Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 05, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | CONSOLIDATED WATER CO LTD | |
Entity Central Index Key | 928,340 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | CWCO | |
Entity Common Stock, Shares Outstanding | 14,750,800 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 39,322,529 | $ 35,713,689 |
Certificate of deposit | 5,637,538 | 5,000,000 |
Restricted cash | 473,283 | 456,083 |
Accounts receivable, net | 9,143,006 | 11,773,744 |
Inventory | 1,775,521 | 1,738,382 |
Prepaid expenses and other current assets | 2,793,593 | 1,961,385 |
Current portion of loans receivable | 1,783,145 | 1,726,310 |
Costs and estimated earnings in excess of billings - construction project | 771,464 | 1,090,489 |
Total current assets | 61,700,079 | 59,460,082 |
Property, plant and equipment, net | 55,221,505 | 56,396,988 |
Construction in progress | 1,677,824 | 1,900,016 |
Inventory, non-current | 4,572,957 | 4,240,977 |
Loans receivable | 4,704,856 | 5,610,867 |
Investment in OC-BVI | 4,810,026 | 5,208,603 |
Intangible assets, net | 849,856 | 927,900 |
Goodwill | 3,499,037 | 3,499,037 |
Land held for development | 20,558,424 | 20,558,424 |
Other assets | 2,464,191 | 2,656,937 |
Total assets | 160,058,755 | 160,459,831 |
Current liabilities | ||
Accounts payable and other current liabilities | 4,231,276 | 5,962,015 |
Dividends payable | 1,192,956 | 1,190,325 |
Demand loan payable | 8,000,000 | 9,000,000 |
Total current liabilities | 13,424,232 | 16,152,340 |
Other liabilities | 224,827 | 224,827 |
Total liabilities | $ 13,649,059 | $ 16,377,167 |
Commitments and contingencies | ||
Consolidated Water Co. Ltd. stockholders' equity | ||
Redeemable preferred stock, $0.60 par value. Authorized 200,000 shares; issued and outstanding 45,570 and 36,840 shares, respectively | $ 27,342 | $ 22,104 |
Additional paid-in capital | 84,159,579 | 83,779,292 |
Retained earnings | 50,934,385 | 49,000,621 |
Cumulative translation adjustment | (523,002) | (482,388) |
Total Consolidated Water Co. Ltd. stockholders' equity | 143,442,667 | 141,149,168 |
Non-controlling interests | 2,967,029 | 2,933,496 |
Total equity | 146,409,696 | 144,082,664 |
Total liabilities and equity | 160,058,755 | 160,459,831 |
Class A common stock [Member] | ||
Consolidated Water Co. Ltd. stockholders' equity | ||
Common stock value | 8,844,363 | 8,829,539 |
Class B common stock [Member] | ||
Consolidated Water Co. Ltd. stockholders' equity | ||
Common stock value | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Redeemable preferred stock, par value (in dollars per share) | $ 0.60 | $ 0.60 |
Redeemable preferred stock, authorized | 200,000 | 200,000 |
Redeemable preferred stock, issued | 45,570 | 36,840 |
Redeemable preferred stock, outstanding | 45,570 | 36,840 |
Class A common stock [Member] | ||
Common stock, par value (in dollars per share) | $ 0.60 | $ 0.60 |
Common stock, authorized | 24,655,000 | 24,655,000 |
Common stock, issued | 14,740,605 | 14,715,899 |
Common stock, outstanding | 14,740,605 | 14,715,899 |
Class B common stock [Member] | ||
Common stock, par value (in dollars per share) | $ 0.60 | $ 0.60 |
Common stock, authorized | 145,000 | 145,000 |
Common stock, issued | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Retail revenues | $ 6,152,185 | $ 6,499,257 | $ 12,287,823 | $ 12,612,218 |
Bulk revenues | 8,187,273 | 9,966,194 | 16,569,589 | 19,925,930 |
Services revenues | 146,211 | 466,381 | 294,369 | 742,294 |
Total revenues | 14,485,669 | 16,931,832 | 29,151,781 | 33,280,442 |
Cost of retail revenues | 2,771,598 | 3,119,483 | 5,648,386 | 6,050,859 |
Cost of bulk revenues | 5,633,381 | 6,895,914 | 11,082,893 | 14,007,459 |
Cost of services revenues | 212,748 | 546,389 | 497,635 | 881,653 |
Total cost of revenues | 8,617,727 | 10,561,786 | 17,228,914 | 20,939,971 |
Gross profit | 5,867,942 | 6,370,046 | 11,922,867 | 12,340,471 |
General and administrative expenses | 3,564,222 | 3,781,161 | 7,363,811 | 9,123,794 |
Income from operations | 2,303,720 | 2,588,885 | 4,559,056 | 3,216,677 |
Other income (expense): | ||||
Interest income | 258,201 | 366,772 | 491,783 | 539,704 |
Interest expense | (67,929) | (47,530) | (137,461) | (343,268) |
Profit sharing income from OC-BVI | 22,275 | 30,375 | 48,600 | 50,625 |
Equity in earnings of OC-BVI | 62,668 | 85,840 | 137,823 | 140,329 |
Impairment of investment in OC-BVI | (275,000) | 0 | (585,000) | 0 |
Other | 27,980 | (117,804) | (147,107) | 80,493 |
Other income (expense), net | 28,195 | 317,653 | (191,362) | 467,883 |
Net income | 2,331,915 | 2,906,538 | 4,367,694 | 3,684,560 |
Income attributable to non-controlling interests | 103,815 | 146,845 | 218,333 | 269,958 |
Net income attributable to Consolidated Water Co. Ltd. stockholders | $ 2,228,100 | $ 2,759,693 | $ 4,149,361 | $ 3,414,602 |
Basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders (in dollars per share) | $ 0.15 | $ 0.19 | $ 0.28 | $ 0.23 |
Diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders (in dollars per share) | 0.15 | 0.19 | 0.28 | 0.23 |
Dividends declared per common share (in dollars per share) | $ 0.075 | $ 0.075 | $ 0.15 | $ 0.15 |
Weighted average number of common shares used in the determination of: | ||||
Basic earnings per share (in shares) | 14,736,057 | 14,698,499 | 14,727,455 | 14,692,654 |
Diluted earnings per share (in shares) | 14,793,298 | 14,760,159 | 14,780,269 | 14,764,058 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net income | $ 2,331,915 | $ 2,906,538 | $ 4,367,694 | $ 3,684,560 |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustment | (7,202) | (64,110) | (42,751) | 36,346 |
Total other comprehensive income (loss) | (7,202) | (64,110) | (42,751) | 36,346 |
Comprehensive income | 2,324,713 | 2,842,428 | 4,324,943 | 3,720,906 |
Comprehensive income attributable to non-controlling interests | 103,454 | 143,639 | 216,195 | 271,775 |
Comprehensive income attributable to Consolidated Water Co. Ltd. stockholders | $ 2,221,259 | $ 2,698,789 | $ 4,108,748 | $ 3,449,131 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Net cash provided by operating activities | $ 8,162,901 | $ 13,397,396 |
Cash flows from investing activities | ||
Purchase of certificate of deposit | (5,637,538) | (5,000,000) |
Maturity of certificate of deposit | 5,000,000 | 0 |
Additions to property, plant and equipment and construction in progress | (1,513,694) | (2,146,991) |
Proceeds from sale of equipment | 1,660 | 11,400 |
Distribution of earnings from OC-BVI | 0 | 727,200 |
Collections on loans receivable | 849,176 | 868,991 |
Sale of marketable securities | 0 | 8,587,475 |
Payment for land held for development | 0 | (17,432,858) |
Restriction on cash balance | (42,090) | (515,849) |
Net cash used in investing activities | (1,342,486) | (14,900,632) |
Cash flows from financing activities | ||
Dividends paid to CWCO shareholders | (2,212,966) | (2,208,001) |
Dividends paid to non-controlling interests | (182,663) | (164,396) |
Issuance (repurchase) of redeemable preferred stock, net | 1,386 | (11,256) |
Proceeds received from exercise of stock options | 205,876 | 0 |
Principal repayments of long term debt | 0 | (5,301,327) |
Proceeds received from demand loan payable | 0 | 10,000,000 |
Repayments of demand loan payable | (1,000,000) | 0 |
Net cash provided by (used in) financing activities | (3,188,367) | 2,315,020 |
Effect of exchange rate changes on cash | (23,208) | (1,005) |
Net increase in cash and cash equivalents | 3,608,840 | 810,779 |
Cash and cash equivalents at beginning of period | 35,713,689 | 33,626,516 |
Cash and cash equivalents at end of period | 39,322,529 | 34,437,295 |
Interest paid in cash | 76,956 | 110,603 |
Non-cash investing and financing activities | ||
Dividends declared but not paid | 1,108,963 | 1,105,527 |
Obligation paid for land held for development | 0 | (10,050,000) |
Transfers from inventory to property, plant and equipment and construction in progress | 92,643 | 83,084 |
Transfer from costs and estimated earnings in excess of billings - construction project to accounts receivable | 346,335 | 0 |
Transfers from construction in progress to property, plant and equipment | 1,419,549 | 329,265 |
Transfer from construction in progress to costs and estimated earnings in excess of billings - construction project | 88,834 | 0 |
Common Stock [Member] | ||
Non-cash investing and financing activities | ||
Issuance of shares for services rendered | 0 | 173,458 |
Redeemable Preferred Stock [Member] | ||
Non-cash investing and financing activities | ||
Issuance of shares for services rendered | $ 110,703 | $ 65,289 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Common Stock [Member] | ||
Stock Issued During Period, Shares, Issued for Services | 0 | 12,302 |
Redeemable Preferred Stock [Member] | ||
Stock Issued During Period, Shares, Issued for Services | 8,615 | 5,957 |
Principal activity
Principal activity | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
Nature of Operations [Text Block] | 1. Principal activity Consolidated Water Co. Ltd., and its subsidiaries (collectively, the “Company”) use reverse osmosis technology to produce potable water from seawater. The Company processes and supplies water to its customers in the Cayman Islands, Belize, The Bahamas, the British Virgin Islands and Indonesia. The Company sells water to a variety of customers, including public utilities, commercial and tourist properties, residential properties and government facilities. The base price of water supplied by the Company, and adjustments thereto, are determined by the terms of a retail license and bulk water supply contracts, which provide for adjustments based upon the movement in the government price indices specified in the license and contracts, as well as monthly adjustments for changes in the cost of energy. The Company also provides engineering and design services for water plant construction, and manages and operates water plants owned by others. |
Accounting policies
Accounting policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. Accounting policies Basis of presentation: The accompanying condensed consolidated financial statements include the accounts of the Company’s (i) wholly-owned subsidiaries, Aquilex, Inc., Cayman Water Company Limited (“Cayman Water”), Consolidated Water (Belize) Limited (“CW-Belize”), Ocean Conversion (Cayman) Limited (“OC-Cayman”), DesalCo Limited (“DesalCo”), Consolidated Water Cooperatief, U.A. (“CW-Cooperatief”); and (ii) majority-owned subsidiaries Consolidated Water (Bahamas) Ltd. (“CW-Bahamas”), Consolidated Water (Asia) Pte. Limited, PT Consolidated Water Bali (“CW-Bali”) and N.S.C. Agua, S.A. de C.V. (“NSC”). The Company’s investment in its affiliate, Ocean Conversion (BVI) Ltd. (“OC-BVI”), is accounted for using the equity method of accounting. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying interim condensed consolidated financial statements are unaudited. These condensed consolidated financial statements reflect all adjustments (which are of a normal recurring nature) that, in the opinion of management, are necessary to fairly present the Company’s financial position, results of operations and cash flows as of and for the periods presented. The results of operations for these interim periods are not necessarily indicative of the operating results for future periods, including the fiscal year ending December 31, 2015. These condensed consolidated financial statements and notes are presented in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) relating to interim financial statements and in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with US GAAP have been condensed or omitted in these condensed financial statements pursuant to SEC rules and regulations, although the Company believes that the disclosures made herein are adequate to make the information not misleading. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Foreign currency: The Company’s reporting currency is the United States dollar (“US$”). The functional currency of the Company and its foreign operating subsidiaries (other than its majority-owned subsidiary, NSC) is the currency for each respective country. The functional currency for NSC is the US$. The exchange rates between the Cayman Islands dollar, the Belize dollar, the Bahamian dollar are fixed to the US$. CW-Cooperatief conducts business in US$ and euros, CW-Bali conducts business in US$ and Indonesian rupiahs, and NSC conducts business in US$ and Mexican pesos. The exchange rates for conversion of euros, rupiahs and Mexican pesos into US$ vary based upon market conditions. Net foreign currency gains (losses) arising from transactions conducted in foreign currencies were ($97,438) ($115,053) ($272,533) $ 46,680 Comprehensive income: Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events from non-owner sources. Comprehensive income (loss) is the total of net income and other comprehensive income (loss) which, for the Company, is comprised entirely of foreign currency translation adjustments related to CW-Bali. Cash and cash equivalents consist of demand deposits at banks and highly liquid deposits at banks with an original maturity of three months or less. As of June 30, 2015 and December 31, 2014, this balance includes $ 17.5 3.0 Transfers from the Company’s Bahamas and Belize bank accounts to Company bank accounts in other countries require the approval of the Central Bank of the Bahamas and Belize, respectively. As of June 30, 2015, the equivalent United States dollar cash balances for deposits held in the Bahamas and Belize were approximately $ 31.0 4.0 5.6 Comparative amounts: Certain amounts reported in the financial statements issued in prior periods have been reclassified herein to conform to the current period’s presentation. These reclassifications had no effect on consolidated net income. |
Fair value measurements
Fair value measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | 3. Fair value measurements As of June 30, 2015 and December 31, 2014, the carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and other current liabilities, demand loan and dividends payables approximate their fair values due to the short term maturities of these instruments. Management considers that the carrying amounts for loans receivable as of June 30, 2015 and December 31, 2014 approximate their fair value a s the stated interest rates approximate market rates Under US GAAP, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The US GAAP guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. The Company reviews its fair value hierarchy classifications on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. June 30, 2015 Level 1 Level 2 Level 3 Total Assets: Recurring Restricted cash $ 473,283 $ - $ - $ 473,283 Certificate of deposit - 5,637,538 - 5,637,538 Total recurring $ 473,283 $ 5,637,538 $ - $ 6,110,821 Nonrecurring Investment in OC-BVI $ - $ - $ 4,810,026 $ 4,810,026 December 31, 2014 Level 1 Level 2 Level 3 Total Assets: Recurring Restricted cash $ 456,083 $ - $ - $ 456,083 Certificate of deposit - 5,000,000 - 5,000,000 Total recurring $ 456,083 $ 5,000,000 $ - $ 5,456,083 Nonrecurring Investment in OC-BVI $ - $ - $ 5,208,603 $ 5,208,603 Balance as of December 31, 2014 $ 5,208,603 Profit sharing and equity from earnings of OC-BVI 186,423 Distributions received from OC-BVI - Impairment of investment in OC-BVI (See Note 6) (585,000) Balance as of June 30, 2015 $ 4,810,026 |
Segment information
Segment information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 4. Segment information The Company has three reportable segments: retail, bulk and services. The retail segment operates the water utility for the Seven Mile Beach and the West Bay area of Grand Cayman Island pursuant to an exclusive license granted by the Cayman Islands government and also sells water to resort properties in Bali, Indonesia. The bulk segment supplies potable water to government utilities in Grand Cayman, The Bahamas and Belize under long-term contracts. The services segment develops, designs, constructs and sells desalination plants and provides desalination plant management and operating services to affiliated companies. Consistent with prior periods, the Company records all non-direct general and administrative expenses in its retail business segment and does not allocate any of these non-direct expenses to its other two business segments. The accounting policies of the segments are consistent with those described in Note 2. The Company evaluates each segment’s performance based upon its income (loss) from operations. All intercompany transactions are eliminated for segment presentation purposes. Three Months Ended June 30, 2015 Retail Bulk Services Total Revenues $ 6,152,185 $ 8,187,273 $ 146,211 $ 14,485,669 Cost of revenues 2,771,598 5,633,381 212,748 8,617,727 Gross profit (loss) 3,380,587 2,553,892 (66,537) 5,867,942 General and administrative expenses 2,636,525 412,465 515,232 3,564,222 Income (loss) from operations $ 744,062 $ 2,141,427 $ (581,769) 2,303,720 Other income, net 28,195 Net income 2,331,915 Income attributable to non-controlling interests 103,815 Net income attributable to Consolidated Water Co. Ltd. stockholders $ 2,228,100 Depreciation and amortization expenses for the three months ended June 30, 2015 for the retail, bulk and services segments were $ 598,079 792,241 22,474 Three Months Ended June 30, 2014 Retail Bulk Services Total Revenues $ 6,499,257 $ 9,966,194 $ 466,381 $ 16,931,832 Cost of revenues 3,119,483 6,895,914 546,389 10,561,786 Gross profit (loss) 3,379,774 3,070,280 (80,008) 6,370,046 General and administrative expenses 2,843,293 325,403 612,465 3,781,161 Income (loss) from operations $ 536,481 $ 2,744,877 $ (692,473) 2,588,885 Other income, net 317,653 Consolidated net income 2,906,538 Income attributable to non-controlling interests 146,845 Net income attributable to Consolidated Water Co. Ltd. stockholders $ 2,759,693 Depreciation and amortization expenses for the three months ended June 30, 2014 for the retail, bulk and services segments were $ 598,223 780,510 22,474 Six Months Ended June 30, 2015 Retail Bulk Services Total Revenues $ 12,287,823 $ 16,569,589 $ 294,369 $ 29,151,781 Cost of revenues 5,648,386 11,082,893 497,635 17,228,914 Gross profit (loss) 6,639,437 5,486,696 (203,266) 11,922,867 General and administrative expenses 5,441,563 829,829 1,092,419 7,363,811 Income (loss) from operations $ 1,197,874 $ 4,656,867 $ (1,295,685) 4,559,056 Other income, net (191,362) Net income 4,367,694 Income attributable to non-controlling interests 218,333 Net income attributable to Consolidated Water Co. Ltd. stockholders $ 4,149,361 Depreciation and amortization expenses for the six months ended June 30, 2015 for the retail, bulk and services segments were $ 1,204,668 1,570,418 44,948 Six Months Ended June 30, 2014 Retail Bulk Services Total Revenues $ 12,612,218 $ 19,925,930 $ 742,294 $ 33,280,442 Cost of revenues 6,050,859 14,007,459 881,653 20,939,971 Gross profit (loss) 6,561,359 5,918,471 (139,359) 12,340,471 General and administrative expenses 5,731,520 760,373 2,631,901 9,123,794 Income (loss) from operations $ 829,839 $ 5,158,098 $ (2,771,260) 3,216,677 Other income, net 467,883 Consolidated net income 3,684,560 Income attributable to non-controlling interests 269,958 Net income attributable to Consolidated Water Co. Ltd. stockholders $ 3,414,602 Depreciation and amortization expenses for the six months ended June 30, 2014 for the retail, bulk and services segments were $ 1,231,496 1,566,412 57,448 As of June 30, 2015 Retail Bulk Services Total Accounts receivable, net $ 2,388,539 $ 6,142,053 $ 612,414 $ 9,143,006 Property plant and equipment, net 26,031,989 29,061,184 128,332 55,221,505 Construction in progress 1,361,970 315,854 - 1,677,824 Goodwill 1,170,511 2,328,526 - 3,499,037 Land held for development - - 20,558,424 20,558,424 Total assets 48,057,146 88,429,778 23,571,831 160,058,755 As of December 31, 2014 Retail Bulk Services Total Accounts receivable, net $ 2,521,008 $ 8,399,999 $ 852,737 $ 11,773,744 Property plant and equipment, net 26,978,259 29,318,534 100,195 56,396,988 Construction in progress 902,656 997,360 - 1,900,016 Goodwill 1,170,511 2,328,526 - 3,499,037 Land held for development - - 20,558,424 20,558,424 Total assets 52,051,461 84,331,227 24,077,143 160,459,831 |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 5. Earnings per share Earnings per share (“EPS”) are computed on a basic and diluted basis. Basic EPS is computed by dividing net income (less preferred stock dividends) available to common stockholders by the weighted average number of common shares outstanding during the period. The computation of diluted EPS assumes the issuance of common shares for all potential common shares outstanding during the reporting period and, if dilutive, the effect of stock options as computed under the treasury stock method. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net income attributable to Consolidated Water Co. Ltd. common stockholders $ 2,228,100 $ 2,759,693 $ 4,149,361 $ 3,414,602 Less: preferred stock dividends (3,418) (3,139) (6,181) (6,278) Net income available to common shares in the determination of basic earnings per common share $ 2,224,682 $ 2,756,554 $ 4,143,180 $ 3,408,324 Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders 14,736,057 14,698,499 14,727,455 14,692,654 Plus: Weighted average number of preferred shares outstanding during the period 38,459 37,990 37,654 37,701 Potential dilutive effect of unexercised options 18,782 23,670 15,160 33,703 Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders 14,793,298 14,760,159 14,780,269 14,764,058 |
Investment in OC-BVI
Investment in OC-BVI | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments Disclosure [Text Block] | 6. Investment in OC-BVI The Company owns 50 43.5 45 The Company’s equity investment in OC-BVI amounted to $ 4,810,026 5,208,603 Until 2009, substantially all of the water sold by OC-BVI to the Ministry was supplied by one desalination plant with a capacity of 1.7 Baughers Bay litigation” 720,000 600,000 June 30, December 31, 2015 2014 Current assets $ 3,351,474 $ 2,547,542 Non-current assets 5,014,140 5,297,904 Total assets $ 8,365,614 $ 7,845,446 June 30, December 31, 2015 2014 Current liabilities $ 497,409 $ 427,269 Non-current liabilities 1,490,400 1,393,200 Total liabilities $ 1,987,809 $ 1,820,469 Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenues $ 1,027,352 $ 1,201,641 $ 2,096,253 $ 2,376,769 Cost of revenues 558,783 735,179 1,140,427 1,456,328 Gross profit 468,569 466,462 955,826 920,441 General and administrative expenses 261,456 257,952 505,798 524,627 Income from operations 207,113 208,510 450,028 395,814 Other income (expense), net (44,551) (12,298) (97,200) (67,253) Net income 162,562 196,212 352,828 328,561 Income (loss) attributable to non-controlling interests 18,598 (984) 36,212 6,189 Net income attributable to controlling interests $ 143,964 $ 197,196 $ 316,616 $ 322,372 The Company recognized $ 62,668 85,840 137,823 140,329 22,275 30,375 48,600 50,625 The Company recognized revenues from its management services agreement with OC-BVI of $ 135,537 129,000 264,312 404,912 40,342 and $ 33,707 and December 31, 2014, respectively. 151,000 196,000 Baughers Bay Litigation Under the terms of a water supply agreement dated May 1990 (the “1990 Agreement”) between OC-BVI and the Government of the British Islands (the “BVI Government”), upon the expiration of its initial seven-year term in May 1999, the 1990 Agreement would automatically be extended for another seven-year term unless the BVI government provided notice, at least eight months prior to such expiration, of its decision to purchase the plant from OC-BVI at the agreed upon amount under the 1990 Agreement of approximately $ 1.42 4.7 In 2006, the BVI government took the position that the seven-year extension of the 1990 Agreement had been completed and that it was entitled to ownership of the Baughers Bay plant. In response, OC-BVI disputed the BVI government’s contention that the original terms of the 1990 Agreement remained in effect. During 2007, the BVI government significantly reduced the amount and frequency of its payments for the water being supplied by OC-BVI and filed a lawsuit with the Eastern Caribbean Supreme Court (the “Court”) seeking ownership of the Baughers Bay plant. OC-BVI counterclaimed to the Court that it was entitled to continued possession and operation of the Baughers Bay plant until the BVI government paid OC-BVI approximately $4.7 million, which OC-BVI believed represented the value of the Baughers Bay plant at its expanded production capacity. OC-BVI subsequently filed claims with the Court seeking payment for water sold and delivered to the BVI government through May 31, 2009 at the contract prices in effect before the BVI government asserted its purported right of ownership of the plant. The Court ruled on this litigation in 2009, determining that (i) the BVI government was entitled to immediate ownership and possession of the Baughers Bay plant and dismissed OC-BVI’s claim for compensation of approximately $ 4.7 2.0 2.0 1.0 OC-BVI filed an appeal with the Eastern Caribbean Court of Appeals (the “Appellate Court”) in October 2009 asking the Appellate Court to review the September 17, 2009 ruling by the Court as it related to OC-BVI’s claim for compensation for expenditures made to expand the production capacity of the Baughers Bay plant. In October 2009, the BVI government also filed an appeal with the Appellate Court requesting the Appellate Court to reduce the $ 10.4 In March 2010, OC-BVI vacated the Baughers Bay plant and the BVI government assumed direct responsibility for the plant’s operations. In June 2012, the Appellate Court issued the final ruling with respect to the Baughers Bay litigation. This ruling dismissed the BVI government’s appeal against the previous judgment of the Court awarding $10.4 million for the water supplied, and also awarded OC-BVI compensation for improvements made to the plant in the amount equal to the difference between (i) the value of the Baughers Bay plant at the date OC-BVI transferred possession of the plant to the BVI government and (ii) $ 1.42 5.0 5.4 6.7 2.0 Valuation of Investment in OC-BVI The Company accounts for its investment in OC-BVI under the equity method of accounting for investments in common stock. This method requires recognition of a loss on an equity investment that is other than temporary, and indicates that a current fair value of an equity investment that is less than its carrying amount may indicate a loss in the value of the investment. As a quoted market price for OC-BVI’s stock is not available, to test for possible impairment of its investment in OC-BVI, the Company estimates its fair value through the use of the discounted cash flow method, which relies upon projections of OC-BVI’s operating results, working capital and capital expenditures. The use of this method requires the Company to estimate OC-BVI’s cash flows from (i) the Bar Bay agreement and (ii) the pending amount awarded by the Appellate Court for the value of the Baughers Bay plant previously transferred by OC-BVI to the BVI government. The Company estimates the cash flows OC-BVI will receive from its Bar Bay agreement by (i) identifying various possible future scenarios for this agreement, which include the cancellation of the agreement after its initial seven-year term, and the exercise by the BVI government of the seven-year extension in the agreement; (ii) estimating the cash flows associated with each possible scenario; and (iii) assigning a probability to each scenario. The Company similarly estimates the cash flows OC-BVI will receive from the BVI government for the amount due under the ruling by the Appellate Court for the value of the Baughers Bay plant at the date it was transferred to the BVI government by assigning probabilities to different valuation scenarios. The resulting probability-weighted sum represents the expected cash flows, and the Company’s best estimate of future cash flows, to be derived by OC-BVI from its Bar Bay agreement and the pending Appellate Court award. The identification of the possible scenarios for the Bar Bay plant agreement and the Baughers Bay plant valuation, the projections of cash flows for each scenario, and the assignment of relative probabilities to each scenario all represent significant estimates made by the Company. While the Company uses its best judgment in identifying these possible scenarios, estimating the expected cash flows for these scenarios and assigning relative probabilities to each scenario, these estimates are by their nature highly subjective and are also subject to material change by the Company’s management over time based upon new information or changes in circumstances. During the three month periods ended March 31, 2015 and June 30, 2015, after updating its probability-weighted estimates of OC-BVI’s future cash flows and its resulting estimate of the fair value of its investment in OC-BVI, the Company determined that the carrying value of its investment in OC-BVI exceeded its fair value and recorded impairment losses on this investment of $ 310,000 275,000 The $4.8 million carrying value of the Company’s investment in OC-BVI as of June 30, 2015 exceeds the Company’s underlying equity in OC-BVI’s net assets by approximately $ 1.4 $1. 4 |
N.S.C. Agua, S.A. de C.V.
N.S.C. Agua, S.A. de C.V. | 6 Months Ended |
Jun. 30, 2015 | |
Investments In and Advances To Affiliates, Schedule Of Investments [Abstract] | |
Investments in and Advances to Affiliates, Schedule of Investments [Text Block] | 7. N.S.C. Agua, S.A. de C.V. In May 2010, the Company acquired, through its wholly-owned Netherlands subsidiary, CW-Cooperatief, a 50 99.9 100 NSC has engaged engineering groups with extensive regional and/or technical experience to prepare preliminary designs and cost estimates for the desalination plant and the proposed pipeline and prepare the environmental impact studies for local, state and federal regulatory agencies. NSC will be required to accomplish various steps before it can commence construction of the plant and pipeline including, but not limited to, obtaining approvals and permits from various governmental agencies in Mexico, securing contracts with its proposed customers to sell water in sufficient quantities and at prices that make the Project financially viable, and obtaining equity and debt financing for the Project. NSC’s potential customers will also be required to obtain various governmental permits and approvals in order to purchase water from NSC. In February 2012, the Company paid $ 300,000 1.0 25 5.7 99.9 February 7, 2014 NSC entered into a purchase contract for 8.1 500,000 500,000 7.4 12 12 2 10 10.0 LIBOR plus 1.5% In 2012 and 2013, NSC conducted an equipment piloting plant and water data collection program at the proposed feed water source for the Project under a Memorandum of Understanding (the “EPC MOU”) with a global engineering, procurement and construction contractor for large seawater desalination plants. Under the EPC MOU, the contractor installed and operated an equipment piloting plant and collected water quality data from the proposed feed water source site in Rosarito Beach, Baja California, Mexico. The EPC MOU required that NSC negotiate exclusively with the contractor for the construction of the 100 million gallon per day seawater reverse osmosis desalination plant, and further required payment by NSC to the contractor of up to $ 500,000 350,000 NSC is currently conducting additional source water sampling protocols to comply with regulatory requirements in the U.S. and Mexico, and is also coordinating with regulators. In November 2012, NSC signed a letter of intent with Otay Water District in Southern California to deliver no less than 20 40 NSC has entered into a 20 5,000 20,000 In August 2014, the State of Baja California enacted new legislation to regulate Public-Private Association projects which involve the type of long-term contract between a public sector authority and a private party that NSC is required to obtain to complete the Project. Pursuant to this new legislation, on January 4, 2015, NSC submitted an expression of interest for its project to the Secretary of Infrastructure and Urban Development of the State of Baja California (“SIDUE”). On January 23, 2015, SIDUE accepted NSC’s expression of interest and requested that NSC submit a detailed proposal for the Project that complies with requirements of the new legislation. NSC submitted this detailed proposal to SIDUE in late March 2015. The new legislation requires that such proposal be evaluated by SIDUE and submitted to the Public-Private Association Projects State Committee (the “APP Committee”) for review and authorization. If the APP Committee grants its authorization, the State of Baja California is required to conduct a public tender for the Project. The Company presently cannot determine if the APP Committee will grant its authorization or, if a public tender process is commenced, when such process will be completed or whether NSC will be awarded the Project. The Company has acknowledged since the inception of the Project that, due to the amount of capital the Project requires, NSC will ultimately need an equity partner or partners for the Project. During the fourth quarter of 2014, the Company concluded that its chances of successfully completing the Project under the new Public-Private Association legislation would be greatly enhanced through the addition of an equity partner for NSC with substantial financial resources and a history of successful capital project investments in Mexico. In February 2015, NSC entered into a Letter of Intent (“LOI”) with such a potential partner. The terms of this LOI will be binding if and only if NSC and its potential partner are ultimately awarded the Project by early February 2016. Pursuant to the LOI, (i) NSC has agreed to sell the land and other Project assets to a new company (“Newco”) that will build and own the Project; (ii) NSC’s potential partner will provide the majority of the equity for the Project and thereby will own the majority interest in Newco; (iii) NSC will maintain a minority ownership position in Newco; and (iv) Newco will enter into a long-term management and technical services contract with NSC for the Project. On February 20, 2015, NSC received notification from the regulatory authorities in Mexico that its federal environmental impact assessment and mitigation plan for the Project’s proposed desalination plant was approved. Included in the Company’s consolidated results of operations are general and administrative expenses from NSC, consisting of organizational, legal, accounting, engineering, consulting and other costs relating to NSC’s project development activities. Such expenses amounted to $ 475,815 572,565 1,012,438 2,550,416 22.0 269,000 22.0 214,000 The Company expects to incur additional project development costs on behalf of NSC during the remainder of 2015. Despite the expenditures made and the activities completed to date, the Company may ultimately be unsuccessful in its efforts to complete the Project. The Mexico tax authority, the Servicio de Administracion Tributaria (“SAT”), assessed NSC 3,184,745 As of June 2015, the assessment has been revised by the SAT to 3,411,468 1,639,001 to 1,744,061 1,749,751 913,711 to account for accumulated late fees, 6,905,280 445,000 NSC retained the assistance of Mexican tax advisers in this matter, as it believed the assumptions and related work performed by the SAT did not support their tax assessment. As a result, NSC elected to contest this assessment in Mexico federal tax court. NSC was required to provide an irrevocable letter of credit in the amount of 7,367,875 462,595 In November 2014, NSC received a favorable judgment from the tax court. Based on this outcome, the SAT filed an appeal shortly thereafter to contest the judgment. The restricted cash balance of $ 473,283 456,083 The Company is presently unable to determine what amount, if any, of this assessment NSC will ultimately be required to pay by the Mexico federal tax court. Consequently, no provision for this potential liability has been made in the accompanying financial statements. Furthermore, if the SAT is successful in its appeal to reverse the November 2014 ruling, the SAT may seek to levy an assessment on payments of a similar nature made by NSC during tax years subsequent to 2011. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Retail License The Company sells water through its retail operations under a license issued in July 1990 by the Cayman Islands government that grants Cayman Water the exclusive right to provide potable water to customers within its licensed service area. As discussed below, this license was set to expire in July 2010 but has since been extended while negotiations for a new license take place. Pursuant to the license, Cayman Water has the exclusive right to produce potable water and distribute it by pipeline to its licensed service area which consists of two of the three most populated areas of Grand Cayman, the Seven Mile Beach and West Bay areas. For the three months ended June 30, 2015 and 2014, the Company generated approximately 42 38 60 54 42 38 58 55 Under the license, Cayman Water pays a royalty to the government of 7.5% of its gross retail water sales revenues (excluding energy adjustments). The selling prices of water sold to customers are determined by the license and vary depending upon the type and location of the customer and the monthly volume of water purchased. The license provides for an automatic adjustment for inflation or deflation on an annual basis, subject to temporary limited exceptions, and an automatic adjustment for the cost of electricity on a monthly basis. The Water Authority-Cayman (“WAC”), on behalf of the government, reviews and confirms the calculations of the price adjustments for inflation and electricity costs. If Cayman Water wants to adjust its prices for any reason other than inflation or electricity costs, it must request prior approval of the Cabinet of the Cayman Islands government. Disputes regarding price adjustments are referred to arbitration. The license was scheduled to expire in July 2010 but has been extended several times by the Cayman Islands government in order to provide the parties with additional time to negotiate the terms of a new license agreement. The most recent extension of the license expires December 31, 2015. In February 2011, the Water (Production and Supply) Law, 2011 and the Water Authority (Amendment) Law, 2011 (the “New Laws”) were published and are now in full force and effect. Under the New Laws, the WAC will issue any new license, and such new license could include a rate of return on invested capital model, as discussed in the following paragraph. The Company has been advised in correspondence from the Cayman Islands government and the WAC that: (i) the WAC is now the principal negotiator, and not the Cayman Islands government, in these license negotiations, and (ii) the WAC has determined that a rate of return on invested capital model (“RCAM”) for the retail license is in the best interest of the public and Cayman Water’s customers. RCAM is the rate model currently utilized in the electricity transmission and distribution license granted by the Cayman Islands government to the Caribbean Utilities Company, Ltd. The Company advised the Cayman Islands government that it disagreed with its position on these two issues. In July 2012, in an effort to resolve several issues relating to its retail license renewal negotiations, the Company filed an Application for Leave to Apply for Judicial Review (the “Application”) with the Grand Court of the Cayman Islands (the “Court”), seeking declarations that: (i) certain provisions of the Water Authority (Amendment) Law, 2011 and the Water (Production and Supply) Law, 2011, appear to be incompatible and a determination as to how those provisions should be interpreted, (ii) the WAC’s roles as the principal license negotiator, statutory regulator and the Company’s competitor put the WAC in a position of hopeless conflict, and (iii) the WAC’s decision to replace the rate structure under the Company’s current exclusive license with RCAM was predetermined and unreasonable. In October 2012 the Company was notified that the Court agreed to consider the issues raised in the Application. Throughout the course of the license renewal negotiations, the Company objected to the use of RCAM on the basis that it believes such a model would not promote the efficient operation of its water utility and could ultimately increase water rates to Cayman Water’s customers. The hearing for this judicial review was held on April 1, 2014. Prior to the commencement of the hearing, the parties agreed that the Court should solely be concerned with the interpretation of the statutory provisions. As part of this agreement, the WAC agreed to consider our submissions on the RCAM model and/or alternative models of pricing. In June 2014, the Court determined that: (i) the renewal of the 1990 License does not require a public bidding process; and (ii) the WAC is the proper entity to negotiate with the Company for the renewal of the 1990 License. The Company’s submissions on the RCAM model and/or alternative models of pricing were made to the WAC on June 9, 2014. The Company received a letter from the WAC dated September 11, 2014, which fully rejected the Company’s submissions and stated that they intend to provide the Company with a draft RCAM license in due course. On November 21, 2014, the Company wrote to the Minister of Works offering to recommence license negotiations on the basis of the RCAM model subject to certain conditions which are: (i) the Government would undertake to amend the current water legislation to provide for an independent regulator and a fair and balanced regulatory regime more consistent with that provided under the electrical utility regulatory regime, (ii) the Government and the Company would mutually appoint an independent referee and chairman of the negotiations, (iii) the Company’s new license would provide exclusivity for the production and provision of all piped water, both potable and non-potable, within its Cayman Islands license area, (iv) the Government would allow the Company to submit its counter proposal to the WAC’s June 2010 RCAM license draft, and (v) the principle of subsidization of residential customer rates by commercial customer rates would continue under a new license. On March 23 2015, the Company received a letter from the Minister of Works with the following responses to the Company’s November 21, 2014 letter: (1) while the Cayman government plans to create a new public utilities commission, the provision of the new retail license will not depend upon the formation of such a commission; (2) any consideration regarding inclusion of the exclusive right to sell non-potable water within the area covered by the retail license will not take place until after the draft license has proceeded through the review process of the negotiations; (3) rather than allow the Company to submit its counter proposal to the WAC’s June 2010 RCAM license draft, the WAC will draft the license with the understanding that the Company will be allowed to propose amendments thereto; (4) the principle of subsidization of residential customer rates by commercial customer rates would continue under the new license; and (5) the Minister requested that the Company consider eliminating its monthly minimum volume charge in the new license. The Company is presently waiting for the WAC to provide its current draft of the license and to propose dates on which the negotiation process may recommence. The Cayman Islands government could ultimately offer a third party a license to service some or all of Cayman Water’s present service area. However, as set forth in the 1990 license, “ the Governor hereby agrees that upon the expiry of the term of this Licence or any extension thereof, he will not grant a licence or franchise to any other person or company for the processing, distribution, sale and supply of water within the Licence Area without having first offered such a licence or franchise to the Company on terms no less favourable than the terms offered to such other person or company.” The resolution of these license negotiations could result in a material reduction of the operating income and cash flows the Company has historically generated from its retail license and could require the Company to record an impairment charge to reduce the $ 3,499,037 The Company is presently unable to determine what impact the resolution of this matter will have on its financial condition, results of operations or cash flows. CW-Belize By Statutory Instrument No. 81 of 2009, the Minister of Public Utilities of the government of Belize published an order, the Public Utility Provider Class Declaration Order, 2009 (the “Order”), which as of May 1, 2009 designated CW-Belize as a public utility provider under the laws of Belize. With this designation, the Public Utilities Commission of Belize (the “PUC”) has the authority to set the rates charged by CW-Belize and to otherwise regulate its activities. On November 1, 2010, CW-Belize received a formal complaint from the PUC alleging that CW-Belize was operating without a license under the terms of the Water Industry Act. CW-Belize applied for this license in December 2010. On July 29, 2011, the PUC issued the San Pedro Public Water Supply Quality and Security Complaint Order (the “Second Order”) which among other things requires that (i) CW-Belize and its customer jointly make a submission to the responsible Minister requesting that the area surrounding CW-Belize’s seawater abstraction wells be designated a forest reserve or national park and be designated a Controlled Area under section 58 of the Water Industry Act, (ii) CW-Belize submit an operations manual for CW-Belize’s desalination plant to the PUC for approval, (iii) CW-Belize and its customer modify the water supply agreement between the parties to (a) include new water quality parameters included in the Order and (b) cap the current exclusive water supply arrangement in the agreement at a maximum of 450,000 Windsor Plant Water Supply Agreement CW-Bahamas provides bulk water to the Water and Sewerage Corporation of The Bahamas (“WSC”), which distributes the water through its own pipeline system to residential, commercial and tourist properties on the Island of New Providence. Pursuant to a water supply agreement, CW-Bahamas was required to provide the WSC with at least 16.8 ⋅ extend the agreement for an additional five years at a rate to be negotiated; ⋅ exercise a right of first refusal to purchase any materials, equipment and facilities that CW-Bahamas intends to remove from the Windsor plant site, and negotiate a purchase price with CW-Bahamas; or ⋅ require CW-Bahamas to remove all materials, equipment and facilities from the site. At the request of the government of The Bahamas, CW-Bahamas continues to operate and maintain the Windsor plant on a month-to-month basis to provide the government of The Bahamas with additional time to decide whether or not it will extend CW-Bahamas’ water supply agreement for the Windsor plant on a long-term basis. CW-Bahamas generated revenues from the operation of this plant of approximately $ 1.5 1.6 3.0 3.3 CW-Bali Through its subsidiary CW-Bali, the Company has built and presently operates a seawater reverse osmosis plant with a productive capacity of approximately 790,000 302,000 3.3 North Sound Plant Water Supply Agreement OC-Cayman’s bulk water supply agreement with the WAC for the WAC’s North Sound plant, which was scheduled to expire on April 1, 2015, was extended in July 2015 through April 1, 2017 on modified terms pursuant to which OC-Cayman will refurbish the plant for an agreed upon price while continuing to operate the plant. OC-Cayman generated revenues from the operation of this plant of approximately $ 801,000 1.0 1.5 2.0 |
Impact of recent accounting sta
Impact of recent accounting standards | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes In Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 9. Impact of recent accounting standards Effect of Newly Issued But Not Yet Effective Accounting Standards: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. Inventory (Topic 330): Simplifying the Measurement of Inventory |
Subsequent events
Subsequent events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 10. Subsequent events The Company’s management evaluated subsequent events through the time of the filing of this report on Form 10-Q. Other than as disclosed in these condensed consolidated financial statements, the Company’s management is not aware of any significant events that occurred subsequent to the balance sheet date but prior to the filing of this report that would have a material impact on its consolidated financial statements. |
Accounting policies (Policies)
Accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of presentation: The accompanying condensed consolidated financial statements include the accounts of the Company’s (i) wholly-owned subsidiaries, Aquilex, Inc., Cayman Water Company Limited (“Cayman Water”), Consolidated Water (Belize) Limited (“CW-Belize”), Ocean Conversion (Cayman) Limited (“OC-Cayman”), DesalCo Limited (“DesalCo”), Consolidated Water Cooperatief, U.A. (“CW-Cooperatief”); and (ii) majority-owned subsidiaries Consolidated Water (Bahamas) Ltd. (“CW-Bahamas”), Consolidated Water (Asia) Pte. Limited, PT Consolidated Water Bali (“CW-Bali”) and N.S.C. Agua, S.A. de C.V. (“NSC”). The Company’s investment in its affiliate, Ocean Conversion (BVI) Ltd. (“OC-BVI”), is accounted for using the equity method of accounting. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying interim condensed consolidated financial statements are unaudited. These condensed consolidated financial statements reflect all adjustments (which are of a normal recurring nature) that, in the opinion of management, are necessary to fairly present the Company’s financial position, results of operations and cash flows as of and for the periods presented. The results of operations for these interim periods are not necessarily indicative of the operating results for future periods, including the fiscal year ending December 31, 2015. These condensed consolidated financial statements and notes are presented in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) relating to interim financial statements and in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with US GAAP have been condensed or omitted in these condensed financial statements pursuant to SEC rules and regulations, although the Company believes that the disclosures made herein are adequate to make the information not misleading. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign currency: The Company’s reporting currency is the United States dollar (“US$”). The functional currency of the Company and its foreign operating subsidiaries (other than its majority-owned subsidiary, NSC) is the currency for each respective country. The functional currency for NSC is the US$. The exchange rates between the Cayman Islands dollar, the Belize dollar, the Bahamian dollar are fixed to the US$. CW-Cooperatief conducts business in US$ and euros, CW-Bali conducts business in US$ and Indonesian rupiahs, and NSC conducts business in US$ and Mexican pesos. The exchange rates for conversion of euros, rupiahs and Mexican pesos into US$ vary based upon market conditions. Net foreign currency gains (losses) arising from transactions conducted in foreign currencies were ($97,438) ($115,053) ($272,533) $ 46,680 |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive income: Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events from non-owner sources. Comprehensive income (loss) is the total of net income and other comprehensive income (loss) which, for the Company, is comprised entirely of foreign currency translation adjustments related to CW-Bali. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents: Cash and cash equivalents consist of demand deposits at banks and highly liquid deposits at banks with an original maturity of three months or less. As of June 30, 2015 and December 31, 2014, this balance includes $ 17.5 3.0 Transfers from the Company’s Bahamas and Belize bank accounts to Company bank accounts in other countries require the approval of the Central Bank of the Bahamas and Belize, respectively. As of June 30, 2015, the equivalent United States dollar cash balances for deposits held in the Bahamas and Belize were approximately $ 31.0 4.0 5.6 |
Reclassification, Policy [Policy Text Block] | Comparative amounts: Certain amounts reported in the financial statements issued in prior periods have been reclassified herein to conform to the current period’s presentation. These reclassifications had no effect on consolidated net income. |
Fair value measurements (Tables
Fair value measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | The following table presents the Company’s fair value hierarchy for assets and liabilities measured at fair value as of June 30, 2015 and December 31, 2014: June 30, 2015 Level 1 Level 2 Level 3 Total Assets: Recurring Restricted cash $ 473,283 $ - $ - $ 473,283 Certificate of deposit - 5,637,538 - 5,637,538 Total recurring $ 473,283 $ 5,637,538 $ - $ 6,110,821 Nonrecurring Investment in OC-BVI $ - $ - $ 4,810,026 $ 4,810,026 December 31, 2014 Level 1 Level 2 Level 3 Total Assets: Recurring Restricted cash $ 456,083 $ - $ - $ 456,083 Certificate of deposit - 5,000,000 - 5,000,000 Total recurring $ 456,083 $ 5,000,000 $ - $ 5,456,083 Nonrecurring Investment in OC-BVI $ - $ - $ 5,208,603 $ 5,208,603 |
Fair Value Measurements, Nonrecurring [Table Text Block] | The activity for Level 3 investments for the six months ended June 30, 2015 was as follows: Balance as of December 31, 2014 $ 5,208,603 Profit sharing and equity from earnings of OC-BVI 186,423 Distributions received from OC-BVI - Impairment of investment in OC-BVI (See Note 6) (585,000) Balance as of June 30, 2015 $ 4,810,026 |
Segment information (Tables)
Segment information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The Company’s segments are strategic business units that are managed separately because, while all segments derive their revenues from desalination-related activities, each segment sells different products and/or services, serves customers with distinctly different needs and generates different gross profit margins. Three Months Ended June 30, 2015 Retail Bulk Services Total Revenues $ 6,152,185 $ 8,187,273 $ 146,211 $ 14,485,669 Cost of revenues 2,771,598 5,633,381 212,748 8,617,727 Gross profit (loss) 3,380,587 2,553,892 (66,537) 5,867,942 General and administrative expenses 2,636,525 412,465 515,232 3,564,222 Income (loss) from operations $ 744,062 $ 2,141,427 $ (581,769) 2,303,720 Other income, net 28,195 Net income 2,331,915 Income attributable to non-controlling interests 103,815 Net income attributable to Consolidated Water Co. Ltd. stockholders $ 2,228,100 Depreciation and amortization expenses for the three months ended June 30, 2015 for the retail, bulk and services segments were $ 598,079 792,241 22,474 Three Months Ended June 30, 2014 Retail Bulk Services Total Revenues $ 6,499,257 $ 9,966,194 $ 466,381 $ 16,931,832 Cost of revenues 3,119,483 6,895,914 546,389 10,561,786 Gross profit (loss) 3,379,774 3,070,280 (80,008) 6,370,046 General and administrative expenses 2,843,293 325,403 612,465 3,781,161 Income (loss) from operations $ 536,481 $ 2,744,877 $ (692,473) 2,588,885 Other income, net 317,653 Consolidated net income 2,906,538 Income attributable to non-controlling interests 146,845 Net income attributable to Consolidated Water Co. Ltd. stockholders $ 2,759,693 Depreciation and amortization expenses for the three months ended June 30, 2014 for the retail, bulk and services segments were $ 598,223 780,510 22,474 Six Months Ended June 30, 2015 Retail Bulk Services Total Revenues $ 12,287,823 $ 16,569,589 $ 294,369 $ 29,151,781 Cost of revenues 5,648,386 11,082,893 497,635 17,228,914 Gross profit (loss) 6,639,437 5,486,696 (203,266) 11,922,867 General and administrative expenses 5,441,563 829,829 1,092,419 7,363,811 Income (loss) from operations $ 1,197,874 $ 4,656,867 $ (1,295,685) 4,559,056 Other income, net (191,362) Net income 4,367,694 Income attributable to non-controlling interests 218,333 Net income attributable to Consolidated Water Co. Ltd. stockholders $ 4,149,361 Depreciation and amortization expenses for the six months ended June 30, 2015 for the retail, bulk and services segments were $ 1,204,668 1,570,418 44,948 Six Months Ended June 30, 2014 Retail Bulk Services Total Revenues $ 12,612,218 $ 19,925,930 $ 742,294 $ 33,280,442 Cost of revenues 6,050,859 14,007,459 881,653 20,939,971 Gross profit (loss) 6,561,359 5,918,471 (139,359) 12,340,471 General and administrative expenses 5,731,520 760,373 2,631,901 9,123,794 Income (loss) from operations $ 829,839 $ 5,158,098 $ (2,771,260) 3,216,677 Other income, net 467,883 Consolidated net income 3,684,560 Income attributable to non-controlling interests 269,958 Net income attributable to Consolidated Water Co. Ltd. stockholders $ 3,414,602 Depreciation and amortization expenses for the six months ended June 30, 2014 for the retail, bulk and services segments were $ 1,231,496 1,566,412 57,448 As of June 30, 2015 Retail Bulk Services Total Accounts receivable, net $ 2,388,539 $ 6,142,053 $ 612,414 $ 9,143,006 Property plant and equipment, net 26,031,989 29,061,184 128,332 55,221,505 Construction in progress 1,361,970 315,854 - 1,677,824 Goodwill 1,170,511 2,328,526 - 3,499,037 Land held for development - - 20,558,424 20,558,424 Total assets 48,057,146 88,429,778 23,571,831 160,058,755 As of December 31, 2014 Retail Bulk Services Total Accounts receivable, net $ 2,521,008 $ 8,399,999 $ 852,737 $ 11,773,744 Property plant and equipment, net 26,978,259 29,318,534 100,195 56,396,988 Construction in progress 902,656 997,360 - 1,900,016 Goodwill 1,170,511 2,328,526 - 3,499,037 Land held for development - - 20,558,424 20,558,424 Total assets 52,051,461 84,331,227 24,077,143 160,459,831 |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following summarizes information related to the computation of basic and diluted EPS for the three and six months ended June 30, 2015 and 2014. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net income attributable to Consolidated Water Co. Ltd. common stockholders $ 2,228,100 $ 2,759,693 $ 4,149,361 $ 3,414,602 Less: preferred stock dividends (3,418) (3,139) (6,181) (6,278) Net income available to common shares in the determination of basic earnings per common share $ 2,224,682 $ 2,756,554 $ 4,143,180 $ 3,408,324 Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders 14,736,057 14,698,499 14,727,455 14,692,654 Plus: Weighted average number of preferred shares outstanding during the period 38,459 37,990 37,654 37,701 Potential dilutive effect of unexercised options 18,782 23,670 15,160 33,703 Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders 14,793,298 14,760,159 14,780,269 14,764,058 |
Investment in OC-BVI (Tables)
Investment in OC-BVI (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Ocean Conversion (Bvi) Ltd [Member] | |
Summarized Financial Information of Unconsolidated Equity Method Investment [Table Text Block] | Summarized financial information of OC-BVI is presented as follows: June 30, December 31, 2015 2014 Current assets $ 3,351,474 $ 2,547,542 Non-current assets 5,014,140 5,297,904 Total assets $ 8,365,614 $ 7,845,446 June 30, December 31, 2015 2014 Current liabilities $ 497,409 $ 427,269 Non-current liabilities 1,490,400 1,393,200 Total liabilities $ 1,987,809 $ 1,820,469 Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenues $ 1,027,352 $ 1,201,641 $ 2,096,253 $ 2,376,769 Cost of revenues 558,783 735,179 1,140,427 1,456,328 Gross profit 468,569 466,462 955,826 920,441 General and administrative expenses 261,456 257,952 505,798 524,627 Income from operations 207,113 208,510 450,028 395,814 Other income (expense), net (44,551) (12,298) (97,200) (67,253) Net income 162,562 196,212 352,828 328,561 Income (loss) attributable to non-controlling interests 18,598 (984) 36,212 6,189 Net income attributable to controlling interests $ 143,964 $ 197,196 $ 316,616 $ 322,372 |
Accounting policies (Details Te
Accounting policies (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Accounting Policies [Line Items] | |||||
Foreign Currency Transaction Gain (Loss), before Tax | $ (97,438) | $ (115,053) | $ (272,533) | $ 46,680 | |
Certificates of Deposit, at Carrying Value | 5,637,538 | 5,637,538 | $ 5,000,000 | ||
Certificates of Deposit [Member] | |||||
Accounting Policies [Line Items] | |||||
Cash Equivalents, at Carrying Value | 17,500,000 | 17,500,000 | $ 3,000,000 | ||
BELIZE | |||||
Accounting Policies [Line Items] | |||||
Deposits held in foreign bank | 4,000,000 | 4,000,000 | |||
BAHAMAS | |||||
Accounting Policies [Line Items] | |||||
Deposits held in foreign bank | $ 31,000,000 | $ 31,000,000 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Recurring | ||
Restricted cash | $ 473,283 | $ 456,083 |
Certificate of deposit | 5,637,538 | 5,000,000 |
Total recurring | 6,110,821 | 5,456,083 |
Nonrecurring | ||
Investment in OC-BVI | 4,810,026 | 5,208,603 |
Fair Value, Inputs, Level 1 [Member] | ||
Recurring | ||
Restricted cash | 473,283 | 456,083 |
Certificate of deposit | 0 | 0 |
Total recurring | 473,283 | 456,083 |
Nonrecurring | ||
Investment in OC-BVI | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Recurring | ||
Restricted cash | 0 | 0 |
Certificate of deposit | 5,637,538 | 5,000,000 |
Total recurring | 5,637,538 | 5,000,000 |
Nonrecurring | ||
Investment in OC-BVI | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Recurring | ||
Restricted cash | 0 | 0 |
Certificate of deposit | 0 | 0 |
Total recurring | 0 | 0 |
Nonrecurring | ||
Investment in OC-BVI | $ 4,810,026 | $ 5,208,603 |
Fair value measurements (Deta25
Fair value measurements (Details 1) - Fair Value Hierarchy [Domain] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||||
Balance, Beginning | $ 5,208,603 | |||
Profit sharing and equity from earnings of OC-BVI | 186,423 | |||
Distributions received from OC-BVI | 0 | |||
Impairment of investment in OC-BVI (See Note 6) | $ 275,000 | $ 0 | 585,000 | $ 0 |
Balance, Ending | $ 4,810,026 | $ 4,810,026 |
Segment information (Details)
Segment information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 14,485,669 | $ 16,931,832 | $ 29,151,781 | $ 33,280,442 | |
Cost of revenues | 8,617,727 | 10,561,786 | 17,228,914 | 20,939,971 | |
Gross profit (loss) | 5,867,942 | 6,370,046 | 11,922,867 | 12,340,471 | |
General and administrative expenses | 3,564,222 | 3,781,161 | 7,363,811 | 9,123,794 | |
Income (loss) from operations | 2,303,720 | 2,588,885 | 4,559,056 | 3,216,677 | |
Other income (expense), net | 28,195 | 317,653 | (191,362) | 467,883 | |
Net Income | 2,331,915 | 2,906,538 | 4,367,694 | 3,684,560 | |
Income attributable to non-controlling interests | 103,815 | 146,845 | 218,333 | 269,958 | |
Net income attributable to Consolidated Water Co. Ltd. stockholders | 2,228,100 | 2,759,693 | 4,149,361 | 3,414,602 | |
Accounts receivable, net | 9,143,006 | 9,143,006 | $ 11,773,744 | ||
Property plant and equipment, net | 55,221,505 | 55,221,505 | 56,396,988 | ||
Construction in progress | 1,677,824 | 1,677,824 | 1,900,016 | ||
Goodwill | 3,499,037 | 3,499,037 | 3,499,037 | ||
Land held for development | 20,558,424 | 20,558,424 | 20,558,424 | ||
Total assets | 160,058,755 | 160,058,755 | 160,459,831 | ||
Retail [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 6,152,185 | 6,499,257 | 12,287,823 | 12,612,218 | |
Cost of revenues | 2,771,598 | 3,119,483 | 5,648,386 | 6,050,859 | |
Gross profit (loss) | 3,380,587 | 3,379,774 | 6,639,437 | 6,561,359 | |
General and administrative expenses | 2,636,525 | 2,843,293 | 5,441,563 | 5,731,520 | |
Income (loss) from operations | 744,062 | 536,481 | 1,197,874 | 829,839 | |
Accounts receivable, net | 2,388,539 | 2,388,539 | 2,521,008 | ||
Property plant and equipment, net | 26,031,989 | 26,031,989 | 26,978,259 | ||
Construction in progress | 1,361,970 | 1,361,970 | 902,656 | ||
Goodwill | 1,170,511 | 1,170,511 | 1,170,511 | ||
Land held for development | 0 | 0 | 0 | ||
Total assets | 48,057,146 | 48,057,146 | 52,051,461 | ||
Bulk [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 8,187,273 | 9,966,194 | 16,569,589 | 19,925,930 | |
Cost of revenues | 5,633,381 | 6,895,914 | 11,082,893 | 14,007,459 | |
Gross profit (loss) | 2,553,892 | 3,070,280 | 5,486,696 | 5,918,471 | |
General and administrative expenses | 412,465 | 325,403 | 829,829 | 760,373 | |
Income (loss) from operations | 2,141,427 | 2,744,877 | 4,656,867 | 5,158,098 | |
Accounts receivable, net | 6,142,053 | 6,142,053 | 8,399,999 | ||
Property plant and equipment, net | 29,061,184 | 29,061,184 | 29,318,534 | ||
Construction in progress | 315,854 | 315,854 | 997,360 | ||
Goodwill | 2,328,526 | 2,328,526 | 2,328,526 | ||
Land held for development | 0 | 0 | 0 | ||
Total assets | 88,429,778 | 88,429,778 | 84,331,227 | ||
Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 146,211 | 466,381 | 294,369 | 742,294 | |
Cost of revenues | 212,748 | 546,389 | 497,635 | 881,653 | |
Gross profit (loss) | (66,537) | (80,008) | (203,266) | (139,359) | |
General and administrative expenses | 515,232 | 612,465 | 1,092,419 | 2,631,901 | |
Income (loss) from operations | (581,769) | $ (692,473) | (1,295,685) | $ (2,771,260) | |
Accounts receivable, net | 612,414 | 612,414 | 852,737 | ||
Property plant and equipment, net | 128,332 | 128,332 | 100,195 | ||
Construction in progress | 0 | 0 | 0 | ||
Goodwill | 0 | 0 | 0 | ||
Land held for development | 20,558,424 | 20,558,424 | 20,558,424 | ||
Total assets | $ 23,571,831 | $ 23,571,831 | $ 24,077,143 |
Segment information (Details Te
Segment information (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Retail [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation, Depletion and Amortization | $ 598,079 | $ 598,223 | $ 1,204,668 | $ 1,231,496 |
Bulk [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation, Depletion and Amortization | 792,241 | 780,510 | 1,570,418 | 1,566,412 |
Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation, Depletion and Amortization | $ 22,474 | $ 22,474 | $ 44,948 | $ 57,448 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Line Items] | ||||
Net income attributable to Consolidated Water Co. Ltd. common stockholders | $ 2,228,100 | $ 2,759,693 | $ 4,149,361 | $ 3,414,602 |
Less: preferred stock dividends | (3,418) | (3,139) | (6,181) | (6,278) |
Net income available to common shares in the determination of basic earnings per common share | $ 2,224,682 | $ 2,756,554 | $ 4,143,180 | $ 3,408,324 |
Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders (in shares) | 14,736,057 | 14,698,499 | 14,727,455 | 14,692,654 |
Weighted average number of preferred shares outstanding during the period (in shares) | 38,459 | 37,990 | 37,654 | 37,701 |
Potential dilutive effect of unexercised options (in shares) | 18,782 | 23,670 | 15,160 | 33,703 |
Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders (in shares) | 14,793,298 | 14,760,159 | 14,780,269 | 14,764,058 |
Investment in OC-BVI (Details)
Investment in OC-BVI (Details) - Ocean Conversion (BVI) Ltd [Member] - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Current assets | $ 3,351,474 | $ 2,547,542 |
Non-current assets | 5,014,140 | 5,297,904 |
Total assets | 8,365,614 | 7,845,446 |
Current liabilities | 497,409 | 427,269 |
Non-current liabilities | 1,490,400 | 1,393,200 |
Total liabilities | $ 1,987,809 | $ 1,820,469 |
Investment in OC-BVI (Details 1
Investment in OC-BVI (Details 1) - Ocean Conversion (Bvi) Ltd [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | $ 1,027,352 | $ 1,201,641 | $ 2,096,253 | $ 2,376,769 |
Cost of revenues | 558,783 | 735,179 | 1,140,427 | 1,456,328 |
Gross profit | 468,569 | 466,462 | 955,826 | 920,441 |
General and administrative expenses | 261,456 | 257,952 | 505,798 | 524,627 |
Income from operations | 207,113 | 208,510 | 450,028 | 395,814 |
Other income (expense), net | (44,551) | (12,298) | (97,200) | (67,253) |
Net income | 162,562 | 196,212 | 352,828 | 328,561 |
Income (loss) attributable to non-controlling interests | 18,598 | (984) | 36,212 | 6,189 |
Net income attributable to controlling interests | $ 143,964 | $ 197,196 | $ 316,616 | $ 322,372 |
Investment in OC-BVI (Details T
Investment in OC-BVI (Details Textual) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 42 Months Ended | 108 Months Ended | ||||||||||
Jan. 31, 2013USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2009USD ($)gal | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($)gal | Jun. 30, 2012USD ($) | Dec. 31, 2003USD ($) | Dec. 31, 2014USD ($) | Mar. 04, 2010gal | Dec. 31, 2007gal | |
Schedule of Investments [Line Items] | ||||||||||||||||
Equity Method Investment, Ownership Percentage | 43.50% | 43.50% | ||||||||||||||
Equity Method Investments Voting Shares Percentage | 50.00% | 50.00% | ||||||||||||||
Equity Method Investment, Interest In Profit Percentage | 45.00% | 45.00% | ||||||||||||||
Other than Temporary Impairment Losses, Investments | $ 275,000 | $ 310,000 | ||||||||||||||
Equity Method Investments | 4,810,026 | $ 4,810,026 | $ 5,208,603 | |||||||||||||
Intangible assets, net | 849,856 | 849,856 | 927,900 | |||||||||||||
Income (Loss) from Equity Method Investments | 62,668 | $ 85,840 | 137,823 | $ 140,329 | ||||||||||||
Profit Loss From Subsidiaries | 22,275 | 30,375 | 48,600 | 50,625 | ||||||||||||
Sales Revenue, Services, Net | 146,211 | 466,381 | 294,369 | 742,294 | ||||||||||||
1990 Agreement [Member] | ||||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||||
Cost to Expand Production Capacity of Plant | $ 4,700,000 | |||||||||||||||
Bar Bay Agreement [Member] | ||||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||||
Delivery Terms, Volume of water per day | gal | 600,000 | |||||||||||||||
Management Service [Member] | ||||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||||
Intangible assets, net | 151,000 | 151,000 | 196,000 | |||||||||||||
Ocean Conversion (BVI) Ltd [Member] | ||||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||||
Equity Method Investments | 4,810,026 | 4,810,026 | 5,208,603 | |||||||||||||
Loss Contingency, Damages Awarded, Value | $ 10,400,000 | |||||||||||||||
Proceeds from Legal Settlements | $ 2,000,000 | $ 1,000,000 | $ 2,000,000 | |||||||||||||
Loss Contingency, Damages Paid, Value | $ 5,000,000 | |||||||||||||||
Legal Settlement Recovery Principle Amount Due | $ 5,400,000 | |||||||||||||||
Legal Settlement Recovery Due | 6,700,000 | |||||||||||||||
Income (Loss) from Equity Method Investments | 62,668 | 85,840 | 137,823 | 140,329 | ||||||||||||
Profit Loss From Subsidiaries | 22,275 | 30,375 | 48,600 | 50,625 | ||||||||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | 1,400,000 | 1,400,000 | ||||||||||||||
Due from Related Parties, Current | 40,342 | 40,342 | 33,707 | |||||||||||||
Ocean Conversion (BVI) Ltd [Member] | 1990 Agreement [Member] | ||||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||||
Proceeds from Legal Settlements | $ 2,000,000 | $ 4,700,000 | ||||||||||||||
Plant Capacity | gal | 1,700,000 | 1,700,000 | 720,000 | |||||||||||||
Ocean Conversion (BVI) Ltd [Member] | Management Service [Member] | ||||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||||
Intangible assets, net | 151,000 | 151,000 | $ 196,000 | |||||||||||||
Sales Revenue, Services, Net | 135,537 | $ 129,000 | 264,312 | $ 404,912 | ||||||||||||
Baughers Bay [Member] | ||||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||||
Purchase Price Agreed for Plant Under Agreement | 1,420,000 | 1,420,000 | $ 1,420,000 | |||||||||||||
Bar Bay [Member] | ||||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||||
Assets that comprise Bar Bay plant | $ 4,800,000 | $ 4,800,000 |
N.S.C. Agua, S.A. de C.V. (Deta
N.S.C. Agua, S.A. de C.V. (Details Textual) gal in Millions | May. 15, 2014USD ($) | May. 31, 2014USD ($) | Feb. 28, 2014USD ($) | Oct. 31, 2013USD ($) | May. 31, 2013USD ($) | Nov. 30, 2012USD ($)ft²gal | Feb. 29, 2012USD ($) | May. 31, 2010gal | Jun. 30, 2015USD ($) | Jun. 30, 2015MXN | Mar. 31, 2015USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2015MXN | Jun. 30, 2014USD ($) | Dec. 31, 2012USD ($)ha | Jun. 30, 2015MXN | Dec. 31, 2014USD ($) | Dec. 31, 2013ha |
Schedule of Investments [Line Items] | ||||||||||||||||||||
General and administrative expenses | $ 3,564,222 | $ 3,781,161 | $ 7,363,811 | $ 9,123,794 | ||||||||||||||||
Payments to Acquire Land Held-for-use | 0 | 17,432,858 | ||||||||||||||||||
Assets, Total | 160,058,755 | 160,058,755 | $ 160,459,831 | |||||||||||||||||
Liabilities, Total | 13,649,059 | 13,649,059 | 16,377,167 | |||||||||||||||||
Loans Payable, Current, Total | 8,000,000 | 8,000,000 | 9,000,000 | |||||||||||||||||
Option agreement [Member] | ||||||||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||||||||
Payments To Enter Option Agreement | $ 300,000 | |||||||||||||||||||
Option Agreement Expiration Date | Feb. 7, 2014 | |||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||||||||
Delivery Terms, Volume of water per day | gal | 20 | |||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||||||||
Delivery Terms, Volume of water per day | gal | 40 | |||||||||||||||||||
N S C Agua [Member] | ||||||||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 50.00% | |||||||||||||||||||
Total Percentage Of Ownership Interest In An Acquired Company | 99.90% | |||||||||||||||||||
Seawater Reverse Osmosis Desalination Plant Per Day Processing Capacity | gal | 100 | |||||||||||||||||||
General and administrative expenses | 475,815 | $ 572,565 | 1,012,438 | $ 2,550,416 | ||||||||||||||||
Payments to Acquire Land Held-for-use | $ 7,400,000 | $ 500,000 | $ 500,000 | |||||||||||||||||
Further Required Payment As Compensation For Operation and Maintenance | $ 500,000 | |||||||||||||||||||
Project Land Amount Paid | $ 10,000,000 | |||||||||||||||||||
Initial Amount Paid | 2,000,000 | |||||||||||||||||||
Repayment of inter-company loan payable | 5,700,000 | |||||||||||||||||||
Lease Term | 20 years | |||||||||||||||||||
Assets, Total | 22,000,000 | 22,000,000 | 22,000,000 | |||||||||||||||||
Liabilities, Total | 269,000 | 269,000 | 214,000 | |||||||||||||||||
Payments for Compensation for Operation and Maintenance | $ 350,000 | |||||||||||||||||||
Land Subject to Ground Leases | ft² | 5,000 | |||||||||||||||||||
Restricted Cash and Cash Equivalents | 473,283 | $ 473,283 | $ 456,083 | |||||||||||||||||
Operating Leases, Rent Expense per month | $ 20,000 | |||||||||||||||||||
Land | $ 12,000,000 | |||||||||||||||||||
Total Voting Interest Percentage After Conversion Of Loan | 99.90% | |||||||||||||||||||
Percentage of Voting Interest Acquired through Option Agreement | 25.00% | |||||||||||||||||||
Area of Land | ha | 8.1 | 12 | ||||||||||||||||||
Payments For Option Agreement Exercised | $ 1,000,000 | |||||||||||||||||||
Income Tax Examination Surcharges Estimate | MXN | MXN 1,744,061 | |||||||||||||||||||
Loans Payable, Current, Total | $ 10,000,000 | |||||||||||||||||||
N S C Agua [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||||||||
Line of Credit Facility, Interest Rate Description | LIBOR plus 1.5% | LIBOR plus 1.5% | ||||||||||||||||||
N S C Agua [Member] | Mexican Tax Authority [Member] | ||||||||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||||||||
Income Tax Examination, Estimate of Possible Loss | $ 445,000 | $ 379,000 | MXN 6,905,280 | |||||||||||||||||
Income Tax Examination, Penalties Estimate | MXN | 1,639,001 | |||||||||||||||||||
Income Tax Examination Estimate Related To Payments To Foreign Vendor | MXN | 3,184,745 | |||||||||||||||||||
Income Tax Examination Estimate Related To Inflation and Accumulated Late Fees | MXN | MXN 3,411,468 | |||||||||||||||||||
N S C Agua [Member] | Mexican Tax Authority [Member] | Letter of Credit [Member] | ||||||||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||||||||
Irrevocable letter of credit | MXN | MXN 7,367,875 | |||||||||||||||||||
Loss Contingency, Additional Estimated Loss | MXN | MXN 462,595 | |||||||||||||||||||
N S C Agua [Member] | Minimum [Member] | Mexican Tax Authority [Member] | ||||||||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||||||||
Income Tax Examination Surcharges Estimate | MXN | 913,711 | |||||||||||||||||||
N S C Agua [Member] | Maximum [Member] | Mexican Tax Authority [Member] | ||||||||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||||||||
Income Tax Examination Surcharges Estimate | MXN | MXN 1,749,751 |
Contingencies (Details Textual)
Contingencies (Details Textual) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015USD ($)gal | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)gal | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Jun. 29, 2011gal | |
Commitments And Contingencies [Line Items] | ||||||
Goodwill | $ 3,499,037 | $ 3,499,037 | $ 3,499,037 | |||
Cayman Water retail operations, Gross Profit Percentage | 60.00% | 54.00% | 58.00% | 55.00% | ||
Cayman Water retail operations, Revenue Percentage | 42.00% | 38.00% | 42.00% | 38.00% | ||
Revenue, Net | $ 801,000 | $ 1,000,000 | $ 1,500,000 | $ 2,000,000 | ||
Operating Income (Loss) | 2,303,720 | 2,588,885 | 4,559,056 | 3,216,677 | ||
Property, plant and equipment, net | $ 55,221,505 | $ 55,221,505 | $ 56,396,988 | |||
Cw Bahamas [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Delivery Terms Volume Of Water Per Week | gal | 16,800,000 | 16,800,000 | ||||
Cw Belize [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Delivery Terms, Volume of water per day | gal | 450,000 | |||||
CW-Bahamas Windsor Plant [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Revenue, Net | $ 1,500,000 | $ 1,600,000 | $ 3,000,000 | 3,300,000 | ||
CW Bali [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Plant Capacity | gal | 790,000 | 790,000 | ||||
Operating Income (Loss) | $ (302,000) | $ (242,000) | ||||
Property, plant and equipment, net | $ 3,300,000 | $ 3,300,000 |