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INCOME TAXES | 12 Months Ended
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Aug. 31, 2022
INCOME TAXES [Abstract] |
INCOME TAXES | NOTE 11 – INCOME TAXES For the year ended August 31, 2022, Pure Cycle recorded income tax expense of $3.1 million, which consisted of current income tax expense of $3.6 million and deferred income tax benefit of $0.5 million. The deferred tax benefit consists mainly of timing difference between book and tax depreciation of fixed assets. For the year ended August 31, 2021, Pure Cycle recorded income tax expense of $6.5 million, which consisted of current income tax expense of $5.8 million and deferred income tax expense of $0.7 million. The deferred tax expense consists of the usage of $0.6 million of net operating loss carryforwards and timing differences between book and tax depreciation of fixed assets. During the year ended August 31, 2022, Pure Cycle made Federal and State income tax installments of $4.4 million and $0.9 million. During the year ended August 31, 2021, the Company did not make any Federal or State income tax installment payments. Deferred income taxes reflect the tax effects of net operating loss carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets as of August 31 are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
(In thousands) |  | August 31, 2022 |  | August 31, 2021
Deferred tax assets (liabilities): |  | ​ |  |  | ​ |
Depreciation and depletion | ​ | $ | (2,061) | ​ | $ | (2,360)
Non-qualified stock options | ​ |  | 568 | ​ |  | 547
Accrued compensation | ​ | ​ | 279 | ​ | ​ | 141
Deferred revenues | ​ | ​ | 108 | ​ | ​ | 41
Other | ​ |  | 31 | ​ |  | 16
Net deferred tax liability | ​ | $ | (1,075) | ​ | $ | (1,615)
​ As of August 31, 2022 and 2021, the Company had no liability for unrecognized tax benefits. ​ Income taxes computed using the federal statutory income tax rate differs from the Company’s effective tax rate primarily due to the following for the fiscal years ended August 31: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended
​ |  | August 31, 2022 |  | August 31, 2021
Expected benefit from federal taxes at statutory rate of 21% for the years 2022 and 2021 | ​ | $ | 2,668 | ​ | $ | 5,584
State taxes, net of federal benefit | ​ | ​ | 456 | ​ | ​ | 973
Permanent and other differences | ​ | ​ | 4 | ​ | ​ | 4
Stock Compensation | ​ | ​ | 22 | ​ | ​ | (77)
Other | ​ | ​ | (64) | ​ | ​ | (4)
Total income tax expense | ​ | $ | 3,086 | ​ | $ | 6,480
​ | ​ | ​ | ​ | ​ | ​ | ​
​ At August 31, 2022 and 2021, the Company had no net operating loss carryforwards available for income tax purposes.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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