UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 10, 2022

PURE CYCLE CORPORATION

(Exact name of registrant as specified in its charter)

Colorado

(State or other jurisdiction of incorporation)


0-8814		84-0705083
(Commission File Number)		(IRS Employer Identification No.)

34501 East Quincy Avenue, Building 34, Box 10, Watkins, CO 80137

(Address of principal executive offices) (Zip Code)


Registrant’s telephone, including area code	(303) 292-3456

N/A

(Former name or former address, if changed since last report.)

Securities registered pursuant to Section 12(b) of the Act:


Common Stock 1/3 of $.01 par value	PCYO	The NASDAQ Stock Market
(Title of each class)	(Trading Symbol(s))	(Name of each exchange on which registered)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

This current report on Form 8-K is filed by Pure Cycle Corporation (the “Registrant”), a Colorado corporation, in connection with the matters described herein.

Item 2.02Results of Operations and Financial Condition.

On January 10, 2022, Pure Cycle Corporation issued a press release announcing its financial results for the three months ended November 30, 2021. A copy of the press release is furnished as Exhibit 99.1 hereto, and is incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the press release furnished as Exhibit 99.1 to this current report on Form 8-K shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information or exhibit be deemed incorporated by reference into any filing under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except as shall be expressly set forth by specific reference in any such filing.

Item 7.01Regulation FD Disclosure.

On January 11, 2022, Pure Cycle Corporation issued a presentation summarizing Pure Cycle’s operations and financial results (the “Earnings Presentation”). The Earnings Presentation is furnished as Exhibit 99.2 to this Form 8-K and is incorporated herein by reference.

The information contained in the Earnings Presentation is summary information and should be read in conjunction with Pure Cycle’s filings with the Securities and Exchange Commission and other public announcements that Pure Cycle may make by press release or otherwise from time to time. The Earnings Presentation will be posted in the Investor Relations section of Pure Cycle’s website, www.purecyclewater.com

The information contained in this Item 7.01 of Form 8-K, including the accompanying Exhibit 99.2 is being furnished, and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information contained in the presentation shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01Financial Statements and Exhibits.

(d)Exhibits.


Exhibit No.		Description
99.1		Press Release dated January 10, 2022
99.2		Earnings Presentation dated January 11, 2022
104		Cover Page Interactive Data File (the cover page XBRL tags are embedded in the inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: January 12, 2022


		PURE CYCLE CORPORATION


		By:	/s/ Kevin B. McNeill
			Kevin B. McNeill
			Vice President and Chief Financial Officer

Exhibit 99.1

Pure Cycle Reports First Quarter Results

“We started fiscal 2022 with continued momentum in our land and water segments as well as the official launch of our fully operational single-family home rental business. We are under construction on our next 229 lots at Sky Ranch and continue to add customers to our utility segment each month as well as having completed construction on the first three homes, and we could not be happier with the results. Our strategy and planning resulted in the successful launch of this new line of business which brings confidence to our team as we look forward to the continued growth of this new business,” commented Mark W. Harding CEO of Pure Cycle.

Highlights

Ø	Revenues of $4.3 million for the three months ended November 30, 2021

Ø	Received the second progress payment for Phase 2 LDA lots of Sky Ranch

Ø	479 or 94% of lots in the initial phase of Sky Ranch have purchased water and wastewater taps, totaling $14.2 million in tap fees to date

Ø	Completed construction of the first three single-family rental homes and rented the homes within ten days of completing construction – at rates higher than we budgeted

Denver, Colorado, January 10, 2022 – Pure Cycle Corporation (NASDAQ Capital Market: PCYO) is reporting net income of $1.5 million for the three months ended November 30, 2021, on revenues of $4.3 million. Pure Cycle continues construction on the first subphase of the second development phase of the Sky Ranch Master Planned Community, which is just over 43% complete.

“We made great progress on the next phase of Sky Ranch,” commented Mr. Harding. “We saw increases in the cost of raw materials in this next phase which increases our overall budget in the first subphase. Fortunately, these increases are mostly attributable to public improvements that are reimbursable to Pure Cycle. Our margin on the lots stayed roughly the same when compared to the direct non reimbursable costs of land development,” Continued Mr. Harding.

Financial Summary

Revenue – Our utility customer base continues to grow as occupancy in the first phase of Sky Ranch increases resulting in a steady growth in our recurring revenue from residential water and wastewater usage. Total Revenues decreased for Q1 2022 compared to Q1 2021, due to the decrease in tap sales after the near completion of Sky Ranch Phase 1. We anticipate tap fee applications to accelerate in subsequent quarters as the second phase of Sky Ranch delivers.

Profitability – We continue to be profitable quarter over quarter with net income increasing to $1.5 million in Q1 2022 compared to $0.8 million in Q1 2021. The growth in net income was positively impacted by increased lot sales due to the continued construction of the second phase, for which our margins increased substantially as we are no longer recognizing reimbursable public improvements as part of the cost of development. Instead, they are now recorded as receivable from the Sky Ranch CAB.

Working Capital – As of November 30, 2021, our working capital was $22.4 million, which includes cash of $12.9 million.

“The second development phase continues to progress, driving our lot sales revenue which we anticipate continuing to grow through fiscal 2022,” comment Mr. Kevin McNeill, CFO of Pure Cycle, “adding our single-family rentals to our operations is another great revenue driver and we are excited to grow this business in the coming years,” concluded Mr. McNeill.

Operational Summary

Water and wastewater resource development – Municipal water usage increased in Q1 2022 as compared to 2021, primarily due to new Sky Ranch customers in our water and wastewater resource development segment as well as increased water usage due to landscaping and irrigation usage. We delivered 17.3 million gallons of water to Sky Ranch customers in Q1 2022, compared to 12.2 million gallons in Q1 2021, which the increase is due to new homes being occupied at Sky Ranch and the delivery of water to irrigate parks and outdoor landscaping at Sky Ranch. Water and wastewater tap sales declined in Q1 2022 as compared to Q1 2021, due to timing of closings at Sky Ranch. Tap sales are driven by building permit applications and are not contractually established with the builders, and no building permits have been issued for the second development phase as of November 30, 2021, and two of the three builders are sold out in the first phase

Land development – Lot sales revenue increased in Q1 2022 as compared to Q1 2021, due to the progress made on the second development phase at Sky Ranch, additionally the price per lot for delivered lots in the second development phase increased on average 40% over the first phase. Revenue for three of the four builder contracts in the second development phase are recognized over time with progress measured under the percent of completion method; therefore, revenue will fluctuate due to timing of construction activities throughout the second phase.

Single Family Rentals - In fiscal 2021 we began construction on three homes that were completed and put into service on November 1, 2021. All three homes were rented effective November 1, 2021, under one year lease agreements. The revenues presented in the consolidated financial statements are for the first month of rent on all three homes, which will be recorded monthly throughout the terms of the leases. The costs reflected as cost of sales for the rental units includes a pro-rata share of the annual property taxes and insurance related specifically to the rental units as well as immaterial fees related to the operations and maintenance assessments from the Sky Ranch CAB which are assessed to all homes in Sky Ranch. During Q1 2022 we contracted for the construction of the fourth rental home, which we anticipate being completed and ready for rental near the end of our fiscal 2022.

The following table presents our unaudited results of operations for the three months ended November 30, 2021 and 2020:


	Three Months Ended
	November 30,		November 30,
(In thousands, except per share amounts)	2021		2020
Revenues:
Metered water usage from:
Municipal customers	$	321	$	167
Oil and gas operations		386		1,199
Wastewater treatment fees		55		42
Water and wastewater tap fees		261		1,083
Lot sales		2,945		2,356
Project management fees		248		—
Single-family rentals		8		—
Special facility projects and other		49		21
Total revenues		4,273		4,868

Expenses:
Water service operations		(289)		(545)
Wastewater service operations		(129)		(92)
Land development construction costs		(531)		(1,719)

Single-Family rental costs		(3)		—
Depletion and depreciation		(354)		(365)
Other		(77)		(24)
Total cost of revenues		(1,383)		(2,745)

General and administrative expenses		(1,325)		(1,086)
Depreciation		(85)		(84)
Operating income		1,480		953

Other income:
Interest income - related party		362		15
Oil and gas royalty income, net		97		75
Oil and gas lease income, net		48		52
Other		11		10
Interest expense, net		(7)		—
Income from operations before income taxes		1,991		1,105
Income tax expense		(477)		(260)
Net income	$	1,514	$	845

Earnings per common share - basic and diluted	$	0.06	$	0.04

The following table presents our consolidated financial position as of November 30, 2021 and August 31, 2021:


(In thousands, except share and per share amounts)	November 30, 2021		August 31, 2021
ASSETS:	(unaudited)
Current assets:
Cash and cash equivalents	$	12,914	$	20,117
Trade accounts receivable, net		1,217		1,532
Prepaid expenses and other assets		289		458
Land under development		1,030		608
Notes receivable - reimbursable public improvements - related party		16,000		16,000
Total current assets		31,450		38,715
Restricted cash		2,328		2,327
Investments in water and water systems, net		53,506		53,786
Construction in progress		3,016		3,304
Single-family rental units		1,008		—
Land and mineral rights:

Held for development		7,343		5,924
Held for investment purposes		451		451
Other assets		2,569		2,591
Notes receivable – related parties, including accrued interest:
Reimbursable public improvements		13,517		8,794
Other		1,061		1,163
Operating leases - right of use assets, less current portion		102		122
Total assets	$	116,351	$	117,177

LIABILITIES:
Current liabilities:
Accounts payable	$	2,019	$	1,787
Accrued liabilities		669		1,224
Accrued liabilities – related parties		2,049		2,881
Income taxes payable		1,185		4,163
Deferred lot sale revenues		2,831		1,995
Deferred oil and gas lease payment and water sales payment		271		410
Debt		7		—
Total current liabilities		9,031		12,460
Participating interests in export water supply		325		325
Debt, less current portion		993		—
Deferred tax liability, net		1,621		1,615
Lease obligations - operating leases, less current portion		15		37
Total liabilities		11,985		14,437
SHAREHOLDERS’ EQUITY:
Series B preferred shares		—		—
Common shares		80		80
Additional paid-in capital		173,625		173,513
Accumulated deficit		(69,339)		(70,853)
Total shareholders’ equity		104,366		102,740
Total liabilities and shareholders’ equity	$	116,351	$	117,177

Earnings Call Information

Pure Cycle will host a conference call on Tuesday, January 11, 2022, at 8:30AM Eastern (6:30AM Mountain) to discuss the financial results and answer questions. Call details are presented below. We will post a detailed slide presentation, which provides an overview of Pure Cycle and presents summary financial results on our website which can be accessed at www.purecyclewater.com.

Q1 2022 EARNINGS CALL

When:8:30AM Eastern (6:30AM Mountain) on January 11, 2022

Call in number:888-506-0062 (access code: 718641)

International call in number:973-528-0011 (access code: 718641)

Replay number:877-481-4010 | 919-882-2331 (passcode: 44055)

Replay available untilApril 11, 2022 at 8:30AM ET

Event link:https://www.webcaster4.com/Webcast/Page/2247/44055

Company Information

Pure Cycle is a diversified land and water resource development company. At our core we are an innovative and vertically integrated wholesale water and wastewater service provider that, in addition to developing wholesale water and wastewater services, develops a master planned community on land we own and to which we provide water and wastewater services.

Additional information including our recent press releases and SEC filings are available at www.purecyclewater.com, or you may contact our President, Mark W. Harding, or our CFO, Kevin B. McNeill, at 303-292-3456 or at [email protected]. Be sure to follow Pure Cycle on Twitter @purecyclecorp.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are all statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, such as statements about the following: timing of development at Sky Ranch; and tap sales and home sales by our home builder customers. The words “anticipate,” “likely,” “may,” “should,” “could,” “will,” “believe,” “estimate,” “expect,” “plan,” “intend” and similar expressions are intended to identify forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ from projected results include, without limitation: home mortgage interest rates and other factors impacting the housing market and home sales; the risk factors discussed in Part I, Item 1A of our most recent Annual Report on Form 10-K for the fiscal year ended August 31, 2021; and those factors discussed from time to time in our press releases, public statement and documents filed or furnished with the U.S. Securities and Exchange Commission. Except as required by law, we disclaim any obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Exhibit 99.2

1.COMPANY OVERVIEW PURE CYCLE CORPORATION Earnings presentation for the three months ended November 30, 2021 FINANCIAL RESULTS

2.SAFE HARBOR STATEMENT Statements that are not historical facts contained or incorporated by reference in this presentation are "forwardlooking statements" ("FLS") within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934 as amended. FLS involve risks and uncertainties that could cause actual results to differ from projected results. The words "anticipate," "believe," "estimate," "expect," "plan," "intend" and similar expressions, as they relate to us, are intended to identify FLS. Such statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. We are not able to predict all factors that may affect future results. We cannot assure you that any of our expectations will be realized. Our actual results could differ materially from those discussed in or implied by these forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such FLS include, without limitation: the risk factors discussed in our most recent Annual Report on Form 10-K; the timing of new home construction and other development in the areas where we may sell our water, which in turn may be impacted by credit availability; population growth; employment rates; general economic conditions; the market price of water; changes in customer consumption patterns; changes in applicable statutory and regulatory requirements; changes in governmental policies and procedures; uncertainties in the estimation of water available under decrees; uncertainties in the estimation of costs of delivery of water and treatment of wastewater; uncertainties in the estimation of the service life of our systems; uncertainties in the estimation of costs of construction projects; uncertainties in the amount and timing of reimbursable public improvement payments: uncertainty in the single family home rental market and our ability to rent homes in a timely manner or at the amount we project; the strength and financial resources of our competitors; our ability to find and retain skilled personnel; climatic and weather conditions, including flood, droughts and freezing conditions; labor relations; availability and cost of labor, material and equipment; delays in anticipated permit and construction dates; environmental risks and regulations; our ability to raise capital; our ability to negotiate contracts with new customers; and uncertainties in water court rulings; and other factors discussed from time to time in our press releases, public statements and documents filed or furnished with the SEC. Company Overview

3.WE OPERATE MULTIPLE COMPLEMENTARY SEGMENTS Driving value for stakeholders with land and water investments Water and Wastewater Resource Development Segment Own a large and valuable portfolio of water rights Sustainable ground and surface water rights we estimate can serve up to 60,0000 SFEs Denver metro land development requires developers to have water service as a condition of zoning, offering us a competitive edge Provide industrial and oil and gas customers with water Land Development Segment Own property in highly attractive and easily accessible I-70 Corridor of Denver, Colorado Developing nearly 930 acres of a full Master Planned community known as Sky Ranch. Sky Ranch has over 3,200 residential units and over 2 million square feet of retail, commercial and industrial uses Developing residential and commercial land for which we are the sole water and wastewater service provider Single-Family Home Rentals Build single family homes in the Denver metro area in neighborhoods we are developing Receive rental income in growing housing market Benefit from immediate asset appreciation and positive cash flows Provide water and wastewater service to rental properties

4.COMPANY OVERVIEW PURE CYCLE CORPORATION Earnings presentation for the three months ended November 30, 2021 FINANCIAL RESULTS

5..----------------,...---.:----------=-=-=====::::;:--~------, WHOLESALE WATER AND WASTEWATER Principal business interests are to deliver wholesale water and wastewater service WELLS/DIVERSION Large water portfolio in water-short Denver 0 Company owns or controls 29,000+ acre feet of groundwater & surface water which we estimate can serve 60,000 taps Own rights to surface reservoir storage assets I I L I ISTRIBUTION I L----WASTEWATER TREATMENT COLLECTION I I -J

6.WATER INFRASTRUCTURE Water Assets (Net) In millions FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 Own or control over 29,000 acre-feet of water along the Denver Front Range All major infrastructure is in service to support phase 2 of the Sky Ranch Development ..c: ~ 0 ~ c., s'2 0 c.o N -o------.... -\ , C0'-0 .. 00 I AIII AND SPACE PORT Scroll on mouse to zoom ml ===□=..=='::. □::--! J

7.Water Services Growth from: New Residential New service customers added with every neighborh?od Avg. residential customer generates $1,500 per year m revenue New Commercial Future Sky Ranch commercial phases Existing Residential Elbert and hwy 86 Residents Existing Commercial Elbert and Hwy 86 commercial customers 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 Monthly Water Custolllers 5,000 4,570 4,070 3,570 3,070 2,570 2,070 1,570 973 6.y 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Actual Projected

8.OIL&GAS We provide raw water to oil and gas operators in for drilling with 120 wells drilled to date Southern Wattenberg Niobrara Five Possible Formations Pad Development: 40 Acre spacing 16 wells/mile formation Over 10,000 well capacity Average $250,000 per well More than 200 square miles in Adams & Arapahoe Counties J.lWI.R.!.==----l!l __ _ ---r'J--•-r-..... --.... ~ --c::J-_____ ..,_..,,_c::J ___ .., . ---=--"-~ ------·--c::,--------... "'"--- ... -~...---...

9.DEVELOPMENTENCROACHMENTTOLOWRYRANGE -View looking north of development encroachment on Lowry Range exclusive Service Area 111---r-.. ---. -------~ r-..... -.,-a-, .. ----·-.. ,_-:--c-~---· ---c::in.--. g:-.:..:.-..:-.:· -:=:-----.

10.COMPANY OVERVIEW PURE CYCLE CORPORATION Earnings presentation for the three months ended November 30, 2021 FINANCIAL RESULTS

11. Developing the 930 acre Sky Ranch Can accommodate up to 3,200 residential lots Can Accommodate up to 2 million square feet of commercial development (1,800 SFE's) 15 miles east of downtown Denver and 4 miles south of DIA

12.SKY RANCH -PHASE 1 99% complete All lots delivered (509) As of 11/30/2021 there are approximately 405 residents 4 79 of 509 Taps Sold Estimated that homes will be fully sold out by the end of Q2-2022 Received $10.5 million ofreimbursables and recorded more than $20M in receivables including project management fees and related interest income Recognized $36. 7 million in lot revenue to date Recognized $14.2 million in tap fees to date PARTNERING HOMEBUILDERS kb HOME taylor . morr1son .... Homes Inspired by You HW ~~ RICf-MQN) ~AMERICAN HOMES

13.SKY RANCH -PHASE 2 OVERVIEW Approximately 850 lots in total 804 lots under contract with home builders 46 lots reserved for rental business with an additional 100 potential plats Initial lots expected to be delivered spring 2022 WiU include new Charter School directly north of this phase -which all Sky Ranch residents can attend. Opening August 2023 Includes potential first commercial development area Estimated lot revenues of $70 million Estimated tap fees of$20.9 million Estimated $61.1 million of reimbursable costs Estimated $73.4 mrnion in total development costs PARTNERING HOMEBUILDERS DRHORIDN. ~lea-'~~ CHALLENGER HOMES LENNAR kb HOME ~:..u.:L..L.~~ 8H8 ·.HI .,....,..,..,.._=-:::::te"'l_ .. =,..:._;;;;;;;;;~~~=~~~~~;J ) --1 I ,' ----------~,,,,.-~ -------1..~

14.Subphase 1 (229 LOTS) Subphase 2 (211 LOTS) Lot Revenue $ 18.4m Lot Revenue $ 17.0m Tap Revenue 5.6m Tap Revenue 5.2m Total lot costs (20.1ml Tota Lot costs (18.3ml Reimbursable* 16.7m Reimbursable* 15.2m GROSS PROCEEDS $ 20.6m GROSS PROCEEDS $ 19.lm TOTAL LOT SALES BY BUILDER 28,000,000 26,200,000 Lennar Challenger KB Homes DR Horton SKY RANCH PHASE 2 Financial And Quantitative Data Subphase 3 (204 LOTS) Subphase 4 (206 LOTS) Lot Revenue $ 16.7m Lot Revenue $ 17.9m Tap Revenue 5.0m Tap Revenue 5.lm Total lot costs (17.4ml Total lot costs (17.6ml Reimbursable* 14.5m Reimbursable* $14.6m GROSS PROCEEDS $ 18.Bm GROSS PROCEEDS $ 20.0m 'Reimbursable costs arc public improvements reimbur.;able from the Sky Ranch Community Authority Board TOTAL LOTS BY TYPE Phase 2 (850 LOTS) Lot Revenue Tap Revenue Total lot costs Reimbursable* GROSS PROCEEDS TOTAL LOTS BY BUILDER 70.0m 20.9m 03.4m) 61.0m 78.5m 45' LOTS 45' LOTTS (ALLEY) 50' LOTS 35' LOTS DUPLEXS TOWNHOMES CHALLENGER LENNAR DR HORTON KB HOMES PCYO BTR

15.Takedown 1 DATE 8/25/2021 AMOUNT $ 3,846,000 BUILDERS 3 LOA PHASE Platted Lots 1st SUB-PHASE OF 2nd DEVELOPMENT PHASE LOT CLOSING DASHBOARD CJ Takedown 2 Takedown 3 DATE 11/30/2021 DATE 7/31/2022 AMOUNT $ 3,695,000 AMOUNT $ 10,850,000 BUILDERS 3 BUILDERS 4 LOA PHASE Wet Utilities LOA PHASE Finished lots LOT SALES BY BUILDER LOTS BY TYPE 8,000,000 7,060,000 10.04% Total $ 18,417,000 LOTS BY BUILDER Lennar Challenger KB Homes DR Horton 45' LOTS 45' LOTTS (ALLEY) 50' LOTS 35' LOTS OUPLEXS CHALLENGER LENNAR DR HORTON KB HOMES PCVO BTR TOWNHOMES

16.COMPANY OVERVIEW PURE CYCLE CORPORATION Earnings presentation for the three months ended November 30, 2021 FINANCIAL RESULTS

17.Single-Family Rentals We have contracted for the construction of single family homes with the intent to retain them for long-term rental purposes. Pure Cycle is working with experienced home builders to construct these houses, which Pure Cycle will own and maintain, taking on a new role as property manager. "The single-family rental model is ideal for our highly appreciated land and water assets, allowing us to build an accretive high margin recurring revenue product while maintaining our highly liquid balance sheet using inexpensive capital for the incremental cost of building each home" stated Mark W. Harding, President and CEO Our Strategy and Projections Phase I Progress

18.Market Watch Steady increase in lease price while other rental types fell Detached and Townhomes, are more affordable per square foot and per bedroom Detached homes spend less days on market on average then other types rental units Phase I Single Family Rentals Rented first 3 homes above the average market price all 3 homes rented within 14 days oflisting Denver Premier +4% MEDIAN LEASED LEASED Leasing Agents PRICE -1% LISTINGS Sl,J'IJS RENTAL Sl..41'3 n.sc,o, u.soo 239 J49 MARKET REPORT September 2021 1019 ,.,. 3 MEDIAN DAYS IN +6% MEDIAN LEASED +10% MEDIAN LEASED -Days PRICE PER BEDROOM PRICE PSF MLS ., )7 -Detached Townhomes -Condominiums Multi-Family Apartments All Denver Metro Counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, Parl<, Weld 2021 Rental Listing Data Compliments of RE CQLQRO DO 246 ,.,,

19.Pro Forma Income/house Rental Income Operations, repairs and maintenance Property taxes and insurance Interest expense $ $ Assumptions Pro Forma Single house Monthly 2,820 $ Proforma Single house Annualized 33,840 150 1,800 400 4,800 950 11,400 1,320 $ 15,840 ========== Rental income is the average actual monthly lease rates on the three initial homes Current staffing will provide property management services for the foreseeable future Property taxes based on current mills in Sky Ranch Interest expense based on current finance offering for a 30-year amortizing loan at 3. 75% Cost of homes will be amortized using the straight-line depreciation method over thirty years, which is a non-cash charge and not included in the cash projections table above 1 Net operating income/market value. Excludes interest and depreciation.

20.PHASE 1-3 RENTAL HOMES March 2021 May 2021 Capitalized costs $368K Financed costs $333K Fair market value $547K June 2021 Flexible debt usage, up to 70% of appraised value Low cost capital (3. 75%) November 2021 House appraisal value estimated at $547,000 based on homes sold in Sky Ranch per MLS Annual appreciation estimated at 4% per year

21.COMPANY OVERVIEW PURE CYCLE CORPORATION Earnings presentation for the three months ended November 30, 2021 FINANCIAL RESULTS

22.REVENUE THREE MONTHS ENDED NOVEMBER 30, 2021 EPS -Diluted NET INCOME 11M $10.4m 10M 9M 8M 7M 6M -SM $4.8m $4.27m 4M 3M $3m ' 2M i 1M $Im 0 I I F Ql 2018 F Ql 2019 F Ql 2020 F Ql 2021 F Ql 2022 W-WW Segment Land Development Single Family Rentals WATER& WASTEWATER $53.Sm in water assets (net) 650 total customers 46 residential customers added in Ql-2022 77.2 thousand gallons delivered in Ql-2022 26M 24M 22M 20M g, 18M i 16M ~ 14M 0 "' 12M ~ .c: 10M (/) "' 8M ., .;i 6M i5 4M 2M 0 ~ ""'""'----------~--FQ1-2018 FQ12019 FQl-2020 FQl-2021 FQl-2022 Diluted Shares outstanding EPS -Diluted LAND DEVELOPMENT Phase 2 Subphase 1 43.4% complete 0.24 0.22 0.20 0.18 0.17 0.15 0.13 0.11 0.09 0.07 0.06 0.04 0.02 0 $29.Sm in reimbursable public improvements 83% gross margin on lots sales 6M $5.7m SM 4M 3M 2M 1M S633k $-9~ F Ql-2018 F Ql-2019 F Ql-2020 F Ql-2021 F Ql-2022 SINGLE FAMILY RENTALS $lm in assets with an approximate market value of$1.6m Fully occupied 10 new lots under development

23.26M 24M 22M 20M 18M 16M 14M 12M 10M BM 6M 4M 2M Revenue $26m $20m $17m $7m FYE2017 FYE 2018 FYE 2019 FYE 2020 FYE 2021 WWW Segment Land Development INVESTING IN BUSINESS SEGMENTS Land Water & Wastewater Single Family Rentals 11M 10M 9M BM 7M 6M 5M 4M 3M 2M 1M 5 YEAR PERFORMANCE Sim FYE 2017 Shareholder Value Gross Margin $llm $8m $7m $3m FYE 2018 FYE 2019 FYE 2020 FYE 2021 WWW Segment Land Development M &A GROWTH Land Water Sustained pipeline of acquisitions 22M 20M 18M 16M 14M 12M 10M BM 6M 4M 2M 0 -2M -4M Net Income* S20m S-2m j $Om _________. /. ---------- $Sm FYE 2017 FYE 2018 FYE2019 FYE 2020 FYE 2021 Netlncome '2021 net income positively impacted by recognition of$16.4m of reimbursables (net of$5.3m of tax) RETURN OF CAPITAL Share repurchase Dividend

24.BALANCE SHEET {In tlw11sa11d~. excepl .\·hare and per .\·hare t1111mmt.~J ASSETS, Current assets: Cash and cash equivalents Trade accounts receivable, net Prepaid expenses and other assets Land under development Notes receivable -reimbursable public improvements -related party Total current assers Restricted cash lnvestmems in water and water systems, net Construcl'ion in progress Single-family ren1al uni1s Land and mineral righ1s: Held for development Held for investment purposes Other assets Notes receivable -related parties, including accrued interest: Reimbursable public improvements Other Operating leases -right of use assets, less current portion Total asset'-LIABILITIES: Current liabilities: Accounts payable Accrued liabilities Accrued liabilities-related parties Income laxes payable Deferred lot sale revenues Deferred oil and gas lease payment and water sales payment Debt Total current liabilities Participating interests in export water supply Debt, less currcnl portion Deferred rnx liability, net Lease obligations -operating leases. less current portion Total liabilities Commitments and contingencies SHAREHOLDERS' EQUITY, Series B preferred shares par value $0,00 I per share, 25 million authorized; 432.513 issued and outstanding (liquidation preference of$432.5 l 3) Common shares par value 1/3 of S.01 per share. 40 million authorized; 23,923.100 and 23,916,633 outstanding. respectively Addit"ional paid-in capital Accumulated deficit Toial shareholders' equity Total liabilities and shareholders' equity Novembc" 30, 2021 August JI, 2021 (unaudited) 12,914 20,117 1,217 1,532 289 458 1,030 608 16,000 16,000 31,450 38,715 2,328 2,327 53.506 53,786 3,016 3,304 1,008 7,343 5,924 451 451 2,569 2.591 13.517 8.794 1,061 1,163 102 122 116.351 117,177 2,019 1,787 669 1,224 2,049 2,881 1,185 4,163 2,831 1,995 271 410 7 9,031 12,460 325 325 993 1,621 1,615 15 37 11,985 14,437 80 80 173,625 173,513 (69,339) (70,853) 104,366 102,740 116.351 117,177

25.Three Months Ended November 30, November 30, (In thousand,;, except per share amounts) 2021 2020 INCOME STATEMENT Revenues: Metered water usage from: Municipal customers $ 321 $ 167 Oil and gas operations 386 1,199 \Vastcwater treatment fees 55 42 Water and wastewater tap fees 261 1,083 Lot sales 2,945 2,356 Project management fees 248 Single-family rentals 8 Special facility projects and other 49 21 Total revenues 4,273 4,868 Expenses: \Yater service operations (289) (545) Wastewater service operations (129) (92) Land development construction costs (531) (1,719) Single-Family rental costs (3) Depletion and depreciation (354) (365) Other (77) (24) Total cost of revenues (1,383) (2,745) General and administrative expenses (1,325) (1,086) Depreciation (85) (84) Operating income 1,480 953 Other income: Interest income -related party 362 15 Oil and gas royalty income, net 97 75 Oil and gas lease income, net 48 52 Interest expense, net (7) Other II 10 Income from operations before income taxes 1,991 1,105 Net income $ 1,514 $ 845 Earnings per common share -basic and diluted $ 0.06 $ 0.04 Weighted average common shares outstanding: Basic 23,918 23,867 Diluted 24,219 24,036

26.LEADERSHIP AND BOARD OF DIRECTORS I Mark W Harding President and CEO I Patrick J. Beirne Chairman of the Board I Arthur G. Epker III Director and Chairman of the Compensation Committee I Kevin B. McNeill Vice President and CFO I Peter C. Howell Director and Chairman of the Audit Committee I Daniel R. Kozlowski Director I Jeffrey G. Sheets Director and Chairman of the Nominating and Governance Committee I Fredrick A. Fendel III. Director

27.CONTACT AND COMPANY INFORMATION CORPORATE HEADQUARTERS 34501 E. Quincy Ave, BLDG 34, Watkins, CO 80137 CONTACT INFO [email protected] 303-292-3456 www.purecyclewater.com Follow us on twitter ~ @PureCycleCorp STOCK INFO Ticker symbol (NASDAQ Capital Market): PCYO Shares outstanding: 23.9 million CD Questions? 111m CD ~ "" 0

28.COMPANY OVERVIEW PURE CYCLE CORPORATION Earnings presentation for the three months ended November 30, 2021 FINANCIAL RESULTS