All forward-looking statements are expressly qualified by this cautionary statement. Background We are a diversified land and water resource development company. With the water rights we own and control, we believe we can serve over 60,000 SFEs. As of August 31, 2020, we have delivered 483 finished lots. The remaining finished lots were delivered on November 3, 2020. We anticipate that this filing will be platted for nearly 900 lots for residential units. We expect construction of the second filing at Sky Ranch will begin in December 2020. The Rangeview District is governed by an elected board of directors. Messrs. Harding, McNeill, Lehman, and Lashnits have all elected to forego these payments. The Land Board does not receive a royalty from wastewater services. These fees are known as tap fees. Once granted, the right stays with the property. We have no obligation to physically connect the property to the lines. The number of wells drilled vary from year to year. We are retaining the remaining 100+ lots for future uses. Our preliminary total cost estimates for developing the nearly 900 lots is $65.6 million. Sky Ranch Metropolitan District Nos. We entered into agreements, first with Sky Ranch Metropolitan District No. We expect to fund $48.3 million of reimbursable public improvements for filing 2. In 2014, the Sky Ranch O&G Lease was extended for an additional two years. The operator may only extend the OGOA for two additional years for a total of five years. In fiscal 2020, we assessed the recoverability of the Arkansas Valley mineral rights. Lot sales are generated entirely through sales to three customers as noted below. We use third-party contractors to construct our facilities as needed. Our principal competition in areas close to the Lowry Range is the City of Aurora. The federal Groundwater Rule became effective December 1, 2009. We have implemented measures to comply with the Groundwater Rule. Employees We currently have 31 employees, all of whom are full-time. Since then, COVID-19 has spread to multiple countries, including the United States. Our continuing development of Sky Ranch requires significant cash expenditures. As of August 31, 2020, we had $21.8 million of cash on hand. There can be no assurance that financing will be available on acceptable terms or at all. Our stock price has been volatile in the past and may decline in the future. In many cases, the incurrence of these additional costs would not be within our control. The market environment for surety companies has become increasingly risk averse. We may not be able to secure performance and completion bonds when required. Colorado Senate Bill 19-181 ("SB181") was signed into law on April 16, 2019. Conflicts may not be resolved in the best interests of the Company and our shareholders. The NLRB ultimately reversed this ruling through a final rule issued in February 2020. A significant portion of our water supplies come from non-renewable aquifers. However, the CPUC could attempt to regulate us as a public utility. We operate in a highly political environment. Development on the Lowry Range is not within our control and is subject to obstacles. However, in fiscal 2020 housing starts in Colorado increased compared to fiscal 2019. Subcontractors may use improper construction processes or defective materials. Defective products can result in the need to perform extensive repairs. These assets are used to provide service to our customers. Item 3 – Legal Pro
