Pure Cycle Corp. (PCYO, Financial) filed Annual Report for the period ended 2009-08-31.
PureCycle Corporation is an investor-owned water company providing water and wastewater services including water production, storage, treatment, distribution, wastewater collection and treatment, irrigation water treatment and distribution, construction management, billing and collection and emergency response to its customers located in the greater Denver metropolitan area. Pure Cycle Corp. has a market cap of $51.4 million; its shares were traded at around $2.545 with and P/S ratio of 182.3.
Pursuant to our Rangeview Water Agreements with the District and the Land Board, pricing for water tap fees (as well as water usage charges described further below) is controlled through a market-driven pricing mechanism in which our rates and charges may not exceed the average of similar rates and charges of three nearby water providers. Due to increases in tap fees at these communities, effective July 1, 2009, water tap fees increased $1,000 to $22,500 per SFE, which is a 4.7% increase over the 2008 water tap fee. Wastewater tap fees remained unchanged at $4,883. Table A provides a summary of our water tap fees since 2003:
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PureCycle Corporation is an investor-owned water company providing water and wastewater services including water production, storage, treatment, distribution, wastewater collection and treatment, irrigation water treatment and distribution, construction management, billing and collection and emergency response to its customers located in the greater Denver metropolitan area. Pure Cycle Corp. has a market cap of $51.4 million; its shares were traded at around $2.545 with and P/S ratio of 182.3.
Highlight of Business Operations:
In January 2007, we, along with two other parties (each of whom own 1/3rd of the venture), formed Well Enhancement and Recovery Systems, LLC (Well Enhancement LLC), to develop a new deep water well enhancement tool and process which we believe will increase the efficiency of wells into the Denver Basin groundwater formation. In our fiscal 2008, the well enhancement tool and process was completed and tested on two deep water wells developed by an area water provider with favorable results. According to studies performed by an independent hydro-geologist, preliminary results indicate the well enhancement tool effectively increased the production of the two test wells by approximately 80% and 83% when compared to that of nearby wells developed in similar formations at similar depths. Based on the positive results of the test wells, we continue to refine the process of enhancing deep water wells and anticipate marketing the tool to area water providers. We did not utilize the well enhancement tool during 2009 due to a lack of wells being drilled in the Denver metropolitan market. During the fiscal years ended August 31, 2009, 2008 and 2007, Well Enhancement LLC expensed approximately $17,100, $143,600 and $106,700, respectively, for research and development activities. Since we are a 1/3rd owner of Well Enhancement LLC, we recorded approximately $7,900, $48,700 and $35,600, respectively, of Well Enhancement LLCs losses for the fiscal years ended August 31, 2009, 2009 and 2007.Pursuant to our Rangeview Water Agreements with the District and the Land Board, pricing for water tap fees (as well as water usage charges described further below) is controlled through a market-driven pricing mechanism in which our rates and charges may not exceed the average of similar rates and charges of three nearby water providers. Due to increases in tap fees at these communities, effective July 1, 2009, water tap fees increased $1,000 to $22,500 per SFE, which is a 4.7% increase over the 2008 water tap fee. Wastewater tap fees remained unchanged at $4,883. Table A provides a summary of our water tap fees since 2003:
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