Avenida Circunvalar a 100 mts de la Via 40, Barrio Las Flores Barranquilla, Colombia

(Former name, former address and former fiscal year, if changed since last report):

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the ~~Securities~~ Exchange Act of 1934 during the ~~past~~preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing ~~requirements~~requirement for the past 90 days.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See ~~the definitions~~definition of “large accelerated ~~filer,”~~filer”, “accelerated filer,” “smaller reporting ~~company,”~~company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

~~Indicate the number~~As of ~~shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 44,858,442~~July 31, 2020, there were 46,117,631 ordinary shares, ~~as of June 30, 2019.~~$0.0001 par value per share, outstanding.

							June 30,			December 31,
	June 30, 2019			December 31, 2018			2020			2019
ASSETS
Current assets:
Cash and cash equivalents	$	47,638		$	33,040		$	63,424		$	47,862
Investments		2,336			1,163			1,818			2,304
Trade accounts receivable, net		110,661			92,791			91,010			110,558
Due from related parties		9,396			8,239			8,777			8,057
Inventories		90,906			91,849			79,454			82,714
Contract assets – current portion		50,580			46,018			34,879			42,014
Other current assets		21,773			20,299			24,298			29,340
Total current assets	$	333,290		$	293,399		$	303,660		$	322,849

Long term assets:
Long-term assets:
Property, plant and equipment, net	$	155,900		$	149,199		$	136,666		$	154,609
Deferred income taxes		3,260			4,770			11,676			4,595
Contract assets – non-current		8,601			6,986			8,707			7,059
Intangible Assets		7,731			9,006
Due from related parties - long term								1,089			1,786
Long-term trade accounts receivable								1,101			-
Intangible assets								5,695			6,703
Goodwill		23,561			23,561			23,561			23,561
Long term investments		44,978			-
Other long term assets		3,170			2,853
Total long term assets		247,201			196,375
Long-term investments								45,691			45,596
Other long-term assets								2,892			2,910
Total long-term assets								237,078			246,819
Total assets	$	580,491		$	489,774		$	540,738		$	569,668

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt	$	12,223		$	21,606		$	18,744		$	16,084
Trade accounts payable and accrued expenses		79,092			65,510			51,855			61,878
Accrued interest expense		7,768			7,567			7,502			7,645
Due to related parties		4,335			1,500			5,134			4,415
Dividends payable		1,379			736			1,309			67
Contract liability – current portion		14,013			16,789			18,834			12,459
Due to equity partners		10,900			-			10,900			10,900
Other current liabilities		8,579			8,887			6,894			15,563
Total current liabilities	$	138,289		$	122,595		$	121,172		$	129,011

Long term liabilities:
Long-term liabilities:
Deferred income taxes	$	689		$	2,706		$	817		$	411
Long Term Payable associated to GM&P acquisition		8,500			8,500
Long term receivables from related parties		611			600
Long-term payable associated to GM&P acquisition								8,500			8,500
Long-term liabilities from related parties								634			622
Contract liability – non-current		564			1,436			83			187
Long term debt		250,234			220,709
Total Long Term Liabilities		260,598			233,951
Long-term debt								243,808			243,727
Total long-term liabilities								253,842			253,447
Total liabilities	$	398,887		$	356,546		$	375,014		$	382,458
COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS’ EQUITY
Preferred shares, $0.0001 par value, 1,000,000 shares authorized, 0 shares issued and outstanding at June 30, 2019 and December 31, 2018 respectively	$	-		$	-
Ordinary shares, $0.0001 par value, 100,000,000 shares authorized, 44,858,442 and 38,092,996 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively		4			4
Preferred shares, $0.0001 par value, 1,000,000 shares authorized, 0 shares issued and outstanding at June 30, 2020 and December 31, 2019 respectively							$	-		$	-
Ordinary shares, $0.0001 par value, 100,000,000 shares authorized, 46,117,631 and 46,117,631 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively								5			5
Legal Reserves		1,367			1,367			2,273			1,367
Additional paid-in capital		203,660			157,604			208,390			208,283
Retained earnings		12,867			10,439			10,127			16,213
Accumulated other comprehensive (loss)		(37,340	)		(37,058	)		(55,632	)		(39,264	)
Shareholders’ equity attributable to controlling interest		180,558			132,356			165,163			186,604
Shareholders’ equity attributable to non-controlling interest		1,046			872			561			606
Total shareholders’ equity		181,604			133,228			165,724			187,210
Total liabilities and shareholders’ equity	$	580,491		$	489,774		$	540,738		$	569,668

The accompanying notes are an integral part of these condensed consolidated financial statements.

Condensed Consolidated Statements of Operations and Other Comprehensive Income

The accompanying notes are an integral part of these condensed consolidated financial statements.

~~Condensed Consolidated Statements of Operations and Other Comprehensive Income~~

~~The accompanying notes are an integral part of these condensed consolidated financial statements.~~

Notes to Condensed Consolidated Financial Statements ~~of Shareholders’ Equity~~

~~The accompanying notes are an integral part of these condensed consolidated financial statements.~~

Tecnoglass Inc., a Cayman Islands exempted company (the “Company”, “Tecnoglass,” “TGI,” “we, “ “us” or “our”) manufactures hi-specification, architectural glass and windows for the global residential and commercial construction industries. Currently the Company offers design, production, marketing, and installation of architectural systems for buildings of high, medium and low elevation size. Products include windows and doors in glass and aluminum, office partitions and interior divisions, floating facades and commercial window showcases. The Company exports most of its production to foreign countries, selling to customers in North, Central and South America.

The Company manufactures both glass and aluminum products. Its glass products include tempered glass, laminated glass, thermo-acoustic glass, curved glass, silk-screened glass, acoustic glass and digital print glass. Its Alutions plant produces mill finished, anodized, painted aluminum profiles and rods, tubes, bars and plates. Alutions’ operations include extrusion, smelting, painting and anodizing processes, and exporting, importing and marketing aluminum products.

The Company also designs, manufactures, markets and installs architectural systems for high, medium and low-rise construction, glass and aluminum windows and doors, office dividers and interiors, floating facades and commercial display windows.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the accounting and disclosure rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting purposes. The results reported in these unaudited condensed consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the information contained in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2018.~~2019. The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by US GAAP.

The preparation of these unaudited condensed consolidated financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities at the date of the Company’s financial statements. Actual results may differ from these estimates under different assumptions and conditions. Estimates inherent in the preparation of these unaudited condensed consolidated financial statements relate to the collectability of account receivables, the valuation of inventories, estimated earnings on uncompleted contracts, useful lives and potential impairment of long-lived assets. Changes in estimates are reflected in the periods during which they become known. Actual amounts may differ from these estimates and could differ materially. These financial statements reflect all adjustments that in the opinion of management are necessary for a fair statement of the financial position, results of operations and cash flows for the period presented, and are of a normal, recurring nature.

The Company has one operating segment, Architectural Glass and Windows, which is also its reporting segment, comprising the design, manufacturing, distribution, marketing and installation of high-specification architectural glass and window product sold to the construction industry.

These unaudited condensed consolidated financial statements consolidate TGI, its subsidiaries Tecnoglass S.A.S (“TG”), C.I. Energía Solar S.A.S E.S. Windows (“ES”) ~~and~~, ES Windows LLC (“ESW LLC”), Tecnoglass LLC (“Tecno LLC”), Tecno RE LLC (“Tecno RE”), GM&P Consulting and Glazing Contractors (“GM&P”), Componenti USA LLC (“Componenti”) and ES Metals SAS (“ES Metals”), which are entities in which we have a controlling financial interest because we hold a majority voting interest. To determine if we hold a controlling financial interest in an entity, we first evaluate if we are required to apply the variable interest entity (“VIE”) model to the entity, otherwise the entity is evaluated under the voting interest model. All significant intercompany accounts and transactions are eliminated in consolidation, including unrealized intercompany profits and losses. The equity method of accounting is used for investments in affiliates and other joint ventures over which the Company has significant influence but does not have effective control.

~~When the Company owns a majority of a subsidiary’s stock, the Company includes in its condensed consolidated~~Derivative Financial Statements the non-controlling interest in the subsidiary. The non-controlling interest in the Condensed Consolidated Statements of Operations and Other Comprehensive Income is equal to the non-controlling proportionate share of the subsidiary’s net income and, as included in Shareholders’ Equity on the Consolidated Balance Sheet, is equal to the non-controlling proportionate share of the subsidiary’s net assets.

The unaudited condensed consolidated financial statements are presented in U.S. Dollars, the reporting currency. Some of our foreign subsidiaries’ local currency is the Colombian Peso, which is also their functional currency as determined by the analysis of markets, costs and expenses, assets, liabilities, financing and cash flow indicators. As such, our subsidiaries’ assets and liabilities are translated at the exchange rate in effect at the balance sheet date, with equity being translated at the historical rates. Revenues and expenses of our foreign subsidiaries are translated at the average exchange rates for the period. The resulting cumulative foreign currency translation adjustments from this process are included as a component of accumulated other comprehensive income (loss). Therefore, the U.S. Dollar value of these items in our financial statements fluctuates from period to period.

Also, exchange gains and losses arising from transactions denominated in a currency other than the functional currency are included in the Condensed Consolidated Statement of Operations as foreign exchange gains and losses.

The Company ~~classifies amounts billed to customers related to shipping~~recognizes all derivative financial instruments as either assets or liabilities at fair value on the consolidated balance sheet. The unrealized gains or losses arising from changes in fair value of derivative instruments that are designated and ~~handling~~qualify as ~~product revenues. The Company records and presents shipping and handling costs~~cash flow hedges, are recorded in ~~selling expenses. Shipping and handling costs for~~ the ~~three months ended June 30, 2019 and 2018 were $4,714 and $3,764, respectively. Shipping and handling costs for~~consolidated statement of comprehensive income. Amounts in accumulated other comprehensive loss on the ~~six months ended June 30, 2019 and 2018 were $9,024 and $8,496 respectively.~~consolidated balance sheet are reclassified into the consolidated statement of income in the same period or periods during which the hedged transactions are settled.

We review goodwill and long-lived assets for impairment each year on December 31^st or more frequently when events or significant changes in circumstances indicate that the carrying value may not be recoverable. The novel coronavirus global outbreak and its associated economic impact, including a significant decrease in the market price of our ordinary shares, was considered a triggering event as of the first quarter of 2020, requiring us to reassess our goodwill and long-lived asset valuations, as well as assumptions of future income from underlying assets, and there was no new trigger in the second quarter To the extent the impact of the pandemic depends on future developments which are highly uncertain we will continue to evaluate in future periods whether these assumptions are reasonable and will update the forecasts and impairment analysis as appropriate.

Based on our analysis as of June 30, 2020 we concluded that no impairment needs to be recorded to our goodwill using the market approach as the market capitalization of our company, ~~accounts~~which has a single reporting unit, exceeds the book value of shareholders equity.

Based on our analysis as of June 30, 2020 we concluded that no impairment needs to be recorded to our long-lived assets as their carrying value are below their realizable values based on projected future cashflows estimated with assumptions deemed reasonable by management based on information currently available. The Company continuously monitors for ~~its dividend declared as a liability under ASC 480 - Distinguishing Liabilities from Equity since~~events and circumstances that could negatively impact the shareholders have the option to elect cash or stock and reclassifies from dividend payable to additional paid-in capital when shareholders elect a stock dividend instead of cash. The dividend payable is not subject to re-measurement at each balance sheet date since the dividend is a fixed monetary amount known at inception and thus no changekey assumptions in determining fair value, ~~adjustment is necessary.~~including long-term revenue growth projections, profitability, discount rates, recent market valuations from transactions by comparable companies, volatility in the Company’s market capitalization, and general industry, market and macro-economic conditions.

In June 2016, FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326). This ASU represents a significant change in the allowance for credit losses accounting model by requiring immediate recognition of management’s estimates of current expected credit losses. Under the prior model, losses were recognized only as they were incurred, which FASB has noted delayed recognition of expected losses that might not yet have met the threshold of being probable. The new model is applicable to all financial instruments that are not accounted for at fair value through net income, thereby bringing consistency in accounting treatment across different types of financial instruments and requiring consideration of a broader range of variables when forming loss estimates. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, (with early application permitted). ~~During~~The FASB issued ASU 2019-10 and ASU 2019-11 during the fourth quarter of 2019 that will postpone the effective date to the year beginning after December 15, 2022. In February 2020, the FASB issued ASU ~~2019-04 and ASU 2019-05 with Codification Improvements to Topic 326, Financial~~2020-02 “Financial Instruments – Credit ~~Losses.~~Losses (Topic 326) and Leases (Topic 842), which amends SEC Staff Accounting Bulletin No. 119 (SAB119) which contains interpretative guidance from the SEC aligned to the FASB’s ASC 326. The Company is currently evaluating the potential effect of this ASU on its consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 8485): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”. The amendments in this Update provide optional expedients and exceptions for contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this Update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this Update is effective for the Company on December 31, 2022 with early adoption permitted. The Company is currently evaluating the potential effect of this ASU on its consolidated financial statements.

~~New Accounting Standards Implemented~~Note 3. – Revised Presentation of Statement of Cash Flows

~~In February 2016,~~The Consolidated Statement of Cashflows for the ~~FASB issued ASU 2016-02 “Leases (Topic 842)” (“ASU 2016-02”). The FASB issued ASU 2016-02~~six months ended June 30, 2019 has been revised to ~~increase transparency~~correct errors in the classification of the impact of unrealized foreign currency transaction gains and ~~comparability among organizations by recognizing lease~~losses resulting from the remeasurement of our monetary assets and ~~lease~~ liabilities denominated in any currency other than the functional currency. The Company assessed the materiality of the misstatement and concluded it was not material to any previously reported quarterly or annual period financial statements.

Unrealized foreign currency transaction gains and losses, which include currency translation differences on ~~the balance sheet and disclosing key information about leasing arrangements. Under ASU 2016-02,~~monetary items that form part of investing or financing activities, such as long-term loans, are presented as a ~~lessee will recognize~~reconciling item from net income to cashflow from operating activities in the ~~statement~~Consolidated Statement of financial position a liability to make lease payments (the lease liability) and a right-to-use asset representing its right to use the underlying asset for the lease term. ASU 2016-02 retains a distinction between finance leases (i.e. capital leases under current GAAP) and operating leases. The classification criteria for distinguishing between finance leases and operating leases will be substantially similar to the classification criteria for distinguishing between capital leases and operating leases under current GAAP. The amendments of this ASU are effective for reporting periods beginning after December 15, 2018, which for the Company is the fiscal year beginning January 1, 2019.

~~The Company did not adjust the comparative periods presented~~Cashflows as ~~the FASB provided entities the option to instead apply the provisions of the new leases guidance using the modified retrospective application approach.The new standard provided a number of optional practical expedients in transition. We elected the ‘package of practical expedients’, which allowed the company to not reassess our prior conclusions about lease identification, lease classification and direct costs.~~The new standard also provides practical expedients for an entity’s ongoing accounting. We elected the short-term lease recognition exemption for all leases that qualified, primarily for certain equipment leases that are month-to-month leases. This means, for those leases, we did not recognize right-of-use assets or lease liabilities. We also elected the practical expedient to not separate lease and non-lease components for all classes of underlying assets.

We have identified and analyzed our lease portfolio and evaluated the new reporting and disclosure requirements of the new guidance, and our lease-related processes and internal controls. The adoption of this standard had no material impact to the Company’s financial statements, as, under prior guidance, we had recognized capital leases which correspond to the right-of-use asset and lease liability described under the new guidance. This standard does not have a significant impact on our liquidity or on our debt covenant compliance under our current agreements.

~~As of January 1, 2019, the Company had $378 finance lease right-of-use assets related to computing equipment and a lease liability for $380 on its Condensed Consolidated Balance Sheet. As~~ of June 30, 2020 and 2019 contained herein,. The effect of exchange rate changes on cash and cash equivalents denominated in currencies other than the ~~Company had $682 finance lease right-of-use assets related~~reporting currency has been and continues to ~~computing equipment and~~be presented in a ~~lease liability for $650 on its Condensed Consolidated Balance Sheet.~~ separate line item as part of the reconciliation of the change in cash equivalents during the period.

The ~~lease agreements include terms~~revisions to ~~extend~~ the lease, however the Company does not intend to extend its current leases. The weighted average remaining lease term approximates 2.8 years. The right-of-use assets are depreciated and interest expense from the lease liability are recorded on our Condensed Consolidated Statement of ~~Operations.~~

~~Additionally,~~Cashflows as of June 30, 2019, which had no effect on the ~~Company had a commitment for $102 under operating leases related to short term apartment leases, installation equipment~~net change in cash and ~~computing equipment which expire during~~cash equivalents, are summarized in the current year that have not been capitalized due to their short-term nature. Rental expense from these leases is recognized on our Condensed Consolidated Income Statement as incurred. Finance lease costs, including amortization of the right-of-use assets and interest expense, short term lease cost, and related cashflows have not been material as of June 30, 2019.following table:

We determine if an arrangement is a lease at inception. We include finance lease right-of-use assets as part of property and equipment and the lease liability as part of our current portion of long-term debt and long-term debt on our Condensed Consolidated Balance Sheet. Leases considered short-term are not capitalized, given our election not to recognize right-of-use assets and lease liabilities arising from short-term leases, but instead considered operating leases and the resulting rental expense is recognized on our Condensed Consolidated Statement of Operations as incurred.

Finance lease right-of-use assets and lease liabilities are recognized based on the present value of the future lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.

On January 11, 2019, we entered into a joint venture agreement with Saint-Gobain, a world leader in the production of float glass, a key component of our manufacturing process, whereby we acquired a 25.8% minority ownership interest in Vidrio Andino Holdings S.A.S (“Vidrio Andino”), a Colombia-based subsidiary of Compagnie de Saint-Gobain S.A. (“Saint-Gobain”). The purchase price for our interest in this entity was $45 million, of which $34.1 was paid in cash, and $10.9 million is to be paid with a piece of land near our existing facility in ~~Barranquilla. The land~~Barranquilla, which will be contributed ~~on our behalf~~ by a related party owned by members of our Chief Executive ~~Officer and Chief Operating Officer, José M. Daes and Christian T. Daes in exchange for cash or shares of the Company and subject~~Officer´s family with a third party valuation conducted to ~~an external valuation to support an~~ensure arm´s length ~~transaction.~~terms. The land will serve the purpose of developing a second float glass plant nearby our existing manufacturing facilities which we expect to carry significant efficiencies for us once it becomes operative. Vidrio Andino’s float glass plant located in the outskirts of Bogota, Colombia, has been one of our main suppliers of raw glass. We believe this transaction will solidify our vertical integration strategy by acquiring an interest in the first stage of our production chain, while securing ample glass supply for our expected production needs.

On May 3, 2019, we consummated the joint venture agreement acquiring a 25.8% minority ownership interest in Vidrio Andino with a cash payment of $34.1 million, and the land still to be contributed ~~by January 2020,~~once a complete assessment of the project timing is completed based on the overall market conditions as ~~per~~they relate to the ~~agreement.~~ongoing COVID-19 pandemic. As of that date, the Company recorded the investment within Long-term assets on the Company’s ~~Condensed~~ Consolidated Balance Sheet for $45.0 million and a liability for $10.9 million within current liabilities on the Company’s ~~Condensed~~ Consolidated Balance to be settled with the contribution of the aforementioned piece of land. Since the date of the acquisition, we have recognized the proportional share of Vidrio Andino’s net income using the equity method on the ~~Condensed~~ Consolidated Statement of Operations and Other Comprehensive Income as the Company is deemed to have significant influence, but does not have effective control of Vidrio Andino.

In January 2019 we established E.S. Windows California, LLC., a wholly-owned U.S. entity to serve as a distributor of our products in certain jurisdictions within the U.S. markets.

In April 2019, ESMetals, a Colombian entity in which the Company has 70% equity interest began operations. ESMetals serves as a metalwork contractor to supply the Company with steel accessories used in the assembly of certain architectural systems as part of our vertical integration strategy. When the company owns a majority (but less than 100%) of a subsidiary’s stock, the Company includes in its Consolidated Financial Statements the non-controlling interest in the subsidiary. The non-controlling interest in the ~~Condensed~~ Consolidated Statements of Operations and Other Comprehensive Income is equal to the non-controlling interests’ proportionate share of the subsidiary’s net income and, as included in Shareholders’ Equity on the ~~Condensed~~ Consolidated Balance Sheet, is equal to the non-controlling interests’ proportionate share of the subsidiary’s net assets. In determining the fair value, we used the income approach and the market approach which was performed by third party valuation specialists under management.

	June 30, 2019			December 31, 2018			June 30, 2020			December 31, 2019
Raw materials	$	52,019		$	43,744		$	46,683		$	44,175
Work in process		28,283			25,957			20,240			24,262
Finished goods		2,023			14,251			4,486			5,203
Stores and spares		7,669			7,437			7,610			8,130
Packing material		999			540			499			981
		90,993			91,929			79,518			82,751
Less: Inventory allowance		(87	)		(80	)		(64	)		(37	)
	$	90,906		$	91,849		$	79,454		$	82,714

The Company disaggregates its sales with customers by revenue recognition method for its only segment, as the Company believes these factors affect the nature, amount, timing, and uncertainty of the Company’s revenue and cash flows.

	Three months ended				Six months ended				Three months ended				Six months ended
	June 30,				June 30,				June 30,				June 30,
	2019		2018		2019		2018		2020		2019		2020		2019
Fixed price contracts	$	46,721	$	37,814	$	88,897	$	80,030	$	21,533	$	46,721	$	46,560	$	88,897
Product sales		67,162		51,155		132,154		96,099		60,409		67,162		122,680		132,154
Total Revenues	$	113,883	$	88,969	$	221,051	$	176,129	$	81,942	$	113,883	$	169,240	$	221,051

Contract assets represent accumulated incurred costs and earned profits on contracts with customers that have been recorded as sales, but have not been billed to customers and are classified as current and a portion of the amounts billed on certain fixed price contracts that are withheld by the customer as a retainage until a final good receipt of the complete project to the customers satisfaction. Contract liabilities consist of advance payments and billings in excess of costs incurred and deferred revenue, and represent amounts received in excess of sales recognized on contracts. The Company classifies advance payments and billings in excess of costs incurred as current, and deferred revenue as current or non-current based on the expected timing of sales recognition. Contract assets and contract liabilities are determined on a contract by contract basis at the end of each reporting period. The non-current portion of contract liabilities is included in other liabilities in the Company’s consolidated balance sheets.

	June 30, 2019			December 31, 2018			June 30, 2020			December 31, 2019
Contract assets — current	$	50,580		$	46,018		$	34,879		$	42,014
Contract assets — non-current		8,601			6,986			8,707			7,059
Contract liabilities — current		(14,013	)		(16,789	)		(18,834	)		(12,459	)
Contract liabilities — non-current		(564	)		(1,436	)		(83	)		(187	)
Net contract assets	$	44,604		$	34,779		$	24,669		$	36,427

	June 30, 2019		December 31, 2018		June 30, 2020		December 31, 2019
Unbilled contract receivables, gross	$	27,644	$	21,703	$	18,100	$	20,729
Retainage		31,537		31,301		25,486		28,344
Total contract assets		59,181		53,004		43,586		49,073
Less: current portion		50,580		46,018		34,879		42,014
Contract Assets – non-current	$	8,601	$	6,986	$	8,707	$	7,059

	June 30, 2019		December 31, 2018		June 30, 2020		December 31, 2019
Billings in excess of costs	$	3,101		4,393	$	2,138		2,077
Advances from customers on uncompleted contracts		11,476		13,832		16,779		10,569
Total contract liabilties		14,577		18,225
Total contract liabilities						18,917		12,646
Less: current portion		14,013		16,789		18,834		12,459
Contract liabilities – non-current	$	564		1,436	$	83		187

During the three and six months ended June 30, 2020, the Company recognized $370 and 1,649 of sales related to its contract liabilities on January 1, 2020, respectively. During the three and six months ended June 30, 2019, the Company recognized ~~$4,041~~$1,759 and ~~$1,759~~$4,041 of sales related to its contract liabilities aton January 1, 2019, respectively. ~~During the three and six months ended June 30, 2018, the Company recognized $2,306 and $1,086 of sales related to its contract liabilities at January 1, 2018, respectively.~~

As of June 30, ~~2019,~~2020, the Company had ~~$285.9~~$323.4 million of remaining performance obligations, which represents the transaction price of firm orders minus sales recognized from inception to date. Remaining performance obligations exclude unexercised contract options, verbal commitments, Letters of Intent or written mandates, and potential orders under basic ordering agreements. The Company expects to recognize 100% of sales relating to existing performance obligations within three years, of which ~~$145.6~~$173.0 million are expected to be recognized during the year ending December 31, ~~2019, $115.5~~2020, and $150.4 million during the year ending December 31, ~~2020 and $24.9 million thereafter.~~2021.

Intangible assets include Miami-Dade County Notices of Acceptances (NOA’s), which are certificates issued for approved products and required to market ~~hurricane- resistant~~hurricane-resistant glass in Florida. Also, it includes the intangibles acquired ~~from~~during the acquisition of GM&P.

	December 31, 2018							December 31, 2019
	Gross		Acc. Amort.			Net		Gross		Acc. Amort.			Net
Trade Names	$	980	$	(359	)	$	621	$	980	$	(555	)	$	425
Notice of Acceptances (NOAs), product designs and other intellectual property		10,881		(5,373	)		5,508		8,903		(4,323	)		4,580
Non-compete Agreement		165		(60	)		105		165		(94	)		71
Contract Backlog		3,090		(2,832	)		258		3,090		(3,090	)		-
Customer Relationships		4,140		(1,626	)		2,514		4,140		(2,513	)		1,627
Total	$	19,256	$	(10,250	)	$	9,006	$	17,278	$	(10,575	)	$	6,703

During the six months ended June 30, ~~2019~~2020 and ~~2018,~~2019, the amortization expense amounted to $1,099and $1,485, ~~and $1,776,~~ respectively, and was included within the general and administration expenses in our Condensed Consolidated Statement of Operations. ~~Similarly, amortization~~Amortization expense for the three months ended June 30, 2020 and 2019, ~~and 2018~~the amortization expense amounted to $549 and $609, ~~and $891, respectively.~~respectively

The estimated aggregate amortization expense for each of the five succeeding years as of June 30, ~~2019~~2020 is as follows:

Year ending	(in thousands)		(in thousands)
2019	$	1,154
2020		2,180	$	1,083
2021		2,150		2,083
2022		1,270		1,087
2023		789		773
2024				457
Thereafter		187		212
	$	7,730	$	5,695

As of June 30, ~~2019,~~2020, and December 31, ~~2018,~~2019, the Company had ~~$261,730~~$261,874 and ~~$242,106~~$259,574 of debt denominated in US Dollars with the remaining amounts denominated in Colombian Pesos.

The Company had ~~$5,070~~$6,524 and ~~$5,037~~$6,979 of property, plant and equipment pledged as collateral for various lines of credit as of June 30, ~~2019~~2020 and December 31, ~~2018,~~2019, respectively.

On May 2, 2019, the Company closed a $30 million five-year term debt facility with Banco de Crédito del Perú and Banco Sabadell which bears interest at Libor +2.95%. Proceeds from this long-term debt facility were used towards refinancing short-term debt and partially supporting expected capital expenditure needs for capacity expansion and the automatization of some of our processes. This facility also contains a covenant requiring that the company maintain certain leverage and fixed charge coverage ratios with which the Company is in compliance as of June 30, 2019.

~~As of June 30, 2019, the~~The Company was obligated under various finance leases under which the aggregate present value of the minimum lease payments amounted to ~~$650. Differences between~~$372 and $493 as of June 30, 2020 and December 31, 2019, respectively. In line with this, the Company recorded right-of-use assets related to computing equipment for $212 and $378 as of June 30, 2020 and December 31, 2019, respectively. The lease ~~obligations~~agreements include terms to extend the lease, however the Company does not intend to extend its current leases. The weighted average remaining lease term approximates 2 years. The right-of-use assets are depreciated and interest expense from the ~~value~~lease liability are recorded on our Condensed Consolidated Statement of ~~property, plant~~Operations.

Additionally, as of June 30, 2020, the Company had a commitment for $12 under operating leases related to short term apartment leases, installation equipment and computing equipment ~~under capital lease arises~~which expire during the current year that have not been capitalized due to their short-term nature. Rental expense from ~~differences between the maturities of capital lease obligations and the useful lives of the underlying assets.~~these leases is recognized on our Condensed Consolidated Income Statement as incurred.

Maturities of long-term debt and other current borrowings are as follows as of June 30, ~~2019:~~2020:

2020	$	12,411
2021		5,508	$	18,779
2022		219,988		216,489
2023		11,400		11,562
2024		12,868		13,207
2025				2,376
Thereafter		4,901		2,538
Total	$	267,077	$	264,951

The Company’s loans have maturities ranging from a few weeks to 10 years. Our credit facilities bear interest at a weighted average of rate ~~7.5%~~7.07%.

During the quarter ended September 30, 2019, we entered into several foreign currency non-delivery forward and collar contracts to hedge the fluctuations in the exchange rate between the Colombian Peso and the U.S. Dollar. Our contracts are designated as cash flow hedges since they are highly effective in offsetting changes in the cash flows attributable to forecasted Colombian Peso denominated costs and expenses.

Guidance under the Financial Instruments Topic 825 of the Codification requires us to record our hedge contracts at fair value and consider our credit risk for contracts in a liability position, and our counter-party’s credit risk for contracts in an asset position, in determining fair value. We assess our counter-party’s risk of non-performance when measuring the fair value of financial instruments in an asset position by evaluating their financial position, including cash on hand, as well as their credit ratings.

As of June 30, 2020, the fair value of foreign currency collar contracts was in a net liability position of $1,379. We had 24 outstanding collar contracts to exchange 26 million U.S. Dollars to Colombian Pesos through February 2021. We assessed the risk of non-performance of the Company to these contracts and determined it was insignificant and, therefore, did not record any adjustment to fair value as of June 30, 2020.

We assess the effectiveness of our foreign currency collar contracts by comparing the change in the fair value of the collar contracts to the change in the expected cash to be paid for the hedged item. The effective portion of the gain or loss on our foreign currency collar contracts is reported as a component of accumulated other comprehensive loss and is reclassified into earnings in the same line item in the income statement as the hedged item in the same period or periods during which the transaction affects earnings. The amount of losses, net, recognized in the “accumulated other comprehensive loss” line item in the accompanying condensed consolidated balance sheet as of June 30, 2020, that we expect will be reclassified to earnings within the next eight months, is $1,379.

The fair value of our foreign currency hedges is classified in the accompanying consolidated balance sheets as of June 30, 2020, are as follows:

The fair value of our foreign currency hedges is classified in the accompanying consolidated balance sheets as of December 31, 2019, are as follows:

The ending accumulated balance for the foreign currency collar contracts included in accumulated other comprehensive losses, net of tax, was $938 as of June 30, 2020, comprised of a derivative loss of $1,379 and an associated net tax benefit of $441.

The following table presents the gains (losses) on derivative financial instruments, and their classifications within the accompanying condensed consolidated financial statements, for the three and six months ended June 2020:

The Company accounts for financial assets and liabilities in accordance with accounting standards that define fair value and establish a framework for measuring fair value. The hierarchy prioritizes the inputs into three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. A financial asset’s or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and advances from customers approximate their fair value due to their relatively short-term maturities. The Company bases its fair value estimate for long term debt obligations on its internal valuation that all debt is floating rate debt based on current interest rates in Colombia.

As of June 30, ~~2019,~~2020, financial instruments carried at amortized cost that do not approximate fair value consist of long-term debt. See Note 78 - Debt. The fair value of long-term debt was calculated based on an analysis of future cash flows discounted with our average cost of debt, which is based on market rates, which are level 2 inputs.

The following table summarizes the fair value and carrying amounts of our long-term debt:

	June 30, 2019		December 31, 2018		June 30, 2020		December 31, 2019
Fair Value		266,223		234,163		239,890		259,814
Carrying Value		250,234		220,709		243,808		243,727

The Company files income tax returns for TG, ES and ES Metals in the Republic of Colombia. On December 28, 2018, a tax reform was implemented in Colombia which decreased the corporate income tax rate to 33% for fiscal year 2019, 32% for fiscal year 2020, 31% for fiscal year 2021 and 30% for fiscal year 2022, in comparison with a tax rate of 37% for 2018.

GM&P, Componenti and ESW LLC are U.S. entities based in Florida subject to U.S. federal and state income taxes. The estimated combined state and federal income tax rate is estimated at a rate of 26.5% based on the recently enacted U.S. Tax Reform. Tecnoglass Inc. as well as all the other subsidiaries in the Cayman Islands do not currently have any tax obligations.

	Three months ended June 30,						Six months ended June 30,						Three months ended June 30,						Six months ended June 30,
	2019			2018			2019			2018			2020			2019			2020			2019
Current income tax
United States	$	(903	)	$	1,129		$	(1,415	)	$	722		$	(193	)	$	(903	)	$	(344	)	$	(1,415	)
Colombia		(4,338	)		(317	)		(7,758	)		(2,522	)		(4.129	)		(4,338	)		(6,876	)		(7,758	)
		(5,241	)		812			(9,173	)		(1,800	)		(4,322	)		(5,241	)		(7,220	)		(9,173	)
Deferred income Tax
United States		957			(992	)		1,126			(1,161	)		63			957			(256	)		1,126
Colombia		307			1,647			(809	)		(965	)		(2,616	)		307			6,734			(809	)
		1,264			655			317			(2,126	)		(2,553	)		1,264			6,478			317
Total income tax (provision) benefit	$	(3,977	)	$	1,467		$	(8,856	)	$	(3,926	)
Total income provision													$	(6,875	)	$	(3,977	)	$	(742	)	$	(8,856	)

Effective tax rate		(34	%)		27	%		(37	%)		37	%		30	%		(34,0	)%		40	%		(37	)%

The ~~Company’s~~ weighted average statutory income tax rate for the three months ended June 30, 2020 and 2019 was 28.0% and 33%, respectively. The effective income tax rate for the six months ended June 30, 2020 of 40% reflects the impact of unrealized foreign currency transaction losses related to the remeasurement of long-term liabilities of our Colombian subsidiaries which are expected to be realized at a later year in which a lower income tax rate is ~~33%.~~expected to apply.

The following is a summary of assets, liabilities, and income and expense transactions with all related parties, shareholders, directors and managers:

The Company also has a note payable which matures in 2022 related to the acquisition GM&P for $8,500 due to the former owner who holds shares of the Company and a management position within the Company.

Ventana Solar S.A. (“VS”), a Panama Sociedad anónima,is an importer and installer of the Company’s products in Panama. Family members of the Company’s CEO and COO and other related parties own 100% of the equity in VS. The Company’s sales to VS for the three months ended June 30, 2020 and 2019 were $151 and ~~2018 were~~ $855, ~~and $588,~~ respectively.

The Company’s sales to VS for the six months ended June 30, 2020 and 2019 were $794 and ~~2018 were~~ $1,525, ~~and $1,214,~~ respectively.

Payments to other related parties during the three ~~and six~~ months ended June 30, ~~2019~~2020 and ~~2018~~2019 include the following:

	Three months ended June 30,				Six months ended June 30,				Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018			2020		2019		2020		2019
Charitable contributions	$	178	$	296	$	605	$	567	$	213	$	178	$	562	$	605
Sales commissions	$	286	$	336	$	762	$	677	$	288	$	286	$	547	$	762

Charitable contributions are donations made to the Company’s foundation, Fundación Tecnoglass-ESW.

~~The~~On June 23, 2020, the Company ~~originally authorized the payment of four~~declared a regular quarterly ~~dividends to holders~~dividend of ~~ordinary shares at a quarterly rate of $0.125~~$0.0275 per share, or ~~$0.50~~$0.11 per share on an ~~annual~~annualized basis, ~~with~~for the first quarter of 2020. The quarterly dividend ~~being~~will be paid ~~on November 1, 2016. The dividends were payable~~ in cash ~~or ordinary shares, at the option~~on July 31, 2020 to shareholders of record as of the ~~holders~~close of ordinary shares. On May 11, 2017, the Company announced that commencing with the declared quarterly dividend for the third quarter of 2017 through any future dividends to be declared and paid through the second quarter of 2018, a 12% increase to $0.14 per share, or $0.56 per sharebusiness on ~~an annual basis would apply. The Company has continued paying quarterly dividends at this rate through the second quarter of 2019.~~

As a result, the Company has declared dividends for $12,389 as of June 30, 2019 and recorded a dividend payable amounting to $1,379 as of June 30, 2019. The Company issued 1,214,023 shares for the share dividends resulting in $9,578 being credited to Capital and paid $2,170 in cash during the six months ended June 30, 2019.

The Company analyzed the accounting guidance under ASC 505 and determined that this guidance is not applicable since the dividend are shares of the same class in which each shareholder is given an election to receive cash or shares. As such, the Company analyzed the dividend under ASC 480 — Distinguishing Liabilities from Equity and concluded that the dividend should be accounted for as a liability since the dividend is a fixed monetary amount known at inception. A reclassification from dividend payable to additional paid-in capital was done for the stock dividend elections.

Dividend declarations and the establishment of future record and payment dates are subject to the Board of Directors’ continuing determination that the dividend policy is in the best interests of the Company and its shareholders. The dividend policy may be changed or cancelled at the discretion of the Board of Directors at any time.July 8, 2020.

On March 25, 2019, the Company closed an underwritten follow-on public offering of 5,000,000 ordinary shares at a price to the public of $7.00 per share. As a result of this offering, the Company received a net amount of $33,050 after deducting underwriting and other related fees, which were credited to share capital and additional paid in capital.

Additionally, the Company granted the underwriters a 30-day option to purchase up to an additional 750,000 ordinary shares at the public offering price, less the underwriting discount, which option was exercised on April 3, 2019 with respect to 551,423 ordinary shares.

Proceeds from the offering were subsequently used to complete the joint venture transaction with Saint-Gobain discussed in ~~Note 3. Vidrio Andino Acquisition.~~“Note 4. Long-term Investments – Saint-Gobain Joint Venture.”

The following table sets forth the computation of the basic and diluted earnings per share for the three and six months ended June 30, ~~2019~~2020 and ~~2018:~~2019:

	Three months ended June 30,					Six months ended June 30,				Three months ended June 30,				Six months ended June 30,
	2019		2018			2019		2018			2020		2019		2020			2019
Numerator for basic and diluted earnings per shares
Net Income (loss)	$	7,660	$	(3,870	)	$	14,991	$	6,749	$	16,054	$	7,660	$	(2,614	)	$	14,991

Denominator
Denominator for basic earnings per ordinary share - weighted average shares outstanding		44,840,263		38,200,792			42,254,672		38,135,096		46,117,631		45,653,893		46,117,631			42,989,592
Effect of dilutive securities and stock dividend		763,676		-			763,676		763,676		-		490,124		-			490,124
Denominator for diluted earnings per ordinary share - weighted average shares outstanding		45,603,939		38,200,792			43,018,348		38,898,772		46,117,631		46,144,017		46,117,631			43,479,716
Basic earnings (loss) per ordinary share	$	0.17	$	(0.10	)	$	0.35	$	0.18	$	0.35	$	0.17	$	(0.06	)	$	0.35
Diluted earnings (loss) per ordinary share	$	0.17	$	(0.10	)	$	0.35	$	0.17	$	0.35	$	0.17	$	(0.06	)	$	0.34

The effect of dilutive securities as of June 30, 2019 includes ~~763,676 shares for~~the effect of 551,423 shares potentially issued in relation to the ~~dividends declared. For~~underwriters’ option of the quarter ended June 30, 2018, the effect of dilutive securities is excluded from the calculation of diluted earnings per share because including them would be anti-dilutive given the net loss during the period.follow-on equity offering described above.

As of June 30, ~~2019,~~2020, the Company had an outstanding obligation to purchase an aggregate of at least ~~$25,141~~$14,449 of certain raw materials from a specific supplier before May 2026.

On May 3, 2019, we consummated the joint venture agreement with Saint-Gobain whereby we acquired a 25.8% minority ownership interest in Vidrio Andino. The purchase price for our interest in Vidrio Andino was $45 million, of which $34.1 million was paid in cash and $10.9 million to be paid through the contribution of land to be contributed on our behalf by a related party owned by members of our Chief Executive Officer once a complete assessment of the project timing is completed based on the overall market conditions as they relate to the ongoing COVID-19 pandemic. The joint venture agreement includes plans to build a new plant in Galapa, Colombia that will be located approximately 20 miles from our primary manufacturing facility, in which we will also have a 25.8% interest. The new plant will be funded with proceeds from the original cash contribution made by the Company, operating cashflows from the Bogota plant, debt incurred at the joint venture level that will not consolidate into the Company and an additional contribution by us of approximately $12.5 million to be paid between 2020 and 2021 if needed (based on debt availability).

From time to time, the Company is involved in legal matters arising in the regular course of business. Some disputes are derived directly from our construction projects, related to supply and installation, and even though deemed ordinary, they may involve significant monetary damages. We are also subject to other type of litigations arising from employment practices, worker’s compensation, automobile claims and general liability. It is very difficult to predict precisely what the outcome of these litigations might be. However, with the information at our disposition as this time, there are no indications that such claims will result in a material adverse effect on the business, financial condition or results of operations of the Company.

Management concluded that no additional subsequent events required disclosure other than those disclosed in these financial statements.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,” or the negative of such terms or other similar expressions. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described in our other Securities and Exchange Commission (“SEC”) filings. References to “we”, “us” or “our” are to Tecnoglass Inc. (formerly Andina Acquisition Corporation), except where the context requires otherwise. The following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and related notes thereto included elsewhere in this report.

We are a ~~vertically-integrated~~vertically integrated manufacturer, supplier and installer of architectural glass, windows and associated aluminum products for the global commercial and residential construction markets. With a focus on innovation, combined with providing highly specified products with the highest quality standards at competitive prices, we have developed a leadership position in each of our core markets. In the United States, which is our largest market, we were ranked as the second largest glass ~~and metal~~ fabricator in ~~2018~~2019 by Glass Magazine. In addition, we believe we are the leading glass transformation company in Colombia. Based on our analysis of third-party industry sources we had an estimated market share of over ~~45%~~49% of the Colombian market in ~~2017.~~2019. Our customers, which include developers, general contractors or installers for hotels, office buildings, shopping centers, airports, universities, hospitals and multi-family and residential buildings, look to us as a value-added partner based on our product development capabilities, our high-quality products and our unwavering commitment to exceptional service.

We have more than 30 years of experience in architectural glass and aluminum profile structure assembly, we transform a variety of glass products, including tempered safety, double thermo-acoustic and laminated glass. Our finished glass products are installed in a wide variety of buildings across a number of different applications, including floating facades, curtain walls, windows, doors, handrails, interior and bathroom spatial dividers. We also produce aluminum products such as profiles, rods, bars, plates and other hardware used in the manufacturing of windows.

Our products are manufactured in a 2.7 million square foot, state-of-the-art manufacturing complex in Barranquilla, Colombia that provides easy access to North, Central and South America, the Caribbean and the Pacific. Our products can be found on some of the most distinctive buildings in these regions including El Dorado Airport (Bogota), 50 United Nations Plaza (New York), Trump Plaza (Panama), Icon Bay (Miami), and Salesforce Tower (San Francisco). Our track record of successfully delivering high profile projects has earned us an increasing number of opportunities across the United States, evidenced by our expanding backlog and overall revenue growth.

Our structural competitive advantage is underpinned by our low-cost manufacturing footprint, vertically integrated business model and geographic location. Our integrated facilities in Colombia and distribution and services operations in Florida provide us with a significant cost advantage in both manufacturing and distribution, and we continue to invest in these operations to expand our operational capabilities. Our lower cost manufacturing footprint allows us to offer competitive prices for our customers, while also providing innovative, high quality and high value-added products, together with consistent and reliable service. We have historically generated high margin organic growth based on our position as a value-added solutions provider for our customers.

We have a strong presence in the Florida market, which represents a substantial portion of our revenue stream and backlog. Our success in Florida has primarily been achieved through sustained organic growth, with further penetration now taking place into other highly populated areas of the United States. As part of our strategy to become a fully vertically integrated company, we have supplemented our organic growth with some ~~recent~~ acquisitions that have allowed us added control over our supply ~~chain. In March 2017, we completed~~chain allowed for further vertical integration of our business and will act as a platform for our future expansion in the ~~acquisition of GM&P, a consulting and glazing installation business that was previously our largest installation customer.~~United States. In 2016, we completed the acquisition of ESW, which gave us control over the distribution of products into the United States from our manufacturing facilities in Colombia. ~~These acquisitions allowed for further vertical integration~~In March 2017, we completed the acquisition of GM&P, a consulting and glazing installation business that was previously our ~~business and will act as a platform for our future expansion in the United States. Furthermore, on~~largest installation customer.

On May 3, 2019, we consummated the joint venture agreement with Saint-Gobain, acquiring a 25.8% minority ownership interest in Vidrio Andino, a Colombia-based subsidiary of Saint-Gobain, solidifying our vertical integration strategy by acquiring an interest in the first stage of our production chain, while securing ample glass supply for our expected production needs. Additionally, in April 2019, ESMetals, a Colombian entity in which the Company has 70% equity interest began operations. ESMetals serves as a metalwork contractor to supply the Company with steel accessories used in the assembly of certain architectural systems as part of our vertical integration strategy.

The continued diversification of the group’s presence and product portfolio is a core component of our strategy. In particular, we are actively seeking to expand our presence in United States outside of Florida. We also launched a residential windows offering which, we believe, will help us expand our presence in the United States and generate additional organic growth. We believe that the quality of our products, coupled with our ability to price competitively given our structural advantages on cost, will allow us to generate further growth in the future.

On March 24, 2020, Colombia went into a mandatory lockdown as a result of the novel coronavirus outbreak. As a result, the Company temporarily suspended production at its facilities in Colombia through April 13, 2020 during the initial phase of the nationwide shelter-in-place order. While the shelter-in-place order was subsequently extended to May 25, 2020, the Company resumed full operations at its facilities on April 14, 2020 given its exempted designation as a supplier of critical products to essential business sectors such as infrastructure and construction. At the same time as most of our customers in the United States and Colombia are resuming their activities. During the period that production was suspended, vacation days were used to retain eligible employees and the Company used the time to implement broad safety measures before returning to normal operations.

The Company entered the pandemic with a strong financial position along with the flexibility required to support its global operations during this volatile period. As of June 30, 2020, we had had cash of $63.4 million plus an additional $73.4 million of availability under existing lines of credit, providing sufficient access to capital. In addition, we have implemented strict cost controls, reduced operating expenses and limited all non-critical capital expenditures beyond the completion of initiatives started in 2019. We anticipate that working capital will continue to be a net benefit to cash flow for the full year 2020.

	Three months ended June 30,						Six months ended June 30,						Three months ended June 30,						Six months ended June 30,
	2019			2018			2019			2018			2020			2019			2020			2019
Operating Revenues	$	113,883		$	88,969		$	221,051		$	176,129		$	81,942		$	113,883		$	169,240		$	221,051
Cost of sales		75,046			64,327			150,322			124,739			50,146			75,046			107,017			150,322
Gross profit		38,837			24,642			70,729			51,390			31,796			38,837			62,223			70,729
Operating expenses		(20,573	)		(17,020	)		(38,229	)		(33,778	)		(16,571	)		(20,573	)		(33,849	)		(38,229	)
Operating income		18,264			7,622			32,500			17,612			15,225			18,264			28,374			32,500
Non-operating income		353			709			628			1,808
Foreign currency transactions (losses) gains		(1,201	)		(8,307	)		2,085			1,666
Equity method income (loss)		(22	)		-			(22	)		-
Non-operating income and expenses, net														7			353			(94	)		628
Foreign currency transactions gains (losses)														13,309			(1,201	)		(19,157	)		2,085
Equity method income														(166	)		(22	)		94			(22	)
Interest Expense and deferred cost of financing		(5,757	)		(5,361	)		(11,344	)		(10,411	)		(5,446	)		(5,757	)		(11,089	)		(11,344	)
Income tax provision		(3,977	)		1,467			(8,856	)		(3,926	)		(6,875	)		(3,977	)		(742	)		(8,856	)
Net income		7,660			(3,870	)		14,991			6,749
(Income) loss attributable to non-controlling interest		(181	)		212			(174	)		284
Income attributable to parent	$	7,479		$	(3,658	)	$	14,817		$	7,033
Net income(loss)														16,054			7,660			(2,614	)		14,991
Loss (Income) attributable to non-controlling interest														143			(181	)		45			(174	)
Income (Loss) attributable to parent													$	16,197		$	7,479		$	(2,569	)	$	14,817

The Company’s operating revenues ~~increased $24.9~~decreased $31.9 million or ~~28.0%~~28% from ~~$89.0~~$113.9 million to ~~$113.9~~$81.9 million for the quarter ended June 30, ~~2019~~2020 compared with the quarter ended June 30, ~~2018.~~2019. The decrease in sales was impacted by 15 days less of work in early April as we shut down our manufacturing facility in Colombia during the initial stages of the COVID-19 nationwide shelter-in-place order. Though some mandatory shelter-in-place measures are still in place, our business has been deemed essential and we resumed operations in mid-April, since then, our invoicing increased sequentially month-to-month during the quarter. Additionally, some of our Latin American markets continue to present challenges to come back to full operations as job sites prepare to operate in a safely manner.

~~The increase was driven by sales~~Sales in the U.S. markets ~~which increased $29.5~~decreased $20.2 million or ~~42.2%~~20.3% in the second quarter of 2020 to $79.1 million compared with $99.3 during the same period of 2019. US Single Family residential sales decreased $4.8 million, or 23%, from $20.6 million in 2019 to $15.8 million in 2020 mainly as a result of the aforementioned reduced operational activity related to COVID-19 shelter in place orders.

Sales in our Latin American markets, including Colombia, have been slow to return to activity after mandatory Coronavirus lockdowns in March and April. Despite construction having been deemed essential businesses, construction sites have been slow to prepare to operate under new safety standards. Sales to these regions decreased $11.8 million, or 80.8%, from $14.6 million in the second quarter of 2019 ~~compared~~ to the same period of 2018. A portion of the Company’s sales growth in the American market have been driven by our Elite and Prestige lines aimed towards residential markets, in which we did not actively participate prior to 2017. U.S. revenues contributed 87.2% and 78.5% of total sales during the second quarter of 2019 and 2018, respectively. The increase in U.S revenues is aligned with our strategy to penetrate new geographical and end markets.

~~This growth more than offset a slowdown of sales in the Colombian market, which went from $15.6 million to $12.2~~$2.8 million in the second quarter of 2018 and 2019, respectively. The decrease in the Colombian market sales was mostly related to reduced activity in the construction industry, following a two-year period of economic slowdown, which we expect to undergo a slow recovery in the near and mid-term future.2020.

Gross profit ~~increased $14.2~~decreased $7.0 million, or ~~57.6%~~18.1% to ~~$38.8~~$31.8 million during the three months ended June 30, ~~2019,~~2020, compared with ~~$24.6~~$38.8 million during the same period of ~~2018.~~2019. Gross profit margins, ~~improved~~however increased notoriously to 38.8% during the second quarter of 2020, from 34.1% during the second quarter of ~~2019, from 27.7% during the second quarter of 2018.~~ 2019.

The margin enhancement ~~is mainly related to economies~~was the result of ~~scale, enforcing tight~~increased raw material efficiency derived from advantageous aluminum commodity prices, waste reduction benefit from our automation initiatives and better control efforts, a reduction in cost ~~control over fixed costs and~~of installation work as manufacturing represented a higher ~~sales, along with a mix of business with a smaller~~ portion of ~~revenues~~our revenue mix, and a reduction of labor costs driven by the automation of manufacturing processes paired with favorable foreign currency exchange rates. These margin improvements were partially offset by a negative effect of fixed cost being ~~derived from installation work, which carries~~diluted over a lower ~~gross profit margin as a whole.~~revenue base.

Operating expenses ~~increased $3.6~~decreased $4.0 million, or ~~20.9%~~19.5%, from ~~$17.0~~$20.6 million to ~~$20.6~~$16.6 million for the quarters ended June 30, ~~2018~~2019 and ~~2019,~~2020, respectively. ~~This~~The decrease was ~~primarily related to $0.9~~the result of $1.1 million ~~higher~~decrease in shipping expense ~~which increased 25% from $3.8 million~~due to ~~$4.7 million~~lower sales, as well as the result of our efforts to enhance our lean administrative structure and tight cost controls paired with favorable exchange rates as a ~~result~~significant portion of ~~higher sales. Additionally, provision of trade accounts receivable expense amounted to $0.4 million~~our general and administrative expenses are denominated in COP which experienced a significant depreciation during the second quarter of 2019, compared with a net recovery of previously provisioned amounts for $0.5 million during 2018. Sales commissions increased $0.6 million related to a higher overall amount of sales during the quarter, primarily related to sales of our Elite and Prestige product lines aimed towards residential U.S. markets.period.

During the three months ended June 30, ~~2019~~2020 and ~~2018,~~2019, the Company recorded ~~net~~a non-operating expense of $0.8 million and non-operating income of ~~$0.4 million and $0.7~~$0.1 million, respectively. Non-operating income is comprised primarily of income from rental properties and gains on sale of scrap ~~materials.~~

materials as well as non-operating expenses related to certain charitable contributions outside of the Company’s direct sphere of influence.

During the quarter ended June 30, ~~2019,~~2020, the Company recorded a non-cash ~~loss~~gain of ~~$1.2~~$13.3 million associated with foreign currency transactions. Most of this impact is associated with the remeasurement of a net liability position of ~~$152.0~~$129.0 million U.S. dollar denominated monetary assets and liabilities held by the Company’s subsidiaries with the Colombian peso as their functional currency ~~during a period in which~~while the Colombian peso ~~depreciated by 1%.~~appreciated 8% during the quarter. Comparatively, the Company recorded a net loss of ~~$8.3~~$1.2 million during the three months ended June 30, ~~2018~~2019 while the Colombian peso depreciated ~~5.4%~~1% during the quarter.

Interest expense ~~was~~and deferred cost of financing remained decreased to $5.4 million from $5.8 ~~million and $5.4~~ million during the quarters ended June 30, 2020 and 2019, ~~and 2018,~~ respectively. ~~The 7.4% increase~~This reflects a moderate improvement in ~~interest expense is related to a proportional increase~~our overall cost of ~~13% in~~financing as out total indebtedness has remained relatively stable between both periods.

During the ~~Company’s total debt at~~quarters ended June 30, 2020 and 2019, ~~compared with June 30, 2018 to support its ongoing growth.~~the Company recorded an income tax provision of $6.9 million and $4.0 million, respectively, reflecting an effective income tax rate of 30% and 34%, which approximate the weighted average statutory rates.

As a result of the foregoing, the Company recorded a net income for the three months ended June 30, ~~2019~~2020 of ~~$7.7~~$16.1 million compared to a net ~~loss~~income of ~~$3.9~~$7.4 million in the three months ended June 30, ~~2018.~~2019.

Comparison of ~~six-month~~six-months periods ended June 30, ~~2019~~2020 and ~~2018~~2019

The Company’s operating revenues ~~increased $44.9~~decreased $51.8 million or ~~25.5%~~23.4% from ~~$176.1~~$221.1 million to ~~a record $221.1~~$169.2 million for the six months ended June 30, ~~2019~~2020 compared with the six months ended June 30, ~~2018.~~2019. The decrease in sales was impacted by three weeks less of work in March and April as we shut down our manufacturing facility in Colombia during the initial stages of the COVID-19 nationwide shelter-in-place order. Additionally, our Latin American markets have been impacted by a slow return to operations as job sites are getting prepared to operate on a safely manner given COVID-19 restrictions.

~~The increase was driven by sales~~Sales in the U.S. markets ~~which increased $58.5~~decreased $33.4 million or ~~44.0%~~17.5% in the first half of ~~2019~~2020 to $157.9 million compared towith $191.4 during the same period of ~~2018. A portion~~2019. US Single Family residential sales decreased $3.4 million, or 10%, from $32.8 million in 2019 to $29.5 million in 2020 mainly as a result of having three full weeks of less work related to the ~~Company’s sales growth~~aforementioned mandatory shelter in ~~the~~place.

Sales in Latin American ~~market~~markets, including Colombia, have been ~~driven by our Elite~~slow to return to activity after mandatory Coronavirus lockdowns in March and ~~Prestige lines aimed towards residential markets, in which we did not actively participate prior~~April. Despite construction having been deemed essential businesses, construction sites have been slow to ~~2018. U.S. revenues contributed 86.6% and 75.4% of total~~prepare to operate under new safety standards, sales ~~during the first half of 2019 and 2018, respectively. The increase in U.S revenues is aligned with our strategy~~ to ~~penetrate new geographical and end markets.~~

~~This growth more than offset a slowdown of sales in the Colombian market, which went~~these regions decreased $18.4 million, or 62%, from ~~$37.4 million to $24.7~~$29.7 million in the first ~~half~~six months of ~~2018 and~~ 2019 ~~respectively. The decrease~~to $11.3 million in the Colombian market sales was mostly related to reduced activity in the construction industry, following a two-year period of economic slowdown, which we expect to undergo a slow recovery in the near and mid-term future.2020.

Gross profit ~~increased $19.3~~decreased $8.5 million, or ~~37.6%~~12.0% to ~~$70.7~~$62.2 million during the six months ended June 30, ~~2019,~~2020, compared with ~~$51.4~~$70.7 million during the same period of ~~2018.~~2019. Gross profit margins, ~~improved~~however increased notoriously to 36.8% during the first half of 2020, from 32.0% during the first half of ~~2019, from 29.2% during the first half of 2018.~~2019. The margin enhancement ~~is mainly related to economies~~was the result of ~~scale, enforcing tight~~increased raw material efficiency derived from advantageous aluminum commodity prices, waste reduction benefit from our automation initiatives and better control efforts, a reduction in cost ~~control~~of installation work as manufacturing represented a higher portion of our revenue mix, and a reduction of labor costs driven by the automation of manufacturing processes paired with favorable foreign currency exchange rates. These margin improvements were partially offset by a negative effect of fixed cost being diluted over ~~fixed costs over higher sales.~~

Operating expenses ~~increased $4.5~~decreased $4.4 million, or ~~13.2%~~11.5%, from ~~$33.8~~$38.2 million to ~~$38.2 million~~$33.8million for the six months ended June 30, ~~2018~~2019 and ~~2019,~~2020, respectively. The ~~increase was related, in part, to $1.0 million higher sales commissions related to a higher overall amount of sales during~~decrease has been the ~~quarter, especially related to sales~~result of our ~~Elite~~efforts to enhance our lean administrative structure and ~~Prestige product lines aimed towards residential U.S. markets,~~tight cost controls paired with favorable exchange rates as a ~~$0.9 million increase~~significant portion of our general and administrative expenses are denominated in provision of trade accounts receivable expense, which amounted to $0.5 million during the first half of 2019, compared with a net recovery of previously provisioned amounts for $0.4 million during 2018. Shipping expense increased $0.5 million, or 6.2%, despite higher sales growth, through our efforts for efficient logistics favoring maritime freights and minimizing costlier land transportation. Additionally, the Company recorded $0.5 million incremental personnel expense, mostly to strengthen our sales force to support growth. The US Steel and Aluminum Tariff levied during the second quarter of 2018 resulted in an increase of $0.4 during the six-month period as the tariff was in effect during the full term in the first half of 2019.

During the six months ended June 30, ~~2019~~2020 and ~~2018,~~2019, the Company recorded net a non-operating expense of $0.1 million and non-operating income of $0.6 ~~million and $1.8~~ million, respectively. Non-operating income is comprised primarily of income from rental properties and gains on sale of scrap ~~materials.~~materials as well as non-operating expenses related to certain charitable contributions outside of the Company’s direct sphere of influence.

During the ~~quarter~~six months ended June 30, ~~2019,~~2020, the Company recorded a non-cash ~~gain~~loss of ~~$2.1~~$19.2 million associated towith foreign currency transactions. Most of this impact is associated towith the remeasurement of a net liability position of ~~$152.0~~$129.0 million U.S. dollar denominated monetary assets and liabilities held by the Company’s subsidiaries with the Colombian peso as their functional currency ~~during a period in which~~while the Colombian peso ~~appreciated 1%.~~depreciated by 15% during the six-month period. Comparatively, the Company recorded a net gain of ~~$1.7~~$2.1 million during the six months ended June 30, ~~2018~~2019 while the Colombian peso appreciated ~~2%.~~14% during the quarter.

Interest expense ~~was~~and deferred cost of financing decreased moderately to $11.1 million from $11.3 ~~million and $10.4~~ million during the six months ended June 30, 2020 and 2019, respectively. This reflects a moderate improvement in our overall cost of financing as out total indebtedness remained stable between both periods.

During the six months ended June 30, 2020 and ~~2018,~~2019, the Company recorded an income tax provision of $0.7 million and $8.9 million, respectively. The ~~9% increase in interest expense~~effective rate of -40% is related to ~~a proportional increase of 13% in~~ the ~~Company’s total debt at June 30, 2019 compared with June 30, 2018 to support its ongoing growth.~~large loss on foreign currency transactions during the period.

As a result of the foregoing, the Company recorded a net ~~income~~loss for the six months ended June 30, ~~2019~~2020 of ~~$15.0~~$2.6 million compared to ~~$6.7~~net income of $15.0 million in the six months ended June 30, ~~2018.~~

As of June 30, ~~2019,~~2020, and December 31, ~~2018,~~2019, we had cash and cash equivalents of approximately ~~$47.7~~$63.4 million and ~~$33.0~~$47.9 million, respectively. During the six months ended June 30, 2019, the main source of cash was derived from its operations, an underwritten follow-on public offering of 5,551,423 ordinary shares, including the underwriters’ over-allotment option, for net proceeds of $36.5 million, and proceeds from a $30 million long-term syndicate loan facility further described below under “Cash Flow from Operations, Investing and Financing Activities”. While operating cashflow supported strong growth during the period, proceeds from the equity issuance were used to finance our joint venture with Saint-Gobain. The new syndicate facility was mainly used to reprofile debt into a longer tenor and a lower interest rate.

As of June 30, ~~2019,~~2020, the Company had ~~$15.8~~$73.4 million of borrowings available under several committed and uncommitted facilities with relationship ~~banks,~~banks. The Company examines its capital/debt profile from time to time and evaluates overall market conditions to assess if it is opportunistic to repurchase debt or shares in the open market when conditions are favorable to the company and its stakeholders. The Company will base its decisions on factors such as ~~most~~pricing, liquidity projections, general economic and market conditions, and other considerations, as determined by management.

We are actively focusing on expanding banking relationships to further diversify our sources of funding and optimize our cost of capital given the restrictions that some entities may have in lending in an efficient matter as a result of the ~~outstanding balances under such lines were repaid with~~coronavirus pandemic. We anticipate that working capital will continue be a net benefit to cash flow for the ~~long-term syndicate loan facility issued~~full year 2020, which in ~~April of this year.~~addition to our current liquidity position, provides ample flexibility to service our obligations through the next twelve months.

~~On January 11,~~We transform glass and aluminum into high specification architectural glass and custom-made aluminum profiles which require significant investments in state-of-the-art technology. During the six months ended June 30, 2020 and 2019, we ~~entered into~~made investments primarily in building and construction, and machinery and equipment in the amounts of $8.3 million, and $15.2 million, respectively.

In 2019, we carried out enhancements at our glass and aluminum facilities to increase production capacity and automate operations. The Company completed this aluminum capacity expansion in July 2019 and implemented its glass transformation process automation initiative in the first quarter of 2020.

On May 3, 2019, we consummated a joint venture agreement with Saint-Gobain, a world leader in the production of float glass, a key component of our manufacturing process, whereby we acquired a 25.8% minority ownership interest in Vidrio Andino, ~~Holdings S.A.S,~~ a Colombia-based subsidiary of Saint-Gobain. The purchase price for our interest in ~~this entity~~Vidrio Andino was $45 million, of which $34.1 million ~~were~~was paid in cash and a $10.9 million ~~lot~~to be paid through the contribution of land ~~near our facility in Barranquilla, which will~~to be contributed on our behalf by a related party owned by members of our Chief Executive ~~Officer and Chief Operating Officer, José M. Daes and Christian T. Daes with~~Officer’s family once a ~~third-party valuation~~complete assessment of the project timing is completed based on the overall market conditions as they relate to ~~be conducted. Vidrio Andino’s float glass plant located in~~ the outskirts of Bogota, Colombia, had been one of our main suppliers of raw glass. We believe this transaction solidifies our vertical integration strategy by acquiring an interest in the first stage of our production chain, while securing ample glass supply for our expected production needs. The acquisition was consummated on May 3, 2019, and under the joint venture agreement, Saint Gobain will retain a majority ownership position and will have control over the operations of Vidrio Andino Holdings SAS and as such, the transaction is being accounted for under the equity method.

ongoing COVID-19 pandemic. The joint venture agreement ~~also~~ includes plans to build a new plant in Galapa, Colombia that will be located approximately 20 miles from our ~~main~~primary manufacturing facility, in which we will also have a 25.8% interest. The new plant will be funded with proceeds from the original cash contribution made by the Company, operating cashflows from the Bogota plant, debt incurred at the joint venture level that will not consolidate into the Company and an additional contribution by us of approximately $12.5 million to be paid between 2020 and ~~2021.~~

Additionally, the Company is carrying out enhancements at its glass and aluminum facilities to increase production capacity and automate operations. The Company anticipates that these high return investments will speed up production processes in response to strong customer demand, especially for aluminum products. The Company expects to improve efficiency in its glass production by automating certain processes to increase capacity2021 if needed (based on the transformed glass tempering lines by approximately 2.5 times, while reducing material waste and overall lead times. In its aluminum operations, the Company intends to benefit from a 25% increase in capacity and favorable operating leverage with the addition of an aluminum furnace and a new extrusion line, along with working capital improvements through the automation of warehousing systems. The Company completed this aluminum capacity expansion in the middle of July of 2019 and expects the full implementation of its automation initiatives by the end of 2019, with a total anticipated investment of approximately $20 million with this funding being executed since the end of 2018 and expected to be completed by the first quarter of 2020 (as some payments are expected post completion based on certain performance conditions)debt availability). ~~The Company expects to continue funding these capital investments mainly with cash on hand.~~

	Six months ended June 30,						Six months ended June 30,
	2019			2018			2020			2019
Cash Flow provided by (used in) Operating Activities	$	9,048		$	(6,449	)	$	24,789		$	7,253
Cash Flow used in Investing Activities		(47,916	)		(11,184	)
Cash Flow from Financing Activities		53,303			5,774
Cash Flow (used in) Investing Activities								(7,198	)		(47,946	)
Cash Flow (used in) provided by Financing Activities								1,833			55,127
Effect of exchange rates on cash and cash equivalents		163			861			(3,862	)		164
Cash Balance - Beginning of Period		33,040			40,923			47,862			33,040
Cash Balance - End of Period	$	47,638		$	29,925		$	63,424		$	47,639

During the six months ended June 30, 2020 and 2019, operating activities generated ~~$9.0~~$24.8 million ~~in contrast~~and $7.3 million, respectively. The positive cashflow from operations during the first half of 2020 has been related to a ~~use~~much higher profitability year over year, enhanced working capital efforts, easing working capital requirements to serve tapered sales during the period, and our efforts to preserve cash and solidify our liquidity position and preparedness as we continue to weather through the pandemic. The main source of ~~$6.5~~cash was trade accounts receivables, which generated $13.8 million during the six months ended June 30, ~~2018.~~

While growing sales 25.5% year-over-year during the first half of 2019, the Company was able to generate cashflow from operating activities through careful management of inventories, receivables and better supplier terms. The main source of operating cashflow during the first half of 2019 was trade accounts payable, generating $8.6 million,2020, in contrast with a use of ~~$2.3~~$22.1 million, ~~in 2018, mostly related to more purchases of raw materials to supply~~and our growing operation. Despite this, inventory levels have remained relatively stable and even generated moderate $2.1 million as a result of our efforts to streamline our vertically integrated operation and speed up inventory turnover.

~~Main~~main use of ~~cash within~~ operating ~~activities~~cashflow was trade accounts ~~receivable,~~payables, which used ~~$16.8~~$10.4 million, in contrast with $12.6 million generated during the ~~six-month~~prior year period.

For the period ended June 30, ~~2019. Despite~~2019 we have modified the ~~nominal balance~~way we present the impact of ~~receivables increasing~~foreign currency transactions on our Statement of Cash Flows as there has been volatility and significant fluctuations in the exchange rates between the U.S. Dollar and the Colombian Peso, which is the functional currency of our subsidiaries that carry most of our operations. Previously, the impact of unrealized non-cash foreign currency transaction gains and losses resulting from the remeasurement of our monetary assets and liabilities denominated in any currency other than the functional currency have been included within the individual line item affected within cashflows from operating activities, investing activities or financing activities, as appropriate. As of June 30, ~~2019 relative~~2020, unrealized foreign currency transaction gains and losses, which include currency translation differences on monetary items that form part of investing or financing activities, such as long-term loans, are presented as a reconciling item from net income to ~~fiscal year end, Days Sales Outstanding ratio remained flat, at 90 days~~cashflow from operating activities. While during prior periods, unrealized currency translation differences on monetary items that form part of operating activities, such as ~~of June 30, 2019 and December 31, 2018. Comparably,~~ trade accounts ~~receivable used $4.0 million~~receivables and payables, were presented within each line item, we are now presenting them within the reconciliation of net income to cashflow from operations, so as to better present the economic reality of the cashflows during the ~~first half~~period. As a result of ~~2018. Contract assets and liabilities used $9.8 million, as per industry common practice, retainage receivables associated with installation work, are built up throughout~~this, we have revised the ~~life of a project and released upon completion. Comparably, contract assets and liabilities used $3.8 million during the six months ended June 30, 2018.~~

~~The main source of~~ cash ~~during~~flows for the six months ended June 30, 2019 ~~was from Financing Activities, which generated $53.3~~and are currently reporting a use of $7.3 million, compared with an originally reported use of $9.0 million. In March, 2019, the Company closed an underwritten follow-on public offering of 5,551,423 ordinary shares, including the underwriters’ over-allotment option, for net proceeds of $36.5 million. Additionally, the Company generated proceeds of debt for $36.7 million, mostly related to a $30 million five year term facility, proceeds which were mostly

We used to repay then existing short-term debt the Company had accumulated to fund working capital required to support nine quarters with consecutive quarter-over-quarter sales growth. Net of repayments, we generated $19.0 million from debt while continuing the decrease of its leverage metrics given the Company´s continued growth and income from operations.

~~The Company used $47.9~~$7.2 million and ~~$11.2~~$47.9 million in investing activities during the six months ended June 30, 2020 and 2019, respectively. The main use of cash in investing activities during the six months ended June 30, 2020 was related to scheduled maintenance Capex and ~~2018. Main~~the completion of our previously announced expansion and automation initiatives that are now mostly completed. During 2019, the main use of cash in investing activities was a payment for the acquisition of 25.8% equity interest in Vidrio Andino Holding, a ~~joint-venture~~joint venture with Saint-Gobain described above under Capital Resources. Additionally, during the first half of 2019, the company paid $13.8 million to acquire property plant and equipment, which in combination with $1.4 million acquired under credit, amount to total Capital Expenditures of $15.2 million. During 2020, we used $7.4 million for the acquisition or property and equipment. Including assets acquired with debt or supplier credit, total capital expenditures during the period were $8.3 million.

Financing activities generated $1.8 million, mainly from proceeds of debt as we have secured our strong liquidity position. During the six months ended June 30, 2019, financing activities generated $55.1 million as ~~part~~a result of an underwritten follow-on public offering of 5,551,423 ordinary shares, including the underwriters’ over-allotment option, for net proceeds of $36.5 million, in addition to proceeds from debt for $38.5 million, mostly related to a $30 million five-year term facility, proceeds which were mostly used to repay then existing short-term debt we had accumulated to fund working capital required to support sales growth over fiscal year 2018. Net of repayments, debt generated $20.8 million during the first half of 2019 while our ~~high return investment plan further described above in~~decreasing our leverage metrics during the ~~Capital Resources section.~~

We performed an evaluation required by Rules 13a-15 and 15d-15 of the Securities Exchange Act of 1934, as amended, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of Tecnoglass, Inc.´s design and operating effectiveness of the internal controls over financial reporting as of the end of the period covered by this Quarterly Report. Based on this evaluation, our principal executive officer and principal financial officer concluded that ~~due to~~our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the ~~material weakness described on our Annual Report on form 10-K for the year ended December 31, 2018, our internal controls over financial reporting~~Securities Exchange Act of 1934, as amended, were ~~not~~ effective as of June 30, 2019. Notwithstanding the material weakness in our internal control over financial reporting referenced above, we believe the consolidated financial statements are fairly stated in all material respects in accordance with generally accepted accounting principles in the United States of America for each of the periods presented herein.

We identified and disclosed a material weakness in the accounting for income taxes as of December 31, 2018, and have started to design and implement certain remediating controls gradually. We intend to continue our remediation plan to address the material weakness.

~~We currently have most of our enhanced review procedures and documentation standards in place and operating. Our main objective is to remediate this material weakness by the end of fiscal year 2019,~~2020, in order to ~~have enough opportunities to conclude, through our testing,~~provide reasonable assurance that the ~~enhanced monitoring~~information disclosed in our reports is recorded, processed, summarized, and ~~control activities are operating effectively~~reported within the time periods specified in the SEC’s rules and forms and to provide reasonable assurance that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as ~~of year-end.~~appropriate to allow timely decisions regarding required disclosure.

For the quarter ended June 30, ~~2019,~~2020, there ~~have~~has been no ~~changes~~change in our internal control over financial reporting that ~~have~~has materially affected, or ~~are~~is reasonably likely to materially affect, our internal control over financial reporting.

From time to time, the Company is involved in legal matters arising in the ordinary course of business. While management believes that such matters are currently not material, there can be no assurance that matters arising in the ordinary course of business for which the Company is, or could be, involved in litigation, will not have a material adverse effect on its business, financial condition or results of operations.

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Ordinary Shares ~~par value $0.0001 per share~~		TGLS		The NASDAQ Stock Market LLC

Large accelerated filer	[ ]	Accelerated filer	~~[X]~~
			[X]
Non-accelerated filer	[ ]	Smaller reporting company	~~[X]~~
~~(Do not check if smaller reporting company)~~
			[X]
	Emerging growth company	[ ]

		Page
Part I. Financial Information		3
	Item 1. Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations and Comprehensive Income	4
	Condensed Consolidated Statements of Cash Flows	5
	Condensed Consolidated Statements of Shareholders’ Equity	6
	Notes to Condensed Consolidated Financial Statements	7

	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	1820

	Item 3. Quantitative and Qualitative Disclosures About Market Risk	2326

	Item 4. Controls and Procedures	2326

Part II. Other Information		24
	Item 1. Legal Proceedings	2427

	Item 6. Exhibits	2427
Signatures		2528

	Six months ended June 30,
	2020			2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$	(2,614	)	$	14,991
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Provision for bad debts		691			524
Depreciation and amortization		10,206			11,558
Deferred income taxes		(6,478	)		(317	)
Equity method (loss) income		(94	)		22
Deferred cost of financing		861			808
Other non-cash adjustments		42			28
Unrealized currency translation losses (gains)		23,585			(59	)
Changes in operating assets and liabilities:
Trade accounts receivables		13,785			(22,065	)
Inventories		(8,252	)		2,078
Prepaid expenses		(1,017	)		(1,232	)
Other assets		1,363			(1,367	)
Trade accounts payable and accrued expenses		(10,358	)		12,635
Accrued interest expense		(84	)		194
Taxes payable		(5,911	)		(1,787	)
Labor liabilities		(982	)		(327	)
Contract assets and liabilities		11,246			(9,682	)
Related parties		(1,200	)		1,250
CASH PROVIDED BY OPERATING ACTIVITIES	$	24,789		$	7,253
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of investments		364			608
Joint Venture investment		-			(34,100	)
Purchase of investments		(167	)		(676	)
Acquisition of property and equipment		(7,395	)		(13,778	)
CASH USED IN INVESTING ACTIVITIES	$	(7,198	)	$	(47,946	)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash dividend		(1,265	)		(2,170	)
Proceeds from equity offering		-			36,478
Proceeds from debt		17,796			38,480
Repayments of debt		(14,698	)		(17,660	)
CASH PROVIDED BY FINANCING ACTIVITIES	$	1,833		$	55,127
Effect of exchange rate changes on cash and cash equivalents	$	(3,862	)	$	164
NET INCREASE IN CASH		15,562			14,598
CASH - Beginning of period		47,862			33,040
CASH - End of period	$	63,424		$	47,638
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for:
Interest	$	9,513		$	9,529
Income Tax	$	7,014		$	8,369
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Assets acquired under credit or debt	$	907		$	1,389

	Ordinary Shares, $0.0001 Par Value				Additional Paid in		Legal		Retained			Accumulated Other Comprehensive			Total Shareholders’			Non-Controlling			Total Shareholders’ Equity and Non-Controlling
	Shares		Amount		Capital		Reserve		Earnings			Loss			Equity			Interest			Interest
Balance at December 31, 2019		46,117,631		5		208,283		1,367		16,213			(39,264	)		186,604			606			187,210

Dividend		-		-		107		-		(1,344	)		-			(1,237	)		-			(1,237	)

Financial Instruments		-		-		-		-		-			(4,065	)		(4,065	)		-			(4,065	)

Foreign currency translation		-		-		-		-		-			(19,288	)		(19,288	)		-			(19,288	)

Net income		-		-		-		-		(18,766	)		-			(18,766	)		98			(18,668	)

Balance at March 31, 2020		46,117,631		5		208,390		1,367		(3,897	)		(62,617	)		143,248			704			143,952

Dividend		-		-		-		-		(1,267	)		-			(1,267	)		-			(1,267	)

Legal Reserve		-		-		-		906		(906	)		-			-			-			-

Financial Instruments		-		-		-		-		-			2,618			2,618			-			2,618

Foreign currency translation		-		-		-		-		-			4,367			4,367			-			4,367

Net income		-		-		-		-		16,197			-			16,197			(143	)		16,054

Balance at June 30, 2020		46,117,631		5		208,390		2,273		10,125			(55,632	)		165,163			561			165,724

	Three months ended June 30,						Six months ended June 30,
	2019			2018				2019			2018
Operating revenues:
External customers	$	112,259		$	87,785			$	217,067		$	173,992
Related parties		1,624			1,184				3,984			2,137
Total operating revenues		113,883			88,969				221,051			176,129
Cost of sales		75,046			64,327				150,322			124,739
Gross Profit		38,837			24,642				70,729			51,390

Operating expenses:
Selling expense		(11,219	)		(8,567	)			(20,781	)		(17,704	)
General and administrative expense		(9,354	)		(8,453	)			(17,448	)		(16,074	)
Total Operating Expenses		(20,573	)		(17,020	)			(38,229	)		(33,778	)

Operating income		18,264			7,622				32,500			17,612

Non-operating income		353			709				628			1,808
Equity method income (loss)		(22	)		-				(22	)		-
Foreign currency transactions (losses) gains		(1,201	)		(8,307	)			2,085			1,666
Interest expense and deferred cost of financing		(5,757	)		(5,361	)			(11,344	)		(10,411	)

Income (loss) before taxes		11,637			(5,337	)			23,847			10,675

Income tax (provision) benefit		(3,977	)		1,467				(8,856	)		(3,926	)

Net income (loss)	$	7,660		$	(3,870	)		$	14,991		$	6,749

(Income) loss attributable to non-controlling interest		(181	)		212				(174	)		284

Income (loss) attributable to parent	$	7,479		$	(3,658	)		$	14,817		$	7,033

Comprehensive income:
Net income (loss)	$	7,660		$	(3,870	)		$	14,991		$	6,749
Foreign currency translation adjustments		(2,052	)		(6,139	)			(282	)		2,562

Total comprehensive income (loss)	$	5,608		$	(10,009	)		$	14,709		$	9,311
Comprehensive (income) loss attributable to non-controlling interest		(181	)		212				(174	)		284
											��
Total comprehensive income (loss) attributable to parent	$	5,427		$	(9,797	)		$	14,535		$	9,595

Basic income (loss)per share	$	0.17		$	(0.10	)		$	0.35		$	0.18

Diluted income (loss) per share	$	0.17		$	(0.10	)		$	0.35		$	0.17

Basic weighted average common shares outstanding		44,840,263			38,200,792				42,254,672			38,135,096

Diluted weighted average common shares outstanding		45,603,939			38,200,792				43,018,348			38,898,772

	Ordinary Shares, $0.0001 Par Value				Additional Paid in		Legal		Retained			Accumulated Other Comprehensive			Total Shareholders'			Non- Controlling			Total Shareholders' Equity and Non-Controlling
	Shares		Amount		Capital		Reserve		Earnings			Loss			Equity			Interest			Interest
Balance at December 31, 2018		38,092,996		4		157,604		1,367		10,439			(37,058	)		132,356			872			133,228

Issuance of common stock		5,000,000		-		33,050		-		-			-			33,050			-			33,050

Stock dividend		538,657		-		5,162		-		(6,109	)		-			(947	)		-			(947	)

Foreign currency translation		-		-		-		-		-			1,770			1,770			-			1,770

Net income		-		-		-		-		7,338			-			7,338			(7	)		7,331

Balance at March 31, 2019		43,631,653		4		195,816		1,367		11,668			(35,288	)		173,567			865			174,432

Issuance of common stock		551,423		-		3,428		-		-			-			3,428			-			3,428

Stock dividend		675,366		-		4,416		-		(6,280	)		-			(1,864	)		-			(1,864	)

Foreign currency translation		-		-		-		-		-			(2,052	)		(2,052	)		-			(2,052	)

Net income		-		-		-		-		7,479			-			7,479			181			7,660

Balance at June 30, 2019		44,858,442		4		203,660		1,367		12,867			(37,340	)		180,558			1,046			181,604

	Six months ended June 30, 2019
	As previously reported			Revision adjustment			As revised
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	9,048		$	(1,795	)	$	7,253
CASH USED IN INVESTING ACTIVITIES		(47,916	)		(30	)		(47,946	)
CASH PROVIDED BY FINANCING ACTIVITIES		53,303			1,824			55,127
Effect of exchange rate changes on cash and cash equivalents	$	163		$	1		$	164
NET INCREASE (DECREASE) IN CASH		14,598			-			14,598
CASH - Beginning of period		33,040			-			33,040
CASH - End of period	$	47,638		$	-		$	47,638

	June 30, 2019			December 31, 2018
Revolving lines of credit	$	9,788		$	19,146
Finance lease		650			380
Unsecured senior note		210,000			210,000
Other loans		16,641			17,804
Syndicated loan		30,000			-
Less: Deferred cost of financing		(4,622	)		(5,015	)
Total obligations under borrowing arrangements		262,457			242,315
Less: Current portion of long-term debt and other current borrowings		12,223			21,606
Long-term debt	$	250,234		$	220,709

	Derivatives in Cash Flow Hedging Relationships
	Amount of Gain or (Loss)					Location of Gain or (Loss) Reclassified from Accumulated	Amount of Gain or (Loss) Reclassified from
	Recognized in OCI (Loss) on					OCI (Loss) into	Accumulated
	Derivatives					Income	OCI (Loss) into Income
	Three Months Ended						Three Months Ended
	June 30,			June 30,			June 30,		June 30,
	2020			2019			2020		2019

Non-delivery Collar Contracts	$	(1,379	)	$	-	Operating Revenues	$	1,330	$	-

Exhibit No.		Description

31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32		Certification of Chief Executive Officers pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101		Financial statements from the Quarterly Report on Form 10-Q of Tecnoglass Inc. for the quarter ended June 30, ~~2019,~~2020, formatted in XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statement of Changes in Stockholders’ Equity, (iv) Condensed Consolidated Statement of Cash Flows and (v) Notes to Unaudited Condensed Consolidated Financial Statements, as blocks of text and in detail.

101.INS		XBRL Instance Document

101.SCH		XBRL Taxonomy Extension Schema Document

101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		XBRL Taxonomy Extension Label Linkbase Document

101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

	TECNOGLASS INC.

	By:	/s/ Jose M. Daes
		Jose M. Daes
		Chief Executive Officer
		(Principal executive officer)

	By:	/s/ Santiago Giraldo
		Santiago Giraldo
		Chief Financial Officer
		(Principal financial and accounting officer)

Date: August ~~9, 2019~~6, 2020