Good morning, everyone, and welcome to Pure Cycle Corporation's third quarter 2026 earnings presentation. We've started the presentation with everybody on mute as our CEO, Mark Harding, goes through our financial results. At the end of the presentation, we will open up the lines for Q&A. With that, I'll turn the mic over to our CEO, Mark Harding. Thank you, Marc. I'll add my welcome as well. With me is Marc Spezialy. He's our CFO, and he'll give you the detail on some of the technology questions as we get into the Q&A portion of this. Also with me is our Controller, Cyrena Finnegan, so if you guys have any drill-down questions on the accounting, I'll share the mic with her and have her walk through some of those. As Marc announced, this is our Q3 presentation, and we're delighted to be able to bring you some very solid results here. As we start the presentation, we'll start with our forward-looking statement. I'm sure most of you are familiar with that, statements that are not historical facts contained or incorporated by reference in this presentation are forward-looking statements. Continuing on, it's my pleasure, the company's benefit, to continue to work with a great management team. A ton of experience on this team, really bringing value to the shareholders on a day-to-day basis. At the board update, on board composition, we have had a couple of resignations of two Board members that are related to a 13D filer on the Board that you've likely seen. There's no drama with these. They represented an SPV vehicle, which holds about 13% of the stock, are working really in the best interests of the limited partnerships for the SPV, combining with the restrictions that come on with the Board. I think we'd like to acknowledge their service and their contributions and thank them for their efforts and wish them the very best. Taking a little bit on the overview. Another great quarter, continued execution of our business. Most notable really was refreshing of our liquidity after accelerating the development timeline of our Phase 2D. We had two phases that we're kind of developing at the same time. Because of the mild winter, we really did continue to reinvest on that, accelerate that, deliver those lots a little bit early, allow a couple of our new builders to get a head start on what we were looking at on delivery of that product towards this summer. That really has seen a refresh on that, you'll continue to see that through year-end. We still have a little more than seven consecutive years of profitable quarter-over-quarter, really execution of monetizing our highly appreciated assets with on the balance sheet carrying that through to the income statement. Let me dive right in on the Q3 results. Taking a look at revenue, $8.2 million in revenue, $4.3 million in gross profits. That takes a look at about a 52% margin on revenue to gross profits. We do have a real highly appreciated asset base that really continues to drive shareholder value. Net income and earnings per share reflective of our percent complete revenue recognition and advance of Phase 2 ahead of a typical seasonal schedule. You do see very strong Q3 results that really are carrying that momentum from Q2. This kind of is a bit more indicative of sort of an even flow revenue, and earnings cycle, which is not all that typical for us just because of the seasonality of the construction schedules here in Colorado. Moving over to total revenue and total gross profit for year-end, and as that relates to our yearly guidance. We're a little ahead of our schedule on guidance as we would typically do, and that's really, again, to that seasonality issue, but we really are optimistic and looking forward to a very strong year-end as well. This gives you kind of a feel for where we're at year- to- date. Taking a look similarly with net income and earnings per share for yearly guidance. Also favorable for the Q3 typical guidance, also looking to finish the year strong and be able to deliver within forecast or maybe a wee bit more than what we were looking at on the forecast side. With those as the details on the quarters, and certainly willing to drill down on those with some Q&A on that, I do want to just give you a quick update for those of you that are newer to the company and talk a little bit about why we think this is such a great company and why we think what it is that we're doing is very unique in the marketplace. Certainly the water side, we're able to capitalize on owning water rights, and that's very specific to most of the Western U.S., very specifically in Colorado. Colorado is probably tip of the sword on defining ownership interest in water. How do we do that? We really provide water, domestic water, which is your potable water supply to retail customers. That's homeowners, businesses, industrial complexes. We also provide raw water for industrial uses. That's primarily in oil and gas. We do have a very active oil and gas field right on top of where our water supplies originate. That's a very efficient framework for both us on a profit side as well as the operators, because very much lower cost on them being able to transport that from source to pad sites. We continue to add customers to our systems and those connections are very sticky customers because in 100 years, you're still going to be doing the same thing with water that you're doing today. Taking a specific look on total water revenues, we're strengthened by better than expected industrial water sales compared to last year specifically, and look to finish the year strong in that. Really that was a function last year of the fact that most of our main operators in our particular area of the field were really accumulating a number of well permits. They do have all those through the Oil and Gas Commission here in Colorado and really have been executing that. I think it timed out very well for them with the price of oil. I think a lot of that activity is looking to be strong, not only this year, but also over the next several years. Tap fees also are strong, a little bit stronger than they were previous years, year-to-date as well as year- to- finish. That's mostly because we have several phases that came online and were delivered in 2026. You're likely to see continued strength in the tap fees, not only through this fiscal year, but also next year. Taking a look at the industrial water sales, that gives you a little bit of picture. We had a strong year, probably not as strong as what we saw in 2024. That was just a record year for us in that. We will see a pretty good year, real strong year for us as we complete this year. Still, again, as I said, really look to see continued strength in that over the next several years as they drill out the remaining wells that they've already permitted. They'll continue to take a look at other well pad sites within this field just because of the size of the field. It's a very large field, and we have a very broad ability to supply water to most of this area. Next slide really shows that we continue to invest in our business segment on the water side, making sure that we have capacity for our industrial customers as market conditions for oil and gas continue to dial up. As most of you know, the oil and gas industry likes them to be at their beck and call. Sometimes they call, sometimes they don't, but they do pay a premium for that availability. We continue to make sure that we're investing in that production capacity. We still have a little bit of pedal left in that. As they continue to dial up that drilling program and the opportunity to capitalize on the price of oil, we certainly are ready to meet that demand. Look forward to that demand, because that's a very high margin business for us. Let me move on to our Land Development segment. As most of you know, we also, in addition to being a water utility, we bring that water to land interest. That land interest really is really increasing the value of land through water availability here in the Denver area. Water can be worth as much as 3x the value of the land. What we are able to do is acquire land interests and develop those land interests, and also develop the water utility for those customers that we're developing the lots for. This year was a very good year for us on developing lots. We delivered approximately 430 lots in the last 18 months. That was a dial-up that you heard us talk about probably in 2024 timeframe when the market was much stronger. I wouldn't say it's not still doing well, but it's not as strong as it was in 2024. We were moving into our next Phase 2E, which is a bit smaller. Our usual phases, we typically are looking at around 230-250 lots per phase. Phase 2E, just because of its size, is right around 159-160 lots compared to our average lot size. We continue to really pace our finished lot work where we're investing in that land to pace that with the housing absorption. I think that's going to time itself very well with the headwinds that are in the housing market. Really it's just a good housing market, really good segmentation for us at the entry-level product. There is a consumer confidence issue within most of the home buyers in the market today. Also showing strength through Q3 on lot deliveries, almost 70% better than last year, and that was really moderated by a very mild winter. I think that will even out as we get into our year-end and realize the percent complete for what we had under contracts. We do look to deliver strong results through our fiscal year-end. Breaking this up a little bit, taking a look at the phases. We have been talking about this, each of these phases, we have a portfolio of builders. Really our business model here is to really try and match deliveries to our home builder customers for an annual inventory. We want to make sure that we don't over-invest into what is a very expensive lot delivery mechanism that ends up creating high inventory for our home builders. We also want to make sure that we can match the demand for lots and houses together with the supply of delivering those finished lots. There's a long lead cycle on delivering these finished lots. We took great care to make sure that we're pacing that deliveries together with the home builder customers. This sort of shows you kind of completion of each of these two phases, and it really shows you that pacing of about 230 lots per year. You take a look at kind of the acceleration through Phases 2C, 2D, and 2E, which is now in progress. That kind of gives you a feel for a little bit of that increase in revenues and gross profits for that. It really was very attractive home deliveries in Phase 2C. You can see we've got very strong development of those. I'd say maybe a third of all those lots are vertical right now, and we're seeing probably 25% of all of the inventory that our home builder partners have are sold homes that are occupied. Very strong sales at that entry-level price point. Phase 2D really delivered ahead of schedule and allowed some of our new builders to get vertical. We have two new builders to the portfolio, Pulte and Oakwood Homes. They're getting their model homes up and into the market. Phase 2E, which is right across the street from our school, which really is our next phase. That'll be delivering for summer 2027, but it shows you the grading activity on that. This kind of illustrates how we phase our development schedules. The way we like to deliver this with our home builder customers is that we have what we call a flow fund type contract, where we are delivering a plat. Home builders get the title to a plat where they pay a third of that lot cost, and then that allows us to fund the grading work activity and the wet utilities. The second payment after wet utilities allows us to finish the lots, and then we really wait to take our margins on the finished lot delivery. We still look to do that. Phase 2E is a little bit unique in that we got started on that one just to make sure that we're capitalizing on the cyclical seasonal weather out here. Really seeing how we can continue to match our customers' cash flows to the product delivery cash flows. Very proud to work with our charter development partners on National Heritage Academies on our school campus, and this just is a terrific asset for the community. We've got a K-12 campus just finishing the high school for opening this August, and we're thrilled that all of the residents here can have a local school that is accessible, it's walkable, and really provides a terrific opportunity. We continue to get feedback from the community that this is one of the primary reasons that they are relocating to the community. This is just a terrific asset for us. Wanted to talk and give everybody a little bit of update. This is what we try to do to kind of give you some focus about where the metropolitan area is and where the company operates. Our sandbox really is right on the path of development in the Denver metro area. As many of you know, we sort of live on an ocean where we can't move to the west, given the terrain on that side. Really all development activity is growing to the east, and it shows you where Sky Ranch is positioned right along Interstate 70 there. That's the blue parcel in there. We're just terrific location on that. That's primarily why we continue to see strength in what we would otherwise have as a more challenging housing market. Also our service area at Lowry. State of Colorado owns the Lowry parcel, but it's probably their single most valuable parcel, and there's just a tremendous amount of development activity going on all around the borders of that, on the three borders of that property. It kind of gives you an appreciation for the magnitude of our service area, which is 24,000 acres, and where our service area together with our development projects are on the growth of the metropolitan area. Taking a look at our single-family rental aspect. We did have a bit of a, as we foreshadowed in Q2, pivot on some of that as Washington was looking to, I guess, update institutional ownership of homes. What we were taking a look at was building this segment up to about 100 homes through Phase 2E and really did do a bit of a pivot on that. We revised our segments so that we can moderate that expansion. We're able to push back some of the lots that we held for reserve to some of our home builder customers. Really we're concentrating on building the homes out that we had contracted for. Instead of looking at bringing up to 100 units online, we're backing that off into the high 60s, low 70 unit timeframe. There's several reasons for that. One, we wanted to make sure that we understood what that regulatory climate was going to look at. Secondly, we also wanted to make sure that we really could define the return on investment for that. We'll be able to get a better feel as a mature segment pausing this at this level, take a look at maybe monetizing homes, a few of these homes to check and mark to market what our assumptions are on the rate of return on that, and then make an assessment on how the portfolio stands to carry forward. Taking a look at how that's scaling, we're delivering. We have 30, almost 40 homes completed now. We've got another 30-ish homes under contract that'll deliver through probably calendar year 2026. That'll bring us right around that 70 home unit. The strong advantages of this are we're seeing tremendous demand on the rental side. In fact, we've gotten most, I think almost every one of these homes are leased as they deliver. In some cases, we've got homes leased that won't deliver until October- November timeframe. Our real marketing program for this and the acceptance of people understanding that we do have a portfolio here, that is an institutionally owned portfolio where we have our team that can continue to rent these and maintain these, really does provide a stable income stream for us on a recurring revenue basis. Those are the positive aspects of it. The negative aspects would have been how the government was going to regulate this. I think that's settled down a little bit, so it gives us a little bit of comfort. We still want to get a good measure on what that rate of return is. This is a little bit of a metric on continued growth in that segment. You can see that that continues to appreciate with the home deliveries. We have a tax advantage of the appreciation of the asset compared to the fair market value and the book value of those assets. Those do give us some really attractive tax advantaged ways to hold the portfolio. Next slide will be just kind of how we were looking at growing that and really see that scale back from where we were, taking as much as 30% off of that, from where we were geared to go. Want to talk a little bit about shareholder value capital allocation. We continue to really reinvest within the company, and you see strong appreciation on the balance sheet. Good growth in the asset portfolio. The big story, I know you hear me talk about this often, but the big story on the asset side is really the legacy assets and the cost basis that we have on both the water and the land assets. We acquired the water very many years ago at very low basis on that, and it has just a tremendous opportunity to continue to drive shareholder value. Similarly with Sky Ranch and the land assets. Those are very small cost allocations on the balance sheet, but they drive a tremendous amount of revenue on the income statement. Then as I mentioned on the first part of that, the liquidity continues to strengthen. That will continue through year-end, and also may give us the opportunity to strengthen our shareholder buyback program. What we really like to highlight here is our continued diversification of revenues and revenue mix for stability and resiliency in that under any market conditions. We have great revenues from water side, from the land development side, and then from the single family rental side. All of those have different industry segments that while they're related, they don't quite overlap. If you have strength in one and weakness in another, it really allows us to have a very stable balance sheet and income statement. We very much like the diversification that we have on our asset base. Moving over to shareholder values, building recurring revenues, continuing to add shareholder value through asset growth. You'll see those continue to grow year-over-year. We have got just a nice growth curve on that for us over the last several years. Profitability. This is kind of what we were looking to do on guidance for you, a lot of you have seen this through each presentation, but we look very strong to meet our expectations, maybe exceed those on our fiscal year guidance. We'll see how the fourth quarter comes in. Valuation sensitivities is kind of where our guidance was. Gross revenues between $20 million-$32 million. Earnings per share in that $0.50 range ±. Upside timing acceleration. Really some of the things that I think everyone's looking forward to is kind of the commercial. We do have some local commercial opportunities that really aren't right next to the Interchange that we're in the market for. We do have some strong representation by Cushman & Wakefield on both the commercial retail and then a Cushman team on the industrial side. Look to have continued improvements in oil and gas on our industrial water sales. Then just continuing to execute on the land development and water utility side. Continue to reinvest in ourselves through share repurchases. While our priority continues to be investing in our business segments, that does take a tremendous amount of liquidity, which you saw, that dip in liquidity in Q2 really wasn't of anything other than our acceleration ahead of our typical flow fund agreement. It does allow us to continue our balance sheet and our liquidity, give us those options to capitalize on that when that occurs. We do that, but we also continue to take a look at share repurchases, and we will see how the liquidity continues to build. As that builds, we'll continue to be more aggressive with those share repurchases to continue to return value to the shareholders. A bit of an update on the interchange. We continue to work with our governmental partners, with the county, Arapahoe County, on getting that permit. This is a county project together with Colorado Department of Transportation, CDOT, on the design side and getting the permitting process on that. We've submitted each of the phases of the permit to CDOT on that for their comments and modifications. We look to get that into them sometime towards the end of the summer, hopefully be in a position of getting that permit issued sometime early next year, with the opportunity to start construction of that interchange in late 2027, which really will give us a tremendous opportunity to open up the commercial and really stack into the revenue side. We've got a very good growth story on delivering residential lots. You take a look at that, and we're at that $25 million a year stack on being able to do that and continue to work that through on the build-out cycle, which might be another seven years or so. When you can layer in that similar amount of revenues from commercial, that almost has that doubling effect of our revenues. That will continue to supercharge what it is that we're doing. Also wanted to just give you all a quick video tour here. This is just a continued visual representation of what it is that we're doing, where it is that we're at along the metro area, for those of you who are new to the story. Just a gorgeous community. That gives you a feel for where we're at on the metropolitan area, how we're looking at delivering our original phase one. Phase 2A, B, C, and D are represented here. As we're approaching, that's what we have as Phase 2C, gives you a feel for that's kind of the pressed market demand. You see each of our builders that are taking a look at their product. They've got inventory. They're building that inventory. They're selling that. That gives you a view of some of the Phase 2D homes there with Pulte. Oakwood is looking to get started this summer as well with some of their lots. There in the background, you'll see our storage reservoir for irrigation water supply. 100% of the wastewater that goes into all these houses is processed. We reuse that water supply to provide that to the parks and the open space. That gives you a feel coming into where we are with Phase 2E. That's our 2027 delivery. You'll see that activity is the grading activity on what we're doing. Also kind of our opening of the high school and that full campus there. Just terrific opportunities, gives you a good visual for that. Just to remind you all, we do have an Investor Day next week, next Wednesday. A number of you have RSVP'd, and we look forward to seeing you. This is an opportunity for us to really give you guys a tour of what it is that we're doing, have you come kick the tires. This year's going to be a little bit different. We're going to start here at our offices, then we're going to take a tour of the Lowry property. From that, you'll get a very good perspective of some of the oil and gas development that's going on on the Lowry property, as well as where that service area positions itself in the growth of the metropolitan market, and get a better flavor for the importance and the value of our service area. With that, we'll open up the lines and see if we can drill down on any of the color for the presentation. I'll turn it back over to Marc. He can give you the instructions on how to do that, and see if we can answer any questions. Thanks, Mark. Yeah. We've opened up the lines now. If you're on your computer, you should see a button by a microphone where you can unmute yourself. If you're on a phone and dialed in, you'll have to hit star six. With that, we'll take our first question. We have an early morning here. Yes. Mark, it's Elliot. Elliot, nice to hear from you. Yeah. You made a comment the beginning of the presentation. You said why we think this is such a great company. In my opinion, what makes it such a great company is that it will have so much unallocated in the way of water reserves once Sky Ranch is fully developed. Let me probe just a little bit on that. In earlier presentations, in the charts that were presented, there was a chart that said at full build-out, Pure Cycle's assets would total approximately $675 million. I had to estimate that from the chart and that most of that was going to be cash. No comparable figure is shown in this series of charts. Is that $675 million still a reasonable estimate? Yeah. Let me tell you how to think about that. What we look to try and illustrate, and this has always been one of the challenges for the company, is when you take a look at our land and our water balance sheet assets, they're relatively modest, right? Our water rights, we have valued on the balance sheet at around $30 million. When we collect $40,000 per tap and we show we can serve 60,000 connections from that portfolio, and we're probably a little conservative with that, but let's just say it's 60,000 connections. That shows about $2.5 billion worth of water revenue. We get that $1,500- $1,700 per connection per year, and that's about $100 million year-over-year revenue. That gave you the gross potential on that. To your question about the $650 million that we've shown on previous slides and how we've given that guidance. Let's take a look at Sky Ranch. We know we have 5,000 connections at Sky Ranch. That's our zoning. That splits out as to 3,400 residential units, and then at the 2 million sq ft of the commercial space, we apportion that to 1,600, call it, lots and connections. That's how you get to the 5,000 units at Sky Ranch. If you take a look at 5,000 times $40,000, that gives you the math on how we're going to get to the tap fee revenue. That's $200 million worth of tap fee revenue. On average, we're making $100,000 per lot. If you take a look at 5,000 lots, and you take a look at $100,000, that's $500 million. That's where that math comes from. That's what we make on Sky Ranch. Sky Ranch as an asset is $5 million on our balance sheet. That shows you the magnitude of the earning power of these legacy assets. You're correct, and that's how we portion out those numbers. Okay. Based on the approximately 3,000 AF of water that you have bought since you began using the 30,000 AF, Sky Ranch is fully developed. Is it reasonable to say and think that the company with Sky Ranch fully developed still has about 30,000 AF of undeveloped water? Is that reasonable? Yeah, that's reasonable. We do take a look at continuing to diversify the portfolio. Yes, we have added to that. We've added to that by buying some farms up in Weld County that bring some very valuable renewable water supplies. We've added to that by virtue of our water court decree that we just got finalized and you heard us talk a little bit about. Really, that's at Lowry, very local, very convenient for us to develop that out. Yeah. While we talk in terms of how many units we can serve, that 60,000 units, and we really haven't updated that with our acquisitions because we want to balance out the portfolio with renewable supplies and groundwater supplies and reuse supplies to make sure that all of that's sustainable. We do think we have a strong 30,000 AF and a strong, very conservative number on 60,000 connections. It gives us a great opportunity to continue to expand that portfolio, which we look to either at Lowry or at other areas around Sky Ranch. The majority of the growth in the Denver metro area is coming and is on top of this. There's just not a way that Denver just doesn't grow on top of Sky Ranch and Lowry and all the surrounding properties in and around Arapahoe County, because there's no other place to grow. That's illustrated by the fact that the borders of Denver have moved 6 mi closer to Lowry and are now adjacent to it from the time I began following the company in the late 1990s. What I am suggesting is that the same kind of math that you spoke of in coming up with the $650 million- $675 million figure also needs to be applied to the 30,000 AF, call it 60,000 taps. That's where the value lies, because we're dealing with a company that only has 24 million shares. Yeah. No, it is. I'm not arguing with you. I'm just trying to explain how I look at it and why I think it's such a great company. Well, I do appreciate that color, Elliot. I agree with you. We do have tremendous value in these assets and the water segment alone continues to really drive a lot of that value, both in terms of what we're doing at Sky Ranch, and we vertically integrated ourselves there, as well as the next opportunities, whether that's properties neighboring to Sky Ranch, whether we acquire those properties, whether we are the utility provider for those properties, whether Lowry brings some of that land and inventory for the state of Colorado. All those are continuing opportunities. The nice thing about it is it's something that we have control over, right? We have the exclusivity on our service area. Water is continuingly valuable and increasing in value. Those tap fees continue to go up. We've talked often about the fact, 30 years ago, tap fees were $6,000, and they're almost 10x to that now. Continuing to rise because the incremental cost of water continues to go up because we have to reach farther and farther out for the next supply. All those metrics and all those dynamics are really weighing into the fact that this is a tremendous opportunity. I can be fair to the market in saying, yeah, that's all true, and it's been true for the last five years, but the stock's been flat for the last five years. That's a bit of a mystery. Are we mispriced? Certainly we think so. Maybe you would agree and others would agree. At the end of the day, the market does what the market does, and if we continue to generate value on that and we create liquidity, we're going to continue to reinvest in ourselves, and we're going to continue then our share buyback. You're going to see a little bit more of that activity, and to the extent that the market doesn't see the same things that we see, we'll be more aggressive about it. That's a great opportunity, right? When you have that kind of margin potential on your assets and the opportunity to continue to generate those. We will continue to lower that denominator. You'll look to see a bit more of that through this year and into next year, and then as we continue to really accelerate this with the commercial development and other water supply contracts that we look to bring online, and the possibility of Lowry, it's going to get very exciting for us. One question about Lowry and the size of Lowry. I've heard 24,000 acres, I've heard 26,000 acres and I've heard 27,000 acres. Which is it? Yes, on all those. No. The total footprint of Lowry is around 27,000 acres. Our exclusive service rights to it are 24,000. There are 3,000 ± acres that got added to Lowry after we had our exclusive service rights. Those 3,000 acres are not obligated to get service from us, but certainly have the opportunity of getting service from us. We try and represent accurately that our exclusive service area, if you read that in our 10-Ks, we're very specific that that's 24,000 acres, and that the accuracy of the reporting of the size of Lowry is 27,000 acres. That's the difference, is there is a portion of Lowry that's not part of our exclusive agreement. But certainly- Okay We have the capacity and the ability to serve those, should those come online. Yeah. For those of us who live on the East Coast, to put that many acres into perspective, 44,000 acres is the size of 28 Central Parks in New York City. Oh. It's almost the size of two Manhattan Islands. It's huge. It is huge. For those of you listening that are from Texas, you'd probably say, yeah, that's a fair-sized ranch. I think also for those who will be joining us on Investor Day next week, we will be spending some time exploring that we haven't done in the past, so. Good. Thank you very much. Thanks for the highlight. Just to remind everybody, if you're on the computer, to unmute yourself before you ask a question. If you have dialed in, you have to dial star six. I'm going to take the silence as an absolute enthusiasm for delivering a great quarter and rolling into a great year-end, and that the rest of you are really saying, I'll save my cannon fodder for coming out and seeing you all. We would love to see you if you have the opportunity to jump out and spend a day with us. It's a great tour. It really does give you an appreciation for the scale of what it is that we're doing. Here we are, a little $250 million company that really does walks softly and carries a really big stick in the value of these assets. What we're really looking to do is continue to drive reinvestment into monetizing these assets and then bringing in that shareholder value. I'll take one question from the last four figures, 1214. Do you have a question? Yeah. Yeah. Go ahead. Hand raise. Hello? Yep, we can hear you. Can you hear me? Yes. Mark, this is [Jeff Scott]. How are you? I'm great. Good to hear from you, Jeff. A couple of quick questions. Are the expenditures on the interchange going to be reimbursable? Yes. Very specifically, we've reserved some of the bonding capacity of the mill levies, as well as some impact fees that the county's looking to adopt, which really is a function of letting growth pay its own way. We'll pledge those to the interchange. We think we have the bonding capacity for that within the CAB. We'll wait and see how that comes down as we get that and what the cost of the interchange is going to be. We have an estimated cost of the interchange being in that $40 million range, and we have a preliminary indication that our bonding capacity would match that. We're expecting not to have to advance any of those funds, but to the extent that there is a change in the cost or a weakening in, which would be a higher interest rate or something like that in the net proceeds for those bonding capacities that if there's any obligation for the company, it's relatively light, but whatever we would have, it would be reimbursable. Okay. The receivable balance is now $59 million, I think. Is there some maximum amount that you would let that go to before you would get into the bond market? No. What we really try to do is be in the bond market as quickly as possible. What we try to do, each of the times that we go into the bond market, where we're getting money back on those reimbursables, we will bond out a new phase. If you all of you remember, and this is a great question because the confusing side about how we fund this is how much that the company puts into it as compared to when does those bonding proceeds from the CAB come into it. I'll give you this illustration, and thank you for that question because I did need to want to try and talk a little bit about that, is that when we started Phase 2, we originally started Phase 2, and we had zoning for around 850 units, and that was in 2022. We went to the bond market with those 850 units, and we generated some $25 million worth of bond proceeds. That allowed us to reimburse a portion of what was Phase 1 money that we advanced. When we go into Phase 3, we'll take a look at that same aspect. We'll issue bonds in likely 2028 for Phase 3 bonds, because we're going to have the final lot deliveries of Phase 2, which is that 159 lots, in summer of 2027. The interesting thing is that these bonds typically have a five-year call premium that burns off. We'll do another refinancing of those 2022 bonds, which will give us available monies to repay a portion of that $59 million. We're looking at getting some $8 million-$10 million in 2027 of that $60 million repay. The 2027- 2028 bonds for Phase 3 will give us another $25 million- $28 million that we can repay a portion of that back. What that moral of the story is, it accrues as you start up to that high number, right? I'd say $60 million is pretty sizable in the grand scheme of things. That really does show you a deposit of shareholder value in there that really is going to start coming back over the next three years. It's going to come back in some big chunks. We want to make sure that we time our liquidity and ultimately share repurchases. If the market doesn't understand where that value is, we're going to see that. You're going to start to see us get a lot more aggressive about that just because those proceeds are now starting to come back. I'll give you a little bit of foreshadow on that 2027 refinancing is we bonded out 850 homes. We were able to actually increase the density on that up to around 1,100 homes. There's going to be significantly more assessed value in that refinancing than when we started. That's how you see a lot of that accrual coming back. You're going to start to see that balance significantly lower over the next two years. Okay. I appreciate the color. Has there been a flattening of the tap fees and wastewater fees? Flattening, like does the price increase, I would assume. Has it stayed kind of stale? No. Yeah. I would say of the monthly fees, the recurring fees, those go up relatively modestly. That may go up 2.5%- 3% per year. Tap fees grow up in a step function. They go up automatically 2.5%,- 3% per year. We go out and we reevaluate the market of those tap fees, and we're doing that this year. You're likely to see a little bit of that step increase in 2027 as well. Okay. I appreciate it. Thank you so much. Thank you. Okay, well, what I'm going to do is I'm going to kind of wind this down. Again, if you can carve out some time, we'd love to see you next week. Just give us a shout, and let us know if you have any travel specifics. We're right by the airport, so it's easy to get in and out. Be a great tour this year. A bit different than previous years, and I think you'll get a very strong, really hands-on view of what it is that we're doing. If you're on the call and technology didn't get you to the question that you might have had, don't hesitate to give me a shout. Happy to answer any questions and really drill down on anything specific. Again, want to reemphasize where we are on the position of kind of the assets of the company. Couldn't be more thrilled with where we're at with the liquidity that we're going to be generating over the next couple of years, and really opportunities to deliver significant share value on this thing and really start to monetize that share position. With that, I will close out, and hope you all have a great summer.