PURE CYCLE CORP PP&E Disclosure
The Company’s water and water systems consist of the following:
August 31, 2025 | August 31, 2024 |
| |||||||||||
Accumulated | Accumulated |
| |||||||||||
Depreciation | Depreciation |
| |||||||||||
(In thousands) |
| Costs |
| and Depletion |
| Costs |
| and Depletion |
| ||||
Rangeview water system | $ | 31,421 | $ | (5,903) | $ | 23,381 | $ | (3,579) | |||||
Rangeview water supply | 16,273 | (21) | 15,889 | (20) | |||||||||
Water supply – Other |
| 1,300 |
| (1,147) |
| 7,588 |
| (2,307) | a | ||||
Sky Ranch water rights and other costs |
| 7,690 |
| (1,689) |
| 7,764 |
| (1,641) | |||||
Sky Ranch pipeline |
| 5,740 |
| (1,558) |
| 5,740 |
| (1,366) | |||||
Lost Creek water supply |
| 10,836 |
| — |
| 7,357 |
| — | b | ||||
Fairgrounds water and water system |
| 2,900 |
| (1,679) |
| 2,900 |
| (1,591) | |||||
Wild Pointe service rights |
| 1,632 |
| (1,475) |
| 1,632 |
| (1,261) | |||||
Construction in progress - water and water systems | 3,203 | — | 1,804 | — | |||||||||
Totals |
| 80,995 |
| (13,472) |
| 74,055 |
| (11,765) | |||||
Net investments in water and water systems | $ | 67,523 | $ | 62,290 | |||||||||
| a) | Change in Water supply – Other for the year ended August 31, 2025 compared to 2024 is primarily due to reclassification of WISE infrastructure into Rangeview water system. |
| b) | During the year ended August 31, 2025, the Company’s Lost Creek water supply increased $3.5 million, primarily from the acquisition of 378 acre-feet of ditch water in the Henrylyn Irrigation District and 220 acre-feet of groundwater rights in the Lost Creek Designated Basin |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 12, 2025 | Showing above |
| 2021 | Nov 10, 2021 | |
| 2020 | Nov 10, 2020 | |
| 2019 | Nov 12, 2019 | |
About PP&E Disclosures
The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.
Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.