CONSOLIDATED WATER CO. LTD., 10-K filed on 3/17/2025
Annual Report
v3.25.1
Document and Entity Information - USD ($)
12 Months Ended
Dec. 31, 2024
Mar. 10, 2025
Jun. 30, 2024
Document and Entity Information      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Document Transition Report false    
Entity File Number 0-25248    
Entity Registrant Name CONSOLIDATED WATER CO. LTD.    
Entity Incorporation, State or Country Code KY    
Entity Tax Identification Number 98-0619652    
Entity Address, Address Line One Regatta Office Park    
Entity Address, Address Line Two Windward Three, 4th Floor, West Bay Road    
Entity Address, Address Line Three P.O. Box 1114    
Entity Address, City or Town Grand Cayman    
Entity Address, Postal Zip Code KY1-1102    
Entity Address, Country KY    
City Area Code 345    
Local Phone Number 945-4277    
Title of 12(b) Security Common Stock    
Security Exchange Name NASDAQ    
Trading Symbol CWCO    
Entity Voluntary Filers No    
Entity Well-known Seasoned Issuer No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 395,630,506
Entity Common Stock, Shares Outstanding   15,874,796  
Auditor Name Marcum LLP    
Auditor Firm ID 688    
Auditor Location West Palm Beach, Florida    
Entity Central Index Key 0000928340    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.25.1
CONSOLIDATED BALANCE SHEETS - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Current assets    
Cash and cash equivalents $ 99,350,121 $ 42,621,898
Accounts receivable, net 39,580,982 38,226,891
Inventory 8,960,350 6,044,642
Prepaid expenses and other current assets 5,153,984 4,056,370
Contract assets 4,470,243 21,553,057
Current assets of discontinued operations 272,485 211,517
Total current assets 157,788,165 112,714,375
Property, plant and equipment, net 52,432,282 55,882,521
Construction in progress 5,143,717 495,471
Inventory, noncurrent 5,338,961 5,045,771
Investment in OC-BVI 1,504,363 1,412,158
Goodwill 12,861,404 12,861,404
Intangible assets, net 2,696,815 3,353,185
Operating lease right-of-use assets 3,190,985 2,135,446
Other assets 2,356,489 3,407,973
Long-term assets of discontinued operations 0 21,129,288
Total assets 243,313,181 218,437,592
Current liabilities    
Accounts payable, accrued expenses and other current liabilities 9,057,179 11,604,369
Accrued compensation 3,336,946 3,160,030
Dividends payable 1,780,841 1,572,655
Current maturities of operating leases 634,947 456,865
Current portion of long-term debt 126,318 192,034
Contract liabilities 9,126,654 6,237,011
Deferred revenue 365,879 317,017
Current liabilities of discontinued operations 509,745 364,665
Total current liabilities 24,938,509 23,904,646
Long-term debt, noncurrent 70,320 191,190
Deferred tax liabilities 210,893 530,780
Noncurrent operating leases 2,630,812 1,827,302
Other liabilities 153,000 153,000
Total liabilities 28,003,534 26,606,918
Commitments and contingencies
Consolidated Water Co. Ltd. stockholders' equity    
Redeemable preferred stock, $0.60 par value. Authorized 200,000 shares; issued and outstanding 44,004 and 44,297 shares, respectively 26,402 26,578
Additional paid-in capital 93,550,905 92,188,887
Retained earnings 106,875,581 85,148,820
Total Consolidated Water Co. Ltd. stockholders' equity 209,960,695 186,827,212
Non-controlling interests 5,348,952 5,003,462
Total equity 215,309,647 191,830,674
Total liabilities and equity 243,313,181 218,437,592
Common Class A [Member]    
Consolidated Water Co. Ltd. stockholders' equity    
Common stock value 9,507,807 9,462,927
Common Class B [Member]    
Consolidated Water Co. Ltd. stockholders' equity    
Common stock value $ 0 $ 0
v3.25.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Dec. 31, 2024
Dec. 31, 2023
Redeemable preferred stock, par value (in dollars per share) $ 0.6 $ 0.6
Redeemable preferred stock, authorized 200,000 200,000
Redeemable preferred stock, issued 44,004 44,297
Redeemable preferred stock, outstanding 44,004 44,297
Common Class A [Member]    
Common stock, par value (in dollars per share) $ 0.6 $ 0.6
Common stock, authorized 24,655,000 24,655,000
Common stock, issued 15,846,345 15,771,545
Common stock, outstanding 15,846,345 15,771,545
Common Class B [Member]    
Common stock, par value (in dollars per share) $ 0.6 $ 0.6
Common stock, authorized 145,000 145,000
Common stock, issued 0 0
v3.25.1
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
CONSOLIDATED STATEMENTS OF INCOME      
Revenue $ 133,966,633 $ 180,211,233 $ 94,104,972
Cost of revenue 88,342,185 118,284,128 63,749,849
Gross profit 45,624,448 61,927,105 30,355,123
General and administrative expenses 27,537,436 24,752,366 21,070,234
Gain (loss) on asset dispositions and impairments, net 197,786 (7,112) (12,704)
Income from operations 18,284,798 37,167,627 9,272,185
Other income (expense):      
Interest income 2,094,190 696,408 447,186
Interest expense (101,847) (145,284) (46,545)
Equity in the earnings of affiliates 269,455 169,728 102,225
Loss on put/call options     (128,000)
Other 131,878 107,461 89,944
Other income, net 2,393,676 828,313 464,810
Income before income taxes 20,678,474 37,995,940 9,736,995
Provision for income taxes 2,218,514 6,750,014 396,739
Net income from continuing operations 18,459,960 31,245,926 9,340,256
Income from continuing operations attributable to non-controlling interests 577,590 573,791 1,112,913
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders 17,882,370 30,672,135 8,227,343
Net income (loss) from discontinued operations 10,355,184 (1,086,744) (2,371,049)
Net income attributable to Consolidated Water Co. Ltd. stockholders $ 28,237,554 $ 29,585,391 $ 5,856,294
Basic earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders      
Continuing operations $ 1.13 $ 1.95 $ 0.54
Discontinued operations 0.65 (0.07) (0.16)
Basic earnings per share 1.78 1.88 0.38
Diluted earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders      
Continuing operations 1.12 1.93 0.54
Discontinued operations 0.65 (0.07) (0.16)
Diluted earnings per share 1.77 1.86 0.38
Dividends declared per common and redeemable preferred shares $ 0.41 $ 0.36 $ 0.34
Weighted average number of common shares used in the determination of:      
Basic earnings per share 15,832,328 15,739,056 15,290,509
Diluted earnings per share 15,935,962 15,865,897 15,401,653
v3.25.1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
Redeemable preferred stock [Member]
Preferred stock [Member]
Common stock [Member]
Additional paid-in capital [Member]
Retained earnings [Member]
Non controlling interests [Member]
Total
Balance at Dec. 31, 2021 $ 17,181 $ 9,146,216 $ 87,812,432 $ 60,603,056 $ 8,086,538 $ 165,665,423
Balance (in shares) at Dec. 31, 2021 28,635 15,243,693        
Issuance of share capital $ 5,577 $ 43,558 (49,135) 0 0 $ 0
Issuance of share capital (in shares) 9,295 72,597        
Purchase of remaining non-controlling interests in PERC (in shares)           0
Conversion of preferred stock $ (3,951) $ 3,951 0 0 0 $ 0
Conversion of preferred stock (in shares) (6,585) 6,585        
Buyback of preferred stock $ (15) $ 0 (211) 0 0 (226)
Buyback of preferred stock (in shares) (26)          
Net income $ 0 0 0 5,856,294 1,112,913 6,969,207
Exercise of options $ 1,838 0 24,901 0 0 26,739
Exercise of options (in shares) 3,064          
Dividends declared $ 0 0 0 (5,211,651) (1,102,475) (6,314,126)
Compensation expense relating to stock and stock option grants 0 0 1,417,172 0 0 1,417,172
Balance at Dec. 31, 2022 $ 20,630 $ 9,193,725 89,205,159 61,247,699 8,096,976 167,764,189
Balance (in shares) at Dec. 31, 2022 34,383 15,322,875        
Issuance of share capital $ 7,985 $ 41,319 (49,304) 0 0 0
Issuance of share capital (in shares) 13,309 68,864        
Purchase of Remaining Non-Controlling Interests in PERC $ 0 $ 221,030 1,006,248   (3,667,305) $ (2,440,027)
Purchase of remaining non-controlling interests in PERC (in shares)   368,383       368,383
Conversion of preferred stock $ (5,309) $ 5,309 0 0 0 $ 0
Conversion of preferred stock (in shares) (8,848) 8,848        
Buyback of preferred stock $ (122) $ 0 (1,708) 0 0 (1,830)
Buyback of preferred stock (in shares) (203) 0        
Net income $ 0 $ 0 0 29,585,391 573,791 30,159,182
Exercise of options $ 3,394 $ 1,544 94,826 0 0 99,764
Exercise of options (in shares) 5,656 2,575        
Dividends declared $ 0 $ 0 0 (5,684,270) 0 (5,684,270)
Compensation expense relating to stock and stock option grants 0 0 1,933,666 0 0 1,933,666
Balance at Dec. 31, 2023 $ 26,578 $ 9,462,927 92,188,887 85,148,820 5,003,462 191,830,674
Balance (in shares) at Dec. 31, 2023 44,297 15,771,545        
Issuance of share capital $ 3,542 $ 41,299 (44,841) 0 0 $ 0
Issuance of share capital (in shares) 5,904 68,832        
Purchase of remaining non-controlling interests in PERC (in shares)           0
Conversion of preferred stock $ (3,581) $ 3,581 0 0 0 $ 0
Conversion of preferred stock (in shares) (5,968) 5,968        
Buyback of preferred stock $ (763) $ 0 (13,851) 0 0 (14,614)
Buyback of preferred stock (in shares) (1,272) 0        
Net income $ 0 $ 0 0 28,237,554 577,590 28,815,144
Exercise of options $ 626 $ 0 23,127 0 0 $ 23,753
Exercise of options (in shares) 1,043 0       1,043
Dividends declared $ 0 $ 0 0 (6,510,793) (232,100) $ (6,742,893)
Compensation expense relating to stock and stock option grants 0 0 1,397,583 0 0 1,397,583
Balance at Dec. 31, 2024 $ 26,402 $ 9,507,807 $ 93,550,905 $ 106,875,581 $ 5,348,952 $ 215,309,647
Balance (in shares) at Dec. 31, 2024 44,004 15,846,345        
v3.25.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities      
Net income attributable to Consolidated Water Co. Ltd. stockholders $ 28,237,554 $ 29,585,391 $ 5,856,294
Income from Continuing Operations Attributable to Non-Controlling Interests 577,590 573,791 1,112,913
Net income 28,815,144 30,159,182 6,969,207
Adjustments to reconcile net income to net cash provided by operating activities      
Gain on sale of land and project documentation (12,134,766)    
Impairment loss for Mexico assets - discontinued operations     377,326
Foreign currency transaction adjustment - discontinued operations 64,960 (2,003) (102,507)
Loss from discontinued operations 1,714,622 1,088,747 2,096,230
Depreciation and amortization 6,691,658 6,576,454 6,187,308
Deferred income tax benefit (319,887) (524,999) (4,220)
Provision for credit losses 442,828 408,489  
Loss on net put/call option     (128,000)
Compensation expense relating to stock and stock option grants 1,397,583 1,933,666 1,417,172
(Gain) loss on asset dispositions and impairments, net (197,786) 7,112 12,704
Equity in earnings of affiliates (269,455) (169,728) (102,225)
Distribution of earnings from OC-BVI 227,250 303,000 272,700
Accounts receivable (1,796,919) (10,970,521) 303,125
Contract assets 17,082,814 (18,639,335) (2,423,761)
Inventory (3,747,675) (891,405) (3,387,011)
Prepaid expenses and other assets (361,359) (755,391) (3,365,747)
Accounts payable, accrued expenses and other current liabilities (2,370,274) 3,161,386 6,756,433
Contract liabilities 2,889,643 (2,566,910) 8,290,043
Operating lease liabilities (5,207) (5,205) (5,208)
Deferred revenue 48,862 1,192 (267,821)
Net cash provided by operating activities - continuing operations 38,172,036 9,113,731 23,151,748
Net cash used in operating activities - discontinued operations (1,656,504) (1,142,969) (1,819,943)
Net cash provided by operating activities 36,515,532 7,970,762 21,331,805
Cash flows from investing activities      
Purchase of certificate of deposit     (2,518,493)
Maturity of certificate of deposit     5,018,493
Additions to property, plant and equipment and construction in progress (6,696,580) (5,047,884) (7,542,761)
Proceeds from asset dispositions 446,337 20,808 61,725
Investment in affiliate (50,000)    
Proceeds from Mexican settlement agreement 33,261,664    
Acquisition of REC, net of cash acquired   (3,419,916)  
Purchase of non-controlling interest in PERC   (2,440,027)  
Net cash provided by (used in) investing activities 26,961,421 (10,887,019) (4,981,036)
Cash flows from financing activities      
Dividends paid to common shareholders (6,284,645) (5,472,790) (5,145,742)
Dividends paid to preferred shareholders (17,962) (14,228) (11,078)
Dividends paid to non-controlling interests (232,100)   (1,102,475)
Buyback of redeemable preferred stock (14,614) (1,830) (226)
Proceeds received from exercise of stock options 23,753 99,764 26,739
Principal repayments on long-term debt (186,586) (135,481) (72,091)
Net cash used in financing activities (6,712,154) (5,524,565) (6,304,873)
Net increase (decrease) in cash and cash equivalents 56,764,799 (8,440,822) 10,045,896
Cash and cash equivalents at beginning of period 42,621,898 50,711,751 40,358,059
Cash and cash equivalents at beginning of period - discontinued operations 91,283 442,252 750,048
Less: cash and cash equivalents at end of period - discontinued operations (127,859) (91,283) (442,252)
Cash and cash equivalents at end of period $ 99,350,121 $ 42,621,898 $ 50,711,751
v3.25.1
Principal activity
12 Months Ended
Dec. 31, 2024
Principal activity  
Principal activity

1. Principal activity

Consolidated Water Co. Ltd. and its subsidiaries (collectively, the “Company”) supply potable water, treat wastewater and 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, constructs 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.

v3.25.1
Accounting policies
12 Months Ended
Dec. 31, 2024
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 revenue 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 revenue recognition on construction and manufacturing contracts. Actual results could differ significantly from such estimates.

Basis of consolidation: The accompanying consolidated financial statements include the accounts of the Company’s (i) wholly-owned subsidiaries, Aerex Industries, Inc. (“Aerex”), Aquilex, Inc. (“Aquilex”), Cayman Water Company Limited (“Cayman Water”), Consolidated Water Cooperatief, U.A. (“CW-Cooperatief”), Consolidated Water U.S. Holdings, Inc. (“CW-Holdings”), DesalCo Limited (“DesalCo”), Kalaeloa Desalco LLC (“Kalaeloa Desalco”), Ocean Conversion (Cayman) Limited (“OC-Cayman”), PERC Water Corporation ("PERC") and Ramey Environmental Compliance, Inc. (“REC”); and (ii) majority-owned subsidiaries Consolidated Water (Bahamas) Ltd. (“CW-Bahamas”), N.S.C. Agua, S.A. de C.V. (“NSC”), and Aguas de Rosarito S.A.P.I. de C.V. (“AdR”). 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.

In 2019 and 2020, CW-Holdings acquired 61% of PERC. In January 2023, CW-Holdings purchased the remaining 39% ownership interest in PERC for $2.4 million in cash, and 368,383 shares of the Company’s common stock having a value of approximately $5.36 million based upon the opening trading price of the Company’s common stock on The Nasdaq Global Market on the date of the transaction.

In September 2021, Kalaeloa Desalco was formed to pursue a project in Oahu, Hawaii. On June 2, 2023, Kalaeloa Desalco signed a definitive agreement with the Honolulu Board of Water Supply to design, construct, operate and maintain a 1.7 million gallons per day seawater reverse osmosis desalination plant in Oahu, Hawaii.

Effective October 1, 2023, the Company purchased, through its wholly-owned subsidiary PERC, a 100% ownership interest in REC, a Colorado company that operates and maintains water and wastewater treatment facilities and provides technical services to clients throughout the Rocky Mountain and Eastern Plains Regions of Colorado. PERC acquired REC for approximately $4.1 million and recorded goodwill and intangible assets from this acquisition of $2,436,391 and $1,108,390 respectively.

Foreign currency: The Company’s reporting currency is the United States dollar (“US$”). The functional currency of the Company and its foreign operating subsidiaries (other than NSC, AdR, and CW-Cooperatief) is the currency for each respective country. The functional currency for NSC, AdR, and CW-Cooperatief is the US$. NSC and AdR conduct business in US$ and Mexican pesos and CW-Cooperatief conducts business in US$ and euros. The exchange rates for the Cayman Islands dollar and the Bahamian dollar are fixed to the US$. The exchange rates for conversion of Mexican pesos and euros into US$ vary based upon market conditions.

Net foreign currency gains arising from transactions and re-measurements were $74,993, $84,678 and $41,750 for the years ended December 31, 2024, 2023, and 2022, respectively, and are included in “Other income - Other” in the accompanying consolidated statements of income.

Cash and cash equivalents: Cash and cash equivalents consist of demand deposits at banks and certificates of deposit at banks with an original maturity of three months or less. Cash and cash equivalents as of December 31, 2024 and 2023 include $5.2 million and $5.1 million, respectively, of certificates of deposit with an original maturity of three months or less.

As of December 31, 2024, the Company had deposits in U.S. banks and brokerages in excess of federally mandated and insured limits of approximately $54.7 million. As of December 31, 2024, the Company held cash in foreign bank accounts of approximately $34.1 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. The equivalent United States dollar cash balances for deposits held in The Bahamas as of December 31, 2024 and 2023 were approximately $7.7 million and $3.0 million, respectively.

Accounts receivable: Accounts receivable are recorded at invoiced amounts based on meter readings, contractual amounts, fixed fees plus reimbursables or time and materials per contractual agreements. Trade accounts receivable also represent our unconditional right, subject only to the passage of time, to receive consideration arising from our performance under contracts with customers. Trade accounts receivable include amounts billed and billable on construction contracts, service and maintenance contracts and contracts for the sale of goods. Billed contract receivables have been invoiced to customers based on contracted amounts.

Allowance for credit losses: The allowance for credit losses is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable and contract assets balances. The Company determines the current expected credit losses based on historical loss experience, current conditions, and reasonable and supportable forecasts. The Company also considers the nature of the financial asset, the credit quality of the counterparty, and other relevant factors.

Past due balances are reviewed individually for collectability. Account balances are charged off against the allowance for credit losses after all means of collection have been exhausted and the potential for recovery is considered by management to be remote.

Inventory: Inventory primarily consists of 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 (i) raw materials purchased for specific manufacturing contracts that are valued at cost on the first-in, first-out basis; and (ii) potable water held in the Company’s reservoirs that is valued at the lower of the average cost of producing water during the year or its net realizable value.

Contract assets and liabilities: Billing practices for the Company’s contracts are governed by the contract terms of each project based upon costs incurred, achievement of milestones or predetermined schedules. Billings do not necessarily correlate with revenue, which is recognized over time using the input method based on cost incurred. The Company records contract assets and contract liabilities to account for these differences in timing.

Contract assets, which include costs and estimated earnings in excess of billings on uncompleted contracts, arise when the Company recognizes revenue for services performed under its construction and manufacturing contracts, but the Company

is not yet entitled to bill the customer under the terms of the contract. Contract liabilities, which include billings in excess of costs and estimated earnings on uncompleted contracts, represent the Company's obligation to transfer goods or services to a customer for which the Company has been paid by the customer or for which the Company has billed the customer under the terms of the contract. Revenue for future services reflected in this account is recognized, and the liability is reduced, as the Company subsequently satisfies the performance obligation under the contract.

Costs and estimated earnings in excess of billings on uncompleted contracts and billings in excess of costs and estimated earnings on uncompleted contracts are typically resolved within one year and are not considered significant financing components.

The Company considers retention that is withheld on progress billings as not creating an unconditional right to payment until contractual milestones are reached (typically substantial completion). Accordingly, withheld retention is considered a component of contracts assets and liabilities until finally billed to the customer, when obligations have been satisfied and the right to receipt is subject only to the passage of time.

The Company’s contract assets and liabilities are reported in a net asset or liability position on a contract-by-contract basis at the end of each reporting period. The Company classifies contract assets and liabilities related to construction and manufacturing contracts in current assets and current liabilities as they will be liquidated in the normal course of contract completion, although this may require more than one year.

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

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. Additions to construction in progress are comprised of the cost of the contracted services, direct labor and materials.

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, 2024 or 2023.

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 of an acquired business over the fair value of the assets and liabilities of the acquired business as of the date of acquisition. Goodwill and intangible assets recorded as a result of a business combination and determined to have an indefinite useful life are not amortized but are tested for impairment annually or upon the identification of a triggering event. 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 for goodwill impairment testing purposes, which consist of Cayman Water, the bulk segment (which is comprised of CW-Bahamas and OC-Cayman), PERC, REC, and the manufacturing segment (i.e., Aerex), 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 these fair values to the carrying amounts of the reporting units. To the extent the carrying amount of a reporting unit exceeds the fair value of the reporting unit, an impairment loss is recorded.

For the years ended December 31, 2024 and 2023, the Company elected to assess qualitative factors to determine whether it was necessary to perform the quantitative goodwill impairment testing that was conducted in prior years for its reporting units. The Company assessed the relevant events and circumstances to evaluate whether it is more likely than not that the fair values of such reporting units were less than their carrying values. The events and circumstances assessed for each reporting unit included macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, and other relevant events. Based upon this qualitative assessment, the Company determined that it is more likely than not that the fair values of its reporting units exceeded their carrying values as of December 31, 2024 and 2023.

For the year ended December 31, 2022, the Company elected to assess qualitative factors to determine whether it was necessary to perform the quantitative goodwill impairment testing conducted in prior years for all reporting units other than the manufacturing reporting unit. The Company assessed relevant events and circumstances to evaluate whether it is more likely than not that the fair values of such reporting units are less than their carrying values. The events and circumstances assessed for each reporting unit included macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, and other relevant events. Based upon this qualitative assessment the Company determined that it was more likely than not that the fair values of its Cayman Water and bulk segment reporting units exceeded their carrying values as of December 31, 2022. Based upon the Company’s negotiated, arms-length purchase of the remaining 39% equity interest in PERC from its minority shareholders for $7.8 million in January 2023, the fair value of the Company’s PERC reporting unit exceeded its carrying value by 79% as of December 31, 2022.

Due to the factors discussed in the following paragraphs, the Company elected to test the goodwill associated with its manufacturing reporting unit for possible impairment for 2022 using the quantitative tests applied in prior years.

Approximately 80% of Aerex’s revenue, and 89% of Aerex’s gross profit, for the year ended December 31, 2020 were generated from sales to one customer. While Aerex sells various products to this customer, Aerex’s revenue from this customer had historically been derived primarily from one specialized product. In October 2020, this customer informed Aerex that, for inventory management purposes, it was suspending its purchases of the specialized product from Aerex following 2020 for a period of approximately one year. This customer informed Aerex at that time that it expected to recommence its purchases of the specialized product from Aerex beginning with the first quarter of 2022. As a result of this anticipated loss of revenue for Aerex, the Company updated its projections for its Manufacturing reporting unit’s future cash flows. Such projections assumed, in part, that Aerex’s major customer would recommence its purchases from Aerex in 2022 but at a reduced aggregate amount, as compared to 2020. Based upon these updated projections, the Company tested its manufacturing reporting unit’s goodwill for possible impairment as of December 31, 2020 using the discounted cash flow and guideline public company methods, with a weighting of 80% and 20% applied to these two methods, respectively. As a result of these impairment tests, the Company determined that the estimated fair value of its manufacturing reporting unit exceeded its carrying value by approximately 31% as of December 31, 2020.

In late July 2021, this former major customer communicated to Aerex that it expected to recommence its purchases of the specialized product from Aerex in 2022 and subsequent years, but informed Aerex that such purchases would be at substantially reduced annual amounts, as compared to the amounts it had purchased from Aerex in 2020 and prior years. The Company’s updated sales estimate for this customer based on this new information was substantially below the

anticipated sales to this customer for 2022 and subsequent years that the Company used in the discounted cash flow projections it prepared for purposes of testing its Manufacturing reporting unit’s goodwill for possible impairment as of December 31, 2020. Furthermore, Aerex’s efforts to replace the revenue previously generated from this customer with revenue from existing and new customers were adversely impacted by the negative economic conditions (caused in part by the COVID-19 pandemic). These negative economic conditions also increased Aerex’s raw material costs, resulted in raw material shortages and extended delivery times for such materials, and adversely affected the overall financial condition of Aerex’s current and prospective customers. Accordingly, in light of this new information from Aerex’s former major customer, and the on-going weak economic conditions that the Company believed would continue through 2022, the Company updated its projections of future cash flows for the manufacturing reporting unit and tested its goodwill for possible impairment as of June 30, 2021 using the discounted cash flow and guideline public company methods, with a weighting of 80% and 20% applied to these two methods, respectively. Based upon this testing, the Company determined that the carrying value of its manufacturing reporting unit exceeded its fair value by $2.9 million, and the Company recorded an impairment loss to reduce its manufacturing segment’s goodwill by this amount for the three months ended June 30, 2021.

For the year ended December 31, 2022, the Company estimated the fair value of its manufacturing reporting unit by applying the discounted cash flow method, which 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 its manufacturing reporting unit for the year ended December 31, 2022 by applying the guideline public company method. The Company weighted the fair values estimated for its manufacturing reporting unit under each method and summed such weighted fair values to estimate the overall fair value for the reporting unit. The respective weightings the Company applied to each method for the year ended December 31, 2022 were 80% to the discounted cash flow method and 20% to the guideline public company method.

The fair value the Company estimated for its manufacturing reporting unit exceeded its carrying amount by 63% as of December 31, 2022.

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.

Income taxes: The Company accounts for the income taxes arising from the operations of its United States 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, 

    

2024

    

2023

    

2022

Retail revenue

$

31,741,343

$

30,158,051

$

25,954,013

Bulk revenue

 

33,673,387

 

34,595,058

 

32,991,066

Services revenue

 

50,956,489

 

97,966,650

 

28,835,428

Manufacturing revenue

 

17,595,414

 

17,491,474

 

6,324,465

Total revenue

$

133,966,633

$

180,211,233

$

94,104,972

Services revenue consists of the following:

 

Year Ended December 31, 

    

2024

    

2023

    

2022

Construction revenue

$

17,637,432

$

77,306,704

$

11,616,274

Operations and maintenance revenue

 

29,307,405

 

19,368,365

 

14,152,158

Design and consulting revenue

 

4,011,652

 

1,291,581

 

3,066,996

Total services revenue

$

50,956,489

$

97,966,650

$

28,835,428

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 areas on Grand Cayman. Customers are billed on a monthly basis based on metered consumption and bills are typically collected within 30 to 45 days after the billing date. Receivables not collected within 45 days subject the customer to disconnection from water service.

The Company recognizes revenue from retail water sales at the end of the billing cycle based on the water supplied to the customers’ 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, recognizing this revenue from the transfer of goods or services to customers during the billing cycle.

Bulk revenue

The Company produces and supplies water to government-owned utilities 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 three 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, under two agreements with 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 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, recognizing this revenue from the transfer of goods or services to customers during the billing cycle.

Services and Manufacturing revenue

The Company designs, constructs, sells, operates and maintains, and provides consulting services related to water, wastewater and water reuse infrastructure through PERC. All of PERC's customers are companies or governmental entities

located in the United States. Effective October 2023, PERC acquired REC, a company that provides operations and maintenance and consulting services to companies and governmental entities located in the state of Colorado.

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

The Company generates construction, operations and maintenance, design and consulting revenue from PERC and DesalCo and generates manufacturing revenue from Aerex. The Company also generates operations and maintenance and consulting revenue from REC.

The Company recognizes revenue for its construction and custom/specialized manufacturing contracts over time under the input method using costs incurred (which represents work performed) to date relative to the total estimated costs at completion to measure progress toward satisfying a contract’s performance obligations as such measure best reflects the transfer of control of the promised good to the customer. Contract costs include labor, materials, subcontractor costs and other expenses. The Company follows this method since it can make reasonably dependable estimates of the revenue and costs applicable to the 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 costs to be incurred 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 comprised of estimated total contract costs. Due to the extended time it may take to complete many of the Company’s contracts and the scope and nature of the work required to be performed on those contracts, the estimations of total revenue and costs at completion are complicated and subject to many variables and, accordingly, are subject to changes. When adjustments in estimated total contract revenue or estimated total contract costs are required, any changes from prior estimates are recognized in the current period for the inception-to-date effect of such changes. The Company recognizes the full amount of any estimated loss on a contract at the time the estimates indicate such a loss. Any contract assets are classified as current assets. Contract liabilities on uncompleted contracts, if any, are classified as current liabilities.

During the year ended December 31, 2023, the Company adjusted its prior year estimates of the total contract costs for two of its construction contracts. These changes in accounting estimates resulted in an increase in the services segment’s income from operations and the Company’s consolidated net income by $2,356,439 and $1,750,750, respectively, for the year ended December 31, 2023. This adjustment increased basic and diluted earnings per share by $0.11 for the year ended December 31, 2023.

The Company has elected the “right to invoice” practical expedient for revenue recognition on its operations and maintenance, design and consulting contracts and recognizes revenue in the amount to which the Company has a right to invoice, recognizing this revenue from the transfer of goods or services to customers during the billing cycle.

During the years ended December 31, 2024, 2023, and 2022, the Company recognized $18,211,554, $77,411,792 and $14,146,271, respectively, of its services revenue from the transfer of goods or services to customers over time. The remaining services revenue of $32,744,935, $20,554,858 and $14,689,157, respectively, was recognized from the transfer of goods or services to customers when invoiced. During the years ended December 31, 2024, 2023, and 2022, the Company recognized all of its manufacturing revenue from the transfer of goods or services to customers over time.

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 2023 and 2022 have been reclassified to conform to the current year’s presentation.

v3.25.1
Cash and cash equivalents
12 Months Ended
Dec. 31, 2024
Cash and cash equivalents  
Cash and cash equivalents

3. 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, 2024 and 2023, the equivalent United States dollars of the Company’s cash and cash equivalents, including those accounts denominated in currencies other than the U.S. dollar, are as follows:

December 31, 

    

2024

    

2023

Bank accounts:

 

  

 

  

United States dollar

$

39,094,067

$

15,857,612

Cayman Islands dollar

 

17,499,492

 

11,826,102

Bahamian dollar

 

7,717,705

 

3,025,898

 

64,311,264

 

30,709,612

Short-term deposits:

 

  

 

  

United States dollar

 

31,908,220

 

8,861,606

Cayman Islands dollar

 

3,130,637

 

3,050,680

 

35,038,857

 

11,912,286

Total cash and cash equivalents

$

99,350,121

$

42,621,898

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.

v3.25.1
Accounts receivable, net
12 Months Ended
Dec. 31, 2024
Accounts receivable, net  
Accounts receivable, net

4. Accounts receivable, net

December 31, 

    

2024

    

2023

Trade accounts receivable

$

39,986,234

$

38,446,554

Receivable from OC-BVI

 

42,515

 

41,129

Other accounts receivable

 

373,655

 

322,609

 

40,402,404

 

38,810,292

Allowance for credit losses

 

(821,422)

 

(583,401)

Accounts receivable, net

$

39,580,982

$

38,226,891

The activity for the allowance for credit losses consisted of:

December 31, 

    

2024

    

2023

Opening allowance for credit losses

$

583,401

$

183,214

Provision for credit losses

 

442,828

 

408,489

Accounts written off during the year

 

(205,467)

 

(9,215)

Recovery of accounts written off

660

913

Ending allowance for credit losses

$

821,422

$

583,401

Significant concentrations of credit risk are disclosed in Note 17.

v3.25.1
Inventory
12 Months Ended
Dec. 31, 2024
Inventory  
Inventory

5. Inventory

December 31, 

    

2024

    

2023

Spare parts stock

$

8,341,395

$

7,747,455

Raw materials

5,828,568

3,135,357

Consumables stock

 

89,689

 

166,935

Water stock

39,659

40,666

Total inventory

 

14,299,311

 

11,090,413

Less current portion

 

8,960,350

 

6,044,642

Inventory (non-current)

$

5,338,961

$

5,045,771

v3.25.1
Contracts in progress
12 Months Ended
Dec. 31, 2024
Contracts in progress  
Contracts in progress

6. Contracts in progress

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

December 31, 

    

2024

    

2023

Revenue recognized to date on contracts in progress

$

114,590,991

    

$

108,952,682

Amounts billed to date on contracts in progress

 

(121,833,354)

 

(101,724,459)

Retainage

2,585,952

8,087,823

Net contract asset /(liability)

$

(4,656,411)

$

15,316,046

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

December 31,

2024

2023

Contract assets

$

4,470,243

    

$

21,553,057

Contract liabilities

 

(9,126,654)

 

(6,237,011)

Net contract asset /(liability)

$

(4,656,411)

$

15,316,046

The significant decrease in contract assets from December 31, 2023 to December 31, 2024 is attributable to the completion of the construction contract with the WAC for the Red Gate plant in Grand Cayman and the completion of the construction contract with Liberty Utilities for a water treatment facility in Arizona.

During the year ended December 31, 2023, the Company adjusted its prior year estimates of the total contract costs for two of its construction contracts. These changes in accounting estimates resulted in an increase in the services segment’s income from operations and the Company’s consolidated net income by $2,356,439 and $1,750,750, respectively, for the year ended December 31, 2023. This adjustment increased basic and diluted earnings per share by $0.11 for the year ended December 31, 2023.

As of December 31, 2024, the Company had unsatisfied or partially unsatisfied performance obligations for contracts in progress representing approximately $151.3 million in aggregate transaction price for contracts with an original expected length of greater than one year. The Company expects to earn revenue as it satisfies its performance obligations under those contracts in the amount of approximately $44.2 million during the year ending December 31, 2025 and $107.1 million thereafter. In addition, the Company recognized revenue of approximately $6.2 million in the year ended December 31, 2024, that was included in the contract liability balance as of December 31, 2023.

v3.25.1
Property, plant and equipment and construction in progress
12 Months Ended
Dec. 31, 2024
Property, plant and equipment and construction in progress  
Property, plant and equipment and construction in progress

7. Property, plant and equipment and construction in progress

December 31, 

    

2024

    

2023

Land

$

6,307,089

$

6,488,400

Buildings

 

26,033,866

 

26,044,551

Plant and equipment

 

61,089,877

 

66,000,977

Distribution system

 

40,402,691

 

39,546,175

Office furniture, fixtures and equipment

 

3,277,313

 

3,338,760

Vehicles

 

3,830,539

 

3,433,561

Leasehold improvements

 

306,545

 

306,545

Lab equipment

 

12,456

 

12,456

 

141,260,376

 

145,171,425

Less accumulated depreciation

 

88,828,094

 

89,288,904

Property, plant and equipment, net

$

52,432,282

$

55,882,521

Construction in progress

$

5,143,717

$

495,471

The Company maintains insurance for loss or damage to all fixed assets that it deems susceptible to loss. During the years ended December 31, 2024, and 2023, $1,395,485 and $7,093,158, respectively, of construction in progress was placed in service. Depreciation expense was $5,855,935, $5,823,008 and $5,425,177 for the years ended December 31, 2024, 2023 and 2022, respectively.

v3.25.1
Discontinued operations - Mexico project development
12 Months Ended
Dec. 31, 2024
Discontinued operations - Mexico project development  
Discontinued operations - Mexico project development

8. Discontinued operations – Mexico project development

In 2010, the Company began the pursuit, through its Netherlands subsidiary, CW-Cooperatief, and its Mexico subsidiary, NSC, of a project (the “Project”) that encompassed the construction, operation and minority ownership of a 100 million gallons 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.

Through a series of transactions that began in 2012, NSC purchased 20.1 hectares of land for approximately $21.1 million on which the proposed Project’s plant was to be constructed.

In November 2015, the State of Baja California (the “State”) officially commenced the public tender for the Project. A consortium (the “Consortium”) comprised of NSC and two other parties 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.

In August 2016, NSC incorporated a new company under the name AdR to pursue completion of 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 operation and (ii) AdR would enter into a Management and Technical Services Agreement with NSC effective on the first day that the Project begins commercial operation. ​

On August 22, 2016, the Public Private Partnership Agreement for the Project (the “APP Contract”) was executed between AdR, the State Water Commission of Baja California (“CEA”), and the Government of Baja California, as represented by the Secretary of Planning and Finance and the Public Utilities Commission of Tijuana (“CESPT”). The APP Contract required 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 public water system in Tijuana, Baja California and the second phase with a

capacity of 50 million gallons per day. The first phase was to be operational within 36 months of commencing construction and the second phase was to be operational by January 2025. The APP Contract further required 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 would have been transferred to CEA.

On June 29, 2020, AdR received a letter (the “Letter”) from the Director General of CEA and the Director General of CESPT terminating the APP Contract. The Letter requested that AdR provide an inventory of the assets that comprised the “Project Works” (as defined in the APP Contract) for the purpose of acknowledging and paying the non-recoverable expenses made by AdR in connection with the Project, with such reimbursement to be calculated in accordance with the terms of the APP Contract. On August 28, 2020, AdR submitted their list of non-recoverable expenses, including those of NSC, to CEA and CESPT which was comprised of 51,144,525 United States dollars and an additional 137,333,114 Mexican pesos.

The Company believed CW-Cooperatief, as a Netherlands company, had certain rights relating to its investments in NSC and AdR under the Agreement on Promotion, Encouragement and Reciprocal Protection of Investments between the Kingdom of the Netherlands and the United Mexican States entered into force as of October 1, 1999 (the “Treaty”). On April 16, 2021, CW-Cooperatief submitted a letter to the President of Mexico and other Mexican federal government officials alleging that the State’s termination of the APP Contract constituted a breach by Mexico of its international obligations under the Treaty, entitling CW-Cooperatief to full reparation, including monetary damages. This letter invited Mexico to seek a resolution of this investment dispute through consultation and negotiation, but stated that if the dispute cannot be resolved in this manner, CW-Cooperatief would refer the dispute to the International Centre for the Settlement of International Disputes for arbitration, as provided for in the Treaty. On June 29, 2021, the Mexican Ministry of Economy responded to CW-Cooperatief’s letter and proposed to hold a consultation meeting. Two such meetings were held on July 9, 2021 and August 2, 2021 on a confidential basis, without a resolution of the Company’s investment dispute.

In February 2022, CW-Cooperatief, filed a Request for Arbitration with the International Centre for Settlement of International Disputes (“ICSID”) requesting that the United Mexican States pay CW-Cooperatief damages in excess of US$51 million plus MXN$137 million (with the exact amount to be quantified in the proceedings), plus fees, costs and pre- and post-award interest.

On May 29, 2024, the Company, through CW-Cooperatief; NSC, and AdR entered into a settlement agreement (the “Settlement Agreement”) with the State and Banco Nacional de Obras y Servicios Públicos, S.N.C., as trustee under the trust agreement for the trust named Fondo Nacional de Infraestructura (the “Trust”). Under the Settlement Agreement, CW-Cooperatief requested that ICSID discontinue the arbitration and on May 31, 2024, ICSID issued an order discontinuing the arbitration. Pursuant to the Settlement Agreement, the Trust purchased the 20.1 hectares of land on which the Project’s plant was to be constructed, including related rights of way (the “Land”), on an “as-is” basis, from NSC for MXN$596,144,000. The sale of the Land to the Trust was closed on June 14, 2024 at which time the MXN$596,144,000 was paid to the Company and converted at the prevailing exchange rate on that date into US$31,959,685.

In connection with the Settlement Agreement on June 14, 2024, the State also paid NSC MXN$20,000,000 to purchase certain documentation owned by NSC relating to the Project.

As a result of the Settlement Agreement: (i) the parties have been released from all obligations owed to each other in connection with the APP Contract and the arbitration; and (ii) no party to the Settlement Agreement may institute any legal proceedings against another party thereto with respect to the matters which have been addressed by the Settlement Agreement.

The Settlement Agreement and any matter arising out of or in connection with it are governed by the federal laws of Mexico.

The Company’s net income (losses) from discontinued operations for the years ended December 31, 2024, 2023 and 2022 were $10,355,184, ($1,086,744) and ($2,371,049), respectively.

Summarized financial information for the discontinued Mexico project development operation is as follows:

December 31, 

2024

2023

Cash

   

$

127,859

   

$

91,283

Prepaid expenses and other current assets

144,626

120,234

Land

 

 

21,126,898

Other assets

 

 

2,390

Total assets of discontinued operations

$

272,485

$

21,340,805

 

  

 

  

Total liabilities of discontinued operations

$

509,745

$

364,665

Year Ended December 31, 

    

2024

    

2023

    

2022

Revenue

    

$

    

$

$

Loss from discontinued operations

$

(1,779,582)

$

(1,086,744)

$

(2,371,049)

Gain on sale of land and project documentation

$

12,134,766

$

$

Depreciation expense

$

$

$

v3.25.1
Intangible assets
12 Months Ended
Dec. 31, 2024
Intangible assets  
Intangible assets

9. Intangible assets

The Company’s purchase transactions for Aerex and PERC identified certain intangible assets. The remaining intangible assets and their respective useful lives are as follows: trade names (15 years) and facility management contracts (6 years).

Effective October 2023, the Company purchased a 100% ownership interest in REC. The purchase transaction identified certain intangible assets with a fair value of $1,108,390 and useful lives as follows: non-compete (5 years), trade name (15 years) and customer relationships (15 years).

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

December 31, 

    

2024

    

2023

Cost

 

  

 

  

Non-compete agreements

$

268,590

$

268,590

Trade names

 

3,096,900

 

3,096,900

Customer relationships

442,900

442,900

Facility management contracts

 

2,200,000

 

2,200,000

 

6,008,390

 

6,008,390

Accumulated amortization

 

 

  

Non-compete agreements

 

(67,147)

 

(13,430)

Trade names

 

(1,313,075)

 

(1,106,615)

Customer relationships

(36,908)

(7,382)

Facility management contracts

 

(1,894,445)

 

(1,527,778)

 

(3,311,575)

 

(2,655,205)

Intangible assets, net

$

2,696,815

$

3,353,185

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

2025

    

$

595,260

2026

 

289,705

2027

 

289,705

2028

 

276,275

2029

 

235,987

Thereafter

 

1,009,883

$

2,696,815

Amortization expense was $656,370, $574,093 and $582,778 for the years ended December 31, 2024, 2023 and 2022, respectively.

v3.25.1
Leases
12 Months Ended
Dec. 31, 2024
Leases  
Leases

10. Leases

The Company’s leases consist primarily of leases for office and warehouse space. For leases with terms greater than twelve months, the related asset and obligation are recorded at the present value of the lease payments over the term. Many of these leases contain rental escalation clauses which are factored into the determination of the lease payments when appropriate. When available, the lease payments are discounted using the rate implicit in the lease; however, the Company’s current leases 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 the lease commencement.

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 expensed on a straight-line basis over the lease term.

Effective May 1, 2024, the Company entered into a new office lease for the existing office located in Grand Cayman, Cayman Islands under similar terms compared to the prior lease. This new lease has a term of five years from the commencement date with an option for an additional five-year term.

All lease assets denominated in a foreign currency are measured using the exchange rate at the commencement of the lease. All lease liabilities denominated in a foreign currency are remeasured using the exchange rate as of the consolidated balance sheet date.

Lease assets and liabilities

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

    

December 31, 

2024

2023

ASSETS

 

  

Current

 

  

  

Prepaid expenses and other current assets

$

41,801

$

110,541

Noncurrent

 

 

Operating lease right-of-use assets

 

3,190,985

 

2,135,446

Total lease right-of-use assets

$

3,232,786

$

2,245,987

LIABILITIES

    

  

 

  

Current

 

  

  

Current maturities of operating leases

$

634,947

$

456,865

Noncurrent

 

 

Noncurrent operating leases

2,630,812

1,827,302

Total lease liabilities

$

3,265,759

$

2,284,167

Weighted average remaining lease term:

 

  

 

  

Operating leases

 

5.0 years

 

6.1 years

 

 

Weighted average discount rate:

 

 

Operating leases

 

6.56%

 

5.67%

The components of lease costs were as follows:

    

Year Ended December 31, 

2024

2023

2022

Operating lease costs

$

847,540

$

751,261

$

692,404

Short-term lease costs

 

361,176

 

217,640

100,975

Lease costs - discontinued operations

31,946

45,979

40,021

Total lease costs

$

1,240,662

$

1,014,880

$

833,400

Supplemental cash flow information related to leases is as follows:

    

Year Ended December 31, 

2024

2023

2022

Cash paid for amounts included in measurement of liabilities:

 

  

Operating cash outflows for operating leases

$

924,461

$

760,847

$

742,696

Operating cash outflows for operating leases - discontinued operations

11,337

9,590

Future lease payments relating to the Company's operating lease liabilities from continuing operations as of December 31, 2024 are as follows:

Years ending December 31, 

    

Total

2025

$

836,548

2026

 

763,783

2027

 

732,904

2028

 

749,143

2029

455,209

Thereafter

 

314,007

Total future lease payments

 

3,851,594

Less: imputed interest

 

(585,835)

Total lease obligations

 

3,265,759

Less: current obligations

 

(634,947)

Noncurrent lease obligations

$

2,630,812

v3.25.1
Income taxes
12 Months Ended
Dec. 31, 2024
Income taxes  
Income taxes

11. Income taxes

The components of income before income taxes for the years ended December 31, 2024, 2023, and 2022 are as follows:

Year Ended December 31, 

    

2024

    

2023

    

2022

Foreign (not subject to income taxes)

$

10,699,269

$

10,002,233

$

6,958,583

Mexico

 

10,922,374

 

(742,367)

 

(987,279)

United States

 

9,412,015

 

27,649,330

 

1,394,642

 

31,033,658

 

36,909,196

 

7,365,946

Discontinued operations

 

(10,355,184)

 

1,086,744

 

2,371,049

$

20,678,474

$

37,995,940

$

9,736,995

The Company’s provision for (benefit from) income taxes for the years ended December 31, 2024, 2023, and 2022, which related to U.S. operations, consisted of the following:

Year Ended December 31, 

    

2024

    

2023

    

2022

Current:

Federal

$

2,282,566

$

5,611,360

$

430,116

State

255,835

1,663,653

(29,157)

Foreign

Total current income tax expense (benefit)

2,538,401

7,275,013

400,959

Deferred:

 

 

 

Federal

(267,100)

(276,070)

(184,469)

State

(52,787)

(248,929)

180,249

Foreign

Total deferred income tax expense (benefit)

(319,887)

(524,999)

(4,220)

Total provision for (benefit from) income taxes

$

2,218,514

$

6,750,014

$

396,739

A reconciliation of the U.S. statutory federal tax rate to the effective rate for the years ended December 31, 2024, 2023, and 2022 is as follows:

Year Ended December 31, 

 

    

2024

    

2023

 

2023

 

U.S. statutory federal rate

21.00

%  

21.00

%

21.00

%

State taxes, net of federal effect

 

0.72

%  

2.88

%

8.88

%

Foreign rate differential

 

(11.45)

%  

(5.71)

%

(25.57)

%

Research and development tax credit

 

%  

%

(1.92)

%

Permanent items

 

0.46

%  

(0.32)

%

(0.70)

%

Change in valuation allowance

 

%  

(0.08)

%

2.38

%

 

10.73

%  

17.77

%

4.07

%

The tax effects of significant items comprising the Company’s net long-term deferred tax liability as of December 31, 2024 and 2023 were as follows:

December 31, 

    

2024

    

2023

Continuing Operations

Deferred tax assets:

 

  

 

  

Net operating loss carryforwards

$

80,285

$

130,911

Accruals and reserves

209,549

146,057

Operating lease liabilities

425,797

501,397

Capitalized research expenditures

316,937

326,178

Others

88,750

29,094

Valuation allowances

 

 

 

1,121,318

 

1,133,637

Deferred tax liabilities:

 

  

 

  

Property and equipment

 

239,830

 

325,473

Intangible assets

 

672,973

 

847,450

Operating lease right-of-use assets

 

419,408

 

491,494

 

1,332,211

 

1,664,417

Net deferred tax liabilities

$

(210,893)

$

(530,780)

Discontinued Operations

Deferred tax assets:

Operating loss carryforwards - Mexico

$

$

5,844,847

Land basis difference - Mexico

2,818,663

Start-up costs - Mexico

7,015,484

Valuation allowances

(15,678,994)

$

$

As of December 31, 2024, the Company’s continuing operations have a federal net loss carryforward of approximately $400,000 and a state net loss carryforward of approximately $38,000. The net operating losses (“NOLs”) generated in taxable years beginning before January 1, 2018, may be carried forward up to 20 taxable years. The unused federal NOLs will expire on various dates starting from 2030. For NOLs generated in taxable years beginning after December 31, 2017, they are carried forward indefinitely until used and never expire.

v3.25.1
Earnings per share
12 Months Ended
Dec. 31, 2024
Earnings per share  
Earnings per share

12. Earnings per share

Earnings per share (“EPS”) is 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, 

 

2024

    

2023

    

2022

Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders

$

17,882,370

$

30,672,135

$

8,227,343

Less: preferred stock dividends

 

(18,595)

 

(15,513)

 

(11,532)

Net income from continuing operations available to common shares in the determination of basic earnings per common share

 

17,863,775

 

30,656,622

 

8,215,811

Income (loss) from discontinued operations

 

10,355,184

 

(1,086,744)

 

(2,371,049)

Net income available to common shares in the determination of basic earnings per common share

$

28,218,959

$

29,569,878

$

5,844,762

Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders

 

15,832,328

 

15,739,056

 

15,290,509

Plus:

 

 

 

Weighted average number of preferred shares outstanding during the period

 

44,257

 

39,885

 

31,885

Potential dilutive effect of unexercised options and unvested stock grants

 

59,377

 

86,956

 

79,259

Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders

 

15,935,962

 

15,865,897

 

15,401,653

v3.25.1
Dividends
12 Months Ended
Dec. 31, 2024
Dividends  
Dividends

13. Dividends

Interim dividends declared on Class A common stock and redeemable preferred stock for each quarter of the respective years ended December 31, 2024, 2023, and 2022, were as follows:

    

2024

2023

    

2022

First Quarter

$

0.095

$

0.085

$

0.085

Second Quarter

 

0.095

 

0.085

 

0.085

Third Quarter

 

0.11

 

0.095

 

0.085

Fourth Quarter

 

0.11

 

0.095

 

0.085

$

0.41

$

0.36

$

0.34

v3.25.1
Segment information
12 Months Ended
Dec. 31, 2024
Segment information  
Segment information

14. Segment information

The Company has five reportable segments: retail, bulk, services, manufacturing and corporate. The retail segment operates the water utility for the Seven Mile Beach and West Bay areas of Grand Cayman 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. The corporate segment consists of various expenses of a general and administrative nature incurred at the parent company level, as well as the expenses incurred by Aquilex, a U.S. subsidiary that provides financial, engineering, information technology, administrative and supply chain management support services to all the Company’s subsidiaries and its affiliate.

Frederick W. McTaggart, Chief Executive Officer and President, is the Company’s chief operating decision maker (“CODM”).

For the retail, bulk, services, and manufacturing segments, the CODM uses revenue, gross profit, and income before income taxes to assess segment performance and in deciding the allocation of resources to each segment. The CODM considers actual versus budget and current period versus prior period variances on a monthly, quarterly, and annual basis for each of these financial measures. The CODM also considers variances from budget and prior period for major corporate expenses (such as employee costs, insurance and professional fee) when making decisions regarding capital and resource allocation.

The accounting policies of the segments are consistent with those described in Note 2. All intercompany transactions are eliminated for segment presentation purposes. Intersegment revenue transactions are insignificant to the Company and are eliminated. Segment information previously disclosed in 2023 and 2022 did not separately disclose those expenses currently reported in the corporate segment, as such expenses were previously included in the retail segment. The 2023 and 2022 segment information provided herein has been recast to conform to the current period presentation.

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. The Company’s income statements by segment, significant segment expenses, and segment assets are presented below.

Year Ended December 31, 2024

    

Retail

    

Bulk

    

Services

    

Manufacturing

    

Corporate

    

Total

Revenue

$

31,741,343

$

33,673,387

$

50,956,489

$

17,595,414

$

    

$

133,966,633

Cost of revenue

 

14,199,088

 

23,360,360

 

38,511,535

 

12,271,202

 

 

88,342,185

Gross profit

 

17,542,255

 

10,313,027

 

12,444,954

 

5,324,212

 

 

45,624,448

General and administrative expenses

 

3,263,593

 

1,564,975

 

6,055,409

 

2,456,807

 

14,196,652

 

27,537,436

Gain on asset dispositions and impairments, net

 

2,286

 

 

2,714

 

 

192,786

 

197,786

Income (loss) from operations

14,280,948

8,748,052

6,392,259

2,867,405

(14,003,866)

 

18,284,798

Interest income

 

198,180

 

865,584

 

458,732

 

4

571,690

2,094,190

Interest expense

(93,368)

(8,409)

(70)

(101,847)

Income from affiliates

16,701

252,754

269,455

Other

78,647

39,625

(5,634)

11,993

7,247

131,878

Other income, net

183,459

905,209

444,689

28,698

831,621

2,393,676

Income (loss) before income taxes

 

14,464,407

 

9,653,261

 

6,836,948

 

2,896,103

(13,172,245)

 

20,678,474

Provision for income taxes

 

 

 

1,528,398

 

672,040

18,076

 

2,218,514

Net income (loss) from continuing operations

 

14,464,407

 

9,653,261

 

5,308,550

 

2,224,063

(13,190,321)

 

18,459,960

Income from continuing operations attributable to non-controlling interests

 

 

577,590

 

 

 

577,590

Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders

$

14,464,407

$

9,075,671

$

5,308,550

$

2,224,063

$

(13,190,321)

 

17,882,370

Net income from discontinued operations

 

  

 

  

 

  

 

  

 

10,355,184

Net income attributable to Consolidated Water Co. Ltd. stockholders

 

  

 

  

 

  

 

  

$

28,237,554

The Company’s cost of revenue consists of:

Year Ended December 31, 2024

    

Retail

    

Bulk

    

Services

    

Manufacturing

    

Corporate

    

Total

Subcontractor and other project costs

$

$

3,787

$

20,366,236

$

9,535,078

$

$

29,905,101

Employee costs

2,895,606

2,069,920

17,062,858

2,042,518

24,070,902

Electricity

4,755,308

3,864,863

212,337

33,551

8,866,059

Fuel oil

8,330,914

8,330,914

Depreciation

2,427,254

2,689,432

364,473

160,211

5,641,370

Maintenance

877,882

2,138,584

439,883

344,042

3,800,391

Insurance

686,073

1,721,846

38,408

2,446,327

Retail license royalties

1,945,470

1,945,470

Other

611,495

2,541,014

27,340

155,802

3,335,651

$

14,199,088

$

23,360,360

$

38,511,535

$

12,271,202

$

$

88,342,185

Other cost of revenue segment expenses above primarily include chemicals and other supplies, government fees and licenses, and freight costs.

The Company’s general and administrative expenses consist of:

Year Ended December 31, 2024

    

Retail

    

Bulk

    

Services

    

Manufacturing

    

Corporate

    

Total

Employee costs

$

1,555,619

$

375,479

$

3,443,005

$

1,286,141

$

8,031,817

$

14,692,061

Professional fees

85,739

82,452

646,610

133,229

2,448,386

3,396,416

Insurance

417,604

384,932

214,983

215,241

834,612

2,067,372

Depreciation and amortization

37,691

25,086

630,544

103,674

73,940

870,935

Other

1,166,940

697,026

1,120,267

718,522

2,807,897

6,510,652

$

3,263,593

$

1,564,975

$

6,055,409

$

2,456,807

$

14,196,652

$

27,537,436

Other general and administrative segment expenses primarily include Board of Directors fees and expenses, maintenance, office rent, amortization of intangible assets, and investor relations costs.

 

As of December 31, 2024

    

Retail

    

Bulk

    

Services

    

Manufacturing

    

Corporate

    

Total

Cash and cash equivalents

$

19,167,484

$

13,339,206

$

34,181,902

$

4,768,376

$

27,893,153

$

99,350,121

Accounts receivable, net

$

3,223,190

$

28,807,257

$

6,593,276

$

946,846

$

10,413

$

39,580,982

Inventory, current and non-current

$

3,437,771

$

4,865,117

$

167,856

$

5,828,567

$

$

14,299,311

Contract assets

$

$

$

1,204,522

$

3,265,721

$

$

4,470,243

Property, plant and equipment, net

$

31,689,586

$

18,093,155

$

858,352

$

1,601,501

$

189,688

$

52,432,282

Construction in progress

$

1,951,559

$

2,480,999

$

$

711,159

$

$

5,143,717

Intangibles, net

$

$

$

2,129,037

$

567,778

$

$

2,696,815

Goodwill

$

1,170,511

$

1,948,875

$

7,756,807

$

1,985,211

$

$

12,861,404

Total segment assets

$

62,994,011

$

71,743,161

$

56,792,772

$

20,095,648

$

31,415,104

$

243,040,696

Assets of discontinued operations

$

272,485

Total assets

$

243,313,181

 

Year Ended December 31, 2023

    

Retail

    

Bulk

    

Services

    

Manufacturing

Corporate

    

Total

Revenue

$

30,158,051

$

34,595,058

$

97,966,650

$

17,491,474

    

$

$

180,211,233

Cost of revenue

 

13,891,229

 

24,128,132

 

66,797,762

 

13,467,005

 

 

118,284,128

Gross profit

 

16,266,822

 

10,466,926

 

31,168,888

 

4,024,469

 

 

61,927,105

General and administrative expenses

 

2,978,164

 

1,737,264

 

4,271,808

 

1,838,284

 

13,926,846

 

24,752,366

Gain (loss) on asset dispositions and impairments, net

 

(21,716)

 

12,720

 

 

2,233

 

(349)

 

(7,112)

Income (loss) from operations

13,266,942

8,742,382

26,897,080

2,188,418

(13,927,195)

 

37,167,627

Interest income

 

181,468

 

362,422

 

151,706

 

4

808

696,408

Interest expense

(123,867)

(21,417)

(145,284)

Income from affiliate

169,728

169,728

Other

93,795

10,793

1,024

2,020

(171)

107,461

Other income, net

151,396

373,215

131,313

2,024

170,365

828,313

Income (loss) before income taxes

 

13,418,338

 

9,115,597

 

27,028,393

 

2,190,442

(13,756,830)

 

37,995,940

Provision (benefit) for income taxes

 

 

 

6,388,457

 

440,111

(78,554)

 

6,750,014

Net income (loss) from continuing operations

 

13,418,338

 

9,115,597

 

20,639,936

 

1,750,331

(13,678,276)

 

31,245,926

Income from continuing operations attributable to non-controlling interests

 

 

573,791

 

 

 

573,791

Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders

$

13,418,338

$

8,541,806

$

20,639,936

$

1,750,331

$

(13,678,276)

 

30,672,135

Net loss from discontinued operations

 

  

 

  

 

  

 

  

 

(1,086,744)

Net income attributable to Consolidated Water Co. Ltd. stockholders

 

  

 

  

 

  

 

  

$

29,585,391

The Company’s cost of revenue consists of:

Year Ended December 31, 2023

    

Retail

    

Bulk

    

Services

    

Manufacturing

    

Corporate

    

Total

Subcontractor and other project costs

$

$

$

53,830,817

$

10,869,688

$

$

64,700,505

Employee costs

2,797,130

1,927,313

12,311,403

1,899,167

18,935,013

Electricity

4,846,974

4,306,439

301,247

48,006

9,502,666

Fuel oil

9,024,836

9,024,836

Depreciation

2,376,747

2,831,368

256,537

168,347

5,632,999

Maintenance

845,596

1,705,585

83,998

357,693

2,992,872

Insurance

587,238

1,468,508

5,751

2,061,497

Retail license royalties

1,842,924

1,842,924

Other

594,620

2,864,083

8,009

124,104

3,590,816

$

13,891,229

$

24,128,132

$

66,797,762

$

13,467,005

$

$

118,284,128

Other cost of revenue segment expenses above primarily include chemicals and other supplies, government fees and licenses, and freight costs.

The Company’s general and administrative expenses consist of:

Year Ended December 31, 2023

    

Retail

    

Bulk

    

Services

    

Manufacturing

    

Corporate

    

Total

Employee costs

$

1,485,647

$

359,923

$

2,529,548

$

1,071,012

$

8,244,023

$

13,690,153

Professional fees

122,067

93,754

422,196

88,882

1,285,193

2,012,092

Insurance

351,259

341,391

127,993

196,539

886,674

1,903,856

Depreciation and amortization

38,883

22,180

528,810

105,013

69,216

764,102

Other

980,308

920,016

663,261

376,838

3,441,740

6,382,163

$

2,978,164

$

1,737,264

$

4,271,808

$

1,838,284

$

13,926,846

$

24,752,366

Other general and administrative segment expenses primarily include Board of Directors fees and expenses, maintenance, office rent, amortization of intangible assets, and investor relations costs.

 

As of December 31, 2023

     

Retail

    

Bulk

    

Services

    

Manufacturing

    

Corporate

    

Total

Cash and cash equivalents

$

10,982,982

$

7,932,485

$

18,080,724

$

2,879,665

$

2,746,042

$

42,621,898

Accounts receivable, net

$

3,409,973

$

26,965,126

$

6,802,780

$

1,033,037

$

15,975

$

38,226,891

Inventory, current and non-current

$

3,041,460

$

4,858,324

$

55,272

$

3,135,357

$

$

11,090,413

Contract assets

$

$

$

17,715,872

$

3,837,185

$

$

21,553,057

Property, plant and equipment, net

$

32,318,148

$

20,370,056

$

1,143,884

$

1,559,094

$

491,339

$

55,882,521

Construction in progress

$

380,436

$

$

$

115,035

$

$

495,471

Intangibles, net

$

$

$

2,692,074

$

661,111

$

$

3,353,185

Goodwill

$

1,170,511

$

1,948,875

$

7,756,807

$

1,985,211

$

$

12,861,404

Total segment assets

$

52,120,112

$

63,956,725

$

58,476,773

$

15,888,642

$

6,654,535

$

197,096,787

Assets of discontinued operations

 

 

 

 

 

$

21,340,805

Total assets

 

 

 

 

 

$

218,437,592

 

Year Ended December 31, 2022

    

Retail

    

Bulk

    

Services

    

Manufacturing

Corporate

    

Total

Revenue

$

25,954,013

$

32,991,066

$

28,835,428

$

6,324,465

    

$

$

94,104,972

Cost of revenue

 

12,548,763

 

23,032,212

 

22,973,634

 

5,195,240

 

 

63,749,849

Gross profit

 

13,405,250

 

9,958,854

 

5,861,794

 

1,129,225

 

 

30,355,123

General and administrative expenses

 

2,609,571

 

1,570,732

 

3,461,294

 

1,485,342

 

11,943,295

 

21,070,234

Gain (loss) on asset dispositions and impairments, net

 

(39,397)

 

5,607

 

23,717

 

(2,631)

 

 

(12,704)

Income (loss) from operations

10,756,282

8,393,729

2,424,217

(358,748)

(11,943,295)

 

9,272,185

Interest income

 

131,403

 

313,232

 

2,441

 

1

109

447,186

Interest expense

(31,748)

(14,797)

(46,545)

Income from affiliate

102,225

102,225

Net loss on put/call options

(128,000)

(128,000)

Other

83,682

1,865

1,803

782

1,812

89,944

Other income (loss), net

183,337

315,097

(138,553)

783

104,146

464,810

Income (loss) before income taxes

 

10,939,619

 

8,708,826

 

2,285,664

 

(357,965)

(11,839,149)

 

9,736,995

Provision (benefit) for income taxes

 

 

 

458,659

 

(61,920)

 

396,739

Net income (loss) from continuing operations

 

10,939,619

 

8,708,826

 

1,827,005

 

(296,045)

(11,839,149)

 

9,340,256

Income from continuing operations attributable to non-controlling interests

 

 

558,353

 

554,560

 

 

1,112,913

Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders

$

10,939,619

$

8,150,473

$

1,272,445

$

(296,045)

$

(11,839,149)

 

8,227,343

Net loss from discontinued operations

 

  

 

  

 

  

 

  

 

(2,371,049)

Net income attributable to Consolidated Water Co. Ltd. stockholders

 

  

 

  

 

  

 

  

$

5,856,294

The Company’s cost of revenue consists of:

Year Ended December 31, 2022

    

Retail

    

Bulk

    

Services

    

Manufacturing

    

Corporate

    

Total

Subcontractor and other project costs

$

$

$

14,380,940

$

3,436,343

$

$

17,817,283

Employee costs

2,759,588

1,831,305

8,156,016

1,289,208

14,036,117

Electricity

4,063,303

2,594,723

278,629

38,474

6,975,129

Fuel oil

10,203,690

10,203,690

Depreciation

2,281,584

2,645,691

155,237

178,951

5,261,463

Maintenance

878,880

1,717,319

190,059

2,786,258

Insurance

501,508

1,280,825

1,782,333

Retail license royalties

1,590,250

1,590,250

Other

473,650

2,758,659

2,812

62,205

3,297,326

$

12,548,763

$

23,032,212

$

22,973,634

$

5,195,240

$

$

63,749,849

Other cost of revenue segment expenses above primarily include chemicals and other supplies, government fees and licenses, and freight costs.

The Company’s general and administrative expenses consist of:

Year Ended December 31, 2022

    

Retail

    

Bulk

    

Services

    

Manufacturing

    

Corporate

    

Total

Employee costs

$

1,321,660

$

332,023

$

1,966,493

$

941,680

$

6,647,780

$

11,209,636

Professional fees

55,756

127,400

286,802

14,736

1,275,585

1,760,279

Insurance

301,306

291,430

336,832

168,486

969,571

2,067,625

Depreciation and amortization

36,544

11,750

519,271

105,452

73,475

746,492

Other

894,305

808,129

351,896

254,988

2,976,884

5,286,202

$

2,609,571

$

1,570,732

$

3,461,294

$

1,485,342

$

11,943,295

$

21,070,234

Other general and administrative segment expenses primarily include Board of Directors fees and expenses, maintenance, office rent, amortization of intangible assets, and investor relations costs.

Revenue earned by major geographic region was:

Year ended December 31, 

    

2024

    

2023

    

2022

Cayman Islands

$

37,137,424

$

41,728,340

$

30,375,985

The Bahamas

 

29,675,947

 

31,221,633

 

29,943,615

United States

 

66,662,406

 

106,768,621

 

33,338,466

Revenue earned from management services agreement with OC-BVI

 

490,856

 

492,639

 

446,906

$

133,966,633

$

180,211,233

$

94,104,972

Revenue earned from major customers was:

Year ended December 31, 

    

2024

    

2023

    

2022

Revenue earned from the WSC

$

29,675,947

$

31,221,633

$

29,943,615

Percentage of consolidated revenue earned from the WSC

 

22%

 

17%

 

32%

Revenue earned from one service segment customer

$

$

64,149,170

$

11,805,752

Percentage of consolidated revenue earned from the one service segment customer

 

0%

 

36%

 

13%

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

December 31, 

    

2024

    

2023

Cayman Islands

$

31,882,111

$

32,902,949

The Bahamas

 

17,903,191

 

20,039,049

United States

 

2,646,980

 

2,940,523

$

52,432,282

$

55,882,521

v3.25.1
Stock-based compensation
12 Months Ended
Dec. 31, 2024
Stock-based compensation  
Stock-based compensation

15. 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 the Company’s Employee Share Incentive Plan. Once an individual becomes eligible for this plan, they are awarded shares of preferred stock in the month of June following their date of eligibility for the plan (the “grant date”) and in June of each subsequent year of the individual's employment for as long as the individual remains employed with the Company. If the employee remains 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 employee receives 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 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, 2024, 2023 and 2022 totaled 5,904, 13,309 and 9,295, respectively, and an equal number of preferred stock options were granted in each of these years.

Employee Share Option Plan (Common Stock Options)

The Company has an employee stock option plan for four 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 is 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 30th day after the fourth anniversary of the grant date. Options granted under this plan during the years ended December 31, 2024, 2023 and 2022 totaled 1,300, 3,010 and 3,665, 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 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.

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 $142,566, $703,289 and $386,260 for the years ended December 31, 2024, 2023 and 2022, 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, 2024, 2023 and 2022 were as follows:

    

2024

    

2023

 

2022

Risk free interest rate

 

5.23

%  

5.06

%

1.64

Expected option life (years)

 

0.8

 

1.0

1.2

Expected volatility

 

32.93

%  

42.42

%

47.15

Expected dividend yield

 

1.48

%  

1.60

%

2.35

A summary of the Company’s stock option activity for the year ended December 31, 2024 is as follows:

Weighted

Weighted

Average

Average

Remaining

Aggregate

Exercise

Contractual

Intrinsic

    

Options

    

Price

    

Life (Years)

    

Value (1)

Outstanding at beginning of period

 

12,175

$

16.08

 

  

 

  

Granted

 

7,204

 

23.24

 

  

 

  

Exercised

 

(1,043)

 

22.77

 

  

 

  

Forfeited/expired

 

(4,861)

 

22.77

 

  

 

  

Outstanding as of December 31, 2024

 

13,475

$

16.97

 

1.51

years

$

120,136

Exercisable as of December 31, 2024

 

$

 

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 $25.89 on the Nasdaq Global Select Market on December 31, 2024, exceeds the exercise price of the option.

As of December 31, 2024, 13,475 non-vested options were outstanding, with weighted average exercise price of $16.97, and average remaining contractual life of 1.51 years. The total remaining unrecognized compensation costs related to unvested stock-based arrangements were $32,423 as of December 31, 2024, and are expected to be recognized over a weighted average period of 1.51 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, 2024, 2023 and 2022:

    

2024

    

2023

 

2022

Options granted with an exercise price below market price on the date of grant:

 

  

 

  

  

Employees — preferred stock

$

2.58

$

12.21

$

5.58

Overall weighted average

 

2.58

 

12.21

 

5.58

Options granted with an exercise price at market price on the date of grant:

 

  

 

  

 

  

Management employees

$

$

$

Employees — common stock

 

8.50

 

8.29

 

4.32

Overall weighted average

 

8.50

 

8.29

 

4.32

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

$

2,482

$

104,559

$

17,158

Senior Management Long-Term Incentive Compensation

The Board of Directors has established the long-term incentive compensation for the Company’s senior management to better align the interests of its senior management with those of its shareholders. The 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 grant rights, which are issued on January 1 of each year, vest in one-third increments at the end of each year over a three-year period. The number of non-performance-based stock grant rights issued on the first stock trading day of January 2024, 2023, and 2022, were 12,837, 29,508 and 32,265, respectively. These stock grant rights vest in one-third increments over the three-year periods ending December 31, 2026, 2025 and 2024, respectively. The total number of vested shares issued under prior years’ non-performance stock grant rights totaled 29,392, 25,986 and 23,411 in the years ended December 31, 2024, 2023 and 2022, respectively. For the years ended December 31, 2024, 2023 and 2022, the Company recognized $412,520, $366,058 and $325,270 in stock-based compensation expense, respectively, related to the incremental vesting of the non-performance stock grant rights.

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. The Company recognized $509,357, $522,925 and $335,964 in stock-based compensation for the year ended December 31, 2024, 2023 and 2022, respectively, related to these grants.

A total of 41,889 stock grant rights were earned as of December 31, 2024, based upon the Company’s actual financial performance relative to the cumulative financial performance targets for the three-year period ended December 31, 2024. The shares associated with these grants will be issued in 2025.

A total of 26,742 stock grant rights were earned as of December 31, 2023, based upon the Company’s actual financial performance relative to the cumulative financial performance targets for the three-year period ended December 31, 2023. The shares associated with these grants were issued in 2024.

A total of 13,797 stock grant rights were earned as of December 31, 2022, based upon the Company’s actual financial performance relative to the cumulative financial performance targets for the three-year period ended December 31, 2022. The shares associated with these grants were issued in 2023.

Non-Executive Directors’ Share Plan

This stock grant plan provides part of the 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, 2024, 2023 and 2022, totaled 11,448, 22,831 and 30,767 shares, respectively. The Company recognized stock-based compensation for these share grants of $333,140, $341,394 and $369,678 for the years ended December 31, 2024, 2023 and 2022, respectively.

v3.25.1
Retirement benefits
12 Months Ended
Dec. 31, 2024
Retirement benefits  
Retirement benefits

16. Retirement benefits

Retirement plans are offered to all employees in California, Florida, Colorado, the Cayman Islands and The 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’s expense for these plans was $898,457, $771,616 and $624,798 for the years ended December 31, 2024, 2023, and 2022, respectively.

v3.25.1
Financial instruments
12 Months Ended
Dec. 31, 2024
Financial instruments  
Financial instruments

17. 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 a material 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 50 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 become 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, 2024 and 2023, 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.

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.

As of December 31, 2024 and 2023, the Company does not have assets and liabilities measured at fair value to present in the fair value hierarchy.

v3.25.1
Commitments and contingencies
12 Months Ended
Dec. 31, 2024
Commitments and contingencies  
Commitments and contingencies

18. Commitments and contingencies

Commitments

The Company has entered into employment agreements with certain executives, which expire through December 31, 2027 and provide for, among other things, base annual salaries in an aggregate amount of approximately $5.2 million, performance bonuses and various employee benefits.

The Company has purchase obligations totaling approximately $15.6 million through December 31, 2025.

Contingencies

Cayman Water

The Company sells water through its Cayman Water 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 has not been 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 2024, 2023, and 2022, the Company generated approximately 24%, 17% and 27%, respectively, of its consolidated revenue and 38%, 26% and 44%, 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. From that date until February 18, 2025, the Company continued 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 continued to pay the royalty of 7.5% of the revenue that Cayman Water collects as 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 the economic regulation of the water utility sector and the negotiations with the Company for a new retail license from the WAC to OfReg in May 2017. The Company began license negotiations with OfReg in July 2017 and such negotiations are ongoing. The Company has been informed during its retail license negotiations, both by OfReg and its predecessor in these negotiations, that they seek 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.

Under the new regulatory legislation passed in October 2016, Cayman Water must first be granted a concession by the government before obtaining a new (or renewing the old) retail operating license. On February 18, 2025, Cayman Water received a new concession from the government that authorizes and maintains the terms of the 1990 license until a new license is negotiated and enacted.

The Company is presently unable to determine what impact the resolution of its retail license negotiations will have on its consolidated 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’s 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 consolidated financial condition and results of operations.

CW-Bahamas

CW-Bahamas’ accounts receivable balances (which include accrued interest) due from the WSC amounted to $28.4 million and $26.9 million as of December 31, 2024 and 2023. Approximately 81% and 80% of the accounts receivable balances were delinquent as of those dates, respectively.

From time to time (including presently), 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, including accrued interest thereon, were eventually paid in full. Based upon this payment history, CW-Bahamas has not provided a material allowance for credit losses for its accounts receivable from the WSC as of December 31, 2024.

In a report dated October 6, 2022, Moody’s Investor Services (“Moody’s”) downgraded The Bahamas’ long-term issuer and senior unsecured ratings to B1 from Ba3. Moody’s also lowered The Bahamas’ local currency ceiling to Baa3 from Baa2 and its foreign currency ceiling to Ba1 from Baa3. Moody’s has maintained these ratings through the date of its most current report issued in October 2024.

If CW-Bahamas is unable to collect a sufficient 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 additional allowance for credit losses for CW-Bahamas’ accounts receivable. Any of these events could have a material adverse impact on the Company’s consolidated financial condition, results of operations, and cash flows.

CW-Bahamas Performance Guarantees

The contracts to supply water to the WSC from the Blue Hills and Windsor plants require CW-Bahamas to guarantee delivery of a minimum quantity of water per week. If the WSC requires the water and CW-Bahamas does not meet this minimum, CW-Bahamas is required to pay the WSC for the difference between the minimum and actual gallons delivered at a per gallon rate equal to the price per gallon that the WSC is currently paying CW-Bahamas under the contract. The Blue Hills contract expires in 2032 and requires CW-Bahamas to deliver 63.0 million gallons of water each week. The Windsor contract expires in 2033 and requires CW-Bahamas to deliver 16.8 million gallons of water each week. CW-

Bahamas has been in compliance with the performance guarantees under these contracts for all periods since the inception of the contracts.

v3.25.1
Related party transactions
12 Months Ended
Dec. 31, 2024
Related party transactions  
Related party transactions

19. Related party transactions

The Company, through PERC, purchases engineering and technology support services from various companies formerly affiliated with PERC, as a former minority shareholder in these companies was also a minority shareholder of PERC. On January 4, 2023, as a result of CW-Holdings' exercise of a call option in October 2022, CW-Holdings purchased the remaining 39% ownership interest in PERC. After giving effect to this purchase, CW-Holdings owns 100% of the outstanding capital stock of PERC and, consequently, transactions with the formerly affiliated companies no longer constitute related party transactions. During the year ended December 31, 2022, the Company made total purchases of services from these companies of approximately $2,695,000. These total purchases are included in the Company’s cost of revenue in the accompanying consolidated statements of income.

PERC entered into a sublease agreement with one of these formerly affiliated companies that commenced on March 14, 2021 and ended August 31, 2021. This lease was subsequently extended on an annual basis until August 31, 2025. During the year ended December 31, 2022, the Company recognized approximately $97,000 of expense related to this lease. This lease expense is included in the Company's general and administrative expenses in the accompanying consolidated statements of income.

v3.25.1
Supplemental disclosure of cash flow information
12 Months Ended
Dec. 31, 2024
Supplemental disclosure of cash flow information  
Supplemental disclosure of cash flow information

20. Supplemental disclosure of cash flow information

Year Ended December 31, 

    

2024

    

2023

 

2022

Interest paid in cash

$

8,479

$

21,417

$

14,797

Income taxes paid in cash

$

3,147,300

$

4,920,912

$

211,000

Issuance of 5,904, 13,309 and 9,295, respectively, shares of redeemable preferred stock for services rendered

$

148,485

$

323,275

$

133,197

Issuance of 68,832, 68,864 and 72,597, respectively, shares of common stock for services rendered

$

1,064,119

$

1,015,177

$

877,298

Conversion (on a one-to-one basis) of 5,968, 8,848 and 6,585, respectively, shares of redeemable preferred stock to common stock

$

3,581

$

5,309

$

3,951

Dividends declared but not paid

$

1,747,938

$

1,502,506

$

1,305,367

Issuance of 0, 368,383 and 0, respectively, shares of common stock for the purchase of non-controlling interest in PERC

$

$

5,359,973

$

Transfers from inventory to property, plant and equipment and construction in progress

$

538,777

$

317,853

$

346,024

Transfers from construction in progress to property, plant and equipment

$

1,395,485

$

7,093,158

$

297,723

Right-of-use assets obtained in exchange for new operating lease liabilities

$

1,604,702

$

745,078

$

Purchase of equipment through issuance of long-term debt

$

$

$

188,645

Transfers from prepaid expenses to property, plant and equipment

$

67,136

$

271,922

$

Transfers from prepaid expenses to inventory

$

$

238,032

$

v3.25.1
Impact of recent accounting standards
12 Months Ended
Dec. 31, 2024
Impact of recent accounting standards  
Impact of recent accounting standards

21. Impact of recent accounting standards

Adoption of new accounting standards:

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment’s profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an

explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The adoption of ASU 2023-07 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:

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The ASU requires public companies to disclose, in the notes to financial statements, specific information about certain costs and expenses at each interim and annual reporting period. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027.

In January 2025, the FASB issued ASU 2025-01, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. The ASU amends the effective date of ASU 2024-03 to clarify that all business entities are required to adopt the guidance in annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. The Company is currently evaluation the impact of this guidance.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is permitted. The adoption of ASU 2023-09 is not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

v3.25.1
Subsequent events
12 Months Ended
Dec. 31, 2024
Subsequent events  
Subsequent events

22. Subsequent events

The Company evaluated subsequent events through the time of the filing of its Annual Report on Form 10-K. 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.

v3.25.1
Pay vs Performance Disclosure - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net Income (Loss) $ 28,237,554 $ 29,585,391 $ 5,856,294
v3.25.1
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.1
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.1
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Cybersecurity Risk Management and Strategy

Our information technology (“IT”) and cybersecurity programs are crucial to maintaining secure operations, which enable us to deliver on our promise to customers and maintain stakeholder trust. Our Vice President of Information Technology (“VP IT”) is responsible for establishing, implementing, and executing our cybersecurity program and strategy. Our VP IT has more than 25 years of IT, IT audit, and cybersecurity experience, and is involved in assessing the latest developments in cybersecurity, including potential threats and innovative risk management techniques. All IT staff are obliged to include cybersecurity as part of their everyday considerations and tasks.

Our cybersecurity program is a critical component of our enterprise risk management process overseen by our Board of Directors, and we have integrated cybersecurity-related risks into our overall enterprise risk management framework. Additionally, cybersecurity-related risks are included in the risk universe that the risk management function evaluates to assess top risks to the enterprise on an annual basis.

Our IT department proactively identifies, manages, and mitigates cyber risk in a variety of ways, including but not limited to:

a.

A formal enterprise-wide cybersecurity policy and related standards;

b.

Cybersecurity training and employee phishing simulations;

c.

Ongoing vulnerability assessment, identification, and remediation;

d.

Cyber incident response, IT disaster recovery, and business continuity plans;

e.

Identity and access management controls;

f.

Automated patch management and security updates;

g.

Network isolation of key operations environments; and

h.

Email filtering with attachment inspection and targeted threat protection.

The standards set in our cybersecurity program include the implementation of controls that are aligned with industry guidelines and applicable regulations to identify threats, deter attacks, and protect our information security assets. These standards are guided, in part, by the relevant National Institute of Standards and Technology (NIST) and American Water Works Association (AWWA) frameworks and guidance. We use various tools, security measures and technologies to aid in seeking to protect our network perimeter and internal systems from unauthorized access, intrusion, or disruption. Assessments are conducted across our systems, networks, and data infrastructure to identify potential cybersecurity threats and vulnerabilities.

We have policies and procedures in place for selecting and managing our relationships with third-party service providers and other business partners, including monitoring compliance with our agreements and regulatory and legal requirements. We also actively engage with industry participants and related communities as part of our continuing efforts to evaluate and enhance the effectiveness of our information security policies and procedures. In addition, a monitoring and detection system has been implemented to help identify cybersecurity threats and incidents. Our cybersecurity program also focuses on providing training and awareness to our employees and contractors on cybersecurity best practices.

Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]

Our cybersecurity program is a critical component of our enterprise risk management process overseen by our Board of Directors, and we have integrated cybersecurity-related risks into our overall enterprise risk management framework. Additionally, cybersecurity-related risks are included in the risk universe that the risk management function evaluates to assess top risks to the enterprise on an annual basis.

Our IT department proactively identifies, manages, and mitigates cyber risk in a variety of ways, including but not limited to:

a.

A formal enterprise-wide cybersecurity policy and related standards;

b.

Cybersecurity training and employee phishing simulations;

c.

Ongoing vulnerability assessment, identification, and remediation;

d.

Cyber incident response, IT disaster recovery, and business continuity plans;

e.

Identity and access management controls;

f.

Automated patch management and security updates;

g.

Network isolation of key operations environments; and

h.

Email filtering with attachment inspection and targeted threat protection.

Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]

Our Board of Directors considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee oversight of cybersecurity and other IT risks. The Audit Committee oversees management’s implementation of our cybersecurity risk management program.

The Audit Committee oversees the management of our cybersecurity risk exposures and the steps management has taken to monitor and control such exposures. At each quarterly meeting, the Audit Committee receives an update from our VP IT and other members of management on relevant topics, including cybersecurity program maturity progress, new capabilities implemented, testing results, key cyber risk metrics (e.g., simulated phishing testing and vulnerability management) and notable incidents or events should they occur. On an annual basis, our Board of Directors meets with our VP IT and our third-party cybersecurity consultant to review our cybersecurity strategy. In accordance with our cybersecurity incident response plan, our Board of Directors is promptly informed of potentially material cybersecurity incidents, including with respect to our third-party service providers.

Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Audit Committee
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]

The Audit Committee oversees the management of our cybersecurity risk exposures and the steps management has taken to monitor and control such exposures. At each quarterly meeting, the Audit Committee receives an update from our VP IT and other members of management on relevant topics, including cybersecurity program maturity progress, new capabilities implemented, testing results, key cyber risk metrics (e.g., simulated phishing testing and vulnerability management) and notable incidents or events should they occur. On an annual basis, our Board of Directors meets with our VP IT and our third-party cybersecurity consultant to review our cybersecurity strategy. In accordance with our cybersecurity incident response plan, our Board of Directors is promptly informed of potentially material cybersecurity incidents, including with respect to our third-party service providers.

Cybersecurity Risk Role of Management [Text Block]

Our information technology (“IT”) and cybersecurity programs are crucial to maintaining secure operations, which enable us to deliver on our promise to customers and maintain stakeholder trust. Our Vice President of Information Technology (“VP IT”) is responsible for establishing, implementing, and executing our cybersecurity program and strategy. Our VP IT has more than 25 years of IT, IT audit, and cybersecurity experience, and is involved in assessing the latest developments in cybersecurity, including potential threats and innovative risk management techniques. All IT staff are obliged to include cybersecurity as part of their everyday considerations and tasks.

Our management team supervises efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in the IT environment.

Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our Vice President of Information Technology (“VP IT”) is responsible for establishing, implementing, and executing our cybersecurity program and strategy.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our VP IT has more than 25 years of IT, IT audit, and cybersecurity experience, and is involved in assessing the latest developments in cybersecurity, including potential threats and innovative risk management techniques.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] Our management team supervises efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in the IT environment
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.1
Accounting policies (Policies)
12 Months Ended
Dec. 31, 2024
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 revenue 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 revenue recognition on construction and manufacturing contracts. Actual results could differ significantly from such estimates.

Basis of consolidation

Basis of consolidation: The accompanying consolidated financial statements include the accounts of the Company’s (i) wholly-owned subsidiaries, Aerex Industries, Inc. (“Aerex”), Aquilex, Inc. (“Aquilex”), Cayman Water Company Limited (“Cayman Water”), Consolidated Water Cooperatief, U.A. (“CW-Cooperatief”), Consolidated Water U.S. Holdings, Inc. (“CW-Holdings”), DesalCo Limited (“DesalCo”), Kalaeloa Desalco LLC (“Kalaeloa Desalco”), Ocean Conversion (Cayman) Limited (“OC-Cayman”), PERC Water Corporation ("PERC") and Ramey Environmental Compliance, Inc. (“REC”); and (ii) majority-owned subsidiaries Consolidated Water (Bahamas) Ltd. (“CW-Bahamas”), N.S.C. Agua, S.A. de C.V. (“NSC”), and Aguas de Rosarito S.A.P.I. de C.V. (“AdR”). 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.

In 2019 and 2020, CW-Holdings acquired 61% of PERC. In January 2023, CW-Holdings purchased the remaining 39% ownership interest in PERC for $2.4 million in cash, and 368,383 shares of the Company’s common stock having a value of approximately $5.36 million based upon the opening trading price of the Company’s common stock on The Nasdaq Global Market on the date of the transaction.

In September 2021, Kalaeloa Desalco was formed to pursue a project in Oahu, Hawaii. On June 2, 2023, Kalaeloa Desalco signed a definitive agreement with the Honolulu Board of Water Supply to design, construct, operate and maintain a 1.7 million gallons per day seawater reverse osmosis desalination plant in Oahu, Hawaii.

Effective October 1, 2023, the Company purchased, through its wholly-owned subsidiary PERC, a 100% ownership interest in REC, a Colorado company that operates and maintains water and wastewater treatment facilities and provides technical services to clients throughout the Rocky Mountain and Eastern Plains Regions of Colorado. PERC acquired REC for approximately $4.1 million and recorded goodwill and intangible assets from this acquisition of $2,436,391 and $1,108,390 respectively.

Foreign currency

Foreign currency: The Company’s reporting currency is the United States dollar (“US$”). The functional currency of the Company and its foreign operating subsidiaries (other than NSC, AdR, and CW-Cooperatief) is the currency for each respective country. The functional currency for NSC, AdR, and CW-Cooperatief is the US$. NSC and AdR conduct business in US$ and Mexican pesos and CW-Cooperatief conducts business in US$ and euros. The exchange rates for the Cayman Islands dollar and the Bahamian dollar are fixed to the US$. The exchange rates for conversion of Mexican pesos and euros into US$ vary based upon market conditions.

Net foreign currency gains arising from transactions and re-measurements were $74,993, $84,678 and $41,750 for the years ended December 31, 2024, 2023, and 2022, respectively, and are included in “Other income - Other” in the accompanying consolidated statements of income.

Cash and cash equivalents

Cash and cash equivalents: Cash and cash equivalents consist of demand deposits at banks and certificates of deposit at banks with an original maturity of three months or less. Cash and cash equivalents as of December 31, 2024 and 2023 include $5.2 million and $5.1 million, respectively, of certificates of deposit with an original maturity of three months or less.

As of December 31, 2024, the Company had deposits in U.S. banks and brokerages in excess of federally mandated and insured limits of approximately $54.7 million. As of December 31, 2024, the Company held cash in foreign bank accounts of approximately $34.1 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. The equivalent United States dollar cash balances for deposits held in The Bahamas as of December 31, 2024 and 2023 were approximately $7.7 million and $3.0 million, respectively.

Accounts receivable

Accounts receivable: Accounts receivable are recorded at invoiced amounts based on meter readings, contractual amounts, fixed fees plus reimbursables or time and materials per contractual agreements. Trade accounts receivable also represent our unconditional right, subject only to the passage of time, to receive consideration arising from our performance under contracts with customers. Trade accounts receivable include amounts billed and billable on construction contracts, service and maintenance contracts and contracts for the sale of goods. Billed contract receivables have been invoiced to customers based on contracted amounts.

Allowance for credit losses

Allowance for credit losses: The allowance for credit losses is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable and contract assets balances. The Company determines the current expected credit losses based on historical loss experience, current conditions, and reasonable and supportable forecasts. The Company also considers the nature of the financial asset, the credit quality of the counterparty, and other relevant factors.

Past due balances are reviewed individually for collectability. Account balances are charged off against the allowance for credit losses after all means of collection have been exhausted and the potential for recovery is considered by management to be remote.

Inventory

Inventory: Inventory primarily consists of 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 (i) raw materials purchased for specific manufacturing contracts that are valued at cost on the first-in, first-out basis; and (ii) potable water held in the Company’s reservoirs that is valued at the lower of the average cost of producing water during the year or its net realizable value.

Contract assets and liabilities

Contract assets and liabilities: Billing practices for the Company’s contracts are governed by the contract terms of each project based upon costs incurred, achievement of milestones or predetermined schedules. Billings do not necessarily correlate with revenue, which is recognized over time using the input method based on cost incurred. The Company records contract assets and contract liabilities to account for these differences in timing.

Contract assets, which include costs and estimated earnings in excess of billings on uncompleted contracts, arise when the Company recognizes revenue for services performed under its construction and manufacturing contracts, but the Company

is not yet entitled to bill the customer under the terms of the contract. Contract liabilities, which include billings in excess of costs and estimated earnings on uncompleted contracts, represent the Company's obligation to transfer goods or services to a customer for which the Company has been paid by the customer or for which the Company has billed the customer under the terms of the contract. Revenue for future services reflected in this account is recognized, and the liability is reduced, as the Company subsequently satisfies the performance obligation under the contract.

Costs and estimated earnings in excess of billings on uncompleted contracts and billings in excess of costs and estimated earnings on uncompleted contracts are typically resolved within one year and are not considered significant financing components.

The Company considers retention that is withheld on progress billings as not creating an unconditional right to payment until contractual milestones are reached (typically substantial completion). Accordingly, withheld retention is considered a component of contracts assets and liabilities until finally billed to the customer, when obligations have been satisfied and the right to receipt is subject only to the passage of time.

The Company’s contract assets and liabilities are reported in a net asset or liability position on a contract-by-contract basis at the end of each reporting period. The Company classifies contract assets and liabilities related to construction and manufacturing contracts in current assets and current liabilities as they will be liquidated in the normal course of contract completion, although this may require more than one year.

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

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. Additions to construction in progress are comprised of the cost of the contracted services, direct labor and materials.

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, 2024 or 2023.

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 of an acquired business over the fair value of the assets and liabilities of the acquired business as of the date of acquisition. Goodwill and intangible assets recorded as a result of a business combination and determined to have an indefinite useful life are not amortized but are tested for impairment annually or upon the identification of a triggering event. 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 for goodwill impairment testing purposes, which consist of Cayman Water, the bulk segment (which is comprised of CW-Bahamas and OC-Cayman), PERC, REC, and the manufacturing segment (i.e., Aerex), 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 these fair values to the carrying amounts of the reporting units. To the extent the carrying amount of a reporting unit exceeds the fair value of the reporting unit, an impairment loss is recorded.

For the years ended December 31, 2024 and 2023, the Company elected to assess qualitative factors to determine whether it was necessary to perform the quantitative goodwill impairment testing that was conducted in prior years for its reporting units. The Company assessed the relevant events and circumstances to evaluate whether it is more likely than not that the fair values of such reporting units were less than their carrying values. The events and circumstances assessed for each reporting unit included macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, and other relevant events. Based upon this qualitative assessment, the Company determined that it is more likely than not that the fair values of its reporting units exceeded their carrying values as of December 31, 2024 and 2023.

For the year ended December 31, 2022, the Company elected to assess qualitative factors to determine whether it was necessary to perform the quantitative goodwill impairment testing conducted in prior years for all reporting units other than the manufacturing reporting unit. The Company assessed relevant events and circumstances to evaluate whether it is more likely than not that the fair values of such reporting units are less than their carrying values. The events and circumstances assessed for each reporting unit included macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, and other relevant events. Based upon this qualitative assessment the Company determined that it was more likely than not that the fair values of its Cayman Water and bulk segment reporting units exceeded their carrying values as of December 31, 2022. Based upon the Company’s negotiated, arms-length purchase of the remaining 39% equity interest in PERC from its minority shareholders for $7.8 million in January 2023, the fair value of the Company’s PERC reporting unit exceeded its carrying value by 79% as of December 31, 2022.

Due to the factors discussed in the following paragraphs, the Company elected to test the goodwill associated with its manufacturing reporting unit for possible impairment for 2022 using the quantitative tests applied in prior years.

Approximately 80% of Aerex’s revenue, and 89% of Aerex’s gross profit, for the year ended December 31, 2020 were generated from sales to one customer. While Aerex sells various products to this customer, Aerex’s revenue from this customer had historically been derived primarily from one specialized product. In October 2020, this customer informed Aerex that, for inventory management purposes, it was suspending its purchases of the specialized product from Aerex following 2020 for a period of approximately one year. This customer informed Aerex at that time that it expected to recommence its purchases of the specialized product from Aerex beginning with the first quarter of 2022. As a result of this anticipated loss of revenue for Aerex, the Company updated its projections for its Manufacturing reporting unit’s future cash flows. Such projections assumed, in part, that Aerex’s major customer would recommence its purchases from Aerex in 2022 but at a reduced aggregate amount, as compared to 2020. Based upon these updated projections, the Company tested its manufacturing reporting unit’s goodwill for possible impairment as of December 31, 2020 using the discounted cash flow and guideline public company methods, with a weighting of 80% and 20% applied to these two methods, respectively. As a result of these impairment tests, the Company determined that the estimated fair value of its manufacturing reporting unit exceeded its carrying value by approximately 31% as of December 31, 2020.

In late July 2021, this former major customer communicated to Aerex that it expected to recommence its purchases of the specialized product from Aerex in 2022 and subsequent years, but informed Aerex that such purchases would be at substantially reduced annual amounts, as compared to the amounts it had purchased from Aerex in 2020 and prior years. The Company’s updated sales estimate for this customer based on this new information was substantially below the

anticipated sales to this customer for 2022 and subsequent years that the Company used in the discounted cash flow projections it prepared for purposes of testing its Manufacturing reporting unit’s goodwill for possible impairment as of December 31, 2020. Furthermore, Aerex’s efforts to replace the revenue previously generated from this customer with revenue from existing and new customers were adversely impacted by the negative economic conditions (caused in part by the COVID-19 pandemic). These negative economic conditions also increased Aerex’s raw material costs, resulted in raw material shortages and extended delivery times for such materials, and adversely affected the overall financial condition of Aerex’s current and prospective customers. Accordingly, in light of this new information from Aerex’s former major customer, and the on-going weak economic conditions that the Company believed would continue through 2022, the Company updated its projections of future cash flows for the manufacturing reporting unit and tested its goodwill for possible impairment as of June 30, 2021 using the discounted cash flow and guideline public company methods, with a weighting of 80% and 20% applied to these two methods, respectively. Based upon this testing, the Company determined that the carrying value of its manufacturing reporting unit exceeded its fair value by $2.9 million, and the Company recorded an impairment loss to reduce its manufacturing segment’s goodwill by this amount for the three months ended June 30, 2021.

For the year ended December 31, 2022, the Company estimated the fair value of its manufacturing reporting unit by applying the discounted cash flow method, which 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 its manufacturing reporting unit for the year ended December 31, 2022 by applying the guideline public company method. The Company weighted the fair values estimated for its manufacturing reporting unit under each method and summed such weighted fair values to estimate the overall fair value for the reporting unit. The respective weightings the Company applied to each method for the year ended December 31, 2022 were 80% to the discounted cash flow method and 20% to the guideline public company method.

The fair value the Company estimated for its manufacturing reporting unit exceeded its carrying amount by 63% as of December 31, 2022.

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.

Income taxes

Income taxes: The Company accounts for the income taxes arising from the operations of its United States 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, 

    

2024

    

2023

    

2022

Retail revenue

$

31,741,343

$

30,158,051

$

25,954,013

Bulk revenue

 

33,673,387

 

34,595,058

 

32,991,066

Services revenue

 

50,956,489

 

97,966,650

 

28,835,428

Manufacturing revenue

 

17,595,414

 

17,491,474

 

6,324,465

Total revenue

$

133,966,633

$

180,211,233

$

94,104,972

Services revenue consists of the following:

 

Year Ended December 31, 

    

2024

    

2023

    

2022

Construction revenue

$

17,637,432

$

77,306,704

$

11,616,274

Operations and maintenance revenue

 

29,307,405

 

19,368,365

 

14,152,158

Design and consulting revenue

 

4,011,652

 

1,291,581

 

3,066,996

Total services revenue

$

50,956,489

$

97,966,650

$

28,835,428

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 areas on Grand Cayman. Customers are billed on a monthly basis based on metered consumption and bills are typically collected within 30 to 45 days after the billing date. Receivables not collected within 45 days subject the customer to disconnection from water service.

The Company recognizes revenue from retail water sales at the end of the billing cycle based on the water supplied to the customers’ 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, recognizing this revenue from the transfer of goods or services to customers during the billing cycle.

Bulk revenue

The Company produces and supplies water to government-owned utilities 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 three 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, under two agreements with 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 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, recognizing this revenue from the transfer of goods or services to customers during the billing cycle.

Services and Manufacturing revenue

The Company designs, constructs, sells, operates and maintains, and provides consulting services related to water, wastewater and water reuse infrastructure through PERC. All of PERC's customers are companies or governmental entities

located in the United States. Effective October 2023, PERC acquired REC, a company that provides operations and maintenance and consulting services to companies and governmental entities located in the state of Colorado.

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

The Company generates construction, operations and maintenance, design and consulting revenue from PERC and DesalCo and generates manufacturing revenue from Aerex. The Company also generates operations and maintenance and consulting revenue from REC.

The Company recognizes revenue for its construction and custom/specialized manufacturing contracts over time under the input method using costs incurred (which represents work performed) to date relative to the total estimated costs at completion to measure progress toward satisfying a contract’s performance obligations as such measure best reflects the transfer of control of the promised good to the customer. Contract costs include labor, materials, subcontractor costs and other expenses. The Company follows this method since it can make reasonably dependable estimates of the revenue and costs applicable to the 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 costs to be incurred 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 comprised of estimated total contract costs. Due to the extended time it may take to complete many of the Company’s contracts and the scope and nature of the work required to be performed on those contracts, the estimations of total revenue and costs at completion are complicated and subject to many variables and, accordingly, are subject to changes. When adjustments in estimated total contract revenue or estimated total contract costs are required, any changes from prior estimates are recognized in the current period for the inception-to-date effect of such changes. The Company recognizes the full amount of any estimated loss on a contract at the time the estimates indicate such a loss. Any contract assets are classified as current assets. Contract liabilities on uncompleted contracts, if any, are classified as current liabilities.

During the year ended December 31, 2023, the Company adjusted its prior year estimates of the total contract costs for two of its construction contracts. These changes in accounting estimates resulted in an increase in the services segment’s income from operations and the Company’s consolidated net income by $2,356,439 and $1,750,750, respectively, for the year ended December 31, 2023. This adjustment increased basic and diluted earnings per share by $0.11 for the year ended December 31, 2023.

The Company has elected the “right to invoice” practical expedient for revenue recognition on its operations and maintenance, design and consulting contracts and recognizes revenue in the amount to which the Company has a right to invoice, recognizing this revenue from the transfer of goods or services to customers during the billing cycle.

During the years ended December 31, 2024, 2023, and 2022, the Company recognized $18,211,554, $77,411,792 and $14,146,271, respectively, of its services revenue from the transfer of goods or services to customers over time. The remaining services revenue of $32,744,935, $20,554,858 and $14,689,157, respectively, was recognized from the transfer of goods or services to customers when invoiced. During the years ended December 31, 2024, 2023, and 2022, the Company recognized all of its manufacturing revenue from the transfer of goods or services to customers over time.

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 2023 and 2022 have been reclassified to conform to the current year’s presentation
v3.25.1
Accounting policies (Tables)
12 Months Ended
Dec. 31, 2024
Accounting policies  
Schedule of Estimated useful lives

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 Disaggregation of revenue

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

 

Year Ended December 31, 

    

2024

    

2023

    

2022

Retail revenue

$

31,741,343

$

30,158,051

$

25,954,013

Bulk revenue

 

33,673,387

 

34,595,058

 

32,991,066

Services revenue

 

50,956,489

 

97,966,650

 

28,835,428

Manufacturing revenue

 

17,595,414

 

17,491,474

 

6,324,465

Total revenue

$

133,966,633

$

180,211,233

$

94,104,972

Services revenue consists of the following:

 

Year Ended December 31, 

    

2024

    

2023

    

2022

Construction revenue

$

17,637,432

$

77,306,704

$

11,616,274

Operations and maintenance revenue

 

29,307,405

 

19,368,365

 

14,152,158

Design and consulting revenue

 

4,011,652

 

1,291,581

 

3,066,996

Total services revenue

$

50,956,489

$

97,966,650

$

28,835,428

v3.25.1
Cash and cash equivalents (Tables)
12 Months Ended
Dec. 31, 2024
Cash and cash equivalents  
Schedule of Cash and cash equivalents

December 31, 

    

2024

    

2023

Bank accounts:

 

  

 

  

United States dollar

$

39,094,067

$

15,857,612

Cayman Islands dollar

 

17,499,492

 

11,826,102

Bahamian dollar

 

7,717,705

 

3,025,898

 

64,311,264

 

30,709,612

Short-term deposits:

 

  

 

  

United States dollar

 

31,908,220

 

8,861,606

Cayman Islands dollar

 

3,130,637

 

3,050,680

 

35,038,857

 

11,912,286

Total cash and cash equivalents

$

99,350,121

$

42,621,898

v3.25.1
Accounts receivable, net (Tables)
12 Months Ended
Dec. 31, 2024
Accounts receivable, net  
Schedule of Accounts receivable

December 31, 

    

2024

    

2023

Trade accounts receivable

$

39,986,234

$

38,446,554

Receivable from OC-BVI

 

42,515

 

41,129

Other accounts receivable

 

373,655

 

322,609

 

40,402,404

 

38,810,292

Allowance for credit losses

 

(821,422)

 

(583,401)

Accounts receivable, net

$

39,580,982

$

38,226,891

Schedule of Allowance for doubtful accounts

The activity for the allowance for credit losses consisted of:

December 31, 

    

2024

    

2023

Opening allowance for credit losses

$

583,401

$

183,214

Provision for credit losses

 

442,828

 

408,489

Accounts written off during the year

 

(205,467)

 

(9,215)

Recovery of accounts written off

660

913

Ending allowance for credit losses

$

821,422

$

583,401

v3.25.1
Inventory (Tables)
12 Months Ended
Dec. 31, 2024
Inventory  
Schedule of Inventory

December 31, 

    

2024

    

2023

Spare parts stock

$

8,341,395

$

7,747,455

Raw materials

5,828,568

3,135,357

Consumables stock

 

89,689

 

166,935

Water stock

39,659

40,666

Total inventory

 

14,299,311

 

11,090,413

Less current portion

 

8,960,350

 

6,044,642

Inventory (non-current)

$

5,338,961

$

5,045,771

v3.25.1
Contracts in progress (Tables)
12 Months Ended
Dec. 31, 2024
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, 

    

2024

    

2023

Revenue recognized to date on contracts in progress

$

114,590,991

    

$

108,952,682

Amounts billed to date on contracts in progress

 

(121,833,354)

 

(101,724,459)

Retainage

2,585,952

8,087,823

Net contract asset /(liability)

$

(4,656,411)

$

15,316,046

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

December 31,

2024

2023

Contract assets

$

4,470,243

    

$

21,553,057

Contract liabilities

 

(9,126,654)

 

(6,237,011)

Net contract asset /(liability)

$

(4,656,411)

$

15,316,046

v3.25.1
Property, plant and equipment and construction in progress (Tables)
12 Months Ended
Dec. 31, 2024
Property, plant and equipment and construction in progress  
Schedule of Property, plant and equipment and construction in progress

December 31, 

    

2024

    

2023

Land

$

6,307,089

$

6,488,400

Buildings

 

26,033,866

 

26,044,551

Plant and equipment

 

61,089,877

 

66,000,977

Distribution system

 

40,402,691

 

39,546,175

Office furniture, fixtures and equipment

 

3,277,313

 

3,338,760

Vehicles

 

3,830,539

 

3,433,561

Leasehold improvements

 

306,545

 

306,545

Lab equipment

 

12,456

 

12,456

 

141,260,376

 

145,171,425

Less accumulated depreciation

 

88,828,094

 

89,288,904

Property, plant and equipment, net

$

52,432,282

$

55,882,521

Construction in progress

$

5,143,717

$

495,471

v3.25.1
Discontinued operations - Mexico project development (Tables)
12 Months Ended
Dec. 31, 2024
Discontinued operations - Mexico project development  
Schedule of financial information for Mexico project development

Summarized financial information for the discontinued Mexico project development operation is as follows:

December 31, 

2024

2023

Cash

   

$

127,859

   

$

91,283

Prepaid expenses and other current assets

144,626

120,234

Land

 

 

21,126,898

Other assets

 

 

2,390

Total assets of discontinued operations

$

272,485

$

21,340,805

 

  

 

  

Total liabilities of discontinued operations

$

509,745

$

364,665

Year Ended December 31, 

    

2024

    

2023

    

2022

Revenue

    

$

    

$

$

Loss from discontinued operations

$

(1,779,582)

$

(1,086,744)

$

(2,371,049)

Gain on sale of land and project documentation

$

12,134,766

$

$

Depreciation expense

$

$

$

v3.25.1
Intangible assets (Tables)
12 Months Ended
Dec. 31, 2024
Intangible assets  
Schedule of Finite-Lived Intangible Assets

December 31, 

    

2024

    

2023

Cost

 

  

 

  

Non-compete agreements

$

268,590

$

268,590

Trade names

 

3,096,900

 

3,096,900

Customer relationships

442,900

442,900

Facility management contracts

 

2,200,000

 

2,200,000

 

6,008,390

 

6,008,390

Accumulated amortization

 

 

  

Non-compete agreements

 

(67,147)

 

(13,430)

Trade names

 

(1,313,075)

 

(1,106,615)

Customer relationships

(36,908)

(7,382)

Facility management contracts

 

(1,894,445)

 

(1,527,778)

 

(3,311,575)

 

(2,655,205)

Intangible assets, net

$

2,696,815

$

3,353,185

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:

2025

    

$

595,260

2026

 

289,705

2027

 

289,705

2028

 

276,275

2029

 

235,987

Thereafter

 

1,009,883

$

2,696,815

v3.25.1
Leases (Tables)
12 Months Ended
Dec. 31, 2024
Leases  
Schedule of lease-related assets and liabilities

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

    

December 31, 

2024

2023

ASSETS

 

  

Current

 

  

  

Prepaid expenses and other current assets

$

41,801

$

110,541

Noncurrent

 

 

Operating lease right-of-use assets

 

3,190,985

 

2,135,446

Total lease right-of-use assets

$

3,232,786

$

2,245,987

LIABILITIES

    

  

 

  

Current

 

  

  

Current maturities of operating leases

$

634,947

$

456,865

Noncurrent

 

 

Noncurrent operating leases

2,630,812

1,827,302

Total lease liabilities

$

3,265,759

$

2,284,167

Weighted average remaining lease term:

 

  

 

  

Operating leases

 

5.0 years

 

6.1 years

 

 

Weighted average discount rate:

 

 

Operating leases

 

6.56%

 

5.67%

Schedule of Lease, Cost

The components of lease costs were as follows:

    

Year Ended December 31, 

2024

2023

2022

Operating lease costs

$

847,540

$

751,261

$

692,404

Short-term lease costs

 

361,176

 

217,640

100,975

Lease costs - discontinued operations

31,946

45,979

40,021

Total lease costs

$

1,240,662

$

1,014,880

$

833,400

Schedule of Cash Flow, Supplemental

Supplemental cash flow information related to leases is as follows:

    

Year Ended December 31, 

2024

2023

2022

Cash paid for amounts included in measurement of liabilities:

 

  

Operating cash outflows for operating leases

$

924,461

$

760,847

$

742,696

Operating cash outflows for operating leases - discontinued operations

11,337

9,590

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

Years ending December 31, 

    

Total

2025

$

836,548

2026

 

763,783

2027

 

732,904

2028

 

749,143

2029

455,209

Thereafter

 

314,007

Total future lease payments

 

3,851,594

Less: imputed interest

 

(585,835)

Total lease obligations

 

3,265,759

Less: current obligations

 

(634,947)

Noncurrent lease obligations

$

2,630,812

v3.25.1
Income taxes (Tables)
12 Months Ended
Dec. 31, 2024
Income taxes  
Schedule of components of income before income taxes

The components of income before income taxes for the years ended December 31, 2024, 2023, and 2022 are as follows:

Year Ended December 31, 

    

2024

    

2023

    

2022

Foreign (not subject to income taxes)

$

10,699,269

$

10,002,233

$

6,958,583

Mexico

 

10,922,374

 

(742,367)

 

(987,279)

United States

 

9,412,015

 

27,649,330

 

1,394,642

 

31,033,658

 

36,909,196

 

7,365,946

Discontinued operations

 

(10,355,184)

 

1,086,744

 

2,371,049

$

20,678,474

$

37,995,940

$

9,736,995

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, 2024, 2023, and 2022, which related to U.S. operations, consisted of the following:

Year Ended December 31, 

    

2024

    

2023

    

2022

Current:

Federal

$

2,282,566

$

5,611,360

$

430,116

State

255,835

1,663,653

(29,157)

Foreign

Total current income tax expense (benefit)

2,538,401

7,275,013

400,959

Deferred:

 

 

 

Federal

(267,100)

(276,070)

(184,469)

State

(52,787)

(248,929)

180,249

Foreign

Total deferred income tax expense (benefit)

(319,887)

(524,999)

(4,220)

Total provision for (benefit from) income taxes

$

2,218,514

$

6,750,014

$

396,739

Schedule of reconciliation of federal tax rate to the effective rate

A reconciliation of the U.S. statutory federal tax rate to the effective rate for the years ended December 31, 2024, 2023, and 2022 is as follows:

Year Ended December 31, 

 

    

2024

    

2023

 

2023

 

U.S. statutory federal rate

21.00

%  

21.00

%

21.00

%

State taxes, net of federal effect

 

0.72

%  

2.88

%

8.88

%

Foreign rate differential

 

(11.45)

%  

(5.71)

%

(25.57)

%

Research and development tax credit

 

%  

%

(1.92)

%

Permanent items

 

0.46

%  

(0.32)

%

(0.70)

%

Change in valuation allowance

 

%  

(0.08)

%

2.38

%

 

10.73

%  

17.77

%

4.07

%

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, 2024 and 2023 were as follows:

December 31, 

    

2024

    

2023

Continuing Operations

Deferred tax assets:

 

  

 

  

Net operating loss carryforwards

$

80,285

$

130,911

Accruals and reserves

209,549

146,057

Operating lease liabilities

425,797

501,397

Capitalized research expenditures

316,937

326,178

Others

88,750

29,094

Valuation allowances

 

 

 

1,121,318

 

1,133,637

Deferred tax liabilities:

 

  

 

  

Property and equipment

 

239,830

 

325,473

Intangible assets

 

672,973

 

847,450

Operating lease right-of-use assets

 

419,408

 

491,494

 

1,332,211

 

1,664,417

Net deferred tax liabilities

$

(210,893)

$

(530,780)

Discontinued Operations

Deferred tax assets:

Operating loss carryforwards - Mexico

$

$

5,844,847

Land basis difference - Mexico

2,818,663

Start-up costs - Mexico

7,015,484

Valuation allowances

(15,678,994)

$

$

v3.25.1
Earnings per share (Tables)
12 Months Ended
Dec. 31, 2024
Earnings per share  
Schedule of computation of basic and diluted EPS

 

Year Ended December 31, 

 

2024

    

2023

    

2022

Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders

$

17,882,370

$

30,672,135

$

8,227,343

Less: preferred stock dividends

 

(18,595)

 

(15,513)

 

(11,532)

Net income from continuing operations available to common shares in the determination of basic earnings per common share

 

17,863,775

 

30,656,622

 

8,215,811

Income (loss) from discontinued operations

 

10,355,184

 

(1,086,744)

 

(2,371,049)

Net income available to common shares in the determination of basic earnings per common share

$

28,218,959

$

29,569,878

$

5,844,762

Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders

 

15,832,328

 

15,739,056

 

15,290,509

Plus:

 

 

 

Weighted average number of preferred shares outstanding during the period

 

44,257

 

39,885

 

31,885

Potential dilutive effect of unexercised options and unvested stock grants

 

59,377

 

86,956

 

79,259

Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders

 

15,935,962

 

15,865,897

 

15,401,653

v3.25.1
Dividends (Tables)
12 Months Ended
Dec. 31, 2024
Dividends  
Schedule of dividends

    

2024

2023

    

2022

First Quarter

$

0.095

$

0.085

$

0.085

Second Quarter

 

0.095

 

0.085

 

0.085

Third Quarter

 

0.11

 

0.095

 

0.085

Fourth Quarter

 

0.11

 

0.095

 

0.085

$

0.41

$

0.36

$

0.34

v3.25.1
Segment information (Tables)
12 Months Ended
Dec. 31, 2024
Segment information  
Schedule of segment reporting information, by segment

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. The Company’s income statements by segment, significant segment expenses, and segment assets are presented below.

Year Ended December 31, 2024

    

Retail

    

Bulk

    

Services

    

Manufacturing

    

Corporate

    

Total

Revenue

$

31,741,343

$

33,673,387

$

50,956,489

$

17,595,414

$

    

$

133,966,633

Cost of revenue

 

14,199,088

 

23,360,360

 

38,511,535

 

12,271,202

 

 

88,342,185

Gross profit

 

17,542,255

 

10,313,027

 

12,444,954

 

5,324,212

 

 

45,624,448

General and administrative expenses

 

3,263,593

 

1,564,975

 

6,055,409

 

2,456,807

 

14,196,652

 

27,537,436

Gain on asset dispositions and impairments, net

 

2,286

 

 

2,714

 

 

192,786

 

197,786

Income (loss) from operations

14,280,948

8,748,052

6,392,259

2,867,405

(14,003,866)

 

18,284,798

Interest income

 

198,180

 

865,584

 

458,732

 

4

571,690

2,094,190

Interest expense

(93,368)

(8,409)

(70)

(101,847)

Income from affiliates

16,701

252,754

269,455

Other

78,647

39,625

(5,634)

11,993

7,247

131,878

Other income, net

183,459

905,209

444,689

28,698

831,621

2,393,676

Income (loss) before income taxes

 

14,464,407

 

9,653,261

 

6,836,948

 

2,896,103

(13,172,245)

 

20,678,474

Provision for income taxes

 

 

 

1,528,398

 

672,040

18,076

 

2,218,514

Net income (loss) from continuing operations

 

14,464,407

 

9,653,261

 

5,308,550

 

2,224,063

(13,190,321)

 

18,459,960

Income from continuing operations attributable to non-controlling interests

 

 

577,590

 

 

 

577,590

Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders

$

14,464,407

$

9,075,671

$

5,308,550

$

2,224,063

$

(13,190,321)

 

17,882,370

Net income from discontinued operations

 

  

 

  

 

  

 

  

 

10,355,184

Net income attributable to Consolidated Water Co. Ltd. stockholders

 

  

 

  

 

  

 

  

$

28,237,554

The Company’s cost of revenue consists of:

Year Ended December 31, 2024

    

Retail

    

Bulk

    

Services

    

Manufacturing

    

Corporate

    

Total

Subcontractor and other project costs

$

$

3,787

$

20,366,236

$

9,535,078

$

$

29,905,101

Employee costs

2,895,606

2,069,920

17,062,858

2,042,518

24,070,902

Electricity

4,755,308

3,864,863

212,337

33,551

8,866,059

Fuel oil

8,330,914

8,330,914

Depreciation

2,427,254

2,689,432

364,473

160,211

5,641,370

Maintenance

877,882

2,138,584

439,883

344,042

3,800,391

Insurance

686,073

1,721,846

38,408

2,446,327

Retail license royalties

1,945,470

1,945,470

Other

611,495

2,541,014

27,340

155,802

3,335,651

$

14,199,088

$

23,360,360

$

38,511,535

$

12,271,202

$

$

88,342,185

Other cost of revenue segment expenses above primarily include chemicals and other supplies, government fees and licenses, and freight costs.

The Company’s general and administrative expenses consist of:

Year Ended December 31, 2024

    

Retail

    

Bulk

    

Services

    

Manufacturing

    

Corporate

    

Total

Employee costs

$

1,555,619

$

375,479

$

3,443,005

$

1,286,141

$

8,031,817

$

14,692,061

Professional fees

85,739

82,452

646,610

133,229

2,448,386

3,396,416

Insurance

417,604

384,932

214,983

215,241

834,612

2,067,372

Depreciation and amortization

37,691

25,086

630,544

103,674

73,940

870,935

Other

1,166,940

697,026

1,120,267

718,522

2,807,897

6,510,652

$

3,263,593

$

1,564,975

$

6,055,409

$

2,456,807

$

14,196,652

$

27,537,436

Other general and administrative segment expenses primarily include Board of Directors fees and expenses, maintenance, office rent, amortization of intangible assets, and investor relations costs.

 

As of December 31, 2024

    

Retail

    

Bulk

    

Services

    

Manufacturing

    

Corporate

    

Total

Cash and cash equivalents

$

19,167,484

$

13,339,206

$

34,181,902

$

4,768,376

$

27,893,153

$

99,350,121

Accounts receivable, net

$

3,223,190

$

28,807,257

$

6,593,276

$

946,846

$

10,413

$

39,580,982

Inventory, current and non-current

$

3,437,771

$

4,865,117

$

167,856

$

5,828,567

$

$

14,299,311

Contract assets

$

$

$

1,204,522

$

3,265,721

$

$

4,470,243

Property, plant and equipment, net

$

31,689,586

$

18,093,155

$

858,352

$

1,601,501

$

189,688

$

52,432,282

Construction in progress

$

1,951,559

$

2,480,999

$

$

711,159

$

$

5,143,717

Intangibles, net

$

$

$

2,129,037

$

567,778

$

$

2,696,815

Goodwill

$

1,170,511

$

1,948,875

$

7,756,807

$

1,985,211

$

$

12,861,404

Total segment assets

$

62,994,011

$

71,743,161

$

56,792,772

$

20,095,648

$

31,415,104

$

243,040,696

Assets of discontinued operations

$

272,485

Total assets

$

243,313,181

 

Year Ended December 31, 2023

    

Retail

    

Bulk

    

Services

    

Manufacturing

Corporate

    

Total

Revenue

$

30,158,051

$

34,595,058

$

97,966,650

$

17,491,474

    

$

$

180,211,233

Cost of revenue

 

13,891,229

 

24,128,132

 

66,797,762

 

13,467,005

 

 

118,284,128

Gross profit

 

16,266,822

 

10,466,926

 

31,168,888

 

4,024,469

 

 

61,927,105

General and administrative expenses

 

2,978,164

 

1,737,264

 

4,271,808

 

1,838,284

 

13,926,846

 

24,752,366

Gain (loss) on asset dispositions and impairments, net

 

(21,716)

 

12,720

 

 

2,233

 

(349)

 

(7,112)

Income (loss) from operations

13,266,942

8,742,382

26,897,080

2,188,418

(13,927,195)

 

37,167,627

Interest income

 

181,468

 

362,422

 

151,706

 

4

808

696,408

Interest expense

(123,867)

(21,417)

(145,284)

Income from affiliate

169,728

169,728

Other

93,795

10,793

1,024

2,020

(171)

107,461

Other income, net

151,396

373,215

131,313

2,024

170,365

828,313

Income (loss) before income taxes

 

13,418,338

 

9,115,597

 

27,028,393

 

2,190,442

(13,756,830)

 

37,995,940

Provision (benefit) for income taxes

 

 

 

6,388,457

 

440,111

(78,554)

 

6,750,014

Net income (loss) from continuing operations

 

13,418,338

 

9,115,597

 

20,639,936

 

1,750,331

(13,678,276)

 

31,245,926

Income from continuing operations attributable to non-controlling interests

 

 

573,791

 

 

 

573,791

Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders

$

13,418,338

$

8,541,806

$

20,639,936

$

1,750,331

$

(13,678,276)

 

30,672,135

Net loss from discontinued operations

 

  

 

  

 

  

 

  

 

(1,086,744)

Net income attributable to Consolidated Water Co. Ltd. stockholders

 

  

 

  

 

  

 

  

$

29,585,391

The Company’s cost of revenue consists of:

Year Ended December 31, 2023

    

Retail

    

Bulk

    

Services

    

Manufacturing

    

Corporate

    

Total

Subcontractor and other project costs

$

$

$

53,830,817

$

10,869,688

$

$

64,700,505

Employee costs

2,797,130

1,927,313

12,311,403

1,899,167

18,935,013

Electricity

4,846,974

4,306,439

301,247

48,006

9,502,666

Fuel oil

9,024,836

9,024,836

Depreciation

2,376,747

2,831,368

256,537

168,347

5,632,999

Maintenance

845,596

1,705,585

83,998

357,693

2,992,872

Insurance

587,238

1,468,508

5,751

2,061,497

Retail license royalties

1,842,924

1,842,924

Other

594,620

2,864,083

8,009

124,104

3,590,816

$

13,891,229

$

24,128,132

$

66,797,762

$

13,467,005

$

$

118,284,128

Other cost of revenue segment expenses above primarily include chemicals and other supplies, government fees and licenses, and freight costs.

The Company’s general and administrative expenses consist of:

Year Ended December 31, 2023

    

Retail

    

Bulk

    

Services

    

Manufacturing

    

Corporate

    

Total

Employee costs

$

1,485,647

$

359,923

$

2,529,548

$

1,071,012

$

8,244,023

$

13,690,153

Professional fees

122,067

93,754

422,196

88,882

1,285,193

2,012,092

Insurance

351,259

341,391

127,993

196,539

886,674

1,903,856

Depreciation and amortization

38,883

22,180

528,810

105,013

69,216

764,102

Other

980,308

920,016

663,261

376,838

3,441,740

6,382,163

$

2,978,164

$

1,737,264

$

4,271,808

$

1,838,284

$

13,926,846

$

24,752,366

Other general and administrative segment expenses primarily include Board of Directors fees and expenses, maintenance, office rent, amortization of intangible assets, and investor relations costs.

 

As of December 31, 2023

     

Retail

    

Bulk

    

Services

    

Manufacturing

    

Corporate

    

Total

Cash and cash equivalents

$

10,982,982

$

7,932,485

$

18,080,724

$

2,879,665

$

2,746,042

$

42,621,898

Accounts receivable, net

$

3,409,973

$

26,965,126

$

6,802,780

$

1,033,037

$

15,975

$

38,226,891

Inventory, current and non-current

$

3,041,460

$

4,858,324

$

55,272

$

3,135,357

$

$

11,090,413

Contract assets

$

$

$

17,715,872

$

3,837,185

$

$

21,553,057

Property, plant and equipment, net

$

32,318,148

$

20,370,056

$

1,143,884

$

1,559,094

$

491,339

$

55,882,521

Construction in progress

$

380,436

$

$

$

115,035

$

$

495,471

Intangibles, net

$

$

$

2,692,074

$

661,111

$

$

3,353,185

Goodwill

$

1,170,511

$

1,948,875

$

7,756,807

$

1,985,211

$

$

12,861,404

Total segment assets

$

52,120,112

$

63,956,725

$

58,476,773

$

15,888,642

$

6,654,535

$

197,096,787

Assets of discontinued operations

 

 

 

 

 

$

21,340,805

Total assets

 

 

 

 

 

$

218,437,592

 

Year Ended December 31, 2022

    

Retail

    

Bulk

    

Services

    

Manufacturing

Corporate

    

Total

Revenue

$

25,954,013

$

32,991,066

$

28,835,428

$

6,324,465

    

$

$

94,104,972

Cost of revenue

 

12,548,763

 

23,032,212

 

22,973,634

 

5,195,240

 

 

63,749,849

Gross profit

 

13,405,250

 

9,958,854

 

5,861,794

 

1,129,225

 

 

30,355,123

General and administrative expenses

 

2,609,571

 

1,570,732

 

3,461,294

 

1,485,342

 

11,943,295

 

21,070,234

Gain (loss) on asset dispositions and impairments, net

 

(39,397)

 

5,607

 

23,717

 

(2,631)

 

 

(12,704)

Income (loss) from operations

10,756,282

8,393,729

2,424,217

(358,748)

(11,943,295)

 

9,272,185

Interest income

 

131,403

 

313,232

 

2,441

 

1

109

447,186

Interest expense

(31,748)

(14,797)

(46,545)

Income from affiliate

102,225

102,225

Net loss on put/call options

(128,000)

(128,000)

Other

83,682

1,865

1,803

782

1,812

89,944

Other income (loss), net

183,337

315,097

(138,553)

783

104,146

464,810

Income (loss) before income taxes

 

10,939,619

 

8,708,826

 

2,285,664

 

(357,965)

(11,839,149)

 

9,736,995

Provision (benefit) for income taxes

 

 

 

458,659

 

(61,920)

 

396,739

Net income (loss) from continuing operations

 

10,939,619

 

8,708,826

 

1,827,005

 

(296,045)

(11,839,149)

 

9,340,256

Income from continuing operations attributable to non-controlling interests

 

 

558,353

 

554,560

 

 

1,112,913

Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders

$

10,939,619

$

8,150,473

$

1,272,445

$

(296,045)

$

(11,839,149)

 

8,227,343

Net loss from discontinued operations

 

  

 

  

 

  

 

  

 

(2,371,049)

Net income attributable to Consolidated Water Co. Ltd. stockholders

 

  

 

  

 

  

 

  

$

5,856,294

The Company’s cost of revenue consists of:

Year Ended December 31, 2022

    

Retail

    

Bulk

    

Services

    

Manufacturing

    

Corporate

    

Total

Subcontractor and other project costs

$

$

$

14,380,940

$

3,436,343

$

$

17,817,283

Employee costs

2,759,588

1,831,305

8,156,016

1,289,208

14,036,117

Electricity

4,063,303

2,594,723

278,629

38,474

6,975,129

Fuel oil

10,203,690

10,203,690

Depreciation

2,281,584

2,645,691

155,237

178,951

5,261,463

Maintenance

878,880

1,717,319

190,059

2,786,258

Insurance

501,508

1,280,825

1,782,333

Retail license royalties

1,590,250

1,590,250

Other

473,650

2,758,659

2,812

62,205

3,297,326

$

12,548,763

$

23,032,212

$

22,973,634

$

5,195,240

$

$

63,749,849

Other cost of revenue segment expenses above primarily include chemicals and other supplies, government fees and licenses, and freight costs.

The Company’s general and administrative expenses consist of:

Year Ended December 31, 2022

    

Retail

    

Bulk

    

Services

    

Manufacturing

    

Corporate

    

Total

Employee costs

$

1,321,660

$

332,023

$

1,966,493

$

941,680

$

6,647,780

$

11,209,636

Professional fees

55,756

127,400

286,802

14,736

1,275,585

1,760,279

Insurance

301,306

291,430

336,832

168,486

969,571

2,067,625

Depreciation and amortization

36,544

11,750

519,271

105,452

73,475

746,492

Other

894,305

808,129

351,896

254,988

2,976,884

5,286,202

$

2,609,571

$

1,570,732

$

3,461,294

$

1,485,342

$

11,943,295

$

21,070,234

Schedule of revenues earned by major geographic region

Year ended December 31, 

    

2024

    

2023

    

2022

Cayman Islands

$

37,137,424

$

41,728,340

$

30,375,985

The Bahamas

 

29,675,947

 

31,221,633

 

29,943,615

United States

 

66,662,406

 

106,768,621

 

33,338,466

Revenue earned from management services agreement with OC-BVI

 

490,856

 

492,639

 

446,906

$

133,966,633

$

180,211,233

$

94,104,972

Revenue earned from major customers was:

Year ended December 31, 

    

2024

    

2023

    

2022

Revenue earned from the WSC

$

29,675,947

$

31,221,633

$

29,943,615

Percentage of consolidated revenue earned from the WSC

 

22%

 

17%

 

32%

Revenue earned from one service segment customer

$

$

64,149,170

$

11,805,752

Percentage of consolidated revenue earned from the one service segment customer

 

0%

 

36%

 

13%

Schedule of long-lived assets by geographic areas

December 31, 

    

2024

    

2023

Cayman Islands

$

31,882,111

$

32,902,949

The Bahamas

 

17,903,191

 

20,039,049

United States

 

2,646,980

 

2,940,523

$

52,432,282

$

55,882,521

v3.25.1
Stock-based compensation (Tables)
12 Months Ended
Dec. 31, 2024
Stock-based compensation  
Schedule of significant weighted average assumptions

    

2024

    

2023

 

2022

Risk free interest rate

 

5.23

%  

5.06

%

1.64

Expected option life (years)

 

0.8

 

1.0

1.2

Expected volatility

 

32.93

%  

42.42

%

47.15

Expected dividend yield

 

1.48

%  

1.60

%

2.35

Schedule of company's stock option activity

A summary of the Company’s stock option activity for the year ended December 31, 2024 is as follows:

Weighted

Weighted

Average

Average

Remaining

Aggregate

Exercise

Contractual

Intrinsic

    

Options

    

Price

    

Life (Years)

    

Value (1)

Outstanding at beginning of period

 

12,175

$

16.08

 

  

 

  

Granted

 

7,204

 

23.24

 

  

 

  

Exercised

 

(1,043)

 

22.77

 

  

 

  

Forfeited/expired

 

(4,861)

 

22.77

 

  

 

  

Outstanding as of December 31, 2024

 

13,475

$

16.97

 

1.51

years

$

120,136

Exercisable as of December 31, 2024

 

$

 

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 $25.89 on the Nasdaq Global Select Market on December 31, 2024, exceeds the exercise price of the option.
Schedule of weighted average fair value of options at the date of grant and the intrinsic value

    

2024

    

2023

 

2022

Options granted with an exercise price below market price on the date of grant:

 

  

 

  

  

Employees — preferred stock

$

2.58

$

12.21

$

5.58

Overall weighted average

 

2.58

 

12.21

 

5.58

Options granted with an exercise price at market price on the date of grant:

 

  

 

  

 

  

Management employees

$

$

$

Employees — common stock

 

8.50

 

8.29

 

4.32

Overall weighted average

 

8.50

 

8.29

 

4.32

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

$

2,482

$

104,559

$

17,158

v3.25.1
Supplemental disclosure of cash flow information (Tables)
12 Months Ended
Dec. 31, 2024
Supplemental disclosure of cash flow information  
Schedule of Supplemental disclosure of cash flow information

Year Ended December 31, 

    

2024

    

2023

 

2022

Interest paid in cash

$

8,479

$

21,417

$

14,797

Income taxes paid in cash

$

3,147,300

$

4,920,912

$

211,000

Issuance of 5,904, 13,309 and 9,295, respectively, shares of redeemable preferred stock for services rendered

$

148,485

$

323,275

$

133,197

Issuance of 68,832, 68,864 and 72,597, respectively, shares of common stock for services rendered

$

1,064,119

$

1,015,177

$

877,298

Conversion (on a one-to-one basis) of 5,968, 8,848 and 6,585, respectively, shares of redeemable preferred stock to common stock

$

3,581

$

5,309

$

3,951

Dividends declared but not paid

$

1,747,938

$

1,502,506

$

1,305,367

Issuance of 0, 368,383 and 0, respectively, shares of common stock for the purchase of non-controlling interest in PERC

$

$

5,359,973

$

Transfers from inventory to property, plant and equipment and construction in progress

$

538,777

$

317,853

$

346,024

Transfers from construction in progress to property, plant and equipment

$

1,395,485

$

7,093,158

$

297,723

Right-of-use assets obtained in exchange for new operating lease liabilities

$

1,604,702

$

745,078

$

Purchase of equipment through issuance of long-term debt

$

$

$

188,645

Transfers from prepaid expenses to property, plant and equipment

$

67,136

$

271,922

$

Transfers from prepaid expenses to inventory

$

$

238,032

$

v3.25.1
Accounting policies - Additional Information (Details)
gal in Millions
1 Months Ended 12 Months Ended
Jun. 02, 2023
gal
Nov. 30, 2023
USD ($)
Jan. 31, 2023
USD ($)
shares
Dec. 31, 2024
USD ($)
shares
Dec. 31, 2023
USD ($)
shares
Dec. 31, 2022
shares
Oct. 01, 2023
Jan. 04, 2023
Dec. 31, 2020
Dec. 31, 2019
Shares of the Company's common stock | shares       0 368,383 0        
Goodwill.       $ 12,861,404 $ 12,861,404          
Intangibles, net       $ 2,696,815 $ 3,353,185          
Kalaeloa Desalco                    
Amount of seawater reverse osmosis desalination plant | gal 1.7                  
PERC Water Corporation                    
Ownership interest acquired     39.00%         39.00% 61.00% 61.00%
Amount of consideration paid     $ 2,400,000              
Shares of the Company's common stock | shares     368,383              
Common stock value     $ 5,360,000              
Ramey Environmental Compliance, Inc (REC)                    
Ownership interest acquired             100.00%      
Amount of consideration paid   $ 4,100,000                
Goodwill.   2,436,391                
Intangibles, net   $ 1,108,390                
v3.25.1
Accounting policies - Cash and cash equivalents (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]      
Net foreign currency gains $ 74,993 $ 84,678 $ 41,750
Cash and cash equivalents 35,038,857 11,912,286  
Deposits 54,700,000    
Cash held in foreign bank accounts 34,100,000    
Deposits held in foreign bank 7,700,000 3,000,000  
Certificate of deposit      
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]      
Cash and cash equivalents $ 5,200,000 $ 5,100,000  
v3.25.1
Accounting policies - Property, plant and equipment, net (Details) - USD ($)
12 Months Ended 24 Months Ended
Dec. 31, 2023
Dec. 31, 2024
Property, Plant and Equipment, Estimated Useful Lives   us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember
Interest capitalized $ 0 $ 0
Buildings | Maximum    
Property, Plant and Equipment, Useful Life   40 years
Buildings | Minimum    
Property, Plant and Equipment, Useful Life   5 years
Plant and equipment | Maximum    
Property, Plant and Equipment, Useful Life   40 years
Plant and equipment | Minimum    
Property, Plant and Equipment, Useful Life   4 years
Distribution system | Maximum    
Property, Plant and Equipment, Useful Life   40 years
Distribution system | Minimum    
Property, Plant and Equipment, Useful Life   3 years
Office furniture, fixtures and equipment | Maximum    
Property, Plant and Equipment, Useful Life   10 years
Office furniture, fixtures and equipment | Minimum    
Property, Plant and Equipment, Useful Life   3 years
Vehicles | Maximum    
Property, Plant and Equipment, Useful Life   10 years
Vehicles | Minimum    
Property, Plant and Equipment, Useful Life   3 years
Lab equipment | Maximum    
Property, Plant and Equipment, Useful Life   10 years
Lab equipment | Minimum    
Property, Plant and Equipment, Useful Life   5 years
v3.25.1
Accounting policies - Goodwill and intangible assets (Details)
$ in Millions
1 Months Ended 12 Months Ended
Jan. 31, 2023
USD ($)
Jun. 30, 2021
USD ($)
Dec. 31, 2022
Dec. 31, 2020
customer
Jan. 04, 2023
Dec. 31, 2019
Aerex | Customer one | Revenue | Customer concentration risk            
Percentage of total       80.00%    
Number of customers | customer       1    
Aerex | Customer one | Gross profit | Customer concentration risk            
Percentage of total       89.00%    
PERC Water Corporation            
Amount of consideration paid $ 7.8          
Aerex | Manufacturing units            
Estimated fair value carrying amount exceeded percentage     63 31    
Estimated fair value carrying amount exceeded value   $ 2.9        
Aerex | Discounted cash flow method | Manufacturing units            
Weighted Percentage Assigned to Impairment Testing, Goodwill   80.00% 80.00% 80.00%    
Aerex | Guideline public company method | Manufacturing units            
Weighted Percentage Assigned to Impairment Testing, Goodwill   20.00% 20.00% 20.00%    
PERC Water Corporation            
Ownership interest acquired 39.00%     61.00% 39.00% 61.00%
Amount of consideration paid $ 2.4          
Estimated fair value percentage segment reporting information     79.00%      
v3.25.1
Accounting policies - Investments (Details)
12 Months Ended
Dec. 31, 2024
Accounting policies  
Criteria for recognizing 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.
Equity method of accounting for investments, description 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.
v3.25.1
Accounting policies - Disaggregated revenue (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Total Revenue $ 133,966,633 $ 180,211,233 $ 94,104,972
Contracts in progress      
Number of days after consumption billings are considered past due 45 days    
Income from operations $ 18,284,798 37,167,627 9,272,185
Net Income (Loss) $ 28,237,554 $ 29,585,391 $ 5,856,294
Increase in basic earnings $ 1.13 $ 1.95 $ 0.54
Increase in diluted earnings $ 1.12 $ 1.93 $ 0.54
Change in accounting method accounted for as change in estimate      
Contracts in progress      
Income from operations   $ 2,356,439  
Net Income (Loss) $ 1,750,750 $ 1,750,750  
Increase in basic earnings $ 0.11 $ 0.11  
Increase in diluted earnings $ 0.11 $ 0.11  
Minimum      
Contracts in progress      
Number of days after consumption billings are collected 30 days    
Maximum      
Contracts in progress      
Number of days after consumption billings are collected 45 days    
Retail revenue      
Total Revenue $ 31,741,343 $ 30,158,051 $ 25,954,013
Bulk revenue      
Total Revenue 33,673,387 34,595,058 32,991,066
Services revenue      
Total Revenue 50,956,489 97,966,650 28,835,428
Services revenue | Change in accounting method accounted for as change in estimate      
Contracts in progress      
Income from operations 2,356,439    
Services revenue | Transferred over time      
Total Revenue 18,211,554 77,411,792 14,146,271
Services revenue | Transferred at point in time      
Total Revenue 32,744,935 20,554,858 14,689,157
Manufacturing revenue      
Total Revenue 17,595,414 17,491,474 6,324,465
Construction revenue      
Total Revenue 17,637,432 77,306,704 11,616,274
Operations and maintenance revenue      
Total Revenue 29,307,405 19,368,365 14,152,158
Design and consulting revenue      
Total Revenue $ 4,011,652 $ 1,291,581 $ 3,066,996
v3.25.1
Cash and cash equivalents (Details) - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Cash and cash equivalents    
Bank accounts $ 64,311,264 $ 30,709,612
Short-term deposits 35,038,857 11,912,286
Total cash and cash equivalents 99,350,121 42,621,898
United States dollar    
Cash and cash equivalents    
Bank accounts 39,094,067 15,857,612
Short-term deposits 31,908,220 8,861,606
Cayman Islands dollar    
Cash and cash equivalents    
Bank accounts 17,499,492 11,826,102
Short-term deposits 3,130,637 3,050,680
Bahamian dollar    
Cash and cash equivalents    
Bank accounts $ 7,717,705 $ 3,025,898
v3.25.1
Accounts receivable, net (Details) - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2021
Accounts receivable, net      
Trade accounts receivable $ 39,986,234 $ 38,446,554  
Receivable from OC-BVI 42,515 41,129  
Other accounts receivable 373,655 322,609  
Accounts receivable, gross, current 40,402,404 38,810,292  
Allowance for credit losses (821,422) (583,401) $ (183,214)
Accounts receivable, net $ 39,580,982 $ 38,226,891  
v3.25.1
Accounts receivable, net - Allowance for credit losses (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Accounts receivable, net    
Opening allowance for credit losses $ 583,401  
Provision for credit losses 442,828 $ 408,489
Accounts written off during the year (205,467) (9,215)
Recovery of accounts written off 660 913
Ending allowance for credit losses $ 821,422 $ 583,401
v3.25.1
Inventory (Details) - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Inventory    
Total inventory $ 14,299,311 $ 11,090,413
Less current portion 8,960,350 6,044,642
Inventory (non-current) 5,338,961 5,045,771
Spare parts stock    
Inventory    
Total inventory 8,341,395 7,747,455
Raw materials    
Inventory    
Total inventory 5,828,568 3,135,357
Consumables stock    
Inventory    
Total inventory 89,689 166,935
Water stock    
Inventory    
Total inventory $ 39,659 $ 40,666
v3.25.1
Contracts in progress (Details) - USD ($)
12 Months Ended
Dec. 31, 2027
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Contracts in progress          
Revenues recognized to date on contracts in process     $ 114,590,991 $ 108,952,682  
Amounts billed to date on contracts in process     (121,833,354) (101,724,459)  
Retainage     2,585,952 8,087,823  
Net contract asset (liability)     (4,656,411) 15,316,046  
Balance Sheet location          
Contract assets     4,470,243 21,553,057  
Contract liabilities     (9,126,654) (6,237,011)  
Income from operations     18,284,798 37,167,627 $ 9,272,185
Net Income (Loss)     $ 28,237,554 $ 29,585,391 $ 5,856,294
Increase in diluted earnings     $ 1.12 $ 1.93 $ 0.54
Increase in basic earnings     $ 1.13 $ 1.95 $ 0.54
Change in accounting method accounted for as change in estimate          
Balance Sheet location          
Income from operations       $ 2,356,439  
Net Income (Loss)     $ 1,750,750 $ 1,750,750  
Increase in diluted earnings     $ 0.11 $ 0.11  
Increase in basic earnings     $ 0.11 $ 0.11  
Contracts in progress          
Contracts in progress          
Revenues recognized to date on contracts in process     $ 151,300,000    
Balance Sheet location          
Amount recognized revenue included in the contract liability balance     $ 6,200,000    
Contracts in progress | Forecast          
Contracts in progress          
Revenues recognized to date on contracts in process $ 107,100,000 $ 44,200,000      
v3.25.1
Property, plant and equipment and construction in progress (Details) - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Property, plant and equipment and construction in progress    
Property, plant and equipment, gross $ 141,260,376 $ 145,171,425
Less accumulated depreciation 88,828,094 89,288,904
Property, plant and equipment, net 52,432,282 55,882,521
Construction in progress 5,143,717 495,471
Land    
Property, plant and equipment and construction in progress    
Property, plant and equipment, gross 6,307,089 6,488,400
Buildings    
Property, plant and equipment and construction in progress    
Property, plant and equipment, gross 26,033,866 26,044,551
Plant and equipment    
Property, plant and equipment and construction in progress    
Property, plant and equipment, gross 61,089,877 66,000,977
Distribution system    
Property, plant and equipment and construction in progress    
Property, plant and equipment, gross 40,402,691 39,546,175
Office furniture, fixtures and equipment    
Property, plant and equipment and construction in progress    
Property, plant and equipment, gross 3,277,313 3,338,760
Vehicles    
Property, plant and equipment and construction in progress    
Property, plant and equipment, gross 3,830,539 3,433,561
Leasehold improvements    
Property, plant and equipment and construction in progress    
Property, plant and equipment, gross 306,545 306,545
Lab equipment    
Property, plant and equipment and construction in progress    
Property, plant and equipment, gross $ 12,456 $ 12,456
v3.25.1
Property, plant and equipment and construction in progress - Additional Information (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, plant and equipment and construction in progress      
Construction in progress was placed in service $ 1,395,485 $ 7,093,158  
Depreciation expense $ 5,855,935 $ 5,823,008 $ 5,425,177
v3.25.1
Discontinued operations - Mexico project development- Narratives (Details)
gal in Millions
1 Months Ended 12 Months Ended
Jun. 14, 2024
USD ($)
Jun. 14, 2024
MXN ($)
Aug. 28, 2020
USD ($)
Aug. 28, 2020
MXN ($)
Aug. 22, 2016
gal
Feb. 28, 2022
USD ($)
Feb. 28, 2022
MXN ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2012
USD ($)
ha
Dec. 31, 2010
gal
May 31, 2024
MXN ($)
ha
Discontinued operations - Mexico project development                          
Amount of non-recoverable expenses     $ 51,144,525 $ 137,333,114                  
Litigation Settlement, Expense             $ 137,000,000            
Impairment loss for Mexico assets - discontinued operations                   $ 377,326      
Minimum [Member]                          
Discontinued operations - Mexico project development                          
Loss Contingency, Damages Sought, Value           $ 51,000,000              
Discontinued Operations                          
Discontinued operations - Mexico project development                          
Purchase of certain documentation   $ 20,000,000                      
Discontinued Operations | Mexico Project Development                          
Discontinued operations - Mexico project development                          
Disposal Group, Including Discontinued Operation, Consideration   $ 596,144,000                     $ 596,144,000
Proceeds from Divestiture of Businesses $ 31,959,685                        
Gain (loss) from discontinued operations               $ 10,355,184 $ (1,086,744) $ (2,371,049)      
NSC Agua [Member]                          
Discontinued operations - Mexico project development                          
Area of Land | ha                     20.1   20.1
Payments for land and rights of way held for development                     $ 21,100,000    
NSC Agua [Member]                          
Discontinued operations - Mexico project development                          
Amount of seawater reverse osmosis desalination plant | gal         100             100  
Period in which construction must be completed         36 months                
Period Required To Operate And Maintain Plant And Aqueduct         37 years                
NSC Agua [Member] | First Phase [Member]                          
Discontinued operations - Mexico project development                          
Amount of seawater reverse osmosis desalination plant | gal         50                
NSC Agua [Member] | Second Phase [Member]                          
Discontinued operations - Mexico project development                          
Amount of seawater reverse osmosis desalination plant | gal         50                
v3.25.1
Discontinued operations - Mexico project development (Details) - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Discontinued operations - Mexico project development    
Total assets of discontinued operations $ 272,485 $ 21,340,805
Discontinued Operations | Mexico Project Development    
Discontinued operations - Mexico project development    
Cash 127,859 91,283
Prepaid expenses and other current assets 144,626 120,234
Land   21,126,898
Other assets   2,390
Total assets of discontinued operations 272,485 21,340,805
Total liabilities of discontinued operations $ 509,745 $ 364,665
v3.25.1
Discontinued operations - Mexico project development - Financial Information (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Discontinued operations - Mexico project development      
Loss from discontinued operations $ (10,355,184) $ 1,086,744 $ 2,371,049
Gain on sale of land and project documentation 12,134,766    
Discontinued Operations | Mexico Project Development      
Discontinued operations - Mexico project development      
Loss from discontinued operations 1,779,582 $ 1,086,744 $ 2,371,049
Gain on sale of land and project documentation $ 12,134,766    
v3.25.1
Intangible assets - Costs and accumulated amortization (Details) - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Cost    
Finite-lived intangible assets, gross $ 6,008,390 $ 6,008,390
Accumulated amortization    
Finite-lived intangible assets, accumulated amortization (3,311,575) (2,655,205)
Intangible assets, net 2,696,815 3,353,185
Trade names    
Cost    
Finite-lived intangible assets, gross 3,096,900 3,096,900
Accumulated amortization    
Finite-lived intangible assets, accumulated amortization (1,313,075) (1,106,615)
Non-compete agreement    
Cost    
Finite-lived intangible assets, gross 268,590 268,590
Accumulated amortization    
Finite-lived intangible assets, accumulated amortization (67,147) (13,430)
Customer relationships    
Cost    
Finite-lived intangible assets, gross 442,900 442,900
Accumulated amortization    
Finite-lived intangible assets, accumulated amortization (36,908) (7,382)
Facility management contracts    
Cost    
Finite-lived intangible assets, gross 2,200,000 2,200,000
Accumulated amortization    
Finite-lived intangible assets, accumulated amortization $ (1,894,445) $ (1,527,778)
v3.25.1
Intangible assets - Amortization of intangible assets (Details)
Dec. 31, 2024
USD ($)
Intangible assets  
2025 $ 595,260
2026 289,705
2027 289,705
2028 276,275
2029 235,987
Thereafter 1,009,883
Amortization of intangible assets $ 2,696,815
v3.25.1
Intangible assets (Details) - USD ($)
1 Months Ended 12 Months Ended
Oct. 31, 2023
Oct. 31, 2019
Feb. 29, 2016
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Jan. 31, 2023
Jan. 04, 2023
Dec. 31, 2020
Dec. 31, 2019
Intangible assets                    
Amortization of Intangible Assets       $ 656,370 $ 574,093 $ 582,778        
PERC Water Corporation                    
Intangible assets                    
Ownership interest acquired             39.00% 39.00% 61.00% 61.00%
PERC Water Corporation | Customer relationships                    
Intangible assets                    
Useful life   6 years                
Ramey Environmental Compliance, Inc.                    
Intangible assets                    
Intangible assets with a fair value $ 1,108,390                  
Ownership interest acquired 100.00%                  
Ramey Environmental Compliance, Inc. | Non-compete agreement                    
Intangible assets                    
Useful life 5 years                  
Ramey Environmental Compliance, Inc. | Customer relationships                    
Intangible assets                    
Useful life 15 years                  
Trade names                    
Intangible assets                    
Useful life     15 years              
Trade names | Ramey Environmental Compliance, Inc.                    
Intangible assets                    
Useful life 15 years                  
v3.25.1
Leases - Lease assets and liabilities (Details) - USD ($)
Dec. 31, 2024
May 01, 2024
Dec. 31, 2023
Lessee, Operating Lease, Renewal Term   5 years  
Noncurrent      
Operating lease right-of-use assets $ 3,190,985   $ 2,135,446
Total lease right-of-use assets 3,232,786   2,245,987
Current      
Current maturities of operating leases 634,947   456,865
Noncurrent      
Noncurrent operating leases 2,630,812   1,827,302
Total lease liabilities $ 3,265,759   $ 2,284,167
Operating leases, weighted average remaining lease term 5 years   6 years 1 month 6 days
Operating leases, weighted average discount rate 6.56%   5.67%
Prepaid expenses and other current assets      
Current      
Operating lease assets, current $ 41,801   $ 110,541
v3.25.1
Leases - Components of lease cost (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases      
Operating lease costs $ 847,540 $ 751,261 $ 692,404
Short-term lease costs 361,176 217,640 100,975
Lease costs - discontinued operations 31,946 45,979 40,021
Total lease costs $ 1,240,662 $ 1,014,880 $ 833,400
v3.25.1
Leases - Supplemental cash flow information (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases      
Operating cash outflows for operating leases $ 924,461 $ 760,847 $ 742,696
Operating cash flows from operating leases - discontinued operations   $ 11,337 $ 9,590
v3.25.1
Leases - Future lease payments (Details) - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Leases    
2025 $ 836,548  
2026 763,783  
2027 732,904  
2028 749,143  
2029 455,209  
Thereafter 314,007  
Total future lease payments 3,851,594  
Less: imputed interest (585,835)  
Total lease obligations 3,265,759  
Less: current obligations (634,947) $ (456,865)
Noncurrent lease obligations $ 2,630,812 $ 1,827,302
v3.25.1
Income taxes - Components of income before income taxes (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income taxes      
Foreign (not subject to income taxes) $ 10,699,269 $ 10,002,233 $ 6,958,583
Mexico 10,922,374 (742,367) (987,279)
United States 9,412,015 27,649,330 1,394,642
Income before income taxes 31,033,658 36,909,196 7,365,946
Discontinued operations (10,355,184) 1,086,744 2,371,049
Income before income taxes $ 20,678,474 $ 37,995,940 $ 9,736,995
v3.25.1
Income taxes - Provision for income taxes (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current:      
Federal $ 2,282,566 $ 5,611,360 $ 430,116
State 255,835 1,663,653 (29,157)
Total current income tax expense (benefit) 2,538,401 7,275,013 400,959
Deferred:      
Federal (267,100) (276,070) (184,469)
State (52,787) (248,929) 180,249
Total deferred income tax expense (benefit) (319,887) (524,999) (4,220)
Total provision for (benefit from) income taxes $ 2,218,514 $ 6,750,014 $ 396,739
v3.25.1
Income taxes - Reconciliation of federal tax rate to the effective rate (Details)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income taxes      
U.S. statutory federal rate 21.00% 21.00% 21.00%
State taxes, net of federal effect 0.72% 2.88% 8.88%
Foreign rate differential 11.45% 5.71% 25.57%
Research and development tax credit     (1.92%)
Permanent items 0.46% (0.32%) (0.70%)
Change in valuation allowance   (0.08%) 2.38%
Total U.S. statutory federal tax rate to the effective rate 10.73% 17.77% 4.07%
v3.25.1
Income taxes - Net long-term deferred tax liability (Details) - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Deferred tax assets:    
Net operating loss carryforwards $ 80,285 $ 130,911
Accruals and reserves 209,549 146,057
Operating lease liabilities 425,797 501,397
Capitalized research expenditures 316,937 326,178
Others 88,750 29,094
Valuation allowances 0 0
Deferred tax assets 1,121,318 1,133,637
Deferred tax liabilities:    
Property and equipment 239,830 325,473
Intangible assets 672,973 847,450
Operating lease right-of-use assets 419,408 491,494
Deferred Tax Liabilities, Gross 1,332,211 1,664,417
Net deferred tax liability 210,893 530,780
Discontinued Operations    
Deferred tax assets:    
Valuation allowances 0 (15,678,994)
Operating loss carryforwards - Mexico 0 5,844,847
Land basis difference - Mexico 0 2,818,663
Start-up costs - Mexico 0 7,015,484
Deferred tax assets $ 0 $ 0
v3.25.1
Income taxes - Additional Information (Details)
12 Months Ended
Dec. 31, 2024
USD ($)
Maximum years for which operating loss can be carryforward 20 years
Domestic  
Net loss carryforward $ 400,000
State  
Net loss carryforward $ 38,000
v3.25.1
Earnings per share (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Earnings per share      
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders $ 17,882,370 $ 30,672,135 $ 8,227,343
Less: preferred stock dividends (18,595) (15,513) (11,532)
Net income from continuing operations available to common shares in the determination of basic earnings per common share 17,863,775 30,656,622 8,215,811
Income (loss) from discontinued operations 10,355,184 (1,086,744) (2,371,049)
Net income available to common shares in the determination of basic earnings per common share $ 28,218,959 $ 29,569,878 $ 5,844,762
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) 15,832,328 15,739,056 15,290,509
Weighted average number of preferred shares outstanding during the period (in shares) 44,257 39,885 31,885
Potential dilutive effect of unexercised options and unvested stock grants 59,377 86,956 79,259
Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders 15,935,962 15,865,897 15,401,653
v3.25.1
Dividends (Details) - $ / shares
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dividends                        
Dividends declared $ 0.11 $ 0.095 $ 0.085 $ 0.11 $ 0.095 $ 0.095 $ 0.095 $ 0.085 $ 0.085 $ 0.085 $ 0.085 $ 0.085
Total $ 0.41 $ 0.36 $ 0.34                  
v3.25.1
Segment information (Details)
12 Months Ended
Dec. 31, 2024
USD ($)
segment
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Segment information      
Number of Reportable Segments | segment 5    
Revenue $ 133,966,633 $ 180,211,233 $ 94,104,972
Cost of revenue 88,342,185 118,284,128 63,749,849
Gross profit 45,624,448 61,927,105 30,355,123
General and administrative expenses 27,537,436 24,752,366 21,070,234
Gain on asset dispositions and impairments, net 197,786 (7,112) (12,704)
Income from operations 18,284,798 37,167,627 9,272,185
Interest income 2,094,190 696,408 447,186
Interest expense (101,847) (145,284) (46,545)
Income from affiliates 269,455 169,728 102,225
Loss on put/call options     (128,000)
Other 131,878 107,461 89,944
Other income, net 2,393,676 828,313 464,810
Income (loss) before income taxes 20,678,474 37,995,940 9,736,995
Provision for income taxes 2,218,514 6,750,014 396,739
Net income from continuing operations 18,459,960 31,245,926 9,340,256
Income from continuing operations attributable to non-controlling interests 577,590 573,791 1,112,913
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders 17,882,370 30,672,135 8,227,343
Net income (loss) from discontinued operations 10,355,184 (1,086,744) (2,371,049)
Net income attributable to Consolidated Water Co. Ltd. stockholders 28,237,554 29,585,391 5,856,294
Subcontractor and other project costs 29,905,101 64,700,505 17,817,283
Employee costs 24,070,902 18,935,013 14,036,117
Electricity 8,866,059 9,502,666 6,975,129
Fuel oil 8,330,914 9,024,836 10,203,690
Depreciation 5,641,370 5,632,999 5,261,463
Maintenance 3,800,391 2,992,872 2,786,258
Insurance 2,446,327 2,061,497 1,782,333
Retail license royalties 1,945,470 1,842,924 1,590,250
Other 3,335,651 3,590,816 3,297,326
Total cost of revenue 88,342,185 118,284,128 63,749,849
Employee costs 14,692,061 13,690,153 11,209,636
Professional fees 3,396,416 2,012,092 1,760,279
Insurance 2,067,372 1,903,856 2,067,625
Depreciation and amortization 870,935 764,102 746,492
Other 6,510,652 6,382,163 5,286,202
Accounts receivable, net 39,580,982 38,226,891  
Inventory, current and non-current 14,299,311 11,090,413  
Contract assets 4,470,243 21,553,057  
Property, plant and equipment, net 52,432,282 55,882,521  
Construction in progress 5,143,717 495,471  
Intangibles, net 2,696,815 3,353,185  
Goodwill 12,861,404 12,861,404  
Total segment assets 243,040,696 197,096,787  
Assets of discontinued operations 272,485 21,340,805  
Total assets 243,313,181 218,437,592  
Retail      
Segment information      
Revenue 31,741,343 30,158,051 25,954,013
Cost of revenue 14,199,088 13,891,229 12,548,763
Gross profit 17,542,255 16,266,822 13,405,250
General and administrative expenses 3,263,593 2,978,164 2,609,571
Gain on asset dispositions and impairments, net 2,286 (21,716) (39,397)
Income from operations 14,280,948 13,266,942 10,756,282
Interest income 198,180 181,468 131,403
Interest expense (93,368) (123,867) (31,748)
Other 78,647 93,795 83,682
Other income, net 183,459 151,396 183,337
Income (loss) before income taxes 14,464,407 13,418,338 10,939,619
Net income from continuing operations 14,464,407 13,418,338 10,939,619
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders 14,464,407 13,418,338 10,939,619
Employee costs 2,895,606 2,797,130 2,759,588
Electricity 4,755,308 4,846,974 4,063,303
Depreciation 2,427,254 2,376,747 2,281,584
Maintenance 877,882 845,596 878,880
Insurance 686,073 587,238 501,508
Retail license royalties 1,945,470 1,842,924 1,590,250
Other 611,495 594,620 473,650
Total cost of revenue 14,199,088 13,891,229 12,548,763
Employee costs 1,555,619 1,485,647 1,321,660
Professional fees 85,739 122,067 55,756
Insurance 417,604 351,259 301,306
Depreciation and amortization 37,691 38,883 36,544
Other 1,166,940 980,308 894,305
Accounts receivable, net 3,223,190 3,409,973  
Inventory, current and non-current 3,437,771 3,041,460  
Property, plant and equipment, net 31,689,586 32,318,148  
Construction in progress 1,951,559 380,436  
Goodwill 1,170,511 1,170,511  
Total segment assets 62,994,011 52,120,112  
Bulk      
Segment information      
Revenue 33,673,387 34,595,058 32,991,066
Cost of revenue 23,360,360 24,128,132 23,032,212
Gross profit 10,313,027 10,466,926 9,958,854
General and administrative expenses 1,564,975 1,737,264 1,570,732
Gain on asset dispositions and impairments, net   12,720 5,607
Income from operations 8,748,052 8,742,382 8,393,729
Interest income 865,584 362,422 313,232
Other 39,625 10,793 1,865
Other income, net 905,209 373,215 315,097
Income (loss) before income taxes 9,653,261 9,115,597 8,708,826
Net income from continuing operations 9,653,261 9,115,597 8,708,826
Income from continuing operations attributable to non-controlling interests 577,590 573,791 558,353
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders 9,075,671 8,541,806 8,150,473
Subcontractor and other project costs 3,787    
Employee costs 2,069,920 1,927,313 1,831,305
Electricity 3,864,863 4,306,439 2,594,723
Fuel oil 8,330,914 9,024,836 10,203,690
Depreciation 2,689,432 2,831,368 2,645,691
Maintenance 2,138,584 1,705,585 1,717,319
Insurance 1,721,846 1,468,508 1,280,825
Other 2,541,014 2,864,083 2,758,659
Total cost of revenue 23,360,360 24,128,132 23,032,212
Employee costs 375,479 359,923 332,023
Professional fees 82,452 93,754 127,400
Insurance 384,932 341,391 291,430
Depreciation and amortization 25,086 22,180 11,750
Other 697,026 920,016 808,129
Accounts receivable, net 28,807,257 26,965,126  
Inventory, current and non-current 4,865,117 4,858,324  
Property, plant and equipment, net 18,093,155 20,370,056  
Construction in progress 2,480,999    
Goodwill 1,948,875 1,948,875  
Total segment assets 71,743,161 63,956,725  
Services      
Segment information      
Revenue 50,956,489 97,966,650 28,835,428
Cost of revenue 38,511,535 66,797,762 22,973,634
Gross profit 12,444,954 31,168,888 5,861,794
General and administrative expenses 6,055,409 4,271,808 3,461,294
Gain on asset dispositions and impairments, net 2,714   23,717
Income from operations 6,392,259 26,897,080 2,424,217
Interest income 458,732 151,706 2,441
Interest expense (8,409) (21,417) (14,797)
Loss on put/call options     (128,000)
Other (5,634) 1,024 1,803
Other income, net 444,689 131,313 (138,553)
Income (loss) before income taxes 6,836,948 27,028,393 2,285,664
Provision for income taxes 1,528,398 6,388,457 458,659
Net income from continuing operations 5,308,550 20,639,936 1,827,005
Income from continuing operations attributable to non-controlling interests     554,560
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders 5,308,550 20,639,936 1,272,445
Subcontractor and other project costs 20,366,236 53,830,817 14,380,940
Employee costs 17,062,858 12,311,403 8,156,016
Electricity 212,337 301,247 278,629
Depreciation 364,473 256,537 155,237
Maintenance 439,883 83,998  
Insurance 38,408 5,751  
Other 27,340 8,009 2,812
Total cost of revenue 38,511,535 66,797,762 22,973,634
Employee costs 3,443,005 2,529,548 1,966,493
Professional fees 646,610 422,196 286,802
Insurance 214,983 127,993 336,832
Depreciation and amortization 630,544 528,810 519,271
Other 1,120,267 663,261 351,896
Accounts receivable, net 6,593,276 6,802,780  
Inventory, current and non-current 167,856 55,272  
Contract assets 1,204,522 17,715,872  
Property, plant and equipment, net 858,352 1,143,884  
Intangibles, net 2,129,037 2,692,074  
Goodwill 7,756,807 7,756,807  
Total segment assets 56,792,772 58,476,773  
Manufacturing      
Segment information      
Revenue 17,595,414 17,491,474 6,324,465
Cost of revenue 12,271,202 13,467,005 5,195,240
Gross profit 5,324,212 4,024,469 1,129,225
General and administrative expenses 2,456,807 1,838,284 1,485,342
Gain on asset dispositions and impairments, net   2,233 (2,631)
Income from operations 2,867,405 2,188,418 (358,748)
Interest income 4 4 1
Income from affiliates 16,701    
Other 11,993 2,020 782
Other income, net 28,698 2,024 783
Income (loss) before income taxes 2,896,103 2,190,442 (357,965)
Provision for income taxes 672,040 440,111 (61,920)
Net income from continuing operations 2,224,063 1,750,331 (296,045)
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders 2,224,063 1,750,331 (296,045)
Subcontractor and other project costs 9,535,078 10,869,688 3,436,343
Employee costs 2,042,518 1,899,167 1,289,208
Electricity 33,551 48,006 38,474
Depreciation 160,211 168,347 178,951
Maintenance 344,042 357,693 190,059
Other 155,802 124,104 62,205
Total cost of revenue 12,271,202 13,467,005 5,195,240
Employee costs 1,286,141 1,071,012 941,680
Professional fees 133,229 88,882 14,736
Insurance 215,241 196,539 168,486
Depreciation and amortization 103,674 105,013 105,452
Other 718,522 376,838 254,988
Accounts receivable, net 946,846 1,033,037  
Inventory, current and non-current 5,828,567 3,135,357  
Contract assets 3,265,721 3,837,185  
Property, plant and equipment, net 1,601,501 1,559,094  
Construction in progress 711,159 115,035  
Intangibles, net 567,778 661,111  
Goodwill 1,985,211 1,985,211  
Total segment assets 20,095,648 15,888,642  
Corporate      
Segment information      
General and administrative expenses 14,196,652 13,926,846 11,943,295
Gain on asset dispositions and impairments, net 192,786 (349)  
Income from operations (14,003,866) (13,927,195) (11,943,295)
Interest income 571,690 808 109
Interest expense (70)    
Income from affiliates 252,754 169,728 102,225
Other 7,247 (171) 1,812
Other income, net 831,621 170,365 104,146
Income (loss) before income taxes (13,172,245) (13,756,830) (11,839,149)
Provision for income taxes 18,076 (78,554)  
Net income from continuing operations (13,190,321) (13,678,276) (11,839,149)
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders (13,190,321) (13,678,276) (11,839,149)
Employee costs 8,031,817 8,244,023 6,647,780
Professional fees 2,448,386 1,285,193 1,275,585
Insurance 834,612 886,674 969,571
Depreciation and amortization 73,940 69,216 73,475
Other 2,807,897 3,441,740 $ 2,976,884
Accounts receivable, net 10,413 15,975  
Property, plant and equipment, net 189,688 491,339  
Total segment assets $ 31,415,104 $ 6,654,535  
v3.25.1
Segment information - Revenues earned by major geographic region and major customer (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment information      
Revenue $ 133,966,633 $ 180,211,233 $ 94,104,972
Cayman Islands      
Segment information      
Revenue 37,137,424 41,728,340 30,375,985
Bahamas      
Segment information      
Revenue 29,675,947 31,221,633 29,943,615
United States      
Segment information      
Revenue 66,662,406 106,768,621 33,338,466
Management Services Agreement With OC-BVI [Membre]      
Segment information      
Revenue 490,856 492,639 446,906
Water and Sewerage Corporation [Member]      
Segment information      
Revenue $ 29,675,947 $ 31,221,633 $ 29,943,615
Percentage of consolidated revenues 22.00% 17.00% 32.00%
One Customer      
Segment information      
Revenue   $ 64,149,170 $ 11,805,752
Percentage of consolidated revenues 0.00% 36.00% 13.00%
v3.25.1
Segment information - Property, plant and equipment, net by major geographic region (Details) - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Segment information    
Property, plant and equipment, net $ 52,432,282 $ 55,882,521
Cayman Islands    
Segment information    
Property, plant and equipment, net 31,882,111 32,902,949
Bahamas    
Segment information    
Property, plant and equipment, net 17,903,191 20,039,049
United States [Member]    
Segment information    
Property, plant and equipment, net $ 2,646,980 $ 2,940,523
v3.25.1
Stock-based compensation - Significant weighted average assumptions (Details)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Stock-based compensation      
Risk free interest rate 5.23% 5.06% 1.64%
Expected option life (years) 9 months 18 days 1 year 1 year 2 months 12 days
Expected volatility 32.93% 42.42% 47.15%
Expected dividend yield 1.48% 1.60% 2.35%
v3.25.1
Stock-based compensation - Stock option activity (Details)
12 Months Ended
Dec. 31, 2024
USD ($)
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Outstanding at the beginning of period -Options | shares 12,175
Granted - Options | shares 7,204
Exercised - Options | shares (1,043)
Forfeited/expired - Options | shares (4,861)
Outstanding at the ending of period -Options | shares 13,475
Outstanding-Weighted Average Exercise Price at the beginning of period - Options | $ / shares $ 16.08
Granted-Weighted Average Exercise Price | $ / shares 23.24
Exercised-Weighted Average Exercise Price | $ / shares 22.77
Forfeited/expired-Weighted Average Exercise Price | $ / shares 22.77
Outstanding-Weighted Average Exercise Price at the ending of period - Options | $ / shares $ 16.97
Outstanding-Weighted Average Remaining Contractual Life (Years) 1 year 6 months 3 days
Outstanding-Aggregate Intrinsic Value | $ $ 120,136
v3.25.1
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, 2024
Dec. 31, 2023
Dec. 31, 2022
Stock-based compensation      
Total intrinsic value of options exercised $ 2,482 $ 104,559 $ 17,158
Below Market Price      
Stock-based compensation      
Options granted with an weighted average exercise price $ 2.58 $ 12.21 $ 5.58
Below Market Price | Employees | Preferred stock      
Stock-based compensation      
Options granted with an weighted average exercise price 2.58 12.21 5.58
At Market Price      
Stock-based compensation      
Options granted with an weighted average exercise price 8.5 8.29 4.32
At Market Price | Management employees      
Stock-based compensation      
Options granted with an weighted average exercise price 0 0 0
At Market Price | Employees | Common stock      
Stock-based compensation      
Options granted with an weighted average exercise price 8.5 8.29 4.32
Above Market Price      
Stock-based compensation      
Options granted with an weighted average exercise price 0 0 0
Above Market Price | Management employees      
Stock-based compensation      
Options granted with an weighted average exercise price 0 0 0
Above Market Price | Employees | Preferred stock      
Stock-based compensation      
Options granted with an weighted average exercise price $ 0 $ 0 $ 0
v3.25.1
Stock-based compensation (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
May 14, 2008
Stock-based compensation        
Number of days employee option to purchase preferred stock must be exercised 30 days      
Preferred stock value $ 26,402 $ 26,578    
Number of stock grant rights issued 7,204      
Allocated share-based compensation expense, net $ 142,566 $ 703,289 $ 386,260  
Closing price of the common shares $ 25.89      
Number of shares outstanding, options, Nonvested 13,475      
Weighted average exercise price, Nonvested $ 16.97      
Average remaining contractual life, Nonvested 1 year 6 months 4 days      
Total remaining unrecognized compensation costs $ 32,423      
Total remaining unrecognized compensation, weighted average period 1 year 6 months 4 days      
Cumulative financial performance targets measurement period   3 years    
Compensation expense relating to stock and stock option grants $ 1,397,583 $ 1,933,666 $ 1,417,172  
Non-performance-based        
Stock-based compensation        
Number of stock grant rights issued 12,837 29,508 32,265  
Vesting period 3 years      
Number of vested shares issued $ 29,392 $ 25,986 $ 23,411  
Allocated share-based compensation expense $ 412,520 366,058 $ 325,270  
Cumulative financial performance targets measurement period 3 years      
Non Executive Directors Share Plan        
Stock-based compensation        
Number of stock grant rights issued     30,767  
Compensation expense relating to stock and stock option grants $ 333,140 $ 341,394 $ 369,678  
Performance-Based Grants        
Stock-based compensation        
Number of stock grant rights issued 41,889 26,742 13,797  
Cumulative financial performance targets measurement period 3 years 3 years 3 years  
Compensation expense relating to stock and stock option grants $ 509,357 $ 522,925 $ 335,964  
Employee Stock Option | Common Stock Options        
Stock-based compensation        
Number of stock grant rights issued 1,300 3,010 3,665  
Equity Incentive Plan 2008        
Stock-based compensation        
Common stock, capital shares reserved for future issuance       1,500,000
Redeemable preferred stock        
Stock-based compensation        
Additional consecutive individual requisite service period required for eligibility in Employee Share Incentive Plan 4 years      
Number of preferred shares converted to common shares dependent 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      
Issuance of common stock for services rendered 5,904 13,309 9,295  
Redeemable preferred stock | Non Executive Directors Share Plan        
Stock-based compensation        
Number of stock grant rights issued 11,448 22,831    
v3.25.1
Retirement benefits (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Defined contribution plan      
Retirement benefits      
Defined contribution plan, cost $ 898,457 $ 771,616 $ 624,798
v3.25.1
Financial instruments - Additional Information (Details)
12 Months Ended
Dec. 31, 2024
Financial instruments  
Number of days after consumption billings are considered past due 45 days
Minimum  
Financial instruments  
Duration certain foreign currencies are fixed to the dollar 20 years
v3.25.1
Commitments and contingencies (Details)
gal in Millions, $ in Millions
12 Months Ended
Dec. 31, 2024
USD ($)
gal
Dec. 31, 2023
USD ($)
Dec. 31, 2022
Contingencies      
Purchase obligations | $ $ 15.6    
Percentage of consolidated revenue from Cayman Water retail operations 24.00% 17.00% 27.00%
Percentage of consolidated gross profit from Cayman Water retail operations 38.00% 26.00% 44.00%
Percentage of revenue collected paid 7.50%    
CW-Bahamas      
Contingencies      
Accounts receivable | $ $ 28.4 $ 26.9  
Percentage of delinquent account receivables 81.00% 80.00%  
Blue Hills Water Works Plant | CW-Bahamas      
Contingencies      
Gallons of water delivered per week | gal 63.0    
Windsor Water Plant | CW-Bahamas      
Contingencies      
Gallons of water delivered per week | gal 16.8    
v3.25.1
Related party transactions (Details) - USD ($)
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Jan. 31, 2023
Jan. 04, 2023
Dec. 31, 2020
Dec. 31, 2019
PERC Water Corporation            
Related party transactions            
Purchases of services $ 2,695,000          
Amount of expense related to sublease agreement   $ 97,000        
PERC Water Corporation            
Related party transactions            
Ownership interest held       100.00%    
PERC Water Corporation            
Related party transactions            
Ownership interest acquired     39.00% 39.00% 61.00% 61.00%
v3.25.1
Supplemental disclosure of cash flow information (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Supplemental disclosure of cash flow information      
Interest paid in cash $ 8,479 $ 21,417 $ 14,797
Income taxes paid in cash 3,147,300 4,920,912 211,000
Non-cash transactions:      
Issuance of 0, 368,383 and 0, respectively, shares of common stock for the purchase of non-controlling interest in PERC 0 5,359,973  
Transfers from inventory to property, plant and equipment and construction in progress 538,777 317,853 346,024
Transfers from construction in progress to property, plant and equipment 1,395,485 7,093,158 297,723
Right-of-use assets obtained in exchange for new operating lease liabilities 1,604,702 745,078  
Purchase of equipment through issuance of long-term debt 0 0 188,645
Transfers from prepaid expenses to property, plant and equipment 67,136 271,922  
Redeemable preferred stock      
Non-cash transactions:      
Issuance of 5,904, 13,309 and 9,295, respectively, shares of redeemable preferred stock for services rendered 148,485 323,275 133,197
Conversion (on a one-to-one basis) of 5,968, 8,848 and 6,585, respectively, shares of redeemable preferred stock to common stock 3,581 5,309 3,951
Dividends declared but not paid 1,747,938 1,502,506 1,305,367
Common stock      
Non-cash transactions:      
Issuance of 68,832, 68,864 and 72,597, respectively, shares of common stock for services rendered $ 1,064,119 $ 1,015,177 $ 877,298
v3.25.1
Supplemental disclosure of cash flow information - Additional Information (Details)
12 Months Ended
Dec. 31, 2024
shares
Dec. 31, 2023
shares
Dec. 31, 2022
shares
Supplemental disclosure of cash flow information      
Purchase of remaining non-controlling interests in PERC (in shares) 0 368,383 0
Redeemable preferred stock      
Supplemental disclosure of cash flow information      
Issuance of common stock for services rendered 5,904 13,309 9,295
Conversion of stock ratio 1 1 1
Conversion of shares 5,968 8,848 6,585
Common stock      
Supplemental disclosure of cash flow information      
Issuance of common stock for services rendered 68,832 68,864 72,597