Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2019	Mar. 06, 2020	Jun. 28, 2019
Document and Entity Information
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Registrant Name	CONSOLIDATED WATER CO. LTD.
Entity Central Index Key	0000928340
Entity Well-known Seasoned Issuer	No
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Trading Symbol	CWCO
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock
Entity Interactive Data Current	Yes
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		15,078,499
Entity Public Float			$ 204,187,029

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 42,902,669	$ 31,337,477
Accounts receivable, net	23,229,689	22,462,217
Inventory	3,287,555	2,232,721
Prepaid expenses and other current assets	2,346,918	2,801,674
Current portion of loans receivable	0	734,980
Costs and estimated earnings in excess of billings	1,675,781	835,669
Current assets of discontinued operations	0	1,959,494
Total current assets	73,442,612	62,364,232
Property, plant and equipment, net	61,248,979	58,880,818
Construction in progress	1,335,597	6,015,043
Inventory, non-current	4,404,378	4,545,198
Investment in OC-BVI	1,903,602	2,584,987
Goodwill	13,325,013	8,004,597
Land and rights of way held for development	24,162,523	24,161,024
Intangible assets, net	5,040,000	1,891,667
Operating lease right-of-use assets	4,439,212	0
Other assets	2,990,228	2,123,999
Long-term assets of discontinued operations	0	1,944,033
Total assets	192,292,144	172,515,598
Current liabilities
Accounts payable, accrued expenses and other current liabilities	3,672,142	4,570,641
Accrued compensation	1,821,395	1,286,468
Dividends payable	1,292,187	1,286,493
Current maturities of operating leases	755,751	0
Current portion of long-term debt	17,753	0
Billings in excess of costs and estimated earnings	614,386	109,940
Current liabilities of discontinued operations	0	646,452
Total current liabilities	8,173,614	7,899,994
Long term debt	61,146	0
Deferred tax liabilities	1,529,035	659,874
Noncurrent operating leases	3,836,475	0
Net liability arising from put/call options	664,000	0
Other liabilities	75,000	199,827
Total liabilities	14,339,270	8,759,695
Commitments and contingencies
Consolidated Water Co. Ltd. stockholders' equity
Redeemable preferred stock, $0.60 par value. Authorized 200,000 shares; issued and outstanding 33,751 and 34,796 shares, respectively	20,251	20,878
Additional paid-in capital	88,356,509	87,211,953
Retained earnings	66,352,733	59,298,161
Cumulative translation adjustment	0	(549,555)
Total Consolidated Water Co. Ltd. stockholders' equity	163,759,258	154,971,181
Non-controlling interests	14,193,616	8,784,722
Total equity	177,952,874	163,755,903
Total liabilities and equity	192,292,144	172,515,598
Common Class A [Member]
Consolidated Water Co. Ltd. stockholders' equity
Common stock value	9,029,765	8,989,744
Common Class B [Member]
Consolidated Water Co. Ltd. stockholders' equity
Common stock value	$ 0	$ 0

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Redeemable preferred stock, par value (in dollars per share)	$ 0.60	$ 0.60
Redeemable preferred stock, authorized	200,000	200,000
Redeemable preferred stock, issued	33,751	34,796
Redeemable preferred stock, outstanding	33,751	34,796
Common Class A [Member]
Common stock, par value (in dollars per share)	$ 0.60	$ 0.60
Common stock, authorized	24,655,000	24,655,000
Common stock, issued	15,049,608	14,982,906
Common stock, outstanding	15,049,608	14,982,906
Common Class B [Member]
Common stock, par value (in dollars per share)	$ 0.60	$ 0.60
Common stock, authorized	145,000	145,000
Common stock, issued	0	0

CONSOLIDATED STATEMENTS OF INCOME - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($)	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF INCOME
Total revenue	$ 68,793,651	$ 65,719,857
Total cost of revenue	40,519,303	38,977,570
Gross profit	28,274,348	26,742,287
General and administrative expenses	19,348,958	18,709,419
Gain (loss) on asset dispositions and impairments, net	445,041	(56,774)
Income from operations	9,370,431	7,976,094
Other income (expense):
Interest income	588,509	663,197
Interest expense	(2,814)	(8,427)
Profit-sharing income from OC-BVI	16,200	654,075
Equity in the earnings of OC-BVI	44,765	1,798,280
Net unrealized gain (loss) on put/call options	56,000	(256,000)
Other	98,431	(111,061)
Other income, net	801,091	2,740,064
Income before income taxes	10,171,522	10,716,158
Provision for (benefit from) income taxes	66,621	(157,291)
Net income from continuing operations	10,104,901	10,873,449
Income from continuing operations attributable to non-controlling interests	1,549,978	695,787
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders	8,554,923	10,177,662
Gain on sale of discontinued operations	3,621,170	0
Net income from discontinued operations		1,115,825
Total income from discontinued operations	3,621,170	1,115,825
Net income attributable to Consolidated Water Co. Ltd. stockholders	$ 12,176,093	$ 11,293,487
Basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders
Continuing operations	$ 0.57	$ 0.68
Discontinued operations	0.24	0.07
Basic earnings per share	0.81	0.75
Diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders
Continuing operations	0.56	0.68
Discontinued operations	0.24	0.07
Diluted earnings per share	0.80	0.75
Dividends declared per common and redeemable preferred shares	$ 0.34	$ 0.34
Weighted average number of common shares used in the determination of:
Basic earnings per share	15,025,639	14,962,760
Diluted earnings per share	15,137,076	15,074,147

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Redeemable preferred stock [Member]	Common stock [Member]	Additional paid-in capital [Member]	Retained earnings [Member]	Cumulative translation adjustment [Member]	Non controlling interests [Member]	Total
Balance at Dec. 31, 2017	$ 20,093	$ 8,951,321	$ 86,405,387	$ 53,105,196	$ (549,555)	$ 8,088,935	$ 156,021,377
Balance (in shares) at Dec. 31, 2017	33,488	14,918,869
Issuance of stock	$ 4,445	$ 34,938	(39,383)	0	0	0	0
Issuance of stock (in shares)	7,409	58,228
Conversion of preferred stock	$ (3,485)	$ 3,485	0	0	0	0	0
Conversion of preferred stock (in shares)	(5,809)	5,809
Buyback of preferred stock	$ (976)	$ 0	(16,362)	0	0	0	(17,338)
Buyback of preferred stock (in shares)	(1,627)	0
Net income	$ 0	$ 0	0	11,293,487	0	695,787	11,989,274
Exercise of options	$ 801	$ 0	12,175	0	0	0	12,976
Exercise of options (in shares)	1,335	0
Dividends declared	$ 0	$ 0	0	(5,100,522)	0	0	(5,100,522)
Stock-based compensation	0	0	850,136	0	0	0	850,136
Balance at Dec. 31, 2018	$ 20,878	$ 8,989,744	87,211,953	59,298,161	(549,555)	8,784,722	163,755,903
Balance (in shares) at Dec. 31, 2018	34,796	14,982,906
Issuance of stock	$ 4,376	$ 35,683	(40,059)	0	0	0	0
Issuance of stock (in shares)	7,293	59,472
Conversion of preferred stock	$ (4,338)	$ 4,338	0	0	0	0	0
Conversion of preferred stock (in shares)	(7,230)	7,230
Buyback of preferred stock	$ (1,605)	$ 0	(22,491)	0	0	0	(24,096)
Buyback of preferred stock (in shares)	(2,674)	0
Net income	$ 0	$ 0	0	12,176,093	0	1,549,978	13,726,071
Exercise of options	$ 940	$ 0	14,882	0	0	0	$ 15,822
Exercise of options (in shares)	1,566	0					1,566
PERC non-controlling interest at acquisition date	$ 0	$ 0	0	0	0	3,617,634	$ 3,617,634
Sale of CW-Bali	0	0	0	0	549,555	241,282	790,837
Dividends declared	0	0	0	(5,121,521)	0	0	(5,121,521)
Stock-based compensation	0	0	1,192,224	0	0	0	1,192,224
Balance at Dec. 31, 2019	$ 20,251	$ 9,029,765	$ 88,356,509	$ 66,352,733	$ 0	$ 14,193,616	$ 177,952,874
Balance (in shares) at Dec. 31, 2019	33,751	15,049,608

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Net income	$ 13,726,071	$ 11,989,274
Adjustments to reconcile net income to net cash provided by operating activities:
Income from discontinued operations		(1,115,825)
Gain on sale of discontinued operations	(3,621,170)	0
Depreciation and amortization	7,207,647	7,034,234
Deferred income tax benefit	(239,848)	(365,019)
Unrealized (gain) loss on net put/call option	(56,000)	256,000
Compensation expense relating to stock and stock option grants	1,192,224	850,136
Loss (gain) on asset dispositions and impairments, net	(445,041)	56,774
Foreign currency transaction adjustment	(104,991)	2,593
Profit-sharing and equity in earnings of OC-BVI	(60,965)	(2,452,355)
Distribution of earnings from OC-BVI	742,350	2,651,250
Change in:
Accounts receivable and costs and estimated earnings in excess of billings	(414,006)	(9,512,730)
Inventory	(1,357,032)	(1,131,409)
Prepaid expenses and other assets	(171,841)	(800,540)
Accounts payable, accrued expenses and other current liabilities, and billings in excess of costs and estimated earnings	(1,193,740)	528,014
Net cash provided by operating activities - continuing operations	15,203,658	7,990,397
Net cash provided by operating activities - discontinued operations		1,055,949
Net cash provided by operating activities	15,203,658	9,046,346
Cash flows from investing activities
Additions to property, plant and equipment and construction in progress	(3,525,122)	(16,202,520)
Proceeds from asset dispositions	453,480	51,590
Proceeds from sale of discontinued operations, net of cash provided	6,971,234
Acquisition of PERC, net of cash acquired	(3,147,438)
Collections on loans receivable	734,980	1,400,448
Payment for land and right of way held for development	(1,499)	(2,655,349)
Net cash provided by (used in) investing activities	1,485,635	(17,405,831)
Cash flows from financing activities
Dividends paid to common shareholders	(5,103,801)	(5,081,107)
Dividends paid to preferred shareholders	(12,026)	(14,535)
Repurchase of redeemable preferred stock	(24,096)	(17,338)
Proceeds received from exercise of stock options	15,822	12,976
Issuance of note payable to related party		784,000
Payments made on note payable to related party		(1,470,000)
Net cash used in financing activities	(5,124,101)	(5,786,004)
Net increase (decrease) in cash and cash equivalents	11,565,192	(14,145,489)
Cash and cash equivalents at beginning of period	31,337,477	45,482,966
Cash and cash equivalents at end of period	$ 42,902,669	$ 31,337,477

Principal activity	12 Months Ended
Principal activity	Dec. 31, 2019
Principal activity
Principal activity	1. Principal activity Consolidated Water Co. Ltd., and its subsidiaries (collectively, the “Company”) supply water, treat water for reuse, and provide water-related products and services to customers in the Cayman Islands, The Bahamas, the United States and the British Virgin Islands. The Company produces potable water from seawater using reverse osmosis technology and sells this water to a variety of customers, including public utilities, commercial and tourist properties, residential properties and government facilities. The Company designs, builds and sells water production and water treatment infrastructure and manages water infrastructure for commercial and governmental customers. The Company also manufactures a wide range of specialized and custom water industry related products and provides design, engineering, operating and other services applicable to commercial, municipal and industrial water production, supply and treatment.

Accounting policies

12 Months Ended

Dec. 31, 2019

Accounting policies

Accounting policies

2. Accounting policies

Basis of preparation: The consolidated financial statements presented are prepared in accordance with the accounting principles generally accepted in the United States of America.

Use of estimates: The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to estimates and assumptions include the carrying value of property, plant and equipment, intangible assets, goodwill and put/call options. Actual results could differ significantly from such estimates.

Basis of consolidation: The accompanying condensed consolidated financial statements include the accounts of the Company’s (i) wholly-owned subsidiaries, Aquilex, Inc., Cayman Water Company Limited (“Cayman Water”), Ocean Conversion (Cayman) Limited (“OC-Cayman”), DesalCo Limited (“DesalCo”), Consolidated Water Cooperatief, U.A. (“CW-Cooperatief”), Consolidated Water U.S. Holdings, Inc. (“CW-Holdings”); and (ii) majority-owned subsidiaries Consolidated Water (Bahamas) Ltd. (“CW-Bahamas”), Aerex Industries, Inc. (“Aerex”), N.S.C. Agua, S.A. de C.V. (“NSC”), Aguas de Rosarito S.A.P.I. de C.V. (“AdR”), PERC Water Corporation ("PERC") and PT Consolidated Water Bali ("CW-Bali”). The Company’s investment in its affiliate Ocean Conversion (BVI) Ltd. (“OC-BVI”) is accounted for using the equity method of accounting. All significant intercompany balances and transactions have been eliminated in consolidation.

Foreign currency: The Company’s reporting currency is the United States dollar (“US$”). The functional currency of the Company and its foreign operating subsidiaries (other than NSC, AdR, CW-Cooperatief and CW-Bali) is the currency for each respective country. The functional currency for NSC, AdR, CW-Cooperatief and CW-Bali is the US$. NSC and AdR conduct business in US$ and Mexican pesos, CW-Cooperatief conducts business in US$ and euros, and CW-Bali conducts business in US$ and Indonesian rupiahs. The exchange rates for the Cayman Islands dollar, the Belize dollar and the Bahamian dollar are fixed to the US$. The exchange rates for conversion of Mexican pesos, euros and rupiahs into US$ vary based upon market conditions. Net foreign currency gains arising from transactions and re-measurements were $35,352 and $8,089 for the year ended December 31, 2019 and 2018, respectively, and are included in “Other income (expense) - Other” in the accompanying condensed consolidated statements of income.

Cash and cash equivalents: Cash and cash equivalents consist of demand deposits at banks and highly liquid deposits at banks with an original maturity of three months or less. Cash and cash equivalents as of December 31, 2019 and December 31, 2018 include $12.7 million and $8.4 million, respectively, of certificates of deposits with an original maturity of three months or less.

As of December 31, 2019, the Company had deposits in U.S. banks in excess of federally insured limits of approximately $6.5 million. As of December 31, 2019, the Company held cash in foreign bank accounts of approximately $36.0 million.

Certain transfers from the Company’s Bahamas bank accounts to Company bank accounts in other countries require the approval of the Central Bank of The Bahamas. As of December 31, 2019, the equivalent United States dollar cash balances for deposits held in The Bahamas were approximately $7.4 million.

Accounts receivable and allowance for doubtful accounts: Accounts receivable are recorded at invoiced amounts based on meter readings or minimum take-or-pay amounts per contractual agreements. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable balance. The Company determines the allowance for doubtful accounts based on historical write-off experience and monthly review of delinquent accounts. Past due balances are reviewed individually for collectability and disconnection. Account balances are charged off against the allowance for doubtful accounts after all means of collection have been exhausted and the potential for recovery is considered by management to be remote.

Inventory: Inventory primarily includes consumables stock and spare parts stock that are valued at cost, less an allowance for obsolescence, with cost determined on the first-in, first-out basis. Inventory also includes potable water held in the Company’s reservoirs. The carrying amount of the water inventory is the lower of the average cost of producing water during the year or its net realizable value.

Loans receivable: Loans receivable relate to notes receivable from customers arising from the construction and sale of water infrastructure. The allowance for loan losses, if any, is the Company’s best estimate of the amount of probable credit losses in the Company’s existing loans and is determined on an individual loan basis.

Costs and estimated earnings in excess of billings: Costs and estimated earnings in excess of billings represent revenue recognized in excess of amounts billed on the respective uncompleted construction and manufacturing contracts.

Billings in excess of costs and estimated earnings: Billing in excess of costs and estimated earnings represent amounts billed in excess of revenue recognized on the respective uncompleted construction and manufacturing contracts.

Property, plant and equipment, net: Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is calculated using a straight-line method with an allowance for estimated residual values. Rates are determined based on the estimated useful lives of the assets as follows:


Buildings		5 to 40 years
Plant and equipment		4 to 40 years
Distribution system		3 to 40 years
Office furniture, fixtures and equipment		3 to 10 years
Vehicles		3 to 10 years
Leasehold improvements		Shorter of 5 years or lease term
Lab equipment		5 to 10 years

Additions to property, plant and equipment are comprised of the cost of the contracted services, direct labor and materials. Assets under construction are recorded as additions to property, plant and equipment upon completion of the projects. Depreciation commences in the month the asset is placed in service.

Interest costs directly attributable to the acquisition and construction of qualifying assets, which are assets that necessarily take a substantial amount of time to be ready for their intended use, are added to the cost of those assets until such time as the assets are substantially ready for use. No interest was capitalized during the years ended December 31, 2019 or 2018.

Long-lived assets: Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or a significant adverse change that would indicate that the carrying amount of an asset or group of assets is not recoverable. For long-lived assets to be held and used, the Company recognizes an impairment loss only if their carrying amounts are not recoverable through their undiscounted cash flows and measures the impairment loss based on the difference between the carrying amounts and estimated fair values.

Goodwill and intangible assets: Goodwill represents the excess cost over the fair value of the assets of an acquired business. Goodwill and intangible assets acquired in a business combination accounted for as a purchase and determined to have an indefinite useful life are not amortized but are tested for impairment at least annually. Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed periodically for impairment. The Company evaluates the possible impairment of goodwill annually as part of its reporting process for the fourth quarter of each fiscal year. Management identifies the Company’s reporting units, which consist of the retail, bulk, and manufacturing business segments, and determines the carrying value of each reporting unit by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units. The Company determines the fair value of each reporting unit and compares the fair value to the carrying amount of the reporting unit. To the extent the carrying amount of the reporting unit exceeds the fair value of the reporting unit, an impairment loss is recorded.

For the years ended December 31, 2019 and 2018, the Company estimated the fair value of its reporting units by applying the discounted cash flow method, the guideline public company method, and the mergers and acquisitions method.

The discounted cash flow method relied upon seven-year discrete projections of operating results, working capital and capital expenditures, along with a terminal value subsequent to the discrete period. These seven-year projections were based upon historical and anticipated future results, general economic and market conditions, and considered the impact of planned business and operational strategies. The discount rates for the calculations represented the estimated cost of capital for market participants at the time of each analysis.

The Company also estimated the fair value of each of its reporting units for the years ended December 31, 2019 and 2018 through reference to the guideline companies and the market multiples implied by guideline merger and acquisition transactions.

The Company weighted the fair values estimated for each of its reporting units under each method and summed such weighted fair values to estimate the overall fair value for each reporting unit. The respective weightings the Company applied to each method as of December 31, 2019 were consistent with those used as of December 31, 2018 and were as follows:


Method	Retail		Bulk		Manufacturing
Discounted cash flow	80	%	80	%	80	%
Guideline public company	10	%	10	%	10	%
Mergers and acquisitions	10	%	10	%	10	%
	100	%	100	%	100	%

The fair values the Company estimated for its retail and bulk reporting units exceeded their carrying amounts by 74% and 58%, respectively, as of December 31, 2019. The assets and liabilities for the Company's services reporting unit (with the exception of investments in land and rights of way related to AdR) consist almost entirely of those for PERC, which was acquired on October 24, 2019, and therefore the Company estimates the fair value of its services reporting units closely approximates its carrying value at December 31, 2019. The Company's manufacturing reporting unit consists entirely of Aerex and the remaining 49% ownership interest of Aerex was purchased on January 24, 2020 for $8,500,000. The Company considered this purchase, the manufacturing reporting unit’s results of operations for the year ended December 31, 2019, its projected results of operations for the year ending December 31, 2020, and the amount by which its estimated fair value exceeded its carrying amount as of December 31, 2018 to determine that it is more likely than not that the fair value of the manufacturing reporting unit exceeded its carrying amount at December 31, 2019. The fair values the Company estimated for its retail, bulk and manufacturing units exceeded their carrying amounts by 79%, 62% and 53%, respectively, as of December 31, 2018.

On February 11, 2016, the Company acquired 51% ownership interest in Aerex. In connection with this acquisition the Company recorded goodwill of $8,035,211. Aerex’s actual results of operations for the six months in 2016 following the acquisition fell significantly short of the projected results for this period that were included in the cash flow projections the Company utilized to determine the purchase price for Aerex and the fair values of its assets and liabilities. Due to this shortfall in Aerex’s results of operations, the Company tested Aerex’s goodwill for possible impairment as of September 30, 2016 by estimating its fair value using the discounted cash flow method. As a result of this impairment testing, the Company determined that the carrying value of the Aerex goodwill exceeded its fair value and recorded an impairment loss of $1,750,000 for the three months ended September 30, 2016, included in loss on long-lived asset dispositions and impairments, net in the accompanying consolidated statements of income, to reduce the carrying value of this goodwill to $6,285,211. As part of the Company’s annual impairment testing of goodwill performed during the fourth quarter, in 2017 the Company updated its projections for Aerex’s future cash flows, determined that the carrying value of the Aerex goodwill exceeded its fair value, and recorded an impairment loss of $1,400,000 for the three months ended December 31, 2017, which is included in loss on long-lived asset dispositions and impairments, net in the accompanying consolidated statements of income, to further reduce the carrying value of the goodwill to $4,885,211. The Company may be required to record additional impairment losses to reduce the carrying value of this goodwill in future periods if the Company determines it likely that Aerex’s results of operations will fall short of its most recent projections of its future cash flows.

In February 2019, the Company sold its former Belize subsidiary (see Note 13). As a result of this sale, this former subsidiary has been accounted for as discontinued operations in the consolidated financial statements, and bulk segment goodwill of approximately $380,000 as of December 31, 2018 associated with this former subsidiary was reclassified to long-term assets of discontinued operations in the consolidated statements of financial condition.

Investments: Investments where the Company does not exercise significant influence over the operating and financial policies of the investee and holds less than 20% of the voting stock are recorded at cost. The Company uses the equity method of accounting for investments in common stock where the Company holds 20% to 50% of the voting stock of the investee and has significant influence over its operating and financial policies but does not meet the criteria for consolidation. The Company recognizes impairment losses on declines in the fair value of the stock of investees that are other than temporary.

Other assets: Under the terms of CW-Bahamas’ contract with the Water and Sewerage Corporation of The Bahamas (“WSC”) to supply water from its Blue Hills desalination plant, CW-Bahamas was required to reduce the amount of water lost by the public water distribution system on New Providence Island, The Bahamas, over a one-year period by 438 million gallons, a requirement CW-Bahamas met during 2007. The Company was solely responsible for the engineering, labor and materials costs incurred to affect the reduction in lost water, which were capitalized and are being amortized on a straight-line basis over the original remaining life of the Blue Hills contract. Such costs are included in other assets and aggregated approximately $3.5 million as of December 31, 2019 and 2018. Accumulated amortization for these costs was approximately $2.4 million and $2.2 million as of December 31, 2019 and 2018, respectively. Amortization expense was $179,353 for the years ended December 31, 2019 and 2018.

Income taxes: The Company accounts for the income taxes arising from the operations of its United States and Mexico subsidiaries under the asset and liability method. Deferred tax assets and liabilities, if any, are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided to the extent any deferred tax asset may not be realized.

The Company is not presently subject to income taxes in the other countries in which it operates.

Revenue recognition: Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

The following table presents the Company’s revenue disaggregated by revenue source.


	Year Ended December 31,
	2019		2018
Retail revenue		26,456,022		25,621,048
Bulk revenue		26,986,108		31,031,287
Services revenue		1,759,446		1,811,372
Manufacturing revenue		13,592,075		7,256,150
Total revenue	$	68,793,651	$	65,719,857

Retail revenue

The Company produces and supplies water to end-users, including residential, commercial and governmental customers in the Cayman Islands under an exclusive retail license issued to Cayman Water by the Cayman Islands government to provide water in two of the three most populated and rapidly developing areas on Grand Cayman Island. Customers are billed on a monthly basis based on metered consumption and bills are typically collected within 30 to 35 days after the billing date. Receivables not collected within 45 days subject the customer to disconnection from water service. In 2019 and 2018, bad debts represented less than 1% of the Company’s total retail sales.

The Company recognizes revenue from water sales at the time water is supplied to the customer’s premises. The amount of water supplied is determined and invoiced based upon water meter readings performed at the end of each month. All retail water contracts are month-to-month contracts. The Company has elected the “right to invoice” practical expedient for revenue recognition on its retail water sale contracts and recognizes revenue in the amount to which the Company has a right to invoice.

Bulk revenue

The Company produces and supplies water to government-owned distributors in the Cayman Islands and The Bahamas.

OC-Cayman provides bulk water to the Water Authority-Cayman (“WAC”), a government-owned utility and regulatory agency, under various agreements. The WAC in turn distributes such water to properties in Grand Cayman outside of Cayman Water’s retail license area.

The Company sells bulk water in The Bahamas through its majority-owned subsidiary, CW-Bahamas, to the Water and Sewerage Corporation of The Bahamas (“WSC”), which distributes such water through its own pipeline system to residential, commercial and tourist properties on the Island of New Providence. The Company also sells water to a private resort on Bimini.

The Company has elected the “right to invoice” practical expedient for revenue recognition on its bulk water sale contracts and recognizes revenue in the amount to which the Company has a right to invoice.

Services and Manufacturing revenue

The Company, through Aerex, is a custom and specialty manufacturer of water treatment-related systems and products applicable to commercial, municipal and industrial water production. Substantially all of Aerex’s customers are U.S. companies.

The Company provides design, engineering, management, procurement and construction services for desalination infrastructure through DesalCo, which serves customers in the Cayman Islands, The Bahamas and the British Virgin Islands. The Company also provides design, engineering, construction and management services for water treatment and reuse infrastructure through PERC. All of PERC's customers are companies or governmental entities located in the U.S.

The Company recognizes services and manufacturing construction revenue over time under the input method using costs incurred (which represents work performed) to date relative to total estimated costs at completion to measure progress toward satisfying its performance obligations as such measure best reflects the transfer of control of the promised good to the customer. Contract costs include labor, material and overhead. The Company follows this method since it can make reasonably dependable estimates of the revenue and costs applicable to various stages of a contract. Under this input method, the Company records revenue and recognizes profit or loss as work on the contract progresses. The Company estimates total project costs and profit to be earned on each long-term, fixed price contract prior to commencement of work on the contract and updates these estimates as work on the contract progresses. The cumulative amount of revenue recorded on a contract at a specified point in time is that percentage of total estimated revenue that incurred costs to date comprises of estimated total contract costs. If, as work progresses, the actual contract costs exceed estimates, the profit recognized on revenue from that contract decreases. The Company recognizes the full amount of any estimated loss on a contract at the time the estimates indicate such a loss. Any costs and estimated earnings in excess of billings are classified as current assets. Billings in excess of costs and estimated earnings on uncompleted contracts, if any, are classified as current liabilities.

The Company has elected the “right to invoice” practical expedient for revenue recognition on its management services agreements and recognizes revenue in the amount to which the Company has a right to invoice.

Practical Expedients and Exemptions

The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed.

Comparative amounts: Certain amounts presented in the financial statements previously issued for 2018 have been reclassified to conform to the current year’s presentation.

Acquisition of PERC

12 Months Ended

Dec. 31, 2019

Acquisition of PERC

Acquisition of PERC

3. Acquisition of PERC

On October 24, 2019, the Company, through its wholly-owned subsidiary, CW-Holdings, entered into a stock purchase agreement (the “Purchase Agreement”) with PERC and its various shareholders (collectively, the “Sellers”). Pursuant to the terms of the Purchase Agreement, CW-Holdings purchased a 51% ownership interest in PERC for approximately $4.1 million in cash. After giving effect to the transactions contemplated by the Purchase Agreement, CW-Holdings owns 51% of the outstanding capital stock of PERC, and three members of PERC's management and one additional shareholder (the “Remaining Shareholders”) own the remaining 49% of the outstanding capital stock of PERC. CW-Holdings also acquired from the Remaining Shareholders an option to compel the Remaining Shareholders to sell, and granted to the Remaining Shareholders an option to require CW-Holdings to purchase, the Remaining Shareholders’ 49% ownership interest in PERC at a price based upon the fair market value of PERC at the time of the exercise of the option. CW-Holdings’ option is exercisable on or after October 24, 2022 and the Remaining Shareholders’ option is exercisable on or after October 24, 2024.

PERC is a water infrastructure company headquartered in Costa Mesa, California that develops, designs, builds, and manages wastewater and water reuse infrastructure.

In connection with the Purchase Agreement, CW-Holdings, and the Remaining Shareholders entered into a shareholders' agreement, pursuant to which CW-Holdings and the Remaining Shareholders agreed to certain rights and obligations with respect to the governance of PERC.

The purchase price for PERC is summarized as follows:


Cash consideration
Purchase price (excluding working capital)	$	4,088,817
Cash acquired		(941,379)
Total cash consideration	$	3,147,438

The following table summarizes the estimated fair values of the assets and liabilities assumed at the acquisition date:


Financial assets	$	1,371,532
Costs and estimated earnings in excess of billings		20,854
Property, plant and equipment		86,287
Identifiable intangible assets		3,990,000
Deferred tax liability		(1,117,200)
Accounts payable and accrued liabilities		(1,260,722)
Working capital adjustment payable		(23,467)
Deferred revenue		(117,636)
Billings in excess of costs and estimated earnings		(760,992)
Net liability arising from put/call options		(744,000)
Total identifiable net assets		1,444,656
Non-controlling interest in PERC		(3,617,634)
Goodwill		5,320,416
	$	3,147,438

The fair value of noncontrolling interest was calculated using the discounted cash flow method. The discounted cash flow method relied upon nine-year discrete projections of operating results, working capital and capital expenditures, along with a terminal value subsequent to the discrete period. These projections were based upon historical and anticipated future results, general economic and market conditions, and considered the impact of planned business and operational strategies. The discount rates for the calculations represented the estimated cost of capital for market participants at the time of each analysis. An 8.4% discount for marketability was applied to the noncontrolling interest calculated under the discounted cash flow method. This marketability discount was calculated using an average-price put option model.

The identifiable intangible assets consisted of the following items:


	Amount		Useful life
Non-compete agreement	$	130,000	3 years
Trade name		1,300,000	15 years
Customer backlog		360,000	2 years
Facility management contracts		2,200,000	6 years
	$	3,990,000

The results of operations of PERC included in the Company’s results of operations for the period October 24, 2019 to December 31, 2019 are as follows:


Revenue	$	1,376,793
Gross profit		407,604
Amortization of intangibles, net of tax benefit		(81,200)
Net income		37,924

The following unaudited pro forma financial information presents the results of operations of the Company for the years ended December 31, 2019 and 2018, as if the acquisition of PERC had taken place on January 1, 2018. These pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which would have actually occurred had the transaction taken place on January 1, 2018, nor do they purport to be indicative of future results of operations.


	December 31,
	2019		2018

Revenue	$	77,615,958	$	76,787,893
Cost of revenue		47,162,564		47,608,703
Gross profit		30,453,394		29,179,190
General and administrative expenses		21,620,106		21,451,898
Gain (loss) on asset dispositions and impairments, net		447,681		(58,434)
Income from operations		9,280,969		7,668,858
Other income (expense), net		805,093		2,749,833
Income before income taxes		10,086,062		10,418,691
Provision for (benefit from) income taxes		72,814		(651,300)
Net income from continuing operations		10,013,248		11,069,991
Income from continuing operations attributable to non-controlling interests		1,505,068		792,092
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders		8,508,180		10,277,899
Gain on sale of discontinued operations		3,621,170		—
Net income from discontinued operations		—		1,115,825
Total income from discontinued operations		3,621,170		1,115,825
Net income attributable to Consolidated Water Co. Ltd. stockholders	$	12,129,350	$	11,393,724

Basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders
Continuing operations	$	0.57	$	0.69
Discontinued operations		0.24		0.07
Basic earnings per share	$	0.81	$	0.76

Diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders
Continuing operations	$	0.56	$	0.68
Discontinued operations		0.24		0.07
Diluted earnings per share	$	0.80	$	0.75

Weighted average number of common shares used in the determination of:
Basic earnings per share		15,025,639		14,962,760
Diluted earnings per share		15,137,076		15,074,147

Cash and cash equivalents

12 Months Ended

Dec. 31, 2019

Cash and cash equivalents

Cash and cash equivalents

4. Cash and cash equivalents

Cash and cash equivalents are not restricted by the terms of the Company’s bank accounts as to withdrawal or use. As of December 31, 2019 and 2018, the equivalent United States dollars are denominated in the following currencies:


	December 31,
	2019		2018
Bank accounts:
United States dollar	$	16,107,831	$	11,797,054
Cayman Islands dollar		6,690,274		5,626,487
Bahamian dollar		6,353,936		3,301,002
Belize dollar		—		1,130,783
Bermudian dollar		3,084		3,370
Mexican peso		384,895		37,313
Indonesian rupiah		—		22,289
		29,540,020		21,918,298

Short term deposits:
United States dollar		11,100,185		8,379,723
Cayman Islands dollar		1,209,954		—
Bahamian dollar		1,052,510		1,039,456
		13,362,649		9,419,179
Total cash and cash equivalents	$	42,902,669	$	31,337,477

Transfers from the Company’s Bahamas bank accounts to Company bank accounts in other countries require the approval of the Central Bank of the Bahamas.

Accounts receivable, net

12 Months Ended

Dec. 31, 2019

Accounts receivable, net

Accounts receivable, net

5. Accounts receivable, net


	December 31,
	2019		2018
Trade accounts receivable	$	23,138,736	$	22,331,720
Receivable from OC-BVI		10,808		46,600
Other accounts receivable		222,381		242,799
		23,371,925		22,621,119
Allowance for doubtful accounts		(142,236)		(158,902)
Accounts receivable, net	$	23,229,689	$	22,462,217

The activity for the allowance for doubtful accounts consisted of:


	December 31,
	2019		2018
Opening allowance for doubtful accounts	$	158,902	$	158,902
Provision for doubtful accounts		—		—
Accounts written off during the year		(16,666)		—
Ending allowance for doubtful accounts	$	142,236	$	158,902

Significant concentrations of credit risk are disclosed in Note 21.

Inventory

12 Months Ended

Dec. 31, 2019

Inventory

Inventory

6. Inventory


	December 31,
	2019		2018
Water stock	$	33,694	$	36,837
Consumables stock		118,286		106,925
Spare parts stock		7,539,953		6,634,157
Total inventory		7,691,933		6,777,919
Less current portion		3,287,555		2,232,721
Inventory (non-current)	$	4,404,378	$	4,545,198

Contracts in progress

12 Months Ended

Dec. 31, 2019

Contracts in progress

Contracts in progress

7. Contracts in progress

Revenue recognized and amounts billed on contracts in progress are summarized as follows:


	December 31,
	2019		2018
Revenues recognized to date on contracts in process	$	24,041,993	$	6,377,657
Amounts billed to date on contracts in process		(22,980,598)		(5,651,928)
	$	1,061,395	$	725,729

The above net balances are reflected in the accompanying consolidated balance sheet as follows:


	December 31,
	2019		2018
Costs and estimated earnings in excess of billings	$	1,675,781	$	835,669
Billings in excess of costs and estimated earnings		(614,386)		(109,940)
	$	1,061,395	$	725,729

Property, plant and equipment and construction in progress

12 Months Ended

Dec. 31, 2019

Property, plant and equipment and construction in progress

Property, plant and equipment and construction in progress

8. Property, plant and equipment and construction in progress


	December 31,
	2019		2018
Land	$	3,566,537	$	3,435,361
Buildings		23,176,106		19,829,575
Plant and equipment		64,840,636		61,777,836
Distribution system		36,538,614		36,057,078
Office furniture, fixtures and equipment		3,061,315		3,635,184
Vehicles		1,582,053		1,431,719
Leasehold improvements		272,092		244,221
Lab equipment		14,958		27,795
		133,052,311		126,438,769
Less accumulated depreciation		71,803,332		67,557,951
Property, plant and equipment, net	$	61,248,979	$	58,880,818
Construction in progress	$	1,335,597	$	6,015,043

As of December 31, 2019, the Company had outstanding capital commitments of $226,526. The Company maintains insurance for loss or damage to all fixed assets that it deems susceptible to loss. The Company does not insure its underground distribution system as the Company considers the possibility of material loss or damage to this system to be remote. During the years ended December 31, 2019 and 2018, $7,755,375 and $14,398,624, respectively, of construction in progress was placed in service. Depreciation expense was $6,186,627 and $5,514,881 for the years ended December 31, 2019 and 2018, respectively.

Investment in OC-BVI

12 Months Ended

Dec. 31, 2019

Investment in OC-BVI

Investment in OC-BVI

9. Investment in OC-BVI

The Company owns 50% of the outstanding voting common shares and a 43.53% equity interest in the profits of Ocean Conversion (BVI) Ltd. (“OC-BVI”). The Company also owns certain profit-sharing rights in OC-BVI that raise its effective interest in the profits of OC-BVI to approximately 45%. Pursuant to a management services agreement, OC-BVI pays the Company monthly fees for certain engineering and administrative services. OC-BVI’s sole customer is the Ministry of Communications and Works of the Government of the British Virgin Islands (the “Ministry”) to which it sells bulk water.

The Company’s equity investment in OC-BVI amounted to $1,903,602 and $2,584,987 as of December 31, 2019 and December 31, 2018, respectively.

Summarized financial information for OC-BVI is as follows:


	December 31,
	2019		2018
Current assets	$	1,151,398	$	2,286,179
Non-current assets		3,446,198		3,859,310
Total assets	$	4,597,596	$	6,145,489


	December 31,
	2019		2018
Current liabilities	$	156,040	$	132,005
Non-current liabilities		684,450		1,048,950
Total liabilities	$	840,490	$	1,180,955


	Year Ended December 31,
	2019		2018
Revenue	$	3,146,550	$	2,845,211
Cost of revenue		2,156,460		1,348,046
Gross profit		990,090		1,497,165
General and administrative expenses		781,677		707,034
Gain on long-lived asset disposition		1,000		—
Income from operations		209,413		790,131
Other income (expense), net		(32,341)		3,393,271
Net income		177,072		4,183,402
Income attributable to non-controlling interests		74,233		52,275
Net income attributable to controlling interests	$	102,839	$	4,131,127

A reconciliation of the beginning and ending balances for the investment in OC-BVI for the year ended December 31, 2019:


Balance as of December 31, 2018	$	2,584,987
Profit-sharing and equity from earnings of OC-BVI		60,965
Distributions received from OC-BVI		(742,350)
Balance as of December 31, 2019	$	1,903,602

The Company recognized $44,765 and $1,798,280 in earnings from its equity investment in OC-BVI for the years ended December 31, 2019 and 2018, respectively. The Company recognized $16,200 and $654,075 in profit-sharing income from its profit-sharing agreement with OC-BVI for the years ended December 31, 2019 and 2018, respectively.

For the years ended December 31, 2019 and 2018, the Company recognized $382,653 and $445,188, respectively, in revenues from its management services agreement with OC-BVI. The Company also recognized approximately $710,000 in revenues for the year ended December 31, 2018 for the refurbishment of OC-BVI’s Bar Bay plant. Amounts payable by OC-BVI to the Company were $10,808 and $46,746 as of December 31, 2019 and 2018, respectively.

Resolution of Baughers Bay Litigation

Through March 2010, OC-BVI supplied water to the BVI government from a plant located at Baughers Bay, Tortola, under the terms of a water supply agreement dated May 1990 (the “1990 Agreement”) with an initial seven-year term that expired in May 1999. The 1990 Agreement provided that such agreement would automatically be extended for another seven-year term unless the BVI government provided notice, at least eight months prior to such expiration, of its decision to purchase the plant from OC-BVI at the agreed upon amount under the 1990 Agreement of approximately $1.42 million. In correspondence between the parties from late 1998 through early 2000, the BVI government indicated that it intended to purchase the plant but would be amenable to negotiating a new water supply agreement and that it considered the 1990 Agreement to be in force on a monthly basis until negotiations between the BVI government and OC-BVI were concluded. OC-BVI continued to supply water from the plant and expended approximately $4.7 million between 1995 and 2003 to significantly expand the production capacity of the plant beyond that contemplated in the 1990 Agreement.

In 2006, the BVI government took the position that the seven-year extension of the 1990 Agreement had been completed and that it was entitled to ownership of the Baughers Bay plant and during 2007, the BVI government-initiated litigation seeking ownership of the Baughers Bay plant. OC-BVI counterclaimed that it was entitled to continued possession and operation of the Baughers Bay plant until the BVI government paid OC-BVI approximately $4.7 million, which OC-BVI believed represented the value of the Baughers Bay plant at its expanded production capacity.

As a result of the final ruling made by the Appellate Court on this litigation in 2009, the BVI Government was awarded ownership of the Baughers Bay plant but OC-BVI was awarded compensation for improvements made to the plant in the amount equal to the difference between (i) the value of the Baughers Bay plant at the date OC-BVI transferred possession of the plant to the BVI government and (ii) $1.42 million (the purchase price for the Baughers Bay plant under the 1990 Agreement).

In August 2018, OC-BVI and the BVI government entered into a settlement agreement for the Baughers Bay plant litigation with an agreed upon value for the plant of $4,432,834, which resulted in a net payment (i.e. after legal and other expenses) to OC-BVI in September 2018 of $4,271,409. Such amount is included in other income, net in OC-BVI’s 2018 consolidated results of operations.

NSC and AdR project development

12 Months Ended

Dec. 31, 2019

NSC and AdR project development

NSC and AdR project development

10. NSC and AdR Project Development

In May 2010, the Company acquired, through its wholly-owned Netherlands subsidiary, CW-Cooperatief, a 50% interest in NSC, a development stage Mexican company. CW-Cooperatief has since purchased, through the conversion of a loan it made to NSC, additional shares that increased its ownership interest in NSC to 99.99%. NSC was formed to pursue a project (the “Project”) that originally encompassed the construction, operation and minority ownership of a 100 million gallon per day seawater reverse osmosis desalination plant to be located in northern Baja California, Mexico and accompanying pipelines to deliver water to the Mexican potable water system. As discussed in paragraphs that follow, during 2015 the scope of the Project was defined by the State of Baja California (the “State”) to consist of a first phase consisting of a 50 million gallon per day plant and an aqueduct that connects to the Mexican potable water infrastructure and a second phase consisting of an additional 50 million gallons per day of production capacity.

Through a series of transactions completed in 2012‑2014, NSC purchased 20.1 hectares of land for approximately $20.6 million on which the proposed Project’s plant would be constructed.

In November 2012, NSC entered into a lease with an effective term of 20‑years from the date of full operation of the Project’s desalination plant, with the Comisión Federal de Electricidad for approximately 5,000 square meters of land on which it plans to construct the water intake and discharge works for the plant. The amounts due on this lease are payable in Mexican pesos at an amount that is currently equivalent to approximately $30,000 every two months. This lease may be cancelled by NSC should NSC ultimately not proceed with the Project.

In August 2014, the State enacted new legislation to regulate Public-Private Association projects which involve the type of long-term contract between a public-sector authority and a private party required for the Project (the “APP Law”). Pursuant to this new legislation, in January 2015, NSC submitted an expression of interest for its project to the Ministry of Infrastructure and Urban Development of the State of Baja California (“SIDUE”). SIDUE accepted NSC’s expression of interest and requested that NSC submit a detailed proposal for the Project that complies with the requirements of the new legislation. NSC submitted this detailed proposal (the “APP Proposal”) to SIDUE in late March 2015. The new legislation required that such proposal be evaluated by SIDUE and submitted to the Public-Private Association Projects State Committee (the “APP Committee”) for review and authorization. If the Project was authorized the State would be required to conduct a public tender for the Project.

In response to its APP Proposal, in September 2015 NSC received a letter dated June 30, 2015 from the Director General of the Comisión Estatal del Agua de Baja California (“CEA”), the State agency with responsibility for the Project, stating that (i) the Project is in the public interest with high social benefits and is consistent with the objectives of the State development plan; and (ii) that the Project should proceed, and the required public tender should be conducted. In November 2015, the State officially commenced the tender for the Project, the scope of which the State defined as a first phase to be operational in 2019 consisting of a 50 million gallon per day plant and an aqueduct that connects to the Mexican potable water infrastructure and a second phase to be operational in 2024 consisting of an additional 50 million gallons per day of production capacity. A consortium (the “Consortium”) comprised of NSC, NuWater S.A.P.I. de C.V. (“NuWater”) and Suez Medio Ambiente México, S.A. de C.V. (“Suez MA”), a subsidiary of SUEZ International, S.A.S., submitted its tender for the Project in April 2016 and in June 2016, the State designated the Consortium as the winner of the tender process for the Project.

Due to the amount of capital the Project requires, NSC will ultimately need an equity partner or partners for the Project. Consequently, NSC’s tender to the State for the Project was based upon the following: (i) NSC will sell or otherwise transfer the land and other Project assets to a new company (“Newco”) that would build and own the Project; (ii) NSC’s potential partners would provide the majority of the equity for the Project and thereby would own the majority interest in Newco; (iii) NSC would maintain a minority ownership position in Newco; and (iv) Newco would enter into a long-term management and technical services contract for the Project with an entity partially owned by NSC or another Company subsidiary.

In August 2016, NSC and NuWater incorporated Newco under the name Aguas de Rosarito S.A.P.I. de C.V. (“AdR”), a special purpose company, to complete the Project and executed a shareholders agreement for AdR agreeing among other things that (i) AdR would purchase the land and other Project assets from NSC on the date that the Project begins commercial operations and (ii) AdR would enter into a Management and Technical Services Agreement with NSC effective on the first day that the Project begins commercial operations. NSC initially owned 99.6% of the equity of AdR. In February 2018, NSC acquired the remaining 0.4% ownership in AdR from NuWater.

On August 22, 2016, the Public Private Partnership Agreement for public private partnership number 002/2015, bid number SIDUE-CEA-APP‑2015‑002 (“APP Contract”), was executed between AdR, the CEA, the Government of Baja California represented by the Secretary of Planning and Finance and the Public Utilities Commission of Tijuana (“CESPT”). The APP Contract requires AdR to design, construct, finance and operate a seawater reverse osmosis desalination plant (and accompanying aqueduct) with a capacity of up to 100 million gallons per day in two phases: the first with a capacity of 50 million gallons per day and an aqueduct to the Mexican potable water system in Tijuana, Baja California and the second phase with a capacity of 50 million gallons per day. The first phase must be operational within 36 months of commencing construction and the second phase must be operational by January 2025. The APP Contract further requires AdR to operate and maintain the plant and aqueduct for a period of 37 years starting from the commencement of operation of the first phase. At the end of the operating period, the plant and aqueduct will be transferred to the CEA.

The APP Contract does not become effective until the following remaining open conditions, among others, have been met:

·

the State has established and registered various payment trusts, guaranties and bank credit lines for specific use by the Project;

·

AdR has obtained all rights of way required for the aqueduct; and

·

all debt financing agreements necessary to provide the funding to AdR for the first phase of the Project have been executed.

In December 2016, the Congress of the State of Baja California, Mexico (the “Congress”) passed Decreto #57 which, among other things, ratified and authorized the payment obligations of the corresponding public entities under the APP Contract and authorized the corresponding public entities to obtain a credit facility to guarantee their payment obligations. During 2017, following consultations between representatives of the State of Baja California and the Ministry of Finance of the Federal Government of Mexico, it was determined that certain amendments to Decreto #57 were required to comply with recent changes to the Federal Financial Discipline Law for Federative Entities and Municipalities. In addition, it was necessary to amend Decreto #57 to authorize the inclusion of revenue from the CESPT in the primary payment trust for the Project. These amendments were included in Decreto #168, which was approved by the Congress in December 2017. The authorization for the execution of the credit agreement to guarantee the payment obligations of the public entities under the APP Contract given in Decreto #57, as amended by Decreto #168, expired on December 31, 2018. During the congressional session held at the end of March 2019, the Congress passed Decreto #335, which renewed the authorizations for the various payment trusts, guaranties and bank credit lines required to be established for the Project by the State entities. Decreto #335 expired December 31, 2019. During the congressional session held at the end of December 2019, the Congress passed Decreto #37, which renewed the authorizations for the various payment trusts, guaranties and bank credit lines required to be established for the Project by the State entities. Decreto #37 expires June 30, 2020. However, the expiration of Decreto #37 will not result in a termination of the APP Contract and/or the Project, as a new authorization may be issued by Congress.

Following its issuance, the following legal proceedings were initiated against Decreto #335:

(a) Amparo trial filed by a certain congressman and his alternate in April 2019. Given that neither AdR nor NSC are parties to this action, based on publicly available information the Company understands that in April 2019, a congressman of the Congress and his alternate filed this claim, stating that there are no interested third parties in this trial. Both the provisional and definitive suspensions of the effects of Decreto #335 requested by claimants, were denied by the Sixth District Court in Mexicali. As such, the effects of Decreto #335 have not been suspended. On July 31, 2019, this proceeding was dismissed. However, according to publicly available information, on August 15, 2019, the claimants appealed this dismissal. As neither AdR nor NSC are parties to this Amparo trial, they are not parties to that appeal. Based upon publicly available information, on February 6, 2020, the Sixth Collegiate Tribunal of the Fifteenth Circuit Court dismissed such appeal.

(b) Amparo trial filed in May 2019 by certain individuals that allegedly form part of Consejo Coordinador Empresarial (a private local business association). This claim challenged the constitutionality and therefore, the validity of Decreto #335. In May 2019, an initial resolution dismissing the claim was issued by the First District Court in Tijuana. The claimants in this proceeding appealed this dismissal, and the appeal was resolved in the claimants' favor by a superior court, therefore forcing the admission of this amparo claim by the First District Court in Tijuana. Both the provisional and definitive suspensions of the effects of Decreto #335 requested by claimants were denied by the First District Court in Tijuana. On October 1, 2019, AdR appeared before the First District Court, to vigorously oppose this claim. On January 3, 2020, the First District Court in Tijuana dismissed this claim On January 15, 2020, claimants appealed such dismissal, and such appeal has not been yet resolved.

(c) Constitutionality challenge (Acción de Inconstitucionalidad) against Decreto #335, filed by certain congresspersons in May 2019. Based on publicly available information, the Company understands that in May 2019, certain congresspersons filed this constitutionality challenge against Decreto #335. This challenge has yet to be resolved.

Both the exchange rate for the Mexican peso relative to the dollar and general macroeconomic conditions in Mexico have varied since the execution of the APP Contract. These changes have adversely impacted the estimated construction, operating and financing costs for the Project. The APP Contract and the APP Law allow for the parties to negotiate (but do not guarantee) modifications to the consideration (i.e. water tariff) under the APP Contract in the event of such significant macroeconomic condition changes. In February 2017, AdR submitted proposals to the CEA requesting the definition of the mechanism required by the APP Contract to update the consideration under the APP Contract for changes in foreign exchange rates, lending rates and certain laws which have impacted the Project. On June 1, 2018, AdR and the CEA executed an amendment to the APP Contract which, among other things, increases the scope of Phase 1 of the Project for including the aqueduct originally designated for Phase 2, and addresses AdR’s concerns regarding the impact on the Project for changes in the exchange rate for the peso relative to the dollar and changes in interest rates that have occurred subsequent to the submission of the Consortium’s bid for the Project. As a result of this amendment to the APP Contract, the final cost of Phase 1 and the related consideration to be charged by AdR under the APP Contract will be determined based upon the bid submitted by the Consortium, the changes set forth in the amendment to the APP Contract and the economic conditions (e.g. interest rates and currency exchange rates) in effect on the financial closing date for Phase 1.

In February 2018, AdR executed a subscription agreement (the “Agreement”) for the equity funding required for the Project. The Agreement calls for NSC to retain a minimum of 25% of the equity in AdR. One or more affiliates of Greenfield SPV VII, S.A.P.I. de C.V. (“Greenfield”), a Mexico company managed by an affiliate of a leading U.S. asset manager, will acquire a minimum of 55% of the equity of AdR. The Agreement also provides Suez MA with the option to purchase 20% of the equity of AdR. If Suez MA does not exercise this option, NSC will retain 35% of the equity of AdR and Greenfield will acquire 65% of the equity of AdR. The Agreement will become effective when the conditions precedent related to the Project are met, including but not limited to those conditions discussed previously. The aggregate investment to be made by the equity partners in the Project, in the form of equity and subordinated shareholder loans, is presently estimated at approximately 20% of the total cost of Phase 1 of the Project. This Agreement was originally scheduled to expire on June 30, 2019 but has been extended to April 30, 2020.

In June 2018, AdR and Suez MA executed a contract whereby Suez MA will serve as the engineering, procurement and construction contractor for the Project with such contract becoming effective on the effective date of the APP Contract.

If AdR is ultimately unable to proceed with the Project due to a failure by any of the parties involved to meet the conditions necessary for the APP Contract to become effective, or for any other reason, the land NSC has purchased and the rights of way deposits it has made may lose their strategic importance derived from their association with the Project and consequently may decline in value. If AdR does not proceed with the Project, NSC may ultimately be unable to sell this land or recoup its rights of way deposits for amounts at least equal to their carrying values as of December 31, 2019 of approximately $24.2 million. Any loss on the sale of the land, or impairment losses NSC may be required to record as a result of a decrease in the (i) fair value of the land; or (ii) value of the rights of way arising from the inability to complete the Project could have a material adverse impact on the Company’s financial condition and results of operations.

Included in the Company’s results of operations are general and administrative expenses from NSC and AdR, consisting of organizational, legal, accounting, engineering, consulting and other costs relating to Project development activities. Such expenses amounted to approximately $2,348,000 and $2,884,000 for the year ended December 31, 2019 and 2018, respectively. The assets and liabilities of NSC and AdR included in the Company’s consolidated balance sheets amounted to approximately $29.3 million and $2.9 million, respectively, as of December 31, 2019 and approximately $26.2 million and $243,000 respectively, as of December 31, 2018.

Project Litigation

Immediately following CW-Cooperatief’s acquisition of its initial 50% ownership in NSC, the remaining 50% ownership interest in NSC was held by an unrelated company, Norte Sur Agua, S. de R.L. de C.V. (“NSA”). NSA subsequently transferred ownership of half of its shares in NSC to EWG Water LLC (“EWG”) and the other half of its shares in NSC to an individual (the “individual shareholder”). In February 2012, CW-Cooperatief paid $300,000 to enter into an agreement (the “Option Agreement”) that provided it with an option, exercisable through February 7, 2014, to purchase the shares of NSC owned by the individual shareholder for a price of $1.0 million along with an immediate usufruct and power of attorney to vote those shares. Such shares constituted 25% of the ownership of NSC as of February 2012. In May 2013, NSC repaid a $5.7 million loan payable to CW-Cooperatief by issuing additional shares of its stock. As a result of this share issuance to CW-Cooperatief, the Company indirectly acquired 99.99% of the ownership of NSC. The Option Agreement contained an anti-dilution provision that required CW-Cooperatief to transfer or otherwise cause the individual shareholder to acquire, for a total price of $1 (regardless of their par or market value), shares in NSC of an amount sufficient to maintain the individual shareholder’s 25% ownership interest in NSC if (i) any new shares of NSC were issued subsequent to the execution of the Option Agreement (causing the individual shareholder’s 25% ownership interest in NSC to be decreased); and (ii) CW-Cooperatief did not exercise its share purchase option by February 7, 2014. CW-Cooperatief exercised its option and paid the $1.0 million to the individual shareholder to purchase the Option Agreement shares in February 2014.

In January 2018, EWG initiated an ordinary mercantile claim against the individual shareholder, NSC and CW-Cooperatief, (with AdR being named as a third party to be called to trial) before the Tenth Civil Judge in Tijuana, Baja California for Mercantile Matters (the “Tenth Civil Judge”).

The paragraphs that follow include a description of such litigation, while subparagraphs a) through f) that follow describe certain separate amparo claims, an appeal and an administrative act arising from or relating to such ordinary mercantile claim, all in chronological order.

-In the ordinary mercantile claim, EWG challenged, among other things, the transactions contemplated under the Option Agreement, and therefore, the capital investment transactions that increased the ownership interest of CW-Cooperatief in NSC to 99.99% as a consequence of the Option Agreement. EWG requested that the courts, as a preliminary matter; (a) suspend the effectiveness of the challenged transactions; (b) order certain public officials in Mexico to record the pendency of the lawsuit in the public records (including a special request to register a lien over the real estate owned by NSC); (c) appoint an inspector for NSC to oversee its commercial activities; and (d) order public officials in Mexico and credit institutions abroad to refrain from authorizing or executing any legal act related with the activities of the plaintiff, the co-defendants and the third party called to trial to avoid damages to third parties, including those with whom negotiations or any form of commercial or administrative activities, or activities of any other nature related with the “Rosarito” water desalination project, are being conducted. The Tenth Civil Judge granted, ex-parte, the preliminary relief sought by EWG, which resulted in the issuance of official writs to several governmental and public entities involved with the Project, including the registration of the pendency of the lawsuit in certain public records.

a) AdR amparo claim against the preliminary relief sought by EWG.

In April 2018, AdR filed an amparo against the official writs issued by the Tenth Civil Judge to two governmental entities. In May 2018, the amparo claim was amended to also request protection against additional official writs issued by the Tenth Civil Judge to two other governmental entities and one banking institution. In May 2018, the Third District Court for Amparo and Federal Trials in the State of Baja California with residence in Tijuana granted a temporary suspension of the effects and consequences of the claimed official writs issued by the Tenth Civil Judge pending a further determination by the Third District Court. Such suspension was granted definitively in July 2018, and in August 2018, a resolution determining that the claimed official writs are unconstitutional, was issued. EWG appealed such resolution, and in January 2020, the Collegiate Tribunal resolving such appeal dismissed the amparo filed by AdR. However, such dismissal does not adversely impact AdR, considering the resolution to the appeal mentioned in subparagraph b) that follows.

-On October 16, 2018, NSC was served with the ordinary mercantile claim. On November 7, 2018, NSC filed a legal response to the claim, vigorously opposing the claims made by EWG. In addition to such legal response, NSC filed (i) a request to submit the claim to arbitration, based on certain provisions of the by-laws of NSC, (ii) an appeal remedy against the preliminary relief, and (iii) a request for the setting of a guarantee to release the preliminary relief granted in favor of EWG.

b) Appeal filed by NSC against the preliminary relief sought by EWG.

The appeal remedy mentioned previously in item (ii) suspended the proceeding (through the posting of a guarantee by NSC), and was resolved in December 2019 and communicated to EWG in January 2020. Such resolution revoked the order of the Tenth Civil Judge whereby EWG was granted the preliminary relief.

c) Amparo filed by EWG against the revocation of the preliminary relief.

In January 2020, EWG filed a new amparo claim against the resolution of the appeal remedy previously mentioned in item (ii). NSC has responded to this new amparo to vigorously oppose such amparo claim of EWG and to uphold the resolution of such appeal remedy. To this date, this amparo claim has not been resolved and, as such, it does not affect the revocation of the preliminary relief.

-On February 26, 2019, the Tenth Civil Judge acknowledged NSC’s filing of the legal response to the ordinary mercantile claim, its request to submit to arbitration, and the appeal remedy previously mentioned in item (ii), granting EWG a period of three business days to, among others, state what it deemed convenient to its interest.

-Further, on February 26, 2019, the Tenth Civil Judge set the guarantee requested in NSC’s November 7, 2018 legal response, in the form of a security deposit in the amount of 1,000,000 Mexican pesos, to release the preliminary relief sought by EWG. On March 4, 2019, NSC filed before the Tenth Civil Judge evidence of such security deposit, requesting the release of the mentioned preliminary relief.

-Irrespective of the resolution revoking the preliminary relief previously granted in favor of EWG (due to the filing of the security deposit by NSC) and the pendency of the appeal remedy filed by EWG against such revocation, on April 12, 2019, the Tenth Civil Judge granted EWG the opportunity to file a counter guarantee in the amount of 1,500,000 Mexican pesos to maintain the ex-parte preliminary relief granted in its favor. With respect to this matter, the Tenth Civil Judge issued a resolution on April 26, 2019 allowing such counter guarantee to be filed in the form of a security deposit or in any other form allowed by the law, without extending the term initially granted for the filing of the counter guarantee.

-NSC has vigorously opposed the resolution of the Tenth Civil Judge allowing the filing of a counter guarantee through the filing of a revocation remedy. To date, such appeal remedy has not been resolved.

-Further, on April 12, 2019, the Tenth Civil Judge ruled that the request for arbitration filed on November 7, 2018 was not applicable under Mexican law.

d) Amparo filed by NSC against the resolution rejecting submission to arbitration.

On May 17, 2019, NSC filed an amparo claim against the April 12, 2019 ruling. Such amparo claim was resolved on October 31, 2019, ordering the Tenth Civil Judge to issue a new resolution on the request to submit the claim to arbitration. EWG filed an appeal remedy opposing such order for the issuance of a new resolution, and such remedy has not yet been resolved. However, NSC has filed pleadings to uphold the order for the issuance of a new resolution challenged by EWG.

In any event, the order for the Tenth Civil Judge to issue a new resolution on the request to submit the claim to arbitration does not necessarily imply that the Tenth Civil Judge shall rule to move to arbitration. However, if the new resolution is unfavorable for NSC, NSC is prepared to vigorously oppose such resolution.

e) Administrative cancellation of registrations before the Public Registry of Property.

Despite the posting of the previously mentioned 1,000,000 Mexican pesos guarantee in February 26, 2019 to release the preliminary relief sought by EWG within the ordinary mercantile claim, the Tenth Civil Judge failed to make her resolution effective, which would thereby rescind the previously mentioned preliminary relief granted to EWG. Consequently, on June 19, 2019 (i.e. before obtaining a resolution revoking the preliminary relief as mentioned previously), NSC filed before the Public Registry of Property of Baja California a cancellation request for the provisional lien and the preventive annotation recorded against NSC’s property in the public real estate records. On June 24, 2019, the Public Registry of Property of Baja California issued an encumbrances cancellation resolution, approving the release of the provisional lien and the preventive annotation recorded against NSC’s property in the public real estate records. Such encumbrances cancellation resolution was registered before the Public Registry of Property of Playas de Rosarito on June 25, 2019. On June 26, 2019, the Public Registry of Property of Playas de Rosarito issued a certificate of no liens with respect to the real estate owned by NSC.

f) Amparo filed by EWG against the administrative cancellation of registrations before the Public Registry of Property.

In November 2019, NSC learned that EWG had filed an amparo claim before the Third District Court in Tijuana against such encumbrances cancellation resolution, and in December 2019, NSC responded to such procedure to vigorously oppose the claim of EWG. Thereafter, NSC submitted a motion to dismiss, based on the resolution of the appeal remedy revoking the preliminary relief, previously mentioned in item (ii). The Court resolved in favor of such motion to dismiss. However, EWG may file an appeal remedy against such resolution.

-On June 27, 2019, the Tenth Civil Judge acknowledged the posting, by EWG, of a bond policy as the counter guarantee allowed pursuant to the Tenth Civil Judge’s ruling on April 26, 2019. NSC plans to vigorously oppose the filing of such bond policy upon continuation of the proceedings, following the suspension granted as a result of the filing of the appeal remedy previously mentioned in item (ii).

-CW-Cooperatief has not been officially served with the ordinary mercantile claim, and AdR has not been notified that it has to appear for such trial. In any event, AdR is only a named third party called to trial in this claim, and no claims have been made by EWG against AdR.

The Company cannot presently determine what impact the resolution of the claim may ultimately have on its ability to complete the Project.

Intangible assets

12 Months Ended

Dec. 31, 2019

Intangible assets

Intangible assets

11. Intangible assets

In February 2016, the Company purchased a 51% ownership interest in Aerex Industries, Inc. The purchase transaction identified certain intangible assets with a fair value of $5,900,000 and useful lives as follows: Non-Compete (5 years), Trade name (15 years), Certifications/programs (3 years), Customer backlog (1 year), and Customer relationships (4 years).

In October 2019, the Company purchased a 51% ownership interest in PERC Water Corporation. The purchase transaction identified certain intangible assets with a fair value of $3,990,000 and useful lives as follows: Non-Compete (3 years), Trade name (15 years), Customer backlog (2 years), and Facility management contracts (6 years).

The costs and accumulated amortization for these assets were as follows:


	December 31,
	2019		2018
Cost
Non-compete agreements	$	530,000	$	400,000
Trade names		2,700,000		1,400,000
Certifications/programs		2,000,000		2,000,000
Customer backlogs		460,000		100,000
Customer relationships		2,000,000		2,000,000
Facility management contracts		2,200,000		—
		9,890,000		5,900,000
Accumulated amortization
Non-compete agreements		(320,556)		(233,333)
Trade names		(380,000)		(272,222)
Certifications/programs		(2,000,000)		(1,944,444)
Customer backlogs		(130,000)		(100,000)
Customer relationships		(1,958,333)		(1,458,334)
Facility management contracts		(61,111)		—
		(4,850,000)		(4,008,333)
Intangible assets, net	$	5,040,000	$	1,891,667

Amortization of intangible assets for each of the next five years and thereafter is expected to be as follows:


2020	$	891,667
2021		746,667
2022		582,778
2023		546,667
2024		546,667
Thereafter		1,725,554
	$	5,040,000

Amortization expense was $841,667 and $1,340,000 for the years ended December 31, 2019 and 2018, respectively.

Leases

12 Months Ended

Dec. 31, 2019

Leases

Leases

12. Leases

As of January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right-of-use ("ROU") asset and lease liability for all leases. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. The Company implemented this new accounting standard using the modified retrospective method for its existing leases, which did not cause any adjustments to prior year financial statements.

The Company elected the package of transition practical expedients available for existing contracts, which allowed it to carry forward its historical assessments of whether contracts are or contain leases, lease classification and determination of initial direct costs. These leases contain both lease and non-lease components, which the Company has elected to treat as a single lease component. The Company elected not to recognize leases that have an original lease term, including reasonably certain renewal or purchase obligations, of twelve months or less in its consolidated balance sheets for all classes of underlying assets. Lease costs for such short-term leases are recognized on a straight-line basis in net income over the lease term.

The Company leases property and equipment under operating leases, primarily land, office and warehouse locations. For leases with terms greater than twelve months, the related asset and obligation are recorded at the present value of lease payments over the term. Many of these leases contain rental escalation clauses which are factored into the determination of lease payments when appropriate. When available, the lease payments are discounted using the rate implicit in the lease; however, the current leases entered into do not provide a readily determinable implicit rate. Therefore, the Company’s incremental borrowing rate is estimated to discount the lease payments based on information available at lease commencement.

The land used by the Company to operate its seawater desalination plants in the Cayman Islands and The Bahamas are owned by the Company or leased to the Company for immaterial annual amounts and are not included in the lease amounts presented on the consolidated balance sheets.

AdR has entered into a lease for land to be used in the Project with an initial effective term of 20-years from the date of full operation of the Rosarito seawater desalination plant. The amounts due on this lease are payable in Mexican pesos at an amount that is currently equivalent to approximately $30,000 every two months. The lease is cancellable by AdR should it ultimately not proceed with the project. All lease assets denominated in a foreign currency are measured using the exchange rate at commencement of the lease or the adoption of ASU 2016-02, whichever is later. All lease liabilities denominated in a foreign currency are remeasured using the exchange rate as of December 31, 2019.

Effective May 1, 2019, the Company executed a new lease for its office located in the Cayman Islands under similar terms compared to the prior lease. This new lease expires April 30, 2024.

Lease assets and liabilities

The following table presents the lease-related assets and liabilities and their respective location on the consolidated balance sheets:


	December 31, 2019
ASSETS
Current
Prepaid expenses and other current assets	$	36,097
Noncurrent
Operating lease right-of-use assets		4,439,212
Total lease right-of-use assets	$	4,475,309


LIABILITIES
Current
Current maturities of operating leases	$	755,751
Noncurrent
Noncurrent operating leases		3,836,475
Total lease liabilities	$	4,592,226

Weighted average remaining lease term:
Operating leases		17.8 years

Weighted average discount rate:
Operating leases		4.59%

The components of lease cost were as follows:


	Year Ended
	December 31, 2019
Operating lease costs	$	797,403
Short-term lease costs		16,469
Total lease costs	$	813,872

Total rental expense for the year ended December 31, 2018 was $870,833 and is included within general and administrative expenses in the accompanying consolidated statement of income.

Supplemental cash flow information related to leases is as follows:


	Year Ended
	December 31, 2019
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$	968,005

Future lease payments relating to the Company's operating lease liabilities as of December 31, 2019 were as follows:


Years ending December 31,	Total
2020	$	949,603
2021		632,754
2022		525,579
2023		532,809
2024		313,176
Thereafter		3,602,600
Total future lease payments		6,556,521
Less: Imputed interest		(1,964,295)
Total lease obligations		4,592,226
Less: Current obligations		(755,751)
Noncurrent lease obligations	$	3,836,475

Discontinued operations

12 Months Ended

Dec. 31, 2019

Discontinued operations

Discontinued operations

13. Discontinued operations

During the quarter ended September 30, 2018, the Company signed a non-binding Memorandum of Understanding (“MOU”) with Belize Water Services Ltd. (“BWSL”) with respect to the potential sale of its wholly owned subsidiary, Consolidated Water (Belize) Limited (“CW-Belize”), to BWSL. The Company was not otherwise considering a sale of CW-Belize, so as an incentive for the Company to consider this proposed transaction, BWSL promised in the MOU to facilitate both the conversion from Belize dollars to U.S. dollars and the subsequent repatriation of all cash balances CW-Belize had on deposit in Belize. Transfers of funds held by CW-Belize to its parent company, which were accomplished by means of conversion of Belize dollars into U.S. dollars, required the approval of the Central Bank of Belize and were dependent on the amount of U.S. dollars available to Belize banks to execute such transfers. Weakness in the Belize economy and other factors have reduced the amount of U.S. dollars that Belize banks have available for transfer, which limited for most of 2018 and in prior years the amount of funds the Company was able to transfer from CW-Belize. Repatriations of funds from CW-Belize to its parent company amounted to $458,000 and $400,000 for the years ended December 31, 2017 and 2016, respectively, significantly less than the net income and net cash flows CW-Belize generated for those years. With BWSL’s assistance, the Company was able to repatriate approximately $2.75 million in cash from Belize to its bank accounts in the Cayman Islands during the three months ended September 30, 2018 and an additional $1.0 million during the fourth quarter of 2018.

In late December 2018, the Company’s Board of Directors formally approved the sale of CW-Belize to BWSL, and the Company repatriated an additional $1.1 million from CW-Belize during the first week of 2019.

On February 14, 2019, the Company closed the transaction and completed the sale of CW-Belize to BWSL effective January 1, 2019. After adjustments, the final price for CW-Belize was approximately $7.0 million. Pursuant to the sale and purchase agreement, BWSL initially paid the Company $6.735 million of the purchase price and approximately $265,000 was withheld to cover indemnification obligations of the Company under the agreement. The remaining $265,000 of the purchase price was paid by BWSL in August 2019.

Summarized financial information for CW-Belize is as follows:


	December 31,
	2019		2018
Current assets	$	—	$	1,959,494
Property, plant and equipment, net		—		725,930
Inventory, non-current		—		356,854
Goodwill		—		379,651
Intangible assets		—		467,575
Other assets		—		14,023
Total assets of discontinued operations	$	—	$	3,903,527

Total liabilities of discontinued operations	$	—	$	646,452


	Year Ended
	December 31,
	2019		2018
Revenues	$	—	$	3,127,767
Income from operations		—		1,154,897
Net Income		—		1,115,825
Gain on sale of discontinued operations		3,621,170		—
Depreciation		—		115,363

Income taxes

12 Months Ended

Dec. 31, 2019

Income taxes

Income taxes

14. Income taxes

The components of income before income taxes for the years ended December 31, 2019 and 2018 are as follows:


	Year Ended December 31,
	2019		2018
Foreign (not subject to income taxes)	$	13,593,497	$	15,100,642
Mexico		(2,458,210)		(3,115,656)
United States		2,657,405		(153,003)
		13,792,692		11,831,983
Less gain on sale of discontinued operations		(3,621,170)		—
Less discontinued operations		—		(1,115,825)
	$	10,171,522	$	10,716,158

The Company’s provision for (benefit from) income taxes for the years ended December 31, 2019 and 2018, which related to U.S. operations, consisted of the following:


	Year Ended December 31,
	2019		2018
Current:
Federal	$	143,567	$	100,806
State		171,093		106,922
Foreign		—		—
Total		314,660		207,728
Deferred:
Federal		(203,031)		(302,440)
State		(45,008)		(62,579)
Foreign		—		—
Total		(248,039)		(365,019)
Total provision	$	66,621	$	(157,291)

A reconciliation of the U.S. statutory federal tax rate to the effective benefit rate for the U.S. loss before income taxes for the years ended December 31, 2019 and 2018 is as follows:


	Year Ended December 31,
	2019		2018
U.S. statutory federal rate	21.00	%	21.00	%
State taxes, net of federal effect	4.38	%	4.22	%
Nontaxable foreign income	(30.09)	%	(38.26)	%
Research & development tax credit	(3.46)	%	(2.27)	%
Permanent items	(0.79)	%	1.26	%
Valuation allowance for deferred tax assets	9.45	%	12.72	%
	0.49	%	(1.33)	%

The tax effects of significant items comprising the Company’s net long-term deferred tax liability as of December 31, 2019 and 2018 were as follows:


	December 31,
	2019		2018
Deferred tax assets:
Operating loss carryforwards - Mexico	$	3,427,295	$	3,020,049
Land basis difference - Mexico		1,164,365		999,719
Start-up costs - Mexico		4,608,990		3,856,942
Research & development tax credits - U.S.		166,653		—
Valuation allowances		(9,244,550)		(7,876,710)
		122,753		—
Deferred tax liabilities:
Property and equipment - U.S.		148,707		180,431
Intangible assets - U.S.		1,380,328		479,443
		1,529,035		659,874

Net deferred tax liability	$	1,406,282	$	659,874

As of December 31, 2019, the Company had a net loss carryforward related to its Mexico operations of approximately $11.4 million that will begin to expire in 2020 if unused. The deferred tax asset is included in the consolidated balance sheet as prepaid expenses and other current assets as of December 31, 2019.

Earnings per share

12 Months Ended

Dec. 31, 2019

Earnings per share

Earnings per share

15. Earnings per share

Earnings per share (“EPS”) are computed on a basic and diluted basis. Basic EPS is computed by dividing net income (less preferred stock dividends) available to common stockholders by the weighted average number of common shares outstanding during the period. The computation of diluted EPS assumes the issuance of common shares for all potential common shares outstanding during the reporting period and, if dilutive, the effect of stock options as computed under the treasury stock method.

The following summarizes information related to the computation of basic and diluted EPS:


	Year Ended December 31,
	2019		2018
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders	$	8,554,923	$	10,177,662
Less: preferred stock dividends		(11,937)		(12,356)
Net income from continuing operations available to common shares in the determination of basic earnings per common share		8,542,986		10,165,306
Total income from discontinued operations		3,621,170		1,115,825
Net income available to common shares in the determination of basic earnings per common share	$	12,164,156	$	11,281,131

Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		15,025,639		14,962,760
Plus:
Weighted average number of preferred shares outstanding during the period		33,983		35,125
Potential dilutive effect of unexercised options and unvested stock grants		77,454		76,262
Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		15,137,076		15,074,147

Dividends

12 Months Ended

Dec. 31, 2019

Dividends

Dividends

16. Dividends

Interim dividends declared on Class A common stock and redeemable preferred stock for each quarter of the respective years ended December 31, 2019 and 2018 were as follows:


	2019		2018
First Quarter	$	0.085	$	0.085
Second Quarter		0.085		0.085
Third Quarter		0.085		0.085
Fourth Quarter		0.085		0.085
	$	0.34	$	0.34

Segment information

12 Months Ended

Dec. 31, 2019

Segment information

Segment information

17. Segment information

The Company has four reportable segments: retail, bulk, services and manufacturing. The retail segment operates the water utility for the Seven Mile Beach and West Bay areas of Grand Cayman Island pursuant to an exclusive license granted by the Cayman Islands government. The bulk segment supplies potable water to government utilities in Grand Cayman and The Bahamas under long-term contracts. The services segment designs, constructs and sells water infrastructure and provides management and operating services to third parties. The manufacturing segment manufactures and services a wide range of custom and specialized water-related products applicable to commercial, municipal and industrial water production, supply and treatment. Consistent with prior periods, the Company records all non-direct general and administrative expenses in its retail business segment and does not allocate any of these non-direct expenses to its other three business segments.

The accounting policies of the segments are consistent with those described in Note 2. The Company evaluates each segment’s performance based upon its income from operations. All intercompany transactions are eliminated for segment presentation purposes.

The Company’s segments are strategic business units that are managed separately because each segment sells different products and/or services, serves customers with distinctly different needs and generates different gross profit margins.


	Year Ended December 31, 2019
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	26,456,022	$	26,986,108	$	1,759,446	$	13,592,075	$	68,793,651
Cost of revenue		11,611,165		18,606,805		1,215,193		9,086,140		40,519,303
Gross profit		14,844,857		8,379,303		544,253		4,505,935		28,274,348
General and administrative expenses		13,422,821		1,238,296		2,740,219		1,947,622		19,348,958
Gain on asset dispositions and impairments, net		398,041		47,000		—		—		445,041
Income (loss) from operations	$	1,820,077	$	7,188,007	$	(2,195,966)	$	2,558,313		9,370,431
Other income, net										801,091
Income before income taxes										10,171,522
Provision for income taxes										66,621
Net income from continuing operations										10,104,901
Income from continuing operations attributable to non-controlling interests										1,549,978
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										8,554,923
Net income from discontinued operations										3,621,170
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	12,176,093

Depreciation and amortization expenses for the year ended December 31, 2019 for the retail, bulk, services and manufacturing segments were $2,364,994, $3,795,320, $125,306 and $922,027, respectively.


	As of December 31, 2019
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	2,891,165	$	18,883,493	$	954,149	$	500,882	$	23,229,689
Property, plant and equipment, net	$	29,177,718	$	30,281,647	$	168,585	$	1,621,029	$	61,248,979
Construction in progress	$	396,214	$	869,792	$	—	$	69,591	$	1,335,597
Intangibles, net	$	—	$	—	$	3,877,222	$	1,162,778	$	5,040,000
Goodwill	$	1,170,511	$	1,948,875	$	5,320,416	$	4,885,211	$	13,325,013
Land and rights of way held for development	$	—	$	—	$	24,162,523	$	—	$	24,162,523
Total segment assets	$	65,554,640	$	69,423,770	$	42,459,177	$	14,854,557	$	192,292,144


	Year Ended December 31, 2018
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	25,621,048	$	31,031,287	$	1,811,372	$	7,256,150	$	65,719,857
Cost of revenue		11,011,456		21,551,383		1,503,034		4,911,697		38,977,570
Gross profit		14,609,592		9,479,904		308,338		2,344,453		26,742,287
General and administrative expenses		12,029,646		1,301,042		2,889,703		2,489,028		18,709,419
(Loss) on asset dispositions and impairments, net		(12,263)		—		(41,180)		(3,331)		(56,774)
Income (loss) from operations	$	2,567,683	$	8,178,862	$	(2,622,545)	$	(147,906)		7,976,094
Other income, net										2,740,064
Income before income taxes										10,716,158
Benefit from income taxes										(157,291)
Net income from continuing operations										10,873,449
Income from continuing operations attributable to non-controlling interests										695,787
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										10,177,662
Net income from discontinued operations										1,115,825
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	11,293,487

Depreciation and amortization expenses for the year ended December 31, 2018 for the retail, bulk, services and manufacturing segments were $2,019,462, $3,387,592, $28,386 and $1,598,794, respectively.


	As of December 31, 2018
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	2,947,193	$	18,480,589	$	46,960	$	987,475	$	22,462,217
Property, plant and equipment, net	$	24,435,501	$	32,820,908	$	14,772	$	1,609,637	$	58,880,818
Construction in progress	$	5,437,093	$	574,659	$	3,291	$	—	$	6,015,043
Intangibles, net	$	—	$	—	$	—	$	1,891,667	$	1,891,667
Goodwill	$	1,170,511	$	1,948,875	$	—	$	4,885,211	$	8,004,597
Land and rights of way held for development	$	—	$	—	$	24,161,024	$	—	$	24,161,024
Total segment assets	$	61,210,879	$	67,740,088	$	27,406,983	$	12,254,121	$	168,612,071
Assets of discontinued operations									$	3,903,527
Total assets									$	172,515,598

Revenues earned by major geographic region were:


	Year ended December 31,
	2019		2018
Cayman Islands	$	30,327,139	$	34,623,925
Bahamas		23,114,860		23,241,361
Indonesia		131		153,233
United States		14,968,868		7,256,150
Revenues earned from management services agreement with OC-BVI		382,653		445,188
	$	68,793,651	$	65,719,857

Revenues earned from major customers were:


	Year ended December 31,
	2019			2018
Revenue earned from the Water and Sewerage Corporation ("WSC")	$	22,877,741		$	22,956,878
Percentage of consolidated revenue earned from the WSC		33	%		35	%
Revenue earned from the Water Authority - Cayman ("WAC")	$	3,871,248		$	7,789,926
Percentage of consolidated revenue earned from the WAC		6	%		12	%
Revenue earned from one manufacturing segment customer	$	9,238,476		$	5,008,473
Percentage of consolidated revenue earned from the one manufacturing segment customer		13	%		8	%

Property, plant and equipment, net by major geographic region were:


	December 31,
	2019		2018
Cayman Islands	$	29,059,294	$	24,340,063
The Bahamas		30,245,741		32,738,531
United States		1,933,717		1,787,450
All other countries		10,227		14,774
	$	61,248,979	$	58,880,818

Cost of revenues and general and administrative expenses

12 Months Ended

Dec. 31, 2019

Cost of revenues and general and administrative expenses

Cost of revenues and general and administrative expenses

18. Cost of revenues and general and administrative expenses


	Year Ended December 31,
	2019		2018
Cost of revenues consist of:
Electricity	$	7,438,218	$	11,087,214
Depreciation		6,046,810		5,328,091
Fuel oil		5,315,676		5,434,995
Employee costs		6,597,755		5,127,831
Cost of plant sales		—		1,059,520
Maintenance		2,076,501		2,481,095
Retail license royalties		1,701,724		1,687,010
Insurance		1,279,997		996,563
Materials		6,151,064		3,102,533
Other		3,911,558		2,672,718
	$	40,519,303	$	38,977,570

	Year Ended December 31,
	2019		2018
General and administrative expenses consist of:
Employee costs	$	9,335,247	$	8,400,729
Insurance		866,457		751,541
Professional fees		1,178,621		1,250,634
Directors’ fees and expenses		969,279		845,891
Depreciation		139,817		186,790
NSC project expenses		2,343,249		2,855,827
Amortization of intangible assets		841,667		1,340,000
Other		3,674,621		3,078,007
	$	19,348,958	$	18,709,419

Stock-based compensation

12 Months Ended

Dec. 31, 2019

Stock-based compensation

Stock-based compensation

19. Stock-based compensation

The Company has the following stock compensation plans that form part of its employees’ and Directors’ remuneration:

Employee Share Incentive Plan (Preferred Stock)

Employees (i.e. other than Directors and Officers), after four consecutive years of employment, become eligible to receive shares of the Company’s preferred stock for $nil consideration under its Employee Share Incentive Plan. Once an individual becomes eligible, these shares of preferred stock are awarded each subsequent year of the individual's employment (the grant date) for as long as the individual remains employed with the Company. If these employees remain with the Company through the fourth anniversary of a grant date, the preferred stock can be converted into shares of the Company’s common stock on a one for one basis. In addition, at the time the preferred stock is granted, the employees receive options to purchase an equal number of shares of preferred stock at a discount to the average trading price of the Company’s common stock for the first seven days of the October immediately preceding the date of the preferred stock grant. If these options are exercised, the shares of preferred stock obtained may also be converted to shares of common stock if the employee remains with the Company through the fourth anniversary of a grant (or option exercise) date. Each employee’s option to purchase shares of preferred stock must be exercised within 30 days of the grant date, which is the 90th day after the date of the independent registered public accountants’ audit opinion on the Company’s consolidated financial statements. Shares of preferred stock not subsequently converted to shares of common stock are redeemable only at the discretion of the Company. Shares of preferred stock granted under this plan during the years ended December 31, 2019 and 2018 totaled 7,293 and 7,409, respectively, and an equal number of preferred stock options was granted in each of these years.

Employee Share Option Plan (Common Stock Options)

The Company has an employee stock option plan for certain long-serving employees of the Company. Under the plan, these employees are granted in each calendar year, as long as the employee is a participant in the Employee Share Incentive Plan, options to purchase common shares. The price at which the option may be exercised will be the closing market price on the grant date, which is the 40th day after the date of the Company’s Annual Shareholder Meeting. The number of options each employee is granted is equal to five times the sum of (i) the number of shares of preferred stock that employee receives for $nil consideration and (ii) the number of preferred stock options that employee exercises in that given year. Options may be exercised during the period commencing on the fourth anniversary of the grant date and ending on the thirtieth day after the fourth anniversary of the grant date. Options granted under this plan during the years ended December 31, 2019 and 2018 totaled 2,575 and 2,750, respectively.

The fair value of each option award is estimated on the date of grant using a Black-Scholes option-pricing model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding. The Company uses historical data to estimate stock option exercises and forfeitures within its valuation model. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

2008 Equity Incentive Plan

On May 14, 2008, the Company’s stockholders approved the 2008 Equity Incentive Plan (the “2008 Plan”) and reserved 1,500,000 shares of the Company’s Class A common shares for issuance under this plan. All Directors, executives and key employees of the Company or its affiliates are eligible for participation in the 2008 Plan which provides for the issuance of options, restricted stock and stock equivalents at the discretion of the Board.

Non-Executive Directors’ Share Plan

This stock grant plan provides part of Directors’ remuneration. Under this plan, non-Executive Directors receive a combination of cash and common stock for their participation in Board meetings. The number of shares of common stock granted is calculated based upon the market price of the Company’s common stock on October 1 of the year preceding the grant. Common stock granted under this plan during the years ended December 31, 2019 and 2018 totaled 22,034 and 18,242 shares, respectively. The Company recognized stock-based compensation for these share grants of $322,036 and $236,691 for the years ended December 31, 2019 and 2018, respectively.

The Company measures and recognizes compensation expense at fair value for all share-based payments, including stock options. Stock-based compensation for the Employee Share Incentive Plan, Employee Share Option Plan and the 2008 Equity Incentive Plan totaled $142,632 and $137,191 for the years ended December 31, 2019 and 2018, respectively, and is included in general and administrative expenses in the accompanying consolidated statements of income.

The significant weighted average assumptions for the years ended December 31, 2019 and 2018 were as follows:


	2019		2018
Risk free interest rate	2.11	%	2.05	%
Expected option life (years)	1.1		1.2
Expected volatility	34.59	%	25.10	%
Expected dividend yield	2.44	%	2.62	%

A summary of the Company’s stock option activity for the year ended December 31, 2019 is as follows:


				Weighted
		Weighted		Average
		Average		Remaining		Aggregate
		Exercise		Contractual		Intrinsic
	Options	Price		Life (Years)		Value (1)
Outstanding at beginning of period	10,830	$	12.69
Granted	9,868		11.19
Exercised	(1,566)		10.10
Forfeited/expired	(8,482)		10.93
Outstanding as of December 31, 2019	10,650	$	13.08	2.04	years	$	34,287
Exercisable as of December 31, 2019	—	$	—	—	years	$	—

(1)

The intrinsic value of a stock option represents the amount by which the fair value of the underlying stock, measured by reference to the closing price of the common shares of $16.30 on the Nasdaq Global Select Market on December 31, 2019, exceeds the exercise price of the option.

As of December 31, 2019, 10,650 non-vested options were outstanding, with weighted average exercise price of $13.08, and average remaining contractual life of 2.04 years. The total remaining unrecognized compensation costs related to unvested stock-based arrangements were $16,715 as of December 31, 2019 and are expected to be recognized over a weighted average period of 2.04 years.

As of December 31, 2019, unrecognized compensation costs relating to redeemable preferred stock rights outstanding were $153,481 and are expected to be recognized over a weighted average period of 1.15 years.

The following table summarizes the weighted average fair value of options at the date of grant and the intrinsic value of options exercised during the years ended December 31, 2019 and 2018:


	2019		2018
Options granted with an exercise price below market price on the date of grant:
Employees — preferred stock	$	3.73	$	3.27
Overall weighted average		3.73		3.27

Options granted with an exercise price at market price on the date of grant:
Management employees	$	—	$	—
Employees — common stock		3.23		3.19
Overall weighted average		3.23		3.19

Options granted with an exercise price above market price on the date of grant:
Management employees	$	—	$	—
Employees — preferred stock		—		—
Overall weighted average		—		—

Total intrinsic value of options exercised	$	5,857	$	4,379

Executive Long-Term Incentive Compensation

The Board of Directors approved changes to the long-term incentive compensation for the Company’s Executive Officers effective for 2015 and thereafter to better align the interests of its Executive Officers with those of its shareholders. The revised long-term compensation plan includes a combination of performance and non-performance-based grants of common stock from the shares of Company stock provided for issuance under the 2008 Equity Incentive Plan.

The non-performance-based stock grants vest in one-third increments at the end of each year over a three-year period. Non-performance-based stock grants under this plan totaled 28,891 and 26,864 for the years ended December 31, 2019 and 2018, respectively and the shares associated with these grants were issued in 2020 and 2019, respectively. The Company recognized $337,032 and $317,991 in stock-based compensation expense related to these non-performance stock grants for the years ended December 31, 2019 and 2018, respectively.

The performance-based grants may be earned at the end of each year based upon the Company's three-year cumulative financial performance relative to three-year cumulative financial performance targets.

A total of 35,993 common stock grants were earned as of December 31, 2019 based upon the Company’s actual financial performance relative to the cumulative financial performance targets for the three-year period ended December 31, 2019, and the Company recognized $390,524 in stock-based compensation for the year ended December 31, 2019 related to these grants.

The shares associated with these grants will be issued in 2020. A total of 10,574 common stock grants were earned as of December 31, 2018 based upon the Company’s actual financial performance relative to the cumulative financial performance targets for the three-year period ended December 31, 2018, and the Company recognized $158,263 in stock-based compensation for the year ended December 31, 2018 related to these grants. The shares associated with these grants were issued in 2019.

Retirement benefits	12 Months Ended
Retirement benefits	Dec. 31, 2019
Retirement benefits
Retirement benefits	20. Retirement benefits Retirement plans are offered to all employees in California, Florida, Cayman Islands and Bahamas. The plans are administered by third parties and are defined contribution plans , pursuant to which the Company matches participating employees’ contributions up to certain amounts. The Company matches contributions of up to 5% of a maximum salary amount of $104,400 for Cayman Islands employees, fully matches all contributions made by employees in the Bahamas, and matches contributions of up to 6% of salary for Florida employees. For California employees the Company matches contribution amounts equal to 2% or less of the employee's salary and matches 25% of contributions above this 2% threshold, up to 10% of the employee’s salary. The Company’s expense for these plans was $450,732 and $408,128 for the years ended December 31, 2019 and 2018, respectively.

Financial instruments

12 Months Ended

Dec. 31, 2019

Financial instruments

Financial instruments

21. Financial instruments

Credit risk:

The Company is not exposed to significant credit risk on its retail customer accounts as its policy is to cease supply of water to customers’ accounts that are more than 45 days overdue. The Company’s exposure to credit risk is concentrated on receivables from its bulk water, services, and manufacturing customers. The Company considers these receivables fully collectible and therefore has not recorded an allowance for these receivables.

Interest rate risk:

The Company is not subject to significant interest-rate risk arising from fluctuations in interest rates.

Foreign exchange risk:

All relevant foreign currencies other than the Mexican peso and the euro have been fixed to the dollar for more than 20 years and as a result, the Company does not employ a hedging strategy against exchange rate risk associated with the reporting in dollars. If any of these fixed exchange rates becomes a floating exchange rate or if any of the foreign currencies in which the Company conducts business depreciate significantly against the dollar, the Company’s consolidated results of operations could be adversely affected.

Fair values:

As of December 31, 2019 and 2018, the carrying amounts of cash equivalents, accounts receivable, accounts payable, accrued expenses, accrued compensation, dividends payable and other current liabilities approximate their fair values due to the short-term maturities of these instruments. Management concluded that the carrying amounts for loans receivable as of December 31, 2018 approximated their fair value as the stated interest rates approximated market rates.

Under US GAAP, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. US GAAP guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes three levels of inputs that may be used to measure fair value:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. The Company reviews its fair value hierarchy classifications on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy.

The following table presents the Company’s fair value hierarchy for assets and liabilities measured at fair value as of December 31, 2019 and 2018:


	December 31, 2019
	Level 1		Level 2		Level 3		Total
Liabilities:
Recurring
Net liability arising from put/call options	$	—	$	—	$	664,000	$	664,000


	December 31, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Recurring
Net asset arising from put/call options	$	—	$	—	$	24,000	$	24,000

The activity for the Level 3 liability for the year ended December 31, 2019:


Net liability arising from put/call options
Balance as of December 31, 2018	$	—
Issuance		(744,000)
Unrealized gain		80,000
Balance as of December 31, 2019	$	(664,000)

The activity for the Level 3 asset for the year ended December 31, 2019:


Net asset arising from put/call options
Balance as of December 31, 2018(1)	$	24,000
Unrealized loss		(24,000)
Balance as of December 31, 2019	$	—

(1)

The net asset arising from the put/call options is included in other assets in the accompanying consolidated balance sheets as of December 31, 2018.

CW-Bali	12 Months Ended
CW-Bali	Dec. 31, 2019
CW-Bali
CW-Bali	22. CW-Bali Through its subsidiary, CW-Bali, the Company built a seawater reverse osmosis desalination plant located in Nusa Dua, one of the primary tourist areas of Bali, Indonesia. CW-Bali’s sales volumes were never sufficient to cover its operating costs and CW-Bali incurred net losses each year since commencing operations in 2013. The Company’s net loss from CW-Bali for the year ended December 31, 2018 was approximately ($218,000). In June 2019, the Company sold its CW-Bali assets and stock for $365,000 and $25,000, respectively. Such sales are included in gain on asset dispositions and impairments, net in the accompanying consolidated statement of income for the year ended December 31, 2019.

Commitments and contingencies	12 Months Ended
Commitments and contingencies	Dec. 31, 2019
Commitments and contingencies
Commitments and contingencies	23. Commitments and contingencies Commitments The Company has entered into employment agreements with certain executives, which expire through December 31, 2022 and provide for, among other things, base annual salaries in an aggregate amount of approximately $5.5 million, performance bonuses and various employee benefits. The Company has purchase obligations totaling approximately $5.5 million through July 31, 2021. Contingencies CW-Bahamas CW-Bahamas’ accounts receivable balances due from the WSC amounted to $18.4 million as of December 31, 2019 and $17.6 million as of December 31, 2018 . Historically, CW-Bahamas has experienced delays in collecting its accounts receivable from the WSC. When these delays occur, the Company holds discussions and meetings with representatives of the WSC and The Bahamas government, and as a result, payment schedules are developed for WSC’s delinquent accounts receivable. All previous delinquent accounts receivable from the WSC were eventually paid in full. Based upon this payment history, CW-Bahamas has never been required to provide an allowance for doubtful accounts for any of its accounts receivable, despite the periodic accumulation of significant delinquent balances. As of December 31, 2019, the Company has not provided an allowance for CW-Bahamas’ accounts receivable from the WSC. If CW-Bahamas continues to be unable to collect a significant portion of its delinquent accounts receivable, one or more of the following events may occur: (i) CW-Bahamas may not have sufficient liquidity to meet its obligations; (ii) the Company may be required to cease the recognition of revenue on CW-Bahamas’ water supply agreements with the WSC; and (iii) the Company may be required to provide an allowance for CW-Bahamas’ accounts receivable. Any of these events could have a material adverse impact on the Company’s results of operations, financial position and cash flows. Cayman Water The Company sells water through its retail operations under a license issued in July 1990 by the Cayman Islands government (the “1990 license”) that granted Cayman Water the exclusive right to provide potable water to customers within its licensed service area. Although the 1990 license was not expressly extended after January 2018, the Company continues to supply water under the terms of the 1990 license, as further discussed in the following paragraph. Pursuant to the 1990 license, Cayman Water has the exclusive right to produce potable water and distribute it by pipeline to its licensed service area, which consists of two of the three most populated areas of Grand Cayman Island: Seven Mile Beach and West Bay. In 2019 and 2018, the Company generated approximately 39% and 39%, respectively, of its consolidated revenue and 53% and 54%, respectively, of its consolidated gross profit from the retail water operations conducted under the 1990 license. The 1990 license was originally scheduled to expire in July 2010 but was extended several times by the Cayman Islands government in order to provide the parties with additional time to negotiate the terms of a new license agreement. The most recent express extension of the 1990 license expired on January 31, 2018. The Company continues to operate under the terms of the 1990 license, providing water services to the level and quality specified in the 1990 license and in accordance with its understanding of its legal obligations, treating those obligations set forth in the 1990 license as operative notwithstanding the expiration of the express extension. The Company continues to pay the royalty required under the 1990 license. In October 2016, the Government of the Cayman Islands passed legislation which created a new utilities regulation and competition office (“OfReg”). OfReg is an independent and accountable regulatory body with a view of protecting the rights of consumers, encouraging affordable utility services and promoting competition. OfReg, which began operations in January 2017, has the ability to supervise, monitor and regulate multiple utility undertakings and markets. Supplemental legislation was passed by the Government of the Cayman Islands in April 2017, which transferred responsibility for economic regulation of the water utility sector and the retail license negotiations from the WAC to OfReg in May 2017. The Company began license negotiations with OfReg in July 2017 and such negotiations are continuing. The Company has been informed during its retail license negotiations, both by OfReg and its predecessor in these negotiations, that the Cayman Islands government seeks to restructure the terms of its license in a manner that could significantly reduce the operating income and cash flows the Company has historically generated from its retail license. The Company is presently unable to determine what impact the resolution of its retail license negotiations will have on its cash flows, financial condition or results of operations but such resolution could result in a material reduction (or the loss) of the operating income and cash flows the Company has historically generated from Cayman Water retail operations and could require the Company to record impairment losses to reduce the carrying values of its retail segment assets. Such impairment losses could have a material adverse impact on the Company’s financial condition and results of operations.

Supplemental disclosure of cash flow information

12 Months Ended

Dec. 31, 2019

Supplemental disclosure of cash flow information

Supplemental disclosure of cash flow information

24. Supplemental disclosure of cash flow information


	Year Ended December 31,
	2019		2018
Interest paid in cash	$	2,814	$	12,534

Non-cash transactions:
Dividends declared but not paid	$	1,282,086	$	1,276,505
Transfers from inventory to property, plant and equipment and construction in progress	$	443,018	$	400,004
Transfers from construction in progress to property, plant and equipment	$	7,755,375	$	14,398,624
Transfers from other assets to construction in progress	$	—	$	2,137,341
Right-of-use assets obtained in exchange for new operating lease liabilities	$	5,148,138	$	—

Impact of recent accounting standards	12 Months Ended
Impact of recent accounting standards	Dec. 31, 2019
Impact of recent accounting standards
Impact of recent accounting standards	25. Impact of recent accounting standards Adoption of New Accounting Standards: In February 2016, the FASB issued ASU 2016‑02, Leases (Topic 842), which amends the guidance relating to the definition of a lease, recognition of lease assets and liabilities on the balance sheet and the related disclosure requirements. In July 2018, the FASB issued ASU 2018‑11, Leases: Targeted Improvements, which amends the new leasing guidance such that entities may elect not to restate their comparative periods in the period of adoption. In January 2018, the FASB issued ASU 2018‑01, Leases (Topic 842), which provides an optional transition practical expedient for the adoption of ASU 2016‑02 that, if elected, would not require an organization to reconsider their accounting for existing land easements that are not currently accounted for under the old leases standard and clarify that new or modified land easements should be evaluated under ASU 2016‑02, once an entity has adopted the new standard. The guidance requires lessees to recognize an asset and liability on the balance sheet for all of their lease obligations. Operating leases were previously not recognized on the balance sheet. ASU 2016‑02 is effective for annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company adopted the standard using the modified retrospective method for its existing leases and the standard created lease assets and lease liabilities on the consolidated balance sheets. On January 1, 2019, the Company elected certain practical expedients and carried forward historical conclusions related to (1) contracts that contain leases, (2) existing lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases. The Company also applied the practical expedient that allows the Company to elect, as an accounting policy, by asset class, to include both lease and non-lease components as a single component and account for it as a lease. The Company applied the short-term lease exception for lessees which allows the Company to not have to apply the recognition requirements of the new leasing guidance for short-term leases and to recognize lease payments in net income on a straight-line basis over the lease term. The Company also applied the practical expedient related to land easements, allowing it to carry forward its accounting treatment for land easements on existing agreements. The adoption of this new lease standard did not have a material impact on the Company’s financial position, results of operations or cash flows. Effect of newly issued but not yet effective accounting standards: None.

Subsequent events	12 Months Ended
Subsequent events	Dec. 31, 2019
Subsequent events
Subsequent events	26. Subsequent events The Company evaluated subsequent events through the time of the filing of its Annual Report on Form 10‑K. As previously reported, in February 2016, the Company, through its wholly-owned subsidiary, CW-Holdings, entered into a stock purchase agreement (the "Purchase Agreement") with Aerex and Thomas Donnick, Jr. ("Donnick"). Pursuant to the terms of the Purchase Agreement, CW-Holdings purchased a 51% ownership interest in Aerex for an aggregate purchase price of approximately $7.7 million. CW-Holdings also acquired from Donnick an option (the "Call Option") to compel Donnick to sell, and granted to Donnick an option to require CW-Holdings to purchase, his 49% ownership interest in Aerex to CW-Holdings at a price based upon the fair market value of Aerex at the time of the exercise of the Call Option. On January 24, 2020, as a result of CW-Holdings' exercise of the Call Option, CW-Holdings purchased from Donnick his remaining 49% ownership interest in Aerex for an aggregate purchase price of $8,500,000. The purchase price was based upon the fair market value of 49% of Aerex as agreed to between CW-Holdings and Donnick. After giving effect to the purchase, CW-Holdings owns 100% of the outstanding capital stock of Aerex. Other than as disclosed in these consolidated financial statements, the Company is not aware of any significant events that occurred subsequent to the balance sheet date but prior to the filing of this report that would have a material impact on its consolidated financial statements.

Accounting policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting policies

Basis of preparation

Basis of preparation: The consolidated financial statements presented are prepared in accordance with the accounting principles generally accepted in the United States of America.

Use of estimates

Use of estimates: The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to estimates and assumptions include the carrying value of property, plant and equipment, intangible assets, goodwill and put/call options. Actual results could differ significantly from such estimates.

Basis of consolidation

Basis of consolidation: The accompanying condensed consolidated financial statements include the accounts of the Company’s (i) wholly-owned subsidiaries, Aquilex, Inc., Cayman Water Company Limited (“Cayman Water”), Ocean Conversion (Cayman) Limited (“OC-Cayman”), DesalCo Limited (“DesalCo”), Consolidated Water Cooperatief, U.A. (“CW-Cooperatief”), Consolidated Water U.S. Holdings, Inc. (“CW-Holdings”); and (ii) majority-owned subsidiaries Consolidated Water (Bahamas) Ltd. (“CW-Bahamas”), Aerex Industries, Inc. (“Aerex”), N.S.C. Agua, S.A. de C.V. (“NSC”), Aguas de Rosarito S.A.P.I. de C.V. (“AdR”), PERC Water Corporation ("PERC") and PT Consolidated Water Bali ("CW-Bali”). The Company’s investment in its affiliate Ocean Conversion (BVI) Ltd. (“OC-BVI”) is accounted for using the equity method of accounting. All significant intercompany balances and transactions have been eliminated in consolidation.

Foreign currency

Foreign currency: The Company’s reporting currency is the United States dollar (“US$”). The functional currency of the Company and its foreign operating subsidiaries (other than NSC, AdR, CW-Cooperatief and CW-Bali) is the currency for each respective country. The functional currency for NSC, AdR, CW-Cooperatief and CW-Bali is the US$. NSC and AdR conduct business in US$ and Mexican pesos, CW-Cooperatief conducts business in US$ and euros, and CW-Bali conducts business in US$ and Indonesian rupiahs. The exchange rates for the Cayman Islands dollar, the Belize dollar and the Bahamian dollar are fixed to the US$. The exchange rates for conversion of Mexican pesos, euros and rupiahs into US$ vary based upon market conditions. Net foreign currency gains arising from transactions and re-measurements were $35,352 and $8,089 for the year ended December 31, 2019 and 2018, respectively, and are included in “Other income (expense) - Other” in the accompanying condensed consolidated statements of income.

Cash and cash equivalents

Cash and cash equivalents: Cash and cash equivalents consist of demand deposits at banks and highly liquid deposits at banks with an original maturity of three months or less. Cash and cash equivalents as of December 31, 2019 and December 31, 2018 include $12.7 million and $8.4 million, respectively, of certificates of deposits with an original maturity of three months or less.

As of December 31, 2019, the Company had deposits in U.S. banks in excess of federally insured limits of approximately $6.5 million. As of December 31, 2019, the Company held cash in foreign bank accounts of approximately $36.0 million.

Certain transfers from the Company’s Bahamas bank accounts to Company bank accounts in other countries require the approval of the Central Bank of The Bahamas. As of December 31, 2019, the equivalent United States dollar cash balances for deposits held in The Bahamas were approximately $7.4 million.

Accounts receivable and allowance for doubtful accounts

Accounts receivable and allowance for doubtful accounts: Accounts receivable are recorded at invoiced amounts based on meter readings or minimum take-or-pay amounts per contractual agreements. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable balance. The Company determines the allowance for doubtful accounts based on historical write-off experience and monthly review of delinquent accounts. Past due balances are reviewed individually for collectability and disconnection. Account balances are charged off against the allowance for doubtful accounts after all means of collection have been exhausted and the potential for recovery is considered by management to be remote.

Inventory

Inventory: Inventory primarily includes consumables stock and spare parts stock that are valued at cost, less an allowance for obsolescence, with cost determined on the first-in, first-out basis. Inventory also includes potable water held in the Company’s reservoirs. The carrying amount of the water inventory is the lower of the average cost of producing water during the year or its net realizable value.

Loans receivable

Loans receivable: Loans receivable relate to notes receivable from customers arising from the construction and sale of water infrastructure. The allowance for loan losses, if any, is the Company’s best estimate of the amount of probable credit losses in the Company’s existing loans and is determined on an individual loan basis.

Costs and estimated earnings in excess of billings

Costs and estimated earnings in excess of billings: Costs and estimated earnings in excess of billings represent revenue recognized in excess of amounts billed on the respective uncompleted construction and manufacturing contracts.

Billings in excess of costs and estimated earnings

Billings in excess of costs and estimated earnings: Billing in excess of costs and estimated earnings represent amounts billed in excess of revenue recognized on the respective uncompleted construction and manufacturing contracts.

Property, plant and equipment, net

Property, plant and equipment, net: Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is calculated using a straight-line method with an allowance for estimated residual values. Rates are determined based on the estimated useful lives of the assets as follows:


Buildings		5 to 40 years
Plant and equipment		4 to 40 years
Distribution system		3 to 40 years
Office furniture, fixtures and equipment		3 to 10 years
Vehicles		3 to 10 years
Leasehold improvements		Shorter of 5 years or lease term
Lab equipment		5 to 10 years

Additions to property, plant and equipment are comprised of the cost of the contracted services, direct labor and materials. Assets under construction are recorded as additions to property, plant and equipment upon completion of the projects. Depreciation commences in the month the asset is placed in service.

Long-lived assets

Long-lived assets: Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or a significant adverse change that would indicate that the carrying amount of an asset or group of assets is not recoverable. For long-lived assets to be held and used, the Company recognizes an impairment loss only if their carrying amounts are not recoverable through their undiscounted cash flows and measures the impairment loss based on the difference between the carrying amounts and estimated fair values.

Goodwill and intangible assets

Goodwill and intangible assets: Goodwill represents the excess cost over the fair value of the assets of an acquired business. Goodwill and intangible assets acquired in a business combination accounted for as a purchase and determined to have an indefinite useful life are not amortized but are tested for impairment at least annually. Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed periodically for impairment. The Company evaluates the possible impairment of goodwill annually as part of its reporting process for the fourth quarter of each fiscal year. Management identifies the Company’s reporting units, which consist of the retail, bulk, and manufacturing business segments, and determines the carrying value of each reporting unit by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units. The Company determines the fair value of each reporting unit and compares the fair value to the carrying amount of the reporting unit. To the extent the carrying amount of the reporting unit exceeds the fair value of the reporting unit, an impairment loss is recorded.

For the years ended December 31, 2019 and 2018, the Company estimated the fair value of its reporting units by applying the discounted cash flow method, the guideline public company method, and the mergers and acquisitions method.

The discounted cash flow method relied upon seven-year discrete projections of operating results, working capital and capital expenditures, along with a terminal value subsequent to the discrete period. These seven-year projections were based upon historical and anticipated future results, general economic and market conditions, and considered the impact of planned business and operational strategies. The discount rates for the calculations represented the estimated cost of capital for market participants at the time of each analysis.

The Company also estimated the fair value of each of its reporting units for the years ended December 31, 2019 and 2018 through reference to the guideline companies and the market multiples implied by guideline merger and acquisition transactions.

The Company weighted the fair values estimated for each of its reporting units under each method and summed such weighted fair values to estimate the overall fair value for each reporting unit. The respective weightings the Company applied to each method as of December 31, 2019 were consistent with those used as of December 31, 2018 and were as follows:


Method	Retail		Bulk		Manufacturing
Discounted cash flow	80	%	80	%	80	%
Guideline public company	10	%	10	%	10	%
Mergers and acquisitions	10	%	10	%	10	%
	100	%	100	%	100	%

The fair values the Company estimated for its retail and bulk reporting units exceeded their carrying amounts by 74% and 58%, respectively, as of December 31, 2019. The assets and liabilities for the Company's services reporting unit (with the exception of investments in land and rights of way related to AdR) consist almost entirely of those for PERC, which was acquired on October 24, 2019, and therefore the Company estimates the fair value of its services reporting units closely approximates its carrying value at December 31, 2019. The Company's manufacturing reporting unit consists entirely of Aerex and the remaining 49% ownership interest of Aerex was purchased on January 24, 2020 for $8,500,000. The Company considered this purchase, the manufacturing reporting unit’s results of operations for the year ended December 31, 2019, its projected results of operations for the year ending December 31, 2020, and the amount by which its estimated fair value exceeded its carrying amount as of December 31, 2018 to determine that it is more likely than not that the fair value of the manufacturing reporting unit exceeded its carrying amount at December 31, 2019. The fair values the Company estimated for its retail, bulk and manufacturing units exceeded their carrying amounts by 79%, 62% and 53%, respectively, as of December 31, 2018.

On February 11, 2016, the Company acquired 51% ownership interest in Aerex. In connection with this acquisition the Company recorded goodwill of $8,035,211. Aerex’s actual results of operations for the six months in 2016 following the acquisition fell significantly short of the projected results for this period that were included in the cash flow projections the Company utilized to determine the purchase price for Aerex and the fair values of its assets and liabilities. Due to this shortfall in Aerex’s results of operations, the Company tested Aerex’s goodwill for possible impairment as of September 30, 2016 by estimating its fair value using the discounted cash flow method. As a result of this impairment testing, the Company determined that the carrying value of the Aerex goodwill exceeded its fair value and recorded an impairment loss of $1,750,000 for the three months ended September 30, 2016, included in loss on long-lived asset dispositions and impairments, net in the accompanying consolidated statements of income, to reduce the carrying value of this goodwill to $6,285,211. As part of the Company’s annual impairment testing of goodwill performed during the fourth quarter, in 2017 the Company updated its projections for Aerex’s future cash flows, determined that the carrying value of the Aerex goodwill exceeded its fair value, and recorded an impairment loss of $1,400,000 for the three months ended December 31, 2017, which is included in loss on long-lived asset dispositions and impairments, net in the accompanying consolidated statements of income, to further reduce the carrying value of the goodwill to $4,885,211. The Company may be required to record additional impairment losses to reduce the carrying value of this goodwill in future periods if the Company determines it likely that Aerex’s results of operations will fall short of its most recent projections of its future cash flows.

In February 2019, the Company sold its former Belize subsidiary (see Note 13). As a result of this sale, this former subsidiary has been accounted for as discontinued operations in the consolidated financial statements, and bulk segment goodwill of approximately $380,000 as of December 31, 2018 associated with this former subsidiary was reclassified to long-term assets of discontinued operations in the consolidated statements of financial condition.

Investments

Investments: Investments where the Company does not exercise significant influence over the operating and financial policies of the investee and holds less than 20% of the voting stock are recorded at cost. The Company uses the equity method of accounting for investments in common stock where the Company holds 20% to 50% of the voting stock of the investee and has significant influence over its operating and financial policies but does not meet the criteria for consolidation. The Company recognizes impairment losses on declines in the fair value of the stock of investees that are other than temporary.

Other assets

Other assets: Under the terms of CW-Bahamas’ contract with the Water and Sewerage Corporation of The Bahamas (“WSC”) to supply water from its Blue Hills desalination plant, CW-Bahamas was required to reduce the amount of water lost by the public water distribution system on New Providence Island, The Bahamas, over a one-year period by 438 million gallons, a requirement CW-Bahamas met during 2007. The Company was solely responsible for the engineering, labor and materials costs incurred to affect the reduction in lost water, which were capitalized and are being amortized on a straight-line basis over the original remaining life of the Blue Hills contract. Such costs are included in other assets and aggregated approximately $3.5 million as of December 31, 2019 and 2018. Accumulated amortization for these costs was approximately $2.4 million and $2.2 million as of December 31, 2019 and 2018, respectively. Amortization expense was $179,353 for the years ended December 31, 2019 and 2018.

Income taxes

Income taxes: The Company accounts for the income taxes arising from the operations of its United States and Mexico subsidiaries under the asset and liability method. Deferred tax assets and liabilities, if any, are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided to the extent any deferred tax asset may not be realized.

The Company is not presently subject to income taxes in the other countries in which it operates.

Revenue recognition

Revenue recognition: Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

The following table presents the Company’s revenue disaggregated by revenue source.


	Year Ended December 31,
	2019		2018
Retail revenue		26,456,022		25,621,048
Bulk revenue		26,986,108		31,031,287
Services revenue		1,759,446		1,811,372
Manufacturing revenue		13,592,075		7,256,150
Total revenue	$	68,793,651	$	65,719,857

Retail revenue

The Company produces and supplies water to end-users, including residential, commercial and governmental customers in the Cayman Islands under an exclusive retail license issued to Cayman Water by the Cayman Islands government to provide water in two of the three most populated and rapidly developing areas on Grand Cayman Island. Customers are billed on a monthly basis based on metered consumption and bills are typically collected within 30 to 35 days after the billing date. Receivables not collected within 45 days subject the customer to disconnection from water service. In 2019 and 2018, bad debts represented less than 1% of the Company’s total retail sales.

The Company recognizes revenue from water sales at the time water is supplied to the customer’s premises. The amount of water supplied is determined and invoiced based upon water meter readings performed at the end of each month. All retail water contracts are month-to-month contracts. The Company has elected the “right to invoice” practical expedient for revenue recognition on its retail water sale contracts and recognizes revenue in the amount to which the Company has a right to invoice.

Bulk revenue

The Company produces and supplies water to government-owned distributors in the Cayman Islands and The Bahamas.

OC-Cayman provides bulk water to the Water Authority-Cayman (“WAC”), a government-owned utility and regulatory agency, under various agreements. The WAC in turn distributes such water to properties in Grand Cayman outside of Cayman Water’s retail license area.

The Company sells bulk water in The Bahamas through its majority-owned subsidiary, CW-Bahamas, to the Water and Sewerage Corporation of The Bahamas (“WSC”), which distributes such water through its own pipeline system to residential, commercial and tourist properties on the Island of New Providence. The Company also sells water to a private resort on Bimini.

The Company has elected the “right to invoice” practical expedient for revenue recognition on its bulk water sale contracts and recognizes revenue in the amount to which the Company has a right to invoice.

Services and Manufacturing revenue

The Company, through Aerex, is a custom and specialty manufacturer of water treatment-related systems and products applicable to commercial, municipal and industrial water production. Substantially all of Aerex’s customers are U.S. companies.

The Company provides design, engineering, management, procurement and construction services for desalination infrastructure through DesalCo, which serves customers in the Cayman Islands, The Bahamas and the British Virgin Islands. The Company also provides design, engineering, construction and management services for water treatment and reuse infrastructure through PERC. All of PERC's customers are companies or governmental entities located in the U.S.

The Company recognizes services and manufacturing construction revenue over time under the input method using costs incurred (which represents work performed) to date relative to total estimated costs at completion to measure progress toward satisfying its performance obligations as such measure best reflects the transfer of control of the promised good to the customer. Contract costs include labor, material and overhead. The Company follows this method since it can make reasonably dependable estimates of the revenue and costs applicable to various stages of a contract. Under this input method, the Company records revenue and recognizes profit or loss as work on the contract progresses. The Company estimates total project costs and profit to be earned on each long-term, fixed price contract prior to commencement of work on the contract and updates these estimates as work on the contract progresses. The cumulative amount of revenue recorded on a contract at a specified point in time is that percentage of total estimated revenue that incurred costs to date comprises of estimated total contract costs. If, as work progresses, the actual contract costs exceed estimates, the profit recognized on revenue from that contract decreases. The Company recognizes the full amount of any estimated loss on a contract at the time the estimates indicate such a loss. Any costs and estimated earnings in excess of billings are classified as current assets. Billings in excess of costs and estimated earnings on uncompleted contracts, if any, are classified as current liabilities.

The Company has elected the “right to invoice” practical expedient for revenue recognition on its management services agreements and recognizes revenue in the amount to which the Company has a right to invoice.

Practical Expedients and Exemptions

The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed.

Comparative amounts

Comparative amounts: Certain amounts presented in the financial statements previously issued for 2018 have been reclassified to conform to the current year’s presentation.

Accounting policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting policies

Schedule of Estimated useful lives

Rates are determined based on the estimated useful lives of the assets as follows:


Buildings		5 to 40 years
Plant and equipment		4 to 40 years
Distribution system		3 to 40 years
Office furniture, fixtures and equipment		3 to 10 years
Vehicles		3 to 10 years
Leasehold improvements		Shorter of 5 years or lease term
Lab equipment		5 to 10 years

Schedule of Estimated fair value of reporting segment

The respective weightings the Company applied to each method as of December 31, 2019 were consistent with those used as of December 31, 2018 and were as follows:


Method	Retail		Bulk		Manufacturing
Discounted cash flow	80	%	80	%	80	%
Guideline public company	10	%	10	%	10	%
Mergers and acquisitions	10	%	10	%	10	%
	100	%	100	%	100	%

Schedule of Disaggregation of revenue

The following table presents the Company’s revenue disaggregated by revenue source.


	Year Ended December 31,
	2019		2018
Retail revenue		26,456,022		25,621,048
Bulk revenue		26,986,108		31,031,287
Services revenue		1,759,446		1,811,372
Manufacturing revenue		13,592,075		7,256,150
Total revenue	$	68,793,651	$	65,719,857

Acquisition of PERC (Tables)

12 Months Ended

Dec. 31, 2019

Acquisition of PERC

Summary of purchase price for PERC


Cash consideration
Purchase price (excluding working capital)	$	4,088,817
Cash acquired		(941,379)
Total cash consideration	$	3,147,438

Summary of estimated fair values of the assets and liabilities assumed at the acquisition date


Financial assets	$	1,371,532
Costs and estimated earnings in excess of billings		20,854
Property, plant and equipment		86,287
Identifiable intangible assets		3,990,000
Deferred tax liability		(1,117,200)
Accounts payable and accrued liabilities		(1,260,722)
Working capital adjustment payable		(23,467)
Deferred revenue		(117,636)
Billings in excess of costs and estimated earnings		(760,992)
Net liability arising from put/call options		(744,000)
Total identifiable net assets		1,444,656
Non-controlling interest in PERC		(3,617,634)
Goodwill		5,320,416
	$	3,147,438

Summary of components of identifiable intangible assets assumed at the acquisition date


	Amount		Useful life
Non-compete agreement	$	130,000	3 years
Trade name		1,300,000	15 years
Customer backlog		360,000	2 years
Facility management contracts		2,200,000	6 years
	$	3,990,000

Summary of results of operations of PERC included in the Company's results of operations


Revenue	$	1,376,793
Gross profit		407,604
Amortization of intangibles, net of tax benefit		(81,200)
Net income		37,924

Summary of pro forma financial information


	December 31,
	2019		2018

Revenue	$	77,615,958	$	76,787,893
Cost of revenue		47,162,564		47,608,703
Gross profit		30,453,394		29,179,190
General and administrative expenses		21,620,106		21,451,898
Gain (loss) on asset dispositions and impairments, net		447,681		(58,434)
Income from operations		9,280,969		7,668,858
Other income (expense), net		805,093		2,749,833
Income before income taxes		10,086,062		10,418,691
Provision for (benefit from) income taxes		72,814		(651,300)
Net income from continuing operations		10,013,248		11,069,991
Income from continuing operations attributable to non-controlling interests		1,505,068		792,092
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders		8,508,180		10,277,899
Gain on sale of discontinued operations		3,621,170		—
Net income from discontinued operations		—		1,115,825
Total income from discontinued operations		3,621,170		1,115,825
Net income attributable to Consolidated Water Co. Ltd. stockholders	$	12,129,350	$	11,393,724

Basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders
Continuing operations	$	0.57	$	0.69
Discontinued operations		0.24		0.07
Basic earnings per share	$	0.81	$	0.76

Diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders
Continuing operations	$	0.56	$	0.68
Discontinued operations		0.24		0.07
Diluted earnings per share	$	0.80	$	0.75

Weighted average number of common shares used in the determination of:
Basic earnings per share		15,025,639		14,962,760
Diluted earnings per share		15,137,076		15,074,147

Cash and cash equivalents (Tables)

12 Months Ended

Dec. 31, 2019

Cash and cash equivalents

Schedule of Cash and cash equivalents

Cash and cash equivalents are not restricted by the terms of the Company’s bank accounts as to withdrawal or use. As of December 31, 2019 and 2018, the equivalent United States dollars are denominated in the following currencies:


	December 31,
	2019		2018
Bank accounts:
United States dollar	$	16,107,831	$	11,797,054
Cayman Islands dollar		6,690,274		5,626,487
Bahamian dollar		6,353,936		3,301,002
Belize dollar		—		1,130,783
Bermudian dollar		3,084		3,370
Mexican peso		384,895		37,313
Indonesian rupiah		—		22,289
		29,540,020		21,918,298

Short term deposits:
United States dollar		11,100,185		8,379,723
Cayman Islands dollar		1,209,954		—
Bahamian dollar		1,052,510		1,039,456
		13,362,649		9,419,179
Total cash and cash equivalents	$	42,902,669	$	31,337,477

Accounts receivable, net (Tables)

12 Months Ended

Dec. 31, 2019

Accounts receivable, net

Schedule of Accounts receivable


	December 31,
	2019		2018
Trade accounts receivable	$	23,138,736	$	22,331,720
Receivable from OC-BVI		10,808		46,600
Other accounts receivable		222,381		242,799
		23,371,925		22,621,119
Allowance for doubtful accounts		(142,236)		(158,902)
Accounts receivable, net	$	23,229,689	$	22,462,217

Schedule of Allowance for doubtful accounts

The activity for the allowance for doubtful accounts consisted of:


	December 31,
	2019		2018
Opening allowance for doubtful accounts	$	158,902	$	158,902
Provision for doubtful accounts		—		—
Accounts written off during the year		(16,666)		—
Ending allowance for doubtful accounts	$	142,236	$	158,902

Inventory (Tables)

12 Months Ended

Dec. 31, 2019

Inventory

Schedule of Inventory


	December 31,
	2019		2018
Water stock	$	33,694	$	36,837
Consumables stock		118,286		106,925
Spare parts stock		7,539,953		6,634,157
Total inventory		7,691,933		6,777,919
Less current portion		3,287,555		2,232,721
Inventory (non-current)	$	4,404,378	$	4,545,198

Contracts in progress (Tables)

12 Months Ended

Dec. 31, 2019

Contracts in progress

Summary of information relative to revenue recognized and amounts billed on contracts in progress

Revenue recognized and amounts billed on contracts in progress are summarized as follows:


	December 31,
	2019		2018
Revenues recognized to date on contracts in process	$	24,041,993	$	6,377,657
Amounts billed to date on contracts in process		(22,980,598)		(5,651,928)
	$	1,061,395	$	725,729

The above net balances are reflected in the accompanying consolidated balance sheet as follows:


	December 31,
	2019		2018
Costs and estimated earnings in excess of billings	$	1,675,781	$	835,669
Billings in excess of costs and estimated earnings		(614,386)		(109,940)
	$	1,061,395	$	725,729

Property, plant and equipment and construction in progress (Tables)

12 Months Ended

Dec. 31, 2019

Property, plant and equipment and construction in progress

Schedule of Property, plant and equipment and construction in progress


	December 31,
	2019		2018
Land	$	3,566,537	$	3,435,361
Buildings		23,176,106		19,829,575
Plant and equipment		64,840,636		61,777,836
Distribution system		36,538,614		36,057,078
Office furniture, fixtures and equipment		3,061,315		3,635,184
Vehicles		1,582,053		1,431,719
Leasehold improvements		272,092		244,221
Lab equipment		14,958		27,795
		133,052,311		126,438,769
Less accumulated depreciation		71,803,332		67,557,951
Property, plant and equipment, net	$	61,248,979	$	58,880,818
Construction in progress	$	1,335,597	$	6,015,043

Investment in OC-BVI (Tables)

12 Months Ended

Dec. 31, 2019

Investment in OC-BVI

Summarized Financial Information of Unconsolidated Equity Method Investment [Table Text Block]

Summarized financial information for OC-BVI is as follows:


	December 31,
	2019		2018
Current assets	$	1,151,398	$	2,286,179
Non-current assets		3,446,198		3,859,310
Total assets	$	4,597,596	$	6,145,489


	December 31,
	2019		2018
Current liabilities	$	156,040	$	132,005
Non-current liabilities		684,450		1,048,950
Total liabilities	$	840,490	$	1,180,955


	Year Ended December 31,
	2019		2018
Revenue	$	3,146,550	$	2,845,211
Cost of revenue		2,156,460		1,348,046
Gross profit		990,090		1,497,165
General and administrative expenses		781,677		707,034
Gain on long-lived asset disposition		1,000		—
Income from operations		209,413		790,131
Other income (expense), net		(32,341)		3,393,271
Net income		177,072		4,183,402
Income attributable to non-controlling interests		74,233		52,275
Net income attributable to controlling interests	$	102,839	$	4,131,127

Schedule of Equity Method Investments

A reconciliation of the beginning and ending balances for the investment in OC-BVI for the year ended December 31, 2019:


Balance as of December 31, 2018	$	2,584,987
Profit-sharing and equity from earnings of OC-BVI		60,965
Distributions received from OC-BVI		(742,350)
Balance as of December 31, 2019	$	1,903,602

Intangible assets (Tables)

12 Months Ended

Dec. 31, 2019

Intangible assets

Schedule of Finite-Lived Intangible Assets


	December 31,
	2019		2018
Cost
Non-compete agreements	$	530,000	$	400,000
Trade names		2,700,000		1,400,000
Certifications/programs		2,000,000		2,000,000
Customer backlogs		460,000		100,000
Customer relationships		2,000,000		2,000,000
Facility management contracts		2,200,000		—
		9,890,000		5,900,000
Accumulated amortization
Non-compete agreements		(320,556)		(233,333)
Trade names		(380,000)		(272,222)
Certifications/programs		(2,000,000)		(1,944,444)
Customer backlogs		(130,000)		(100,000)
Customer relationships		(1,958,333)		(1,458,334)
Facility management contracts		(61,111)		—
		(4,850,000)		(4,008,333)
Intangible assets, net	$	5,040,000	$	1,891,667

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Amortization of intangible assets for each of the next five years and thereafter is expected to be as follows:


2020	$	891,667
2021		746,667
2022		582,778
2023		546,667
2024		546,667
Thereafter		1,725,554
	$	5,040,000

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases

Schedule of lease-related assets and liabilities

The following table presents the lease-related assets and liabilities and their respective location on the consolidated balance sheets:


	December 31, 2019
ASSETS
Current
Prepaid expenses and other current assets	$	36,097
Noncurrent
Operating lease right-of-use assets		4,439,212
Total lease right-of-use assets	$	4,475,309


LIABILITIES
Current
Current maturities of operating leases	$	755,751
Noncurrent
Noncurrent operating leases		3,836,475
Total lease liabilities	$	4,592,226

Weighted average remaining lease term:
Operating leases		17.8 years

Weighted average discount rate:
Operating leases		4.59%

Schedule of Lease, Cost

The components of lease cost were as follows:


	Year Ended
	December 31, 2019
Operating lease costs	$	797,403
Short-term lease costs		16,469
Total lease costs	$	813,872

Schedule of Cash Flow, Supplemental

Supplemental cash flow information related to leases is as follows:


	Year Ended
	December 31, 2019
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$	968,005

Schedule of future lease payments relating to the Company's operating lease liabilities


Years ending December 31,	Total
2020	$	949,603
2021		632,754
2022		525,579
2023		532,809
2024		313,176
Thereafter		3,602,600
Total future lease payments		6,556,521
Less: Imputed interest		(1,964,295)
Total lease obligations		4,592,226
Less: Current obligations		(755,751)
Noncurrent lease obligations	$	3,836,475

Discontinued operations - CW-Belize (Tables)

12 Months Ended

Dec. 31, 2019

Discontinued operations

Schedule of financial information for CW-Belize

Summarized financial information for CW-Belize is as follows:


	December 31,
	2019		2018
Current assets	$	—	$	1,959,494
Property, plant and equipment, net		—		725,930
Inventory, non-current		—		356,854
Goodwill		—		379,651
Intangible assets		—		467,575
Other assets		—		14,023
Total assets of discontinued operations	$	—	$	3,903,527

Total liabilities of discontinued operations	$	—	$	646,452


	Year Ended
	December 31,
	2019		2018
Revenues	$	—	$	3,127,767
Income from operations		—		1,154,897
Net Income		—		1,115,825
Gain on sale of discontinued operations		3,621,170		—
Depreciation		—		115,363

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Income taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income taxes

Schedule of components of income before income taxes

The components of income before income taxes for the years ended December 31, 2019 and 2018 are as follows:


	Year Ended December 31,
	2019		2018
Foreign (not subject to income taxes)	$	13,593,497	$	15,100,642
Mexico		(2,458,210)		(3,115,656)
United States		2,657,405		(153,003)
		13,792,692		11,831,983
Less gain on sale of discontinued operations		(3,621,170)		—
Less discontinued operations		—		(1,115,825)
	$	10,171,522	$	10,716,158

Schedule of provision for income taxes deferred tax benefit relating to U.S. operations

The Company’s provision for (benefit from) income taxes for the years ended December 31, 2019 and 2018, which related to U.S. operations, consisted of the following:


	Year Ended December 31,
	2019		2018
Current:
Federal	$	143,567	$	100,806
State		171,093		106,922
Foreign		—		—
Total		314,660		207,728
Deferred:
Federal		(203,031)		(302,440)
State		(45,008)		(62,579)
Foreign		—		—
Total		(248,039)		(365,019)
Total provision	$	66,621	$	(157,291)

Schedule of reconciliation of federal tax rate to the effective benefit rate

A reconciliation of the U.S. statutory federal tax rate to the effective benefit rate for the U.S. loss before income taxes for the years ended December 31, 2019 and 2018 is as follows:


	Year Ended December 31,
	2019		2018
U.S. statutory federal rate	21.00	%	21.00	%
State taxes, net of federal effect	4.38	%	4.22	%
Nontaxable foreign income	(30.09)	%	(38.26)	%
Research & development tax credit	(3.46)	%	(2.27)	%
Permanent items	(0.79)	%	1.26	%
Valuation allowance for deferred tax assets	9.45	%	12.72	%
	0.49	%	(1.33)	%

Schedule of tax effects of significant items net long-term deferred tax assets liability

The tax effects of significant items comprising the Company’s net long-term deferred tax liability as of December 31, 2019 and 2018 were as follows:


	December 31,
	2019		2018
Deferred tax assets:
Operating loss carryforwards - Mexico	$	3,427,295	$	3,020,049
Land basis difference - Mexico		1,164,365		999,719
Start-up costs - Mexico		4,608,990		3,856,942
Research & development tax credits - U.S.		166,653		—
Valuation allowances		(9,244,550)		(7,876,710)
		122,753		—
Deferred tax liabilities:
Property and equipment - U.S.		148,707		180,431
Intangible assets - U.S.		1,380,328		479,443
		1,529,035		659,874

Net deferred tax liability	$	1,406,282	$	659,874

Earnings per share (Tables)

12 Months Ended

Dec. 31, 2019

Earnings per share

Schedule of computation of basic and diluted EPS


	Year Ended December 31,
	2019		2018
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders	$	8,554,923	$	10,177,662
Less: preferred stock dividends		(11,937)		(12,356)
Net income from continuing operations available to common shares in the determination of basic earnings per common share		8,542,986		10,165,306
Total income from discontinued operations		3,621,170		1,115,825
Net income available to common shares in the determination of basic earnings per common share	$	12,164,156	$	11,281,131

Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		15,025,639		14,962,760
Plus:
Weighted average number of preferred shares outstanding during the period		33,983		35,125
Potential dilutive effect of unexercised options and unvested stock grants		77,454		76,262
Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		15,137,076		15,074,147

Dividends (Tables)

12 Months Ended

Dec. 31, 2019

Dividends

Schedule of dividends


	2019		2018
First Quarter	$	0.085	$	0.085
Second Quarter		0.085		0.085
Third Quarter		0.085		0.085
Fourth Quarter		0.085		0.085
	$	0.34	$	0.34

Segment information (Tables)

12 Months Ended

Dec. 31, 2019

Segment information

Schedule of segment reporting information, by segment


	Year Ended December 31, 2019
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	26,456,022	$	26,986,108	$	1,759,446	$	13,592,075	$	68,793,651
Cost of revenue		11,611,165		18,606,805		1,215,193		9,086,140		40,519,303
Gross profit		14,844,857		8,379,303		544,253		4,505,935		28,274,348
General and administrative expenses		13,422,821		1,238,296		2,740,219		1,947,622		19,348,958
Gain on asset dispositions and impairments, net		398,041		47,000		—		—		445,041
Income (loss) from operations	$	1,820,077	$	7,188,007	$	(2,195,966)	$	2,558,313		9,370,431
Other income, net										801,091
Income before income taxes										10,171,522
Provision for income taxes										66,621
Net income from continuing operations										10,104,901
Income from continuing operations attributable to non-controlling interests										1,549,978
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										8,554,923
Net income from discontinued operations										3,621,170
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	12,176,093

Depreciation and amortization expenses for the year ended December 31, 2019 for the retail, bulk, services and manufacturing segments were $2,364,994, $3,795,320, $125,306 and $922,027, respectively.


	As of December 31, 2019
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	2,891,165	$	18,883,493	$	954,149	$	500,882	$	23,229,689
Property, plant and equipment, net	$	29,177,718	$	30,281,647	$	168,585	$	1,621,029	$	61,248,979
Construction in progress	$	396,214	$	869,792	$	—	$	69,591	$	1,335,597
Intangibles, net	$	—	$	—	$	3,877,222	$	1,162,778	$	5,040,000
Goodwill	$	1,170,511	$	1,948,875	$	5,320,416	$	4,885,211	$	13,325,013
Land and rights of way held for development	$	—	$	—	$	24,162,523	$	—	$	24,162,523
Total segment assets	$	65,554,640	$	69,423,770	$	42,459,177	$	14,854,557	$	192,292,144


	Year Ended December 31, 2018
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	25,621,048	$	31,031,287	$	1,811,372	$	7,256,150	$	65,719,857
Cost of revenue		11,011,456		21,551,383		1,503,034		4,911,697		38,977,570
Gross profit		14,609,592		9,479,904		308,338		2,344,453		26,742,287
General and administrative expenses		12,029,646		1,301,042		2,889,703		2,489,028		18,709,419
(Loss) on asset dispositions and impairments, net		(12,263)		—		(41,180)		(3,331)		(56,774)
Income (loss) from operations	$	2,567,683	$	8,178,862	$	(2,622,545)	$	(147,906)		7,976,094
Other income, net										2,740,064
Income before income taxes										10,716,158
Benefit from income taxes										(157,291)
Net income from continuing operations										10,873,449
Income from continuing operations attributable to non-controlling interests										695,787
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										10,177,662
Net income from discontinued operations										1,115,825
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	11,293,487

Depreciation and amortization expenses for the year ended December 31, 2018 for the retail, bulk, services and manufacturing segments were $2,019,462, $3,387,592, $28,386 and $1,598,794, respectively.


	As of December 31, 2018
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	2,947,193	$	18,480,589	$	46,960	$	987,475	$	22,462,217
Property, plant and equipment, net	$	24,435,501	$	32,820,908	$	14,772	$	1,609,637	$	58,880,818
Construction in progress	$	5,437,093	$	574,659	$	3,291	$	—	$	6,015,043
Intangibles, net	$	—	$	—	$	—	$	1,891,667	$	1,891,667
Goodwill	$	1,170,511	$	1,948,875	$	—	$	4,885,211	$	8,004,597
Land and rights of way held for development	$	—	$	—	$	24,161,024	$	—	$	24,161,024
Total segment assets	$	61,210,879	$	67,740,088	$	27,406,983	$	12,254,121	$	168,612,071
Assets of discontinued operations									$	3,903,527
Total assets									$	172,515,598

Schedule of revenues earned by major geographic region


	Year ended December 31,
	2019		2018
Cayman Islands	$	30,327,139	$	34,623,925
Bahamas		23,114,860		23,241,361
Indonesia		131		153,233
United States		14,968,868		7,256,150
Revenues earned from management services agreement with OC-BVI		382,653		445,188
	$	68,793,651	$	65,719,857

Revenues earned from major customers were:


	Year ended December 31,
	2019			2018
Revenue earned from the Water and Sewerage Corporation ("WSC")	$	22,877,741		$	22,956,878
Percentage of consolidated revenue earned from the WSC		33	%		35	%
Revenue earned from the Water Authority - Cayman ("WAC")	$	3,871,248		$	7,789,926
Percentage of consolidated revenue earned from the WAC		6	%		12	%
Revenue earned from one manufacturing segment customer	$	9,238,476		$	5,008,473
Percentage of consolidated revenue earned from the one manufacturing segment customer		13	%		8	%

Schedule of long-lived assets by geographic areas


	December 31,
	2019		2018
Cayman Islands	$	29,059,294	$	24,340,063
The Bahamas		30,245,741		32,738,531
United States		1,933,717		1,787,450
All other countries		10,227		14,774
	$	61,248,979	$	58,880,818

Cost of revenues and general and administrative expenses (Tables)

12 Months Ended

Dec. 31, 2019

Cost of revenues and general and administrative expenses

Schedule of cost of revenues and general and administrative expenses


	Year Ended December 31,
	2019		2018
Cost of revenues consist of:
Electricity	$	7,438,218	$	11,087,214
Depreciation		6,046,810		5,328,091
Fuel oil		5,315,676		5,434,995
Employee costs		6,597,755		5,127,831
Cost of plant sales		—		1,059,520
Maintenance		2,076,501		2,481,095
Retail license royalties		1,701,724		1,687,010
Insurance		1,279,997		996,563
Materials		6,151,064		3,102,533
Other		3,911,558		2,672,718
	$	40,519,303	$	38,977,570

	Year Ended December 31,
	2019		2018
General and administrative expenses consist of:
Employee costs	$	9,335,247	$	8,400,729
Insurance		866,457		751,541
Professional fees		1,178,621		1,250,634
Directors’ fees and expenses		969,279		845,891
Depreciation		139,817		186,790
NSC project expenses		2,343,249		2,855,827
Amortization of intangible assets		841,667		1,340,000
Other		3,674,621		3,078,007
	$	19,348,958	$	18,709,419

Stock-based compensation (Tables)

12 Months Ended

Dec. 31, 2019

Stock-based compensation

Schedule of significant weighted average assumptions


	2019		2018
Risk free interest rate	2.11	%	2.05	%
Expected option life (years)	1.1		1.2
Expected volatility	34.59	%	25.10	%
Expected dividend yield	2.44	%	2.62	%

Schedule of company's stock option activity

A summary of the Company’s stock option activity for the year ended December 31, 2019 is as follows:


				Weighted
		Weighted		Average
		Average		Remaining		Aggregate
		Exercise		Contractual		Intrinsic
	Options	Price		Life (Years)		Value (1)
Outstanding at beginning of period	10,830	$	12.69
Granted	9,868		11.19
Exercised	(1,566)		10.10
Forfeited/expired	(8,482)		10.93
Outstanding as of December 31, 2019	10,650	$	13.08	2.04	years	$	34,287
Exercisable as of December 31, 2019	—	$	—	—	years	$	—

(1)

The intrinsic value of a stock option represents the amount by which the fair value of the underlying stock, measured by reference to the closing price of the common shares of $16.30 on the Nasdaq Global Select Market on December 31, 2019, exceeds the exercise price of the option.

Schedule of weighted average fair value of options at the date of grant and the intrinsic value


	2019		2018
Options granted with an exercise price below market price on the date of grant:
Employees — preferred stock	$	3.73	$	3.27
Overall weighted average		3.73		3.27

Options granted with an exercise price at market price on the date of grant:
Management employees	$	—	$	—
Employees — common stock		3.23		3.19
Overall weighted average		3.23		3.19

Options granted with an exercise price above market price on the date of grant:
Management employees	$	—	$	—
Employees — preferred stock		—		—
Overall weighted average		—		—

Total intrinsic value of options exercised	$	5,857	$	4,379

Financial instruments (Tables)

12 Months Ended

Dec. 31, 2019

Financial instruments

Schedule of Fair value hierarchy for assets and liabilities

The following table presents the Company’s fair value hierarchy for assets and liabilities measured at fair value as of December 31, 2019 and 2018:


	December 31, 2019
	Level 1		Level 2		Level 3		Total
Liabilities:
Recurring
Net liability arising from put/call options	$	—	$	—	$	664,000	$	664,000


	December 31, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Recurring
Net asset arising from put/call options	$	—	$	—	$	24,000	$	24,000

Schedule of Net liability arising from put/call options

The activity for the Level 3 liability for the year ended December 31, 2019:


Net liability arising from put/call options
Balance as of December 31, 2018	$	—
Issuance		(744,000)
Unrealized gain		80,000
Balance as of December 31, 2019	$	(664,000)

Schedule of Net asset arising from put/call options

The activity for the Level 3 asset for the year ended December 31, 2019:


Net asset arising from put/call options
Balance as of December 31, 2018(1)	$	24,000
Unrealized loss		(24,000)
Balance as of December 31, 2019	$	—

(1)

The net asset arising from the put/call options is included in other assets in the accompanying consolidated balance sheets as of December 31, 2018.

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Supplemental disclosure of cash flow information (Tables)

12 Months Ended

Dec. 31, 2019

Supplemental disclosure of cash flow information

Schedule of Supplemental disclosure of cash flow information


	Year Ended December 31,
	2019		2018
Interest paid in cash	$	2,814	$	12,534

Non-cash transactions:
Dividends declared but not paid	$	1,282,086	$	1,276,505
Transfers from inventory to property, plant and equipment and construction in progress	$	443,018	$	400,004
Transfers from construction in progress to property, plant and equipment	$	7,755,375	$	14,398,624
Transfers from other assets to construction in progress	$	—	$	2,137,341
Right-of-use assets obtained in exchange for new operating lease liabilities	$	5,148,138	$	—

Accounting policies - Property, plant and equipment (Details)	12 Months Ended
	Dec. 31, 2019
Building [Member] \| Maximum [Member]
Property, Plant and Equipment, Useful Life	40 years
Building [Member] \| Minimum [Member]
Property, Plant and Equipment, Useful Life	5 years
Plant And Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment, Useful Life	40 years
Plant And Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment, Useful Life	4 years
Distribution Systems [Member] \| Maximum [Member]
Property, Plant and Equipment, Useful Life	40 years
Distribution Systems [Member] \| Minimum [Member]
Property, Plant and Equipment, Useful Life	3 years
Office furniture, fixtures and equipment [Member] \| Maximum [Member]
Property, Plant and Equipment, Useful Life	10 years
Office furniture, fixtures and equipment [Member] \| Minimum [Member]
Property, Plant and Equipment, Useful Life	3 years
Vehicles [Member] \| Maximum [Member]
Property, Plant and Equipment, Useful Life	10 years
Vehicles [Member] \| Minimum [Member]
Property, Plant and Equipment, Useful Life	3 years
Leasehold Improvements [Member]
Property, Plant and Equipment, Estimated Useful Lives	Shorter of 5 years or lease term
Lab equipment [Member] \| Maximum [Member]
Property, Plant and Equipment, Useful Life	10 years
Lab equipment [Member] \| Minimum [Member]
Property, Plant and Equipment, Useful Life	5 years

Accounting policies - Weighted the fair values estimated (Details)	12 Months Ended
	Dec. 31, 2019
Retail [Member]
Estimated Fair Value Percentage Segment Reporting Information	100.00%
Bulk [Member]
Estimated Fair Value Percentage Segment Reporting Information	100.00%
Manufacturing Units [Member]
Estimated Fair Value Percentage Segment Reporting Information	100.00%
Discounted Cash Flow Method [Member] \| Retail [Member]
Estimated Fair Value Percentage Segment Reporting Information	80.00%
Discounted Cash Flow Method [Member] \| Bulk [Member]
Estimated Fair Value Percentage Segment Reporting Information	80.00%
Discounted Cash Flow Method [Member] \| Manufacturing Units [Member]
Estimated Fair Value Percentage Segment Reporting Information	80.00%
Guideline Public Company Method [Member] \| Retail [Member]
Estimated Fair Value Percentage Segment Reporting Information	10.00%
Guideline Public Company Method [Member] \| Bulk [Member]
Estimated Fair Value Percentage Segment Reporting Information	10.00%
Guideline Public Company Method [Member] \| Manufacturing Units [Member]
Estimated Fair Value Percentage Segment Reporting Information	10.00%
Mergers And Acquisitions Method [Member] \| Retail [Member]
Estimated Fair Value Percentage Segment Reporting Information	10.00%
Mergers And Acquisitions Method [Member] \| Bulk [Member]
Estimated Fair Value Percentage Segment Reporting Information	10.00%
Mergers And Acquisitions Method [Member] \| Manufacturing Units [Member]
Estimated Fair Value Percentage Segment Reporting Information	10.00%

Accounting policies - Disaggregated revenue (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Total Revenue	$ 68,793,651	$ 65,719,857
Retail revenue [Member]
Total Revenue	26,456,022	25,621,048
Bulk revenue [Member]
Total Revenue	26,986,108	31,031,287
Services revenue [Member]
Total Revenue	1,759,446	1,811,372
Manufacturing revenue [Member]
Total Revenue	$ 13,592,075	$ 7,256,150

Accounting policies - Additional Information (Details) gal in Millions		3 Months Ended		12 Months Ended
	Jan. 24, 2020 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2016 USD ($)	Dec. 31, 2019 USD ($) gal	Dec. 31, 2018 USD ($)	Oct. 31, 2019	Oct. 24, 2019 USD ($)	Feb. 11, 2016 USD ($)
Foreign Currency Transaction Gain (Loss), before Tax [Abstract]
Foreign Currency Transaction Gain (Loss), before Tax				$ 35,352	$ 8,089
Cash, Uninsured Amount				6,500,000
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Goodwill				13,325,013	8,004,597
Disposal Group, Including Discontinued Operation, Goodwill, Noncurrent				$ 0	379,651
Equity Method Investment, Additional Information				The Company uses the equity method of accounting for investments in common stock where the Company holds 20% to 50% of the voting stock of the investee and has significant influence over its operating and financial policies but does not meet the criteria for consolidation.
Criteria for recognising investment at cost				Investments where the Company does not exercise significant influence over the operating and financial policies of the investee and holds less than 20% of the voting stock are recorded at cost.
Accumulated Amortization of Other Deferred Costs				$ 2,400,000	2,200,000
Cash Equivalents, at Carrying Value				13,362,649	9,419,179
Cash And Restricted Cash Equivalents Held In Foreign Bank				36,000,000
Contracts in progress
Amortization of Other Deferred Charges				$ 179,353	179,353
Number of days after consumption billings are considered past due				45 days
Amount required to reduce the amount of water lost by the public water distribution system \| gal				438
CW Belize [Member]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Disposal Group, Including Discontinued Operation, Goodwill, Noncurrent					$ 380,000
Minimum [Member]
Contracts in progress
Number of days after consumption billings are collected				30 days
Maximum [Member]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Percentage Of Bad Debts				1.00%	1.00%
Contracts in progress
Number of days after consumption billings are collected				35 days
Aerex Industries Inc [Member]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Business Acquisition, Percentage of Voting Interests Acquired	49.00%							51.00%
Manufacturing reporting units	$ 8,500,000
Impairment of goodwill		$ 1,400,000	$ 1,750,000
Goodwill		$ 4,885,211	$ 6,285,211					$ 8,035,211
PERC Water Corporation
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Business Acquisition, Percentage of Voting Interests Acquired						51.00%	51.00%
Goodwill							$ 5,320,416
Certificates of Deposit [Member]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash Equivalents, at Carrying Value				$ 12,700,000	$ 8,400,000
Bahamas [Member]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Deposits held in foreign bank				$ 7,400,000
Retail [Member]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Estimated Fair Value Carrying Amount Exceeded Percentage				74.00%	79.00%
Goodwill				$ 1,170,511	$ 1,170,511
Bulk [Member]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Estimated Fair Value Carrying Amount Exceeded Percentage				58.00%	62.00%
Goodwill				$ 1,948,875	$ 1,948,875
Capitalized Engineering Labor and Materials Cost [Member]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Other Assets				3,500,000	$ 3,500,000
Manufacturing Units [Member]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Estimated Fair Value Carrying Amount Exceeded Percentage					53.00%
Goodwill				$ 4,885,211	$ 4,885,211

Acquisition of PERC - Purchase agreement and summary of purchase price (Details) - USD ($)	Oct. 24, 2019	Dec. 31, 2019	Oct. 31, 2019
Cash consideration
Discount for marketability of noncontrolling interest		8.40%
PERC Water Corporation
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	51.00%		51.00%
Cash consideration
Purchase price (excluding working capital)	$ 4,088,817
Cash acquired	(941,379)
Total cash consideration	$ 3,147,438
Consolidated Water U S Holdings [Member] \| PERC Water Corporation
Business Acquisition [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent	51.00%
Three Executives [Member] \| PERC Water Corporation
Business Acquisition [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	49.00%

Acquisition of PERC - Estimated fair values of the assets and liabilities assumed at the acquisition date (Details) - USD ($)	Dec. 31, 2019	Oct. 24, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill	$ 13,325,013		$ 8,004,597
PERC Water Corporation
Business Acquisition [Line Items]
Financial assets		$ 1,371,532
Costs and estimated earnings in excess of billings		20,854
Property, plant and equipment		86,287
Identifiable intangible assets		3,990,000
Deferred tax liability		(1,117,200)
Accounts payable and accrued liabilities		(1,260,722)
Working capital adjustmnet payable		(23,467)
Deferred revenue		(117,636)
Billings in excess of costs and estimated earnings		(760,992)
Net liability arising from put/call options		(744,000)
Total identifiable net assets		1,444,656
Non-controlling interest in PERC		(3,617,634)
Goodwill		5,320,416
Total cash consideration		$ 3,147,438

Acquisition of PERC - Components of identifiable intangible assets assumed at the acquisition date (Details) - PERC Water Corporation - USD ($)		1 Months Ended
	Oct. 24, 2019	Oct. 31, 2019
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 3,990,000
Non-compete agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 130,000
Useful life	3 years	3 years
Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 1,300,000
Useful life	15 years
Customer backlogs
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 360,000
Useful life	2 years
Facility management contracts
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 2,200,000
Useful life	6 years

Acquisition of PERC - Results of operations of PERC included in the Company's results of operations (Details) - USD ($)	2 Months Ended	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Revenue		$ 68,793,651	$ 65,719,857
Gross profit		28,274,348	26,742,287
Amortization of intangibles, net of tax benefit		841,667	1,340,000
Net income		$ 12,176,093	$ 11,293,487
PERC Water Corporation
Business Acquisition [Line Items]
Revenue	$ 1,376,793
Gross profit	407,604
Amortization of intangibles, net of tax benefit	(81,200)
Net income	$ 37,924

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Acquisition of PERC - Financial Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenue	$ 68,793,651	$ 65,719,857
Cost of Revenue	40,519,303	38,977,570
Gross profit	28,274,348	26,742,287
General and administrative expenses	19,348,958	18,709,419
Gain (loss) on asset dispositions and impairments, net	445,041	(56,774)
Income from operations	9,370,431	7,976,094
Other income (expense):
Other income (expense), net	801,091	2,740,064
Income before income taxes	10,171,522	10,716,158
Provision for (benefit from) income taxes	66,621	(157,291)
Net income from continuing operations	10,104,901	10,873,449
Income from continuing operations attributable to non-controlling interests	1,549,978	695,787
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders	8,554,923	10,177,662
Gain on sale of discontinued operations	3,621,170	0
Net income from discontinued operations		1,115,825
Total income from discontinued operations	3,621,170	1,115,825
Net income attributable to Consolidated Water Co. Ltd. stockholders	$ 12,176,093	$ 11,293,487
Basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders
Continuing operations	$ 0.57	$ 0.68
Discontinued operations	0.24	0.07
Basic earnings per share	0.81	0.75
Diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders
Continuing operations	0.56	0.68
Discontinued operations	0.24	0.07
Diluted earnings per share	$ 0.80	$ 0.75
Weighted average number of common shares used in the determination of:
Basic earnings per share	15,025,639	14,962,760
Diluted earnings per share	15,137,076	15,074,147
Pro Forma
Revenue	$ 77,615,958	$ 76,787,893
Cost of Revenue	47,162,564	47,608,703
Gross profit	30,453,394	29,179,190
General and administrative expenses	21,620,106	21,451,898
Gain (loss) on asset dispositions and impairments, net	447,681	(58,434)
Income from operations	9,280,969	7,668,858
Other income (expense):
Other income (expense), net	805,093	2,749,833
Income before income taxes	10,086,062	10,418,691
Provision for (benefit from) income taxes	72,814	(651,300)
Net income from continuing operations	10,013,248	11,069,991
Income from continuing operations attributable to non-controlling interests	1,505,068	792,092
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders	8,508,180	10,277,899
Gain on sale of discontinued operations	3,621,170
Net income from discontinued operations		1,115,825
Total income from discontinued operations	3,621,170	1,115,825
Net income attributable to Consolidated Water Co. Ltd. stockholders	$ 12,129,350	$ 11,393,724
Basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders
Continuing operations	$ 0.57	$ 0.69
Discontinued operations	0.24	0.07
Basic earnings per share	0.81	0.76
Diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders
Continuing operations	0.56	0.68
Discontinued operations	0.24	0.07
Diluted earnings per share	$ 0.80	$ 0.75
Weighted average number of common shares used in the determination of:
Basic earnings per share	15,025,639	14,962,760
Diluted earnings per share	15,137,076	15,074,147

Cash and cash equivalents (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Cash and Cash Equivalents [Line Items]
Bank accounts	$ 29,540,020	$ 21,918,298
Short term deposits	13,362,649	9,419,179
Total cash and cash equivalents	42,902,669	31,337,477
United States dollar [Member]
Cash and Cash Equivalents [Line Items]
Bank accounts	16,107,831	11,797,054
Short term deposits	11,100,185	8,379,723
Cayman Islands dollar [Member]
Cash and Cash Equivalents [Line Items]
Bank accounts	6,690,274	5,626,487
Short term deposits	1,209,954	0
Bahamian dollar [Member]
Cash and Cash Equivalents [Line Items]
Bank accounts	6,353,936	3,301,002
Short term deposits	1,052,510	1,039,456
Belize dollar [Member]
Cash and Cash Equivalents [Line Items]
Bank accounts	0	1,130,783
Bermudian dollar [Member]
Cash and Cash Equivalents [Line Items]
Bank accounts	3,084	3,370
Mexican peso [Member]
Cash and Cash Equivalents [Line Items]
Bank accounts	384,895	37,313
Indonesian rupiah [Member]
Cash and Cash Equivalents [Line Items]
Bank accounts	$ 0	$ 22,289

Accounts receivable, net (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounts receivable, net
Trade accounts receivable	$ 23,138,736	$ 22,331,720
Receivable from OC-BVI	10,808	46,600
Other accounts receivable	222,381	242,799
Accounts Receivable, Gross, Current	23,371,925	22,621,119
Allowance for doubtful accounts	(142,236)	(158,902)	$ (158,902)
Accounts receivable, net	$ 23,229,689	$ 22,462,217

Accounts receivable, net - Allowance for doubtful accounts (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Accounts receivable, net
Opening allowance for doubtful accounts	$ 158,902	$ 158,902
Provision for doubtful accounts	0	0
Accounts written off during the year	(16,666)	0
Ending allowance for doubtful accounts	$ 142,236	$ 158,902

Inventory (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Inventory [Line Items]
Total inventory	$ 7,691,933	$ 6,777,919
Less current portion	3,287,555	2,232,721
Inventory (non-current)	4,404,378	4,545,198
Water stock [Member]
Inventory [Line Items]
Total inventory	33,694	36,837
Consumables stock [Member]
Inventory [Line Items]
Total inventory	118,286	106,925
Spare parts stock [Member]
Inventory [Line Items]
Total inventory	$ 7,539,953	$ 6,634,157

Contracts in progress (Details) - USD ($)	12 Months Ended
Contracts in progress (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Contract With Customer, In Progress, Revenue Recognized And Amounts Billed, Disclosure [Line Items]
Costs and estimated earnings in excess of billings	$ 1,675,781	$ 835,669
Billings in excess of costs and estimated earnings	(614,386)	(109,940)
Contracts in progress
Contract With Customer, In Progress, Revenue Recognized And Amounts Billed, Disclosure [Line Items]
Revenues recognized to date on contracts in process	24,041,993	6,377,657
Amounts billed to date on contracts in process	(22,980,598)	(5,651,928)
Net overbillings	1,061,395	725,729
Costs and estimated earnings in excess of billings	1,675,781	835,669
Billings in excess of costs and estimated earnings	$ (614,386)	$ (109,940)

Property, plant and equipment and construction in progress (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 133,052,311	$ 126,438,769
Less accumulated depreciation	71,803,332	67,557,951
Property, Plant and Equipment, Net, Total	61,248,979	58,880,818
Construction in progress	1,335,597	6,015,043
Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	3,566,537	3,435,361
Building [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	23,176,106	19,829,575
Plant And Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	64,840,636	61,777,836
Distribution Systems [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	36,538,614	36,057,078
Office furniture, fixtures and equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	3,061,315	3,635,184
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	1,582,053	1,431,719
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	272,092	244,221
Lab equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 14,958	$ 27,795

Property, plant and equipment and construction in progress - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Property, plant and equipment and construction in progress
Capital Commitments	$ 226,526
Construction In Progress Placed In Service	7,755,375	$ 14,398,624
Depreciation	$ 6,186,627	$ 5,514,881

Investment in OC-BVI - Assets and liabilities (Details) - Ocean Conversion (BVI) Ltd [Member] - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Investment in OC-BVI
Current assets	$ 1,151,398	$ 2,286,179
Non-current assets	3,446,198	3,859,310
Total assets	4,597,596	6,145,489
Current liabilities	156,040	132,005
Non-current liabilities	684,450	1,048,950
Total liabilities	$ 840,490	$ 1,180,955

Investment in OC-BVI - Income statement details (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Investment in OC-BVI
Revenue	$ 3,146,550	$ 2,845,211
Cost of revenue	2,156,460	1,348,046
Gross profit	990,090	1,497,165
General and administrative expenses	781,677	707,034
Gain on long-lived asset disposition	1,000	0
Income from operations	209,413	790,131
Other income (expense), net	(32,341)	3,393,271
Net income	177,072	4,183,402
Income attributable to non-controlling interests	74,233	52,275
Net income attributable to controlling interests	$ 102,839	$ 4,131,127

Investment in OC-BVI - Investment Rollforward (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Investment in OC-BVI
Balance as of December 31, 2018	$ 2,584,987
Profit-sharing and equity from earnings of OC-BVI	60,965	$ 2,452,355
Distributions received from OC-BVI	(742,350)	(2,651,250)
Balance as of December 31, 2019	$ 1,903,602	$ 2,584,987

Investment in OC-BVI - Additional Information (Details) - USD ($)	1 Months Ended	12 Months Ended			108 Months Ended
	Aug. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2006	Dec. 31, 2003
Schedule of Investments [Line Items]
Equity Method Investment, Ownership Percentage		43.53%
Equity Method Investments Voting Shares Percentage		50.00%
Equity Method Investment, Interest In Profit Percentage		45.00%
Equity Method Investments		$ 1,903,602	$ 2,584,987
Income (Loss) from Equity Method Investments		44,765	1,798,280
Profit sharing income		16,200	654,075
Revenues		68,793,651	65,719,857
Litigation Settlement, Amount Awarded from Other Party	$ 4,432,834		4,271,409
Revenues earned from management services agreement with OC-BVI [Member]
Schedule of Investments [Line Items]
Revenues		382,653	445,188
Baughers Bay [Member] \| 1990 Agreement [Member]
Schedule of Investments [Line Items]
Purchase Price Agreed for Plant Under Agreement		$ 1,420,000
Extended water supply agreement term		7 years		7 years
Term required before extension of water supply agreement		8 months
Baughers Bay [Member] \| Refurbish Project [Member]
Schedule of Investments [Line Items]
Revenues			710,000
Ocean Conversion (BVI) Ltd [Member]
Schedule of Investments [Line Items]
Income (Loss) from Equity Method Investments		$ 44,765	1,798,280
Amounts payable by OC-BVI		$ 10,808	$ 46,746
Ocean Conversion (BVI) Ltd [Member] \| 1990 Agreement [Member]
Schedule of Investments [Line Items]
Loss Contingency, Damages Sought, Value				$ 4,700,000	$ 4,700,000

NSC and AdR project development (Details) $ / shares in Units, gal in Millions				1 Months Ended						12 Months Ended			36 Months Ended
	Apr. 12, 2019	Aug. 22, 2016 gal	Feb. 14, 2014 USD ($)	Nov. 30, 2015 gal	Feb. 28, 2014 USD ($)	May 31, 2013 USD ($) $ / shares	Nov. 30, 2012 USD ($) m²	Feb. 29, 2012 USD ($)	May 31, 2010 gal	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2015 gal	Dec. 31, 2014 USD ($) ha	Feb. 26, 2019 MXN ($)	Feb. 28, 2018	Dec. 31, 2017
Schedule of Investments [Line Items]
General and administrative expenses										$ 19,348,958	$ 18,709,419
Assets, Total										192,292,144	172,515,598
Liabilities, Total										14,339,270	8,759,695
Payments for land and rights of way held for development										$ 1,499	2,655,349
Equity Method Investment, Ownership Percentage										43.53%
Share Price \| $ / shares						$ 1
Subscription Agreement Description										The Agreement calls for NSC to retain a minimum of 25% of the equity in AdR. One or more affiliates of Greenfield SPV VII, S.A.P.I. de C.V. ("Greenfield"), a Mexico company managed by an affiliate of a leading U.S. asset manager, will acquire a minimum of 55% of the equity of AdR. The Agreement also provides Suez MA with the option to purchase 20% of the equity of AdR. If Suez MA does not exercise this option, NSC will retain 35% of the equity of AdR and Greenfield will acquire 65% of the equity of AdR. The Agreement will become effective when the conditions precedent related to the Project are met, including but not limited to those conditions discussed previously. The aggregate investment to be made by the equity partners in the Project, in the form of equity and subordinated shareholder loans, is presently estimated at approximately 20% of the total cost of Phase 1 of the Project.
Security Deposit Liability														$ 1,000,000
Loss Contingency, Actions Taken by Court, Arbitrator or Mediator	Tenth Civil Judge granted EWG the opportunity to file a counter guarantee in the amount of 1,500,000 Mexican pesos to maintain the ex-parte preliminary relief granted in its favor.
Aguas de Rosarito S.A.P.I. de C.V [Member]
Schedule of Investments [Line Items]
Total Percentage Of Ownership Interest In An Acquired Company															55.00%
Option agreement [Member]
Schedule of Investments [Line Items]
Payments To Enter Option Agreement								$ 300,000
NSC Agua [Member]
Schedule of Investments [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners						25.00%			50.00%	50.00%					35.00%
Total Percentage Of Ownership Interest In An Acquired Company									99.99%
Seawater Reverse Osmosis Desalination Plant Per Day Processing Capacity \| gal		100							100
General and administrative expenses										$ 2,348,000	2,884,000
Lease Term							20 years
Assets, Total										29,300,000	26,200,000
Liabilities, Total										2,900,000	$ 243,000
Operating Leases, Rent Expense per month							$ 30,000
Percentage of Voting Interest Acquired through Option Agreement					25.00%
Payments For Option Exercised			$ 1,000,000		$ 1,000,000
Area of Land							5,000						20.1
Payments to Acquire Land													$ 20,600,000
Real Estate Held-for-sale										$ 24,200,000
NSC Agua [Member] \| Aguas de Rosarito S.A.P.I. de C.V [Member]
Schedule of Investments [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners															25.00%
Equity Method Investment, Ownership Percentage											99.60%				0.40%	99.60%
NSC Agua [Member] \| First Phase [Member]
Schedule of Investments [Line Items]
Percentage of the total cost paid															20.00%
Seawater Reverse Osmosis Desalination Plant Per Day Processing Capacity \| gal		50		50								50
Period in which construction must be completed		36 months
Period Required To Operate And Maintain Plant And Aqueduct		37 years
NSC Agua [Member] \| Second Phase [Member]
Schedule of Investments [Line Items]
Seawater Reverse Osmosis Desalination Plant Per Day Processing Capacity \| gal		50		50								50
NSC Agua [Member] \| Option agreement [Member]
Schedule of Investments [Line Items]
Total Percentage Of Ownership Interest In An Acquired Company										99.99%
Repayment of inter-company loan payable						$ 5,700,000
Total Voting Interest Percentage After Conversion Of Loan						99.99%
Option Agreement Expiration Date								Feb. 07, 2014
Greenfield [Member] \| Aguas de Rosarito S.A.P.I. de C.V [Member]
Schedule of Investments [Line Items]
Total Percentage Of Ownership Interest In An Acquired Company															65.00%
Suez [Member] \| Aguas de Rosarito S.A.P.I. de C.V [Member]
Schedule of Investments [Line Items]
Total Percentage Of Ownership Interest In An Acquired Company															20.00%
Unaffiliated Party [Member]
Schedule of Investments [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners										50.00%

Intangible assets - Costs and accumulated amortization (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Cost
Finite-Lived Intangible Assets, Gross	$ 9,890,000	$ 5,900,000
Accumulated amortization
Finite-Lived Intangible Assets, Accumulated Amortization	(4,850,000)	(4,008,333)
Intangible assets, net	5,040,000	1,891,667
Non-compete agreements
Cost
Finite-Lived Intangible Assets, Gross	530,000	400,000
Accumulated amortization
Finite-Lived Intangible Assets, Accumulated Amortization	(320,556)	(233,333)
Trade names
Cost
Finite-Lived Intangible Assets, Gross	2,700,000	1,400,000
Accumulated amortization
Finite-Lived Intangible Assets, Accumulated Amortization	(380,000)	(272,222)
Certifications/programs
Cost
Finite-Lived Intangible Assets, Gross	2,000,000	2,000,000
Accumulated amortization
Finite-Lived Intangible Assets, Accumulated Amortization	(2,000,000)	(1,944,444)
Customer backlogs
Cost
Finite-Lived Intangible Assets, Gross	460,000	100,000
Accumulated amortization
Finite-Lived Intangible Assets, Accumulated Amortization	(130,000)	(100,000)
Customer relationships
Cost
Finite-Lived Intangible Assets, Gross	2,000,000	2,000,000
Accumulated amortization
Finite-Lived Intangible Assets, Accumulated Amortization	(1,958,333)	$ (1,458,334)
Facility management contracts
Cost
Finite-Lived Intangible Assets, Gross	2,200,000
Accumulated amortization
Finite-Lived Intangible Assets, Accumulated Amortization	$ (61,111)

Intangible assets - Amortization of intangible assets (Details)	Dec. 31, 2019 USD ($)
Intangible assets
2020	$ 891,667
2021	746,667
2022	582,778
2023	546,667
2024	546,667
Thereafter	1,725,554
Finite Lived Intangible Assets Net	$ 5,040,000

Intangible assets (Details) - USD ($)			1 Months Ended	2 Months Ended	12 Months Ended
Intangible assets (Details) - USD ($)	Oct. 24, 2019	Feb. 11, 2016	Oct. 31, 2019	Dec. 31, 2019	Dec. 31, 2019	Dec. 31, 2018	Jan. 24, 2020
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets					$ 841,667	$ 1,340,000
Aerex Industries Inc [Member]
Finite-Lived Intangible Assets [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		51.00%					49.00%
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill		$ 5,900,000
Aerex Industries Inc [Member] \| Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		5 years
Aerex Industries Inc [Member] \| Certification Marks [Member]
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		3 years
Aerex Industries Inc [Member] \| Customer-Related Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		1 year
Aerex Industries Inc [Member] \| Customer relationships
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		4 years
PERC Water Corporation
Finite-Lived Intangible Assets [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	51.00%		51.00%
Amortization of Intangible Assets				$ (81,200)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill			$ 3,990,000
PERC Water Corporation \| Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	3 years		3 years
PERC Water Corporation \| Customer-Related Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			2 years
PERC Water Corporation \| Customer relationships
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			6 years
Trade name \| Aerex Industries Inc [Member]
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		15 years
Trade name \| PERC Water Corporation
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			15 years

Leases - Lease assets and liabilities (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Current
Prepaid expenses and other current assets	$ 36,097
Noncurrent
Operating lease right-of-use assets	4,439,212	$ 0
Total lease right-of-use assets	4,475,309
Current
Current maturities of operating leases	755,751	0
Noncurrent
Noncurrent operating leases	3,836,475	$ 0
Total lease obligations	$ 4,592,226
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Current maturities of operating leases
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Noncurrent operating leases
Operating leases, weighted average remaining lease term	17 years 9 months 18 days
Operating leases, weighted average discount rate	4.59%

Leases - Components of lease cost (Details)	12 Months Ended
Leases - Components of lease cost (Details)	Dec. 31, 2019 USD ($)
Leases
Operating lease costs	$ 797,403
Short-term lease costs	16,469
Total lease costs	$ 813,872

Leases - Supplemental cash flow information (Details)	12 Months Ended
Leases - Supplemental cash flow information (Details)	Dec. 31, 2019 USD ($)
Leases
Operating cash flows from operating leases	$ 968,005

Leases - Future lease payments (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Leases
2020	$ 949,603
2021	632,754
2022	525,579
2023	532,809
2024	313,176
Thereafter	3,602,600
Total future lease payments	6,556,521
Less: Imputed interest	(1,964,295)
Total lease obligations	4,592,226
Less: Current obligations	(755,751)	$ 0
Noncurrent lease obligations	$ 3,836,475	$ 0

Leases - Additional Information (Details) - USD ($)	12 Months Ended
Leases - Additional Information (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Operating Leases, Rent Expense		$ 870,833
Aguas de Rosarito S.A.P.I. de C.V [Member]
Lessee, Operating Lease, Renewal Term	20 years
Operating Leases, Rent Expense	$ 30,000

Discontinued operations (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Discontinued operations
Current assets	$ 0	$ 1,959,494
Property, plant and equipment, net	0	725,930
Inventory, non-current	0	356,854
Goodwill	0	379,651
Intangible assets	0	467,575
Other assets	0	14,023
Total assets of discontinued operations	0	3,903,527
Total liabilities of discontinued operations	$ 0	$ 646,452

Discontinued operations - Financial information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Discontinued operations
Revenue	$ 0	$ 3,127,767
Income from operations	0	1,154,897
Net Income		1,115,825
Gain on sale of discontinued operations	3,621,170	0
Depreciation	$ 0	$ 115,363

- Definition

Amount before tax of income (loss) from a discontinued operation. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.

+ References + Details

Discontinued operations - Additional Information (Details) - USD ($)		1 Months Ended		3 Months Ended		12 Months Ended
	Jan. 07, 2019	Aug. 31, 2019	Feb. 14, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Discontinued operations
Proceeds From Repatriated Funds	$ 1,100,000			$ 1,000,000	$ 2,750,000	$ 458,000	$ 400,000
Disposal Group, Including Discontinued Operation, Consideration			$ 7,000,000
Proceeds from Divestiture of Businesses		$ 265,000	6,735,000
Supplemental Deferred Purchase Price			$ 265,000

Income taxes - Components of income before income taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income taxes
Foreign (not subject to income taxes)	$ 13,593,497	$ 15,100,642
Mexico	(2,458,210)	(3,115,656)
United States	2,657,405	(153,003)
Income before income taxes	13,792,692	11,831,983
Less gain on sale of discontinued operations	(3,621,170)	0
Less discontinued operations	(3,621,170)	(1,115,825)
Income before income taxes	$ 10,171,522	$ 10,716,158

- Definition

Amount after tax of income (loss) from a discontinued operation including the portion attributable to the noncontrolling interest. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.

+ References + Details

Income taxes - Provision for income taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Current:
Federal	$ 143,567	$ 100,806
State	171,093	106,922
Total	314,660	207,728
Deferred Federal, State and Local, Tax Expense (Benefit) [Abstract]
Federal	(203,031)	(302,440)
State	(45,008)	(62,579)
Total	(248,039)	(365,019)
Income Tax Expense (Benefit)	$ 66,621	$ (157,291)

Income taxes - Reconciliation of federal tax rate to the effective benefit rate (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income taxes
U.S. statutory federal rate	21.00%	21.00%
State taxes, net of federal effect	4.38%	4.22%
Nontaxable foreign income	(30.09%)	(38.26%)
Research & Development Tax Credit	(3.46%)	(2.27%)
Permanent items	(0.79%)	1.26%
Valuation allowance for deferred tax assets	9.45%	12.72%
Effective Income Tax Rate Reconciliation, Percent	0.49%	(1.33%)

Income taxes - Net long-term deferred tax liability (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Operating loss carryforwards - Mexico	$ 3,427,295	$ 3,020,049
Land basis difference - Mexico	1,164,365	999,719
Start-up costs - Mexico	4,608,990	3,856,942
Research & development tax credits - U.S.	166,653	0
Valuation allowances	(9,244,550)	(7,876,710)
Deferred Tax Assets, Net of Valuation Allowance	122,753	0
Deferred tax liabilities:
Property and equipment - U.S.	148,707	180,431
Intangible assets - U.S.	1,380,328	479,443
Deferred Tax Liabilities, Gross	1,529,035	659,874
Net deferred tax liability	$ 1,406,282	$ 659,874

Income taxes - Additional Information (Details) $ in Millions	Dec. 31, 2019 USD ($)
MEXICO
Operating Loss Carryforwards	$ 11.4

Earnings per share (Details) - USD ($)	12 Months Ended
Earnings per share (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Earnings per share
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders	$ 8,554,923	$ 10,177,662
Less: preferred stock dividends	(11,937)	(12,356)
Net income from continuing operations available to common shares in the determination of basic earnings per common share	8,542,986	10,165,306
Total income from discontinued operations	3,621,170	1,115,825
Net income available to common shares in the determination of basic earnings per common share	$ 12,164,156	$ 11,281,131
Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders (in shares)	15,025,639	14,962,760
Weighted average number of preferred shares outstanding during the period (in shares)	33,983	35,125
Potential dilutive effect of unexercised options and unvested stock grants	77,454	76,262
Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders	15,137,076	15,074,147

Dividends (Details) - $ / shares	3 Months Ended								12 Months Ended
Dividends (Details) - $ / shares	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Dividends
Dividends Per Share Declared	$ 0.085	$ 0.085	$ 0.085	$ 0.085	$ 0.085	$ 0.085	$ 0.085	$ 0.085	$ 0.340	$ 0.340

Segment information (Details)	12 Months Ended
Segment information (Details)	Dec. 31, 2019 USD ($) segment	Dec. 31, 2018 USD ($)
Segment Reporting Information [Line Items]
Number of Reportable Segments \| segment	4
Revenue	$ 68,793,651	$ 65,719,857
Cost of Revenue	40,519,303	38,977,570
Gross profit	28,274,348	26,742,287
General and administrative expenses	19,348,958	18,709,419
Gain (loss) on asset dispositions and impairments, net	445,041	(56,774)
Income (loss) from operations	9,370,431	7,976,094
Other income (expense), net	801,091	2,740,064
Income before income taxes	10,171,522	10,716,158
Provision for (benefit from) income taxes	66,621	(157,291)
Net income from continuing operations	10,104,901	10,873,449
Income from continuing operations attributable to non-controlling interests	1,549,978	695,787
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders	8,554,923	10,177,662
Total income from discontinued operations	3,621,170	1,115,825
Net income	12,176,093	11,293,487
Accounts receivable, net	23,229,689	22,462,217
Property, plant and equipment, net	61,248,979	58,880,818
Construction in progress	1,335,597	6,015,043
Intangibles, net	5,040,000	1,891,667
Goodwill	13,325,013	8,004,597
Land and rights of way held for development	24,162,523	24,161,024
Assets of discontinued operations	0	3,903,527
Assets, Total	192,292,144	172,515,598
Retail [Member]
Segment Reporting Information [Line Items]
Revenue	26,456,022	25,621,048
Cost of Revenue	11,611,165	11,011,456
Gross profit	14,844,857	14,609,592
General and administrative expenses	13,422,821	12,029,646
Gain (loss) on asset dispositions and impairments, net	398,041	(12,263)
Income (loss) from operations	1,820,077	2,567,683
Accounts receivable, net	2,891,165	2,947,193
Property, plant and equipment, net	29,177,718	24,435,501
Construction in progress	396,214	5,437,093
Goodwill	1,170,511	1,170,511
Assets, Total	65,554,640	61,210,879
Bulk [Member]
Segment Reporting Information [Line Items]
Revenue	26,986,108	31,031,287
Cost of Revenue	18,606,805	21,551,383
Gross profit	8,379,303	9,479,904
General and administrative expenses	1,238,296	1,301,042
Gain (loss) on asset dispositions and impairments, net	47,000
Income (loss) from operations	7,188,007	8,178,862
Accounts receivable, net	18,883,493	18,480,589
Property, plant and equipment, net	30,281,647	32,820,908
Construction in progress	869,792	574,659
Goodwill	1,948,875	1,948,875
Assets, Total	69,423,770	67,740,088
Services [Member]
Segment Reporting Information [Line Items]
Revenue	1,759,446	1,811,372
Cost of Revenue	1,215,193	1,503,034
Gross profit	544,253	308,338
General and administrative expenses	2,740,219	2,889,703
Gain (loss) on asset dispositions and impairments, net		(41,180)
Income (loss) from operations	(2,195,966)	(2,622,545)
Accounts receivable, net	954,149	46,960
Property, plant and equipment, net	168,585	14,772
Construction in progress		3,291
Intangibles, net	3,877,222
Goodwill	5,320,416
Land and rights of way held for development	24,162,523	24,161,024
Assets, Total	42,459,177	27,406,983
Manufacturing Units [Member]
Segment Reporting Information [Line Items]
Revenue	13,592,075	7,256,150
Cost of Revenue	9,086,140	4,911,697
Gross profit	4,505,935	2,344,453
General and administrative expenses	1,947,622	2,489,028
Gain (loss) on asset dispositions and impairments, net		(3,331)
Income (loss) from operations	2,558,313	(147,906)
Accounts receivable, net	500,882	987,475
Property, plant and equipment, net	1,621,029	1,609,637
Construction in progress	69,591
Intangibles, net	1,162,778	1,891,667
Goodwill	4,885,211	4,885,211
Assets, Total	14,854,557	12,254,121
Continuing Operations [Member]
Segment Reporting Information [Line Items]
Assets, Total	$ 192,292,144	$ 168,612,071

Segment information - Revenues earned by major geographic region and major customer (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Revenue	$ 68,793,651	$ 65,719,857
Cayman Island [Member]
Segment Reporting Information [Line Items]
Revenue	30,327,139	34,623,925
Bahamas [Member]
Segment Reporting Information [Line Items]
Revenue	23,114,860	23,241,361
Indonesia [Member]
Segment Reporting Information [Line Items]
Revenue	131	153,233
United States [Member]
Segment Reporting Information [Line Items]
Revenue	14,968,868	7,256,150
Revenues earned from management services agreement with OC-BVI [Member]
Segment Reporting Information [Line Items]
Revenue	382,653	445,188
Water and Sewerage Corporation [Member]
Segment Reporting Information [Line Items]
Revenue	$ 22,877,741	$ 22,956,878
Percentage of consolidated revenues	33.00%	35.00%
Water Authority - Cayman [Member]
Segment Reporting Information [Line Items]
Revenue	$ 3,871,248	$ 7,789,926
Percentage of consolidated revenues	6.00%	12.00%
One Customer [Member]
Segment Reporting Information [Line Items]
Revenue	$ 9,238,476	$ 5,008,473
Percentage of consolidated revenues	13.00%	8.00%

Segment information - Property, plant and equipment, net by major geographic region (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	$ 61,248,979	$ 58,880,818
Cayman Island [Member]
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	29,059,294	24,340,063
Bahamas [Member]
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	30,245,741	32,738,531
United States [Member]
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	1,933,717	1,787,450
Other Country [Member]
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	$ 10,227	$ 14,774

Segment information - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Retail [Member]
Segment Reporting Information [Line Items]
Depreciation, Depletion and Amortization	$ 2,364,994	$ 2,019,462
Bulk [Member]
Segment Reporting Information [Line Items]
Depreciation, Depletion and Amortization	3,795,320	3,387,592
Services [Member]
Segment Reporting Information [Line Items]
Depreciation, Depletion and Amortization	125,306	28,386
Manufacturing Units [Member]
Segment Reporting Information [Line Items]
Depreciation, Depletion and Amortization	$ 922,027	$ 1,598,794

Cost of revenues and general and administrative expenses - Cost of revenues (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cost of revenues and general and administrative expenses [Line Items]
Cost of Revenue	$ 40,519,303	$ 38,977,570
Electricity [Member]
Cost of revenues and general and administrative expenses [Line Items]
Cost of Revenue	7,438,218	11,087,214
Depreciation [Member]
Cost of revenues and general and administrative expenses [Line Items]
Cost of Revenue	6,046,810	5,328,091
Fuel oil [Member]
Cost of revenues and general and administrative expenses [Line Items]
Cost of Revenue	5,315,676	5,434,995
Employee costs [Member]
Cost of revenues and general and administrative expenses [Line Items]
Cost of Revenue	6,597,755	5,127,831
Cost of plant sales [Member]
Cost of revenues and general and administrative expenses [Line Items]
Cost of Revenue		1,059,520
Maintenance [Member]
Cost of revenues and general and administrative expenses [Line Items]
Cost of Revenue	2,076,501	2,481,095
Retail license royalties [Member]
Cost of revenues and general and administrative expenses [Line Items]
Cost of Revenue	1,701,724	1,687,010
Insurance [Member]
Cost of revenues and general and administrative expenses [Line Items]
Cost of Revenue	1,279,997	996,563
Materials [Member]
Cost of revenues and general and administrative expenses [Line Items]
Cost of Revenue	6,151,064	3,102,533
Other [Member]
Cost of revenues and general and administrative expenses [Line Items]
Cost of Revenue	$ 3,911,558	$ 2,672,718

Cost of revenues and general and administrative expenses - General and administrative expenses (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cost of revenues and general and administrative expenses [Line Items]
General and Administrative Expense	$ 19,348,958	$ 18,709,419
Employee costs [Member]
Cost of revenues and general and administrative expenses [Line Items]
General and Administrative Expense	9,335,247	8,400,729
Insurance [Member]
Cost of revenues and general and administrative expenses [Line Items]
General and Administrative Expense	866,457	751,541
Professional fees [Member]
Cost of revenues and general and administrative expenses [Line Items]
General and Administrative Expense	1,178,621	1,250,634
Directors' fees and expenses [Member]
Cost of revenues and general and administrative expenses [Line Items]
General and Administrative Expense	969,279	845,891
Depreciation [Member]
Cost of revenues and general and administrative expenses [Line Items]
General and Administrative Expense	139,817	186,790
NSC project expenses [Member]
Cost of revenues and general and administrative expenses [Line Items]
General and Administrative Expense	2,343,249	2,855,827
Amortization of intangible assets [Member]
Cost of revenues and general and administrative expenses [Line Items]
General and Administrative Expense	841,667	1,340,000
Other [Member]
Cost of revenues and general and administrative expenses [Line Items]
General and Administrative Expense	$ 3,674,621	$ 3,078,007

Stock-based compensation - Significant weighted average assumptions (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Stock-based compensation
Risk free interest rate	2.11%	2.05%
Expected option life (years)	1 year 1 month 6 days	1 year 2 months 12 days
Expected volatility	34.59%	25.10%
Expected dividend yield	2.44%	2.62%

Stock-based compensation - Stock option activity (Details)	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the beginning of period -Options \| shares	10,830
Granted - Options \| shares	9,868
Exercised - Options \| shares	(1,566)
Forfeited/expired - Options \| shares	(8,482)
Outstanding at the ending of period -Options \| shares	10,650
Outstanding-Weighted Average Exercise Price at the beginning of period - Options \| $ / shares	$ 12.69
Granted-Weighted Average Exercise Price \| $ / shares	11.19
Exercised-Weighted Average Exercise Price \| $ / shares	10.10
Forfeited/expired-Weighted Average Exercise Price \| $ / shares	10.93
Outstanding-Weighted Average Exercise Price at the ending of period - Options \| $ / shares	$ 13.08
Outstanding-Weighted Average Remaining Contractual Life (Years)	2 years 15 days
Outstanding-Aggregate Intrinsic Value \| $	$ 34,287

Stock-based compensation - Weighted average fair value of options at the date of grant and the intrinsic value of options exercised (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 5,857	$ 4,379
Below Market Price [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 3.73	$ 3.27
Below Market Price [Member] \| Employees [Member] \| Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	3.73	3.27
At Market Price [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	3.23	3.19
At Market Price [Member] \| Management Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	0	0
At Market Price [Member] \| Employees [Member] \| Common stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	3.23	3.19
Above Market Price [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	0	0
Above Market Price [Member] \| Management Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	0	0
Above Market Price [Member] \| Employees [Member] \| Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 0	$ 0

Stock-based compensation (Details) - USD ($)	12 Months Ended
Stock-based compensation (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	May 14, 2008
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	9,868
Allocated Share-based Compensation Expense, Net of Tax	$ 142,632	$ 137,191
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares	10,650
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price	$ 13.08
Share Based Compensation Arrangement By Share Based Payment Award Options Non Vested Outstanding Weighted Average Remaining Contractual Term	2 years 15 days
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 15 days
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 16,715
Preferred stock value	20,251	20,878
Share-based Compensation	$ 1,192,224	$ 850,136
Closing Price of Common Shares	$ 16.30
Non Executive Directors Share Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	22,034	18,242
Share-based Compensation	$ 322,036	$ 236,691
Non-Performance-Based Grants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Cumulative financial performance targets measurement period	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	28,891	26,864
Allocated Share-based Compensation Expense	$ 337,032	$ 317,991
Performance-Based Grants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	35,993	10,574
Allocated Share-based Compensation Expense	$ 390,524	$ 158,263
Employee Stock Option [Member] \| Common Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	2,575	2,750
Equity Incentive Plan2008 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance			1,500,000
Redeemable preferred stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Options Non Vested Outstanding Weighted Average Remaining Contractual Term	1 year 1 month 24 days
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 153,481
Preferred stock value	$ 0
Additional consecutive individual requisite service period required for eligibility in Employee Share Incentive Plan	4 years
Number of preferred shares converted to common shares dependant upon specific criteria	1
Number of common shares received upon conversion of preferred shares dependent upon specific criteria	1
Number of average trading price of the common stock	7 days
Number of days employee option to purchase preferred stock must be exercised	30 days
Stock Issued During Period, Shares, Issued for Services	7,293	7,409

Retirement benefits (Details) - USD ($)	12 Months Ended
Retirement benefits (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]
Pension Expense	$ 450,732	$ 408,128
Cayman Island [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	5.00%
Maximum annual contribution amount	$ 104,400
FLORIDA
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	6.00%
California [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer Matching Contribution, Percent of Employees' Gross Pay	2.00%
California [Member] \| Defined Contribution Plan, Employer Matching Contribution, 25 Percent of Match [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer Matching Contribution, Percent of Match	25.00%
California [Member] \| Defined Contribution Plan, Employer Matching Contribution, 25 Percent of Match [Member] \| Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer Matching Contribution, Percent of Match	10.00%

Financial instruments (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Recurring
Net liability arising from put/call options	$ 664,000	$ 0
Net asset arising from put/call options	0	24,000
Fair Value, Inputs, Level 1 [Member]
Recurring
Net liability arising from put/call options	0
Net asset arising from put/call options		0
Fair Value, Inputs, Level 2 [Member]
Recurring
Net liability arising from put/call options	0
Net asset arising from put/call options		0
Fair Value, Inputs, Level 3 [Member]
Recurring
Net liability arising from put/call options	$ 664,000
Net asset arising from put/call options		$ 24,000

Financial instruments - Level 3 activity (Details)	12 Months Ended
Financial instruments - Level 3 activity (Details)	Dec. 31, 2019 USD ($)
Net liability arising from put/call options
Balance at the beginning	$ 0
Issuance	(744,000)
Unrealized gain	80,000
Balance at the end	(664,000)
Net asset arising from put/call options
Balance as of December 31, 2018(1)	24,000
Unrealized loss	(24,000)
Balance as of December 31, 2019(1)	$ 0

Financial instruments - Additional Information (Details)	12 Months Ended
	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of days after consumption billings are considered past due	45 days
Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Duration certain foreign currencies are fixed to the dollar	20 years

CW-Bali (Details) - USD ($)	12 Months Ended
CW-Bali (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2019
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest	$ 3,621,170	$ 1,115,825
Consolidated Water Bali [Member]
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest		$ (218,000)
Sale of assets			$ 365,000
Sale of stock			$ 25,000

- Definition

Amount after tax of income (loss) from a discontinued operation including the portion attributable to the noncontrolling interest. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.

+ References + Details

Commitments and contingencies - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Contingencies
Employment Agreement Base Annual Salaries	$ 5.5
Cayman Water Retail Operations, Percentage Of Gross Profit	53.00%	54.00%
Cayman Water Retail Operations, Percentage Of Revenue	39.00%	39.00%
Long-term Purchase Commitment, Amount	$ 5.5
WSC [Member]
Contingencies
Accounts Receivable, Net	$ 18.4	$ 17.6

Supplemental disclosure of cash flow information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Supplemental disclosure of cash flow information
Interest paid in cash	$ 2,814	$ 12,534
Non-cash transactions:
Dividends declared but not paid	1,282,086	1,276,505
Transfers from inventory to property, plant and equipment and construction in progress	443,018	400,004
Transfers from construction in progress to property, plant and equipment	7,755,375	14,398,624
Transfers from other assets to construction in progress	0	2,137,341
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 5,148,138	$ 0

Subsequent events - Additional Information (Details) - Aerex Industries Inc [Member] - USD ($)	Jan. 24, 2020	Feb. 11, 2016	Dec. 31, 2019
Subsequent Event [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	49.00%	51.00%
Consideration Transferred On Acquisition Of Manufacturing Reporting Unit	$ 8,500,000
Consolidated Water U S Holdings [Member]
Subsequent Event [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent	100.00%
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	49.00%
Consolidated Water U S Holdings [Member]
Subsequent Event [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired			51.00%
Business Combination, Consideration Transferred		$ 7,700,000
Consideration Transferred On Acquisition Of Manufacturing Reporting Unit	$ 8,500,000