercial water sales; anticipated increases in residential and commercial demand for water services and competition for these services; estimated population increases in the Denver metropolitan area and the South Platte River basin; increased demand for single-family rental homes; plans for, and the efficiency of, development of our Sky Ranch property; our competitive advantage; the impact of individual housing and economic cycles on the number of connections we can serve with our water; the number of new water connections needed to recover the costs of our water supplies; the number of units planned for development at Sky Ranch; the timing of the completion of construction and sale of finished lots at Sky Ranch; the number of lots expected to be delivered in a fiscal period; anticipated financial results, including anticipated increases in customers and revenue, from development of our Sky Ranch property; estimated tap fees to be generated from the development of the various phases of Sky Ranch; anticipated expansion and rental dates for our single-family rental homes; anticipated revenues and cash flows from our single-family rental homes; timing of a

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements PURE CYCLE CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands, except shares) November 30, 2023 August 31, 2023 ASSETS: (unaudited) Current assets: Cash and cash equivalents $ 21,784 $ 26,012 Short term investments 167 — Trade accounts receivable, net 4,778 1,092 Land under development 2,164 1,726 Income taxes receivable — 551 Prepaid expenses and other assets 249 346 Total current assets 29,142 29,727 Restricted cash 2,880 2,475 Investments in water and water systems, net 57,698 57,798 Construction in progress 5,865 5,457 Single-family rental units 5,227 4,490 Land and mineral rights: Held for development 4,871 4,652 Held for investment purposes 451 451 Other assets 1,234 1,359 Notes receivable – related parties, including accrued interest Reimbursable public improvements and project management fees 28,270 24,999 Other 1,481 1,451 Operating leases - right of use assets 210 357 Total assets $ 137,329 $ 133,216 LIABILITIES: Current liabilities: Accounts payable $ 2,783 $ 1,960 Accrued liabilities 1,015 1,761 Accrued liabilities – related parties 906 1,021 Income taxes payable 200 — Deferred lot sale revenues 3,791 1,661 Deferred water sales revenues 50 69 Debt, current portion 34 31 Total current liabilities 8,779 6,503 Debt, less current portion 6,874 6,885 Deferred tax liability, net 1,352 1,352 Lease obligations - operating leases, less current portion 142 242 Total liabilities 17,147 14,982 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; 24,066,720 and 24,078,720 outstanding, respectively 80 80 Additional paid-in capital