LONG-TERM OBLIGATIONS AND OPERATING LEASE (Tables)

9 Months Ended

May 31, 2020

LONG-TERM OBLIGATIONS AND OPERATING LEASE [Abstract]

As a result of the acquisitions and consideration from cumulative sales of Export Water as detailed in the table below, the remaining potential third-party obligation at May 31, 2020, is less than $1.0 million.

	Export Water Proceeds Received		Initial Export Water Proceeds to Pure Cycle			Total Potential Third-Party Obligation			Participating Interests Liability			Contingency
Original balances	$	—	$	218,500		$	31,807,700		$	11,090,600		$	20,717,100
Activity from inception until August 31, 2019:
Acquisitions		—		28,042,500			(28,042,500	)		(9,790,000	)		(18,252,500	)
Relinquishment		—		2,386,400			(2,386,400	)		(832,100	)		(1,554,300	)
Option payments - Sky Ranch and The Hills at Sky Ranch		110,400		(42,300	)		(68,100	)		(23,800	)		(44,300	)
Arapahoe County tap fees		533,000		(373,100	)		(159,900	)		(55,800	)		(104,100	)
Export Water sale payments		903,600		(740,400	)		(163,200	)		(56,700	)		(106,500	)
Balance at August 31, 2019		1,547,000		29,491,600			987,600			332,200			655,400
Activity for the nine months ended May 31, 2020:
Export Water sale payments		101,200		(89,200	)		(12,000	)		(4,200	)		(7,800	)
Balance at May 31, 2020	$	1,648,200	$	29,402,400		$	975,600		$	328,000		$	647,600

ROU Lease Assets and Lease Liabilities

ROU lease assets and lease liabilities for the Company’s operating leases were recorded in the consolidated balance sheet as follows:

	As of May 31, 2020
Operating leases - right of use assets	$	213,252

Accounts payable and accrued liabilities	$	70,191
Lease obligations - operating leases, net of current portion		140,318
Total lease liability	$	210,509

Weighted average remaining lease term (in years)		2.7
Weighted average discount rate		6.0	%