What changed in this filing

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Item 5. Market for Registrant’s Common Equity

2020-11-10 compared with 2019-11-12 · 37 added, 39 removed, 24 unchanged (76% of the section changed)

2 unchanged sentences

Our common stock is traded on The NASDAQ Stock Market under the symbol “PCYO.”

On November 7, 2019, there were 740 holders of record of our common stock.

We have never paid any dividends on our common stock and expect for the foreseeable future to retain all of our capital and earnings from operations, if any, for use in expanding and developing our business.

decision as to the payment of dividends will be at the discretion of our board of directors and will depend upon our earnings, financial position, capital requirements, plans for expansion and such other factors as our board of directors deems

The terms of our Series B Preferred Stock prohibit payment of dividends on common stock unless all dividends accrued on the Series B Preferred Stock have been paid and require dividends to be paid on the Series B Preferred Stock if proceeds

from the sale of Export Water exceed $36,026,232.

For further discussion, see Note 8 – Shareholders’ Equity to the accompanying financial statements.

Performance Graph (1)

The graph below compares the cumulative total return of our common stock for the last five fiscal years with the cumulative total return for the same period of the S&P 500 Index and a peer group index (2) .

The graph assumes the investment of $100 in common stock in each of the noted indices as of the market close on August 31 and reinvestment of all dividends.

Pure Cycle Corporation

Peer Group (2)

This performance graph is not “soliciting material,” is not deemed “filed” with the SEC and is not to be incorporated by reference in any of our filings under the Securities Act or the Exchange Act whether made before or after the date

hereof and irrespective of any general incorporation language in any such filing.

The peer group consists of the following companies that have been selected on the basis of industry focus and size:

American States Water Company, Aqua America, Inc., Artesian Resources Corp., California Water Service Group,

Connecticut Water Service, Inc., Middlesex Water Company, SJW Corp., and The York Water Company.

On October 29, 2020, there were 772 holders of record of our common stock.

development businesses.

Any future decision as to the payment of dividends will be at the discretion of our board of directors and will depend upon our earnings, financial position, capital requirements, plans for expansion and such other factors

as our board of directors deems relevant.

Series B Preferred Stock if proceeds from the sale of Export Water exceed $36,026,232.

For further discussion, see Note 8 – Shareholders’ Equity to the accompanying consolidated financial statements.

Recent Sales of Unregistered Securities;

2 unchanged sentences

Item 6 – Selected Financial Data

Table D – Selected Financial Data

Selected Financial Data Table

In thousands (except per share data)

2 unchanged sentences

Total revenue

Income (loss) from operations

Income (loss) before taxes

Net income (loss)

Basic and diluted income (loss) per share

Basic income (loss) per share

Diluted income (loss) per share

Weighted-average basic shares outstanding

Weighted-average diluted shares outstanding

7 unchanged sentences

The following items had a significant impact on our operations:

In fiscal 2019 , due to land development activities at Sky Ranch, we recognized $12.0 million in revenue from lot sales and

$3.4 million in revenue from the sale of water and wastewater taps.

Our revenue from water sales increased by 2% to $4.7 million primarily related to industrial water sales.

We invested $14.1 million in our water and wastewater systems,

including $8.1 million for the wastewater facility at Sky Ranch and $3.5 million for a water right and land acquisition, $354,000 for the purchase of equipment and $17.7 million in Inventories

for the development of our Sky Ranch property.

During fiscal 2019, we had n et sales or maturities of marketable securities of approximately $3.7 million.

In addition, we released our valuation allowance on our net deferred tax

assets and recognized a deferred tax benefit of $1,283,195.

In fiscal 2018, we invested $1.1 million in our water and wastewater systems, $1.8 million for the construction of pipelines, $5.3 million for the development of our Sky Ranch property, and $445,400 for the purchase of equipment.

During fiscal 2019, we had net sales or maturities of marketable securities of approximately $11.4 million.

In fiscal 2020, due to land development activities at Sky Ranch, we recognized $18.9 million in revenue from lot sales and $5.7 million in revenue from the sale of water and wastewater taps.

Our revenue from water sales decreased by

78% to $1.0 million primarily related to the decline in the demand for industrial water sales, and we recorded a non-cash long-lived asset impairment charge of $1.4 million on our mineral rights in the Arkansas Valley, Colorado, in both

cases due to the drop of the price of crude oil as a result of increased world-wide production and lower demand because of the COVID-19 pandemic and related shelter-in-place and stay-at-home orders.

We invested $8.0 million in our land,

water and wastewater systems, including $1.9 million for the wastewater facility at Sky Ranch, $586,400 for the purchase of equipment, and $8.5 million in costs related to the development of our Sky Ranch property.

During fiscal 2020, we

had net sales or maturities of marketable securities of $5.2 million.

In addition, we received $10.5 million as partial reimbursement for advances we made to the Sky Ranch CAB to fund the construction of public improvements at the Sky

Ranch property.

Of the $10.5 million we received, $6.3 million was recognized in Other income and the remaining $4.2 million partially reduced the remaining capitalized costs in Land development i nventories .

In fiscal 2019, due to land development activities at Sky Ranch, we recognized $12.0 million in revenue from lot sales and $3.4 million in revenue from the sale of water and wastewater taps.

Our revenue from water sales increased by 2%

to $4.7 million primarily related to industrial water sales.

We invested $14.1 million in our water and wastewater systems, including $8.1 million for the wastewater facility at Sky Ranch and $3.5 million for a water right and land

acquisition, $354,000 for the purchase of equipment and $17.7 million in costs related to the development of our Sky Ranch property.

During fiscal 2019, we had net sales or maturities of marketable securities of $3.7 million.

we released our valuation allowance on our net deferred tax assets and recognized a deferred tax benefit of $1.3 million.

In fiscal 2018, we invested $1.1 million in our water and wastewater systems, $1.8 million for the construction of pipelines, $5.3 million related to the development of our Sky Ranch property, and $445,400 for the purchase of

During fiscal 2018, we had net sales or maturities of marketable securities of $11.4 million.

Our revenue from water sales increased by 452% to $4.6 million primarily related to industrial water sales.

In addition, we began

construction on Sky Ranch and recognized $2.1 million in revenue from platted lot sales.

In fiscal 2017, we invested $2.5 million in our water and wastewater systems, $4.4 million for the construction of pipelines, $902,600 for the development of our Sky Ranch property, and $95,400 for the purchase of equipment.

fiscal 2017, we had sales or maturities of marketable securities of approximately $9.8 million.

construction at Sky Ranch and recognized $2.1 million in revenue from platted lot sales under the percentage-of-completion method.

In fiscal 2017, we invested $2.5 million in our water and wastewater systems, $4.4 million for the construction of pipelines, $0.9 million related to development of our Sky Ranch property, and $95,400 for the purchase of equipment.

During fiscal 2017, we had sales or maturities of marketable securities of $9.8 million.

In fiscal 2016, we invested $923,800 in our water and wastewater systems and $285,600 for planning and design of our Sky Ranch property.

We also purchased three farms for approximately $450,300 in order to correct dry-up covenant

issues related to water-only farms in order obtain the release of the escrow funds related to the Company’s farm sale to Arkansas River Farms, LLC.

In fiscal 2015, we sold our remaining farm assets for approximately $45.8 million, for a loss of approximately $22.3 million.

In conjunction with the sale, we repaid $4.9 million in mortgage debt relating to the farms and we invested

approximately $3.5 million into our water systems.

Financial results for the farm assets have been reflected as discontinued operations, and all prior periods have been reclassified.

We also purchased land for $450,300 in the Arkansas River Valley in Southeastern Colorado.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 5. Market for Registrant’s Common Equity