Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 20, 2024 | Jun. 30, 2023 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 0-25248 | ||
Entity Registrant Name | CONSOLIDATED WATER CO. LTD. | ||
Entity Incorporation, State or Country Code | KY | ||
Entity Tax Identification Number | 98-0619652 | ||
Entity Address, Address Line One | Regatta Office Park | ||
Entity Address, Address Line Two | Windward Three, 4th Floor, West Bay Road | ||
Entity Address, Address Line Three | P.O. Box 1114 | ||
Entity Address, City or Town | Grand Cayman | ||
Entity Address, Postal Zip Code | KY1-1102 | ||
Entity Address, Country | KY | ||
City Area Code | 345 | ||
Local Phone Number | 945-4277 | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Trading Symbol | CWCO | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
ICFR Auditor Attestation Flag | false | ||
Auditor Name | Marcum LLP | ||
Auditor Firm ID | 688 | ||
Auditor Location | West Palm Beach, Florida | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 15,802,187 | ||
Entity Central Index Key | 0000928340 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Public Float | $ 360,491,856 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 42,621,898 | $ 50,711,751 |
Accounts receivable, net | 38,226,891 | 27,046,182 |
Inventory | 6,044,642 | 5,727,842 |
Prepaid expenses and other current assets | 4,056,370 | 5,643,279 |
Contract assets | 21,553,057 | 2,913,722 |
Current assets of discontinued operations | 211,517 | 531,480 |
Total current assets | 112,714,375 | 92,574,256 |
Property, plant and equipment, net | 55,882,521 | 52,529,545 |
Construction in progress | 495,471 | 3,705,681 |
Inventory, noncurrent | 5,045,771 | 4,550,987 |
Investment in OC-BVI | 1,412,158 | 1,545,430 |
Goodwill | 12,861,404 | 10,425,013 |
Intangible assets, net | 3,353,185 | 2,818,888 |
Operating lease right-of-use assets | 2,135,446 | 2,058,384 |
Other assets | 3,407,973 | 1,669,377 |
Long-term assets of discontinued operations | 21,129,288 | 21,129,288 |
Total assets | 218,437,592 | 193,006,849 |
Current liabilities | ||
Accounts payable, accrued expenses and other current liabilities | 11,604,369 | 8,438,315 |
Accounts payable - related parties | 0 | 403,839 |
Accrued compensation | 3,160,030 | 2,267,583 |
Dividends payable | 1,572,655 | 1,375,403 |
Current maturities of operating leases | 456,865 | 546,851 |
Current portion of long-term debt | 192,034 | 114,964 |
Contract liabilities | 6,237,011 | 8,803,921 |
Deferred revenue | 317,017 | 315,825 |
Current liabilities of discontinued operations | 364,665 | 389,884 |
Total current liabilities | 23,904,646 | 22,656,585 |
Long-term debt, noncurrent | 191,190 | 216,117 |
Deferred tax liabilities | 530,780 | 560,306 |
Noncurrent operating leases | 1,827,302 | 1,590,542 |
Other liabilities | 153,000 | 219,110 |
Total liabilities | 26,606,918 | 25,242,660 |
Commitments and contingencies | ||
Consolidated Water Co. Ltd. stockholders' equity | ||
Redeemable preferred stock, $0.60 par value. Authorized 200,000 shares; issued and outstanding 44,297 and 34,383 shares, respectively | 26,578 | 20,630 |
Additional paid-in capital | 92,188,887 | 89,205,159 |
Retained earnings | 85,148,820 | 61,247,699 |
Total Consolidated Water Co. Ltd. stockholders' equity | 186,827,212 | 159,667,213 |
Non-controlling interests | 5,003,462 | 8,096,976 |
Total equity | 191,830,674 | 167,764,189 |
Total liabilities and equity | 218,437,592 | 193,006,849 |
Common Class A [Member] | ||
Consolidated Water Co. Ltd. stockholders' equity | ||
Common stock value | 9,462,927 | 9,193,725 |
Common Class B [Member] | ||
Consolidated Water Co. Ltd. stockholders' equity | ||
Common stock value | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
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 | 44,297 | 34,383 |
Redeemable preferred stock, outstanding | 44,297 | 34,383 |
Common Class A [Member] | ||
Common stock, par value (in dollars per share) | $ 0.60 | $ 0.60 |
Common stock, authorized | 24,655,000 | 24,655,000 |
Common stock, issued | 15,771,545 | 15,322,875 |
Common stock, outstanding | 15,771,545 | 15,322,875 |
Common Class B [Member] | ||
Common stock, par value (in dollars per share) | $ 0.60 | $ 0.60 |
Common stock, authorized | 145,000 | 145,000 |
Common stock, issued | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CONSOLIDATED STATEMENTS OF INCOME | ||
Revenue | $ 180,211,233 | $ 94,104,972 |
Cost of revenue (including related party expense of $0 and $2,694,810 in 2023 and 2022) | 118,284,128 | 63,749,849 |
Gross profit | 61,927,105 | 30,355,123 |
General and administrative expenses (including related party expense of $0 and $96,924 in 2023 and 2022) | 24,752,366 | 21,070,234 |
Loss on asset dispositions and impairments, net | (7,112) | (12,704) |
Income from operations | 37,167,627 | 9,272,185 |
Other income (expense): | ||
Interest income | 696,408 | 447,186 |
Interest expense | (145,284) | (46,545) |
Profit-sharing income from OC-BVI | 46,575 | 26,325 |
Equity in the earnings of OC-BVI | 123,153 | 75,900 |
Loss on put/call options | (128,000) | |
Other | 107,461 | 89,944 |
Other income, net | 828,313 | 464,810 |
Income before income taxes | 37,995,940 | 9,736,995 |
Provision for income taxes | 6,750,014 | 396,739 |
Net income from continuing operations | 31,245,926 | 9,340,256 |
Income from continuing operations attributable to non-controlling interests | 573,791 | 1,112,913 |
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders | 30,672,135 | 8,227,343 |
Total loss from discontinued operations | (1,086,744) | (2,371,049) |
Net income attributable to Consolidated Water Co. Ltd. stockholders | $ 29,585,391 | $ 5,856,294 |
Basic earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders | ||
Continuing operations | $ 1.95 | $ 0.54 |
Discontinued operations | (0.07) | (0.16) |
Basic earnings per share | 1.88 | 0.38 |
Diluted earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders | ||
Continuing operations | 1.93 | 0.54 |
Discontinued operations | (0.07) | (0.16) |
Diluted earnings per share | 1.86 | 0.38 |
Dividends declared per common and redeemable preferred shares | $ 0.36 | $ 0.34 |
Weighted average number of common shares used in the determination of: | ||
Basic earnings per share | 15,739,056 | 15,290,509 |
Diluted earnings per share | 15,865,897 | 15,401,653 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cost of revenue. | ||
Purchases from related parties | $ 0 | $ 2,023 |
General and administrative expense. | ||
Purchases from related parties | $ 0 | $ 2,023 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Redeemable preferred stock [Member] Preferred stock [Member] | Common stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Non controlling interests [Member] | Total |
Balance at Dec. 31, 2021 | $ 17,181 | $ 9,146,216 | $ 87,812,432 | $ 60,603,056 | $ 8,086,538 | $ 165,665,423 |
Balance (in shares) at Dec. 31, 2021 | 28,635 | 15,243,693 | ||||
Issuance of share capital | $ 5,577 | $ 43,558 | (49,135) | 0 | 0 | 0 |
Issuance of share capital (in shares) | 9,295 | 72,597 | ||||
Conversion of preferred stock | $ (3,951) | $ 3,951 | 0 | 0 | 0 | 0 |
Conversion of preferred stock (in shares) | (6,585) | 6,585 | ||||
Buyback of preferred stock | $ (15) | $ 0 | (211) | 0 | 0 | (226) |
Buyback of preferred stock (in shares) | (26) | 0 | ||||
Net income | $ 0 | $ 0 | 0 | 5,856,294 | 1,112,913 | 6,969,207 |
Exercise of options | $ 1,838 | $ 0 | 24,901 | 0 | 0 | 26,739 |
Exercise of options (in shares) | 3,064 | 0 | ||||
Dividends declared | $ 0 | $ 0 | 0 | (5,211,651) | (1,102,475) | (6,314,126) |
Compensation expense relating to stock and stock option grants | 0 | 0 | 1,417,172 | 0 | 0 | 1,417,172 |
Balance at Dec. 31, 2022 | $ 20,630 | $ 9,193,725 | 89,205,159 | 61,247,699 | 8,096,976 | 167,764,189 |
Balance (in shares) at Dec. 31, 2022 | 34,383 | 15,322,875 | ||||
Issuance of share capital | $ 7,985 | $ 41,319 | (49,304) | 0 | 0 | 0 |
Issuance of share capital (in shares) | 13,309 | 68,864 | ||||
Purchase of Remaining Non-Controlling Interests in PERC | $ 0 | $ 221,030 | 1,006,248 | (3,667,305) | (2,440,027) | |
Purchase of remaining non-controlling interests in PERC (in shares) | 368,383 | |||||
Conversion of preferred stock | $ (5,309) | $ 5,309 | 0 | 0 | 0 | 0 |
Conversion of preferred stock (in shares) | (8,848) | 8,848 | ||||
Buyback of preferred stock | $ (122) | $ 0 | (1,708) | 0 | 0 | (1,830) |
Buyback of preferred stock (in shares) | (203) | 0 | ||||
Net income | $ 0 | $ 0 | 0 | 29,585,391 | 573,791 | 30,159,182 |
Exercise of options | $ 3,394 | $ 1,544 | 94,826 | 0 | 0 | $ 99,764 |
Exercise of options (in shares) | 5,656 | 2,575 | 8,231 | |||
Dividends declared | $ 0 | $ 0 | 0 | (5,684,270) | 0 | $ (5,684,270) |
Compensation expense relating to stock and stock option grants | 0 | 0 | 1,933,666 | 0 | 0 | 1,933,666 |
Balance at Dec. 31, 2023 | $ 26,578 | $ 9,462,927 | $ 92,188,887 | $ 85,148,820 | $ 5,003,462 | $ 191,830,674 |
Balance (in shares) at Dec. 31, 2023 | 44,297 | 15,771,545 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities | ||
Net income attributable to Consolidated Water Co. Ltd. stockholders | $ 29,585,391 | $ 5,856,294 |
Income from Continuing Operations Attributable to Non-Controlling Interests | 573,791 | 1,112,913 |
Net income | 30,159,182 | 6,969,207 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Impairment loss for Mexico assets - discontinued operations | 377,326 | |
Foreign currency transaction adjustment - discontinued operations | (2,003) | (102,507) |
Loss from discontinued operations | 1,088,747 | 2,096,230 |
Depreciation and amortization | 6,576,454 | 6,187,308 |
Deferred income tax benefit | (524,999) | (4,220) |
Provision for credit losses | 408,489 | 0 |
Loss (gain) on net put/call option | (128,000) | |
Compensation expense relating to stock and stock option grants | 1,933,666 | 1,417,172 |
Gain on Asset Dispositions and Impairments, Net | 7,112 | 12,704 |
Profit-sharing and equity in earnings of OC-BVI | (169,728) | (102,225) |
Distribution of earnings from OC-BVI | 303,000 | 272,700 |
Accounts receivable | (10,970,521) | 303,125 |
Contract assets | (18,639,335) | (2,423,761) |
Inventory | (891,405) | (3,387,011) |
Prepaid expenses and other assets | (755,391) | (3,365,747) |
Accounts payable (including related parties), accrued expenses and other current liabilities | 3,161,386 | 6,756,433 |
Contract liabilities | (2,566,910) | 8,290,043 |
Operating lease liabilities | (5,205) | (5,208) |
Deferred revenue | 1,192 | (267,821) |
Net cash provided by operating activities - continuing operations | 9,113,731 | 23,151,748 |
Net cash used in operating activities - discontinued operations | (1,142,969) | (1,819,943) |
Net cash provided by operating activities | 7,970,762 | 21,331,805 |
Cash flows from investing activities | ||
Purchase of certificate of deposit | (2,518,493) | |
Maturity of certificate of deposit | 5,018,493 | |
Additions to property, plant and equipment and construction in progress | (5,047,884) | (7,542,761) |
Proceeds from asset dispositions | 20,808 | 61,725 |
Acquisition of REC, net of cash acquired | (3,419,916) | |
Purchase of non-controlling interest in PERC | (2,440,027) | |
Net cash used in investing activities | (10,887,019) | (4,981,036) |
Cash flows from financing activities | ||
Dividends paid to common shareholders | (5,472,790) | (5,145,742) |
Dividends paid to preferred shareholders | (14,228) | (11,078) |
Dividends paid to non-controlling interests | (1,102,475) | |
Buyback of redeemable preferred stock | (1,830) | (226) |
Proceeds received from exercise of stock options | 99,764 | 26,739 |
Principal repayments on long-term debt | (135,481) | (72,091) |
Net cash used in financing activities | (5,524,565) | (6,304,873) |
Net increase (decrease) in cash and cash equivalents | (8,440,822) | 10,045,896 |
Cash and cash equivalents at beginning of period | 50,711,751 | 40,358,059 |
Cash and cash equivalents at beginning of period - discontinued operations | 442,252 | 750,048 |
Less: cash and cash equivalents at end of period - discontinued operations | (91,283) | (442,252) |
Cash and cash equivalents at end of period | 42,621,898 | 50,711,751 |
Non-cash transactions: | ||
Issuance of 368,383 and 0, respectively, shares of common stock for the purchase of non-controlling interests in PERC | 5,359,973 | 0 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 745,078 | 0 |
Purchase of equipment through issuance of long-term debt | 0 | 188,645 |
Redeemable preferred stock [Member] | ||
Non-cash transactions: | ||
Conversion (on a one-to-one basis) of 8,848 and 6,585, respectively, shares of redeemable preferred stock to common stock | 5,309 | 3,951 |
Common stock [Member] | ||
Non-cash transactions: | ||
Issuance of 68,864 and 72,597, respectively, shares of common stock for services rendered | $ 1,015,177 | $ 877,298 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - Redeemable preferred stock [Member] - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Issuance of 44,873 and 41,830, respectively, shares of common stock for services rendered | 13,309 | 9,295 |
Conversion (on a one-to-one basis) of 8,848 and 6,585, respectively, shares of redeemable preferred stock to common stock | 8,848 | 6,585 |
Principal activity
Principal activity | 12 Months Ended |
Dec. 31, 2023 | |
Principal activity | |
Principal activity | 1. Principal activity Consolidated Water Co. Ltd. and its subsidiaries (collectively, the “Company”) supply potable water, treat wastewater and water for reuse, and provide water-related products and services to customers in the Cayman Islands, The Bahamas, the United States and the British Virgin Islands. The Company produces potable water from seawater using reverse osmosis technology and sells this water to a variety of customers, including public utilities, commercial and tourist properties, residential properties and government facilities. The Company designs, builds and sells water production and water treatment infrastructure and manages water infrastructure for commercial and governmental customers. The Company also manufactures a wide range of specialized and custom water industry related products and provides design, engineering, operating and other services applicable to commercial, municipal and industrial water production, supply and treatment. |
Accounting policies
Accounting policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting policies | |
Accounting policies | 2. Accounting policies Basis of preparation: Use of estimates: Basis of consolidation: In January 2023, as a result of CW-Holdings' exercise of a call option in October 2022, CW-Holdings purchased the remaining 39% ownership interest in PERC for $2.4 million in cash, and 368,383 shares of the Company’s common stock having a value of approximately $5.36 million based upon the opening trading price of the Company’s common stock on The Nasdaq Global Market on the date of the transaction. After giving effect to this purchase, CW-Holdings owns 100% of the outstanding capital stock of PERC. In September 2021, Kalaeloa Desalco was formed to pursue a project in Oahu, Hawaii. On June 2, 2023, Kalaeloa Desalco signed a definitive agreement with the Honolulu Board of Water Supply to design, build, operate and maintain a 1.7 million gallons per day seawater reverse osmosis desalination plant in Oahu, Hawaii. Effective October 1, 2023, the Company purchased, through its wholly-owned subsidiary PERC, a 100% ownership interest in Ramey Environmental Compliance, Inc., a Colorado company that operates and maintains water and wastewater treatment facilities and provides technical services to clients throughout the Rocky Mountain and Eastern Plains Regions of Colorado. PERC acquired REC in November 2023 for approximately $4.1 million and recorded goodwill and intangible assets from this acquisition of $2,436,391 and $1,108,390 respectively. Foreign currency: Net foreign currency gains arising from transactions and re-measurements were $84,678 and $41,750 for the years ended December 31, 2023 and 2022, respectively, and are included in “Other income - Other” in the accompanying consolidated statements of income. Cash and cash equivalents: As of December 31, 2023, the Company had deposits in U.S. banks in excess of federally insured limits of approximately $16.9 million. As of December 31, 2023, the Company held cash in foreign bank accounts of approximately $24.2 million. Certain transfers from the Company’s Bahamas bank accounts to Company bank accounts in other countries require the approval of the Central Bank of The Bahamas. The equivalent United States dollar cash balances for deposits held in The Bahamas as of December 31, 2023 and 2022 were approximately $3.0 million and $5.7 million, respectively. Accounts receivable: Trade accounts receivable also represent our unconditional right, subject only to the passage of time, to receive consideration arising from our performance under contracts with customers. Trade accounts receivable include amounts billed and billable on construction contracts, service and maintenance contracts and contracts for the sale of goods. Billed contract receivables have been invoiced to customers based on contracted amounts. Allowance for credit losses : current expected credit losses Past due balances are reviewed individually for collectability. Account balances are charged off against the allowance for credit losses after all means of collection have been exhausted and the potential for recovery is considered by management to be remote. Inventory: Contract assets and liabilities: Billing practices for the Company’s contracts are governed by the contract terms of each project based upon costs incurred, achievement of milestones or predetermined schedules. Billings do not necessarily correlate with revenue, which is recognized over time using the input method based on cost incurred. Contract assets, which include costs and estimated earnings in excess of billings on uncompleted contracts, arise when the Company recognizes revenue for services performed under its construction and manufacturing contracts, but the Company is not yet entitled to bill the customer under the terms of the contract. Contract liabilities, which include billings in excess of costs and estimated earnings on uncompleted contracts, represent the Company's obligation to transfer goods or services to a customer for which the Company has been paid by the customer or for which the Company has billed the customer under the terms of the contract. Revenue for future services reflected in this account is recognized, and the liability is reduced, as the Company subsequently satisfies the performance obligation under the contract. Costs and estimated earnings in excess of billings on uncompleted contracts and billings in excess of costs and estimated earnings on uncompleted contracts are typically resolved within one year and are not considered The Company considers retention that is withheld on progress billings as not creating an unconditional right to payment until contractual milestones are reached (typically substantial completion). Accordingly, withheld retention is considered a component of contracts assets and liabilities until finally billed to the customer, when obligations have been satisfied and the right to receipt is subject only to the passage of time. The Company’s contract assets and liabilities are reported in a net asset or liability position on a contract-by-contract basis at the end of each reporting period. The Company classifies contract assets and liabilities related to construction and manufacturing contracts in current assets and current liabilities as they will be liquidated in the normal course of contract completion, although this may require more than one year. Property, plant and equipment, net: Buildings 5 to 40 years Plant and equipment 4 to 40 years Distribution system 3 to 40 years Office furniture, fixtures and equipment 3 to 10 years Vehicles 3 to 10 years Leasehold improvements Shorter of 5 years or lease term Lab equipment 5 to 10 years Assets under construction are recorded as additions to property, plant and equipment upon completion of the projects. Depreciation commences in the month the asset is placed in service. Additions to construction in progress are comprised of the cost of the contracted services, direct labor and materials. Interest costs directly attributable to the acquisition and construction of qualifying assets, which are assets that necessarily take a substantial amount of time to be ready for their intended use, are added to the cost of those assets until such time as the assets are substantially ready for use. No interest was capitalized during the years ended December 31, 2023 or 2022. Long-lived assets: Goodwill and intangible assets: For the year ended December 31, 2023, the Company elected to assess qualitative factors to determine whether it was necessary to perform the quantitative goodwill impairment testing that was conducted in prior years for the reporting units. The Company assessed the relevant events and circumstances to evaluate whether it is more likely than not that the fair values of such reporting units are less than their carrying values. The events and circumstances assessed for each reporting unit included macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, and other relevant events. Based upon this qualitative assessment, the Company determined that it is more likely than not that the fair values of its reporting units exceeded their carrying values as of December 31, 2023. For the year ended December 31, 2022, the Company elected to assess qualitative factors to determine whether it was necessary to perform the quantitative goodwill impairment testing conducted in prior years for all reporting units other than the manufacturing reporting unit. The Company assessed relevant events and circumstances to evaluate whether it is more likely than not that the fair values of such reporting units are less than their carrying values. The events and circumstances assessed for each reporting unit included macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, and other relevant events. Based upon this qualitative assessment the Company determined that it was more likely than not that the fair values of its Cayman Water and bulk segment reporting units exceeded their carrying values as of December 31, 2022. Based upon the Company’s negotiated, arms-length purchase of the remaining 39% equity interest in PERC from its minority shareholders for $7.8 million in January 2023, the fair value of the Company’s PERC reporting unit exceeded its carrying value by 79% as of December 31, 2022. Due to the factors discussed in the following paragraphs, the Company elected to test the goodwill associated with its manufacturing reporting unit for possible impairment for 2022 using the quantitative tests applied in prior years. Approximately 80% of Aerex’s revenue, and 89% of Aerex’s gross profit, for the year ended December 31, 2020 were generated from sales to one customer. While Aerex sells various products to this customer, Aerex’s revenue from this customer had historically been derived primarily from one specialized product. In October 2020, this customer informed Aerex that, for inventory management purposes, it was suspending its purchases of the specialized product from Aerex following 2020 for a period of approximately one year. This customer informed Aerex at that time that it expected to recommence its purchases of the specialized product from Aerex beginning with the first quarter of 2022. As a result of this anticipated loss of revenue for Aerex, the Company updated its projections for its Manufacturing reporting unit’s future cash flows. Such projections assumed, in part, that Aerex’s major customer would recommence its purchases from Aerex in 2022 but at a reduced aggregate amount, as compared to 2020. Based upon these updated projections, the Company tested its manufacturing reporting unit’s goodwill for possible impairment as of December 31, 2020 using the discounted cash flow and guideline public company methods, with a weighting of 80% and 20% applied to these two methods, respectively. As a result of these impairment tests, the Company determined that the estimated fair value of its manufacturing reporting unit exceeded its carrying value by approximately 31% as of December 31, 2020. In late July 2021, this former major customer communicated to Aerex that it expected to recommence its purchases of the specialized product from Aerex in 2022 and subsequent years, but informed Aerex that such purchases would be at substantially reduced annual amounts, as compared to the amounts it had purchased from Aerex in 2020 and prior years. The Company’s updated sales estimate for this customer based on this new information was substantially below the anticipated sales to this customer for 2022 and subsequent years that the Company used in the discounted cash flow projections it prepared for purposes of testing its Manufacturing reporting unit’s goodwill for possible impairment as of December 31, 2020. Furthermore, Aerex’s efforts to replace the revenue previously generated from this customer with revenue from existing and new customers were adversely impacted by the negative economic conditions (caused in part by the COVID-19 pandemic). These negative economic conditions also increased Aerex’s raw material costs, resulted in raw material shortages and extended delivery times for such materials, and adversely affected the overall financial condition of Aerex’s current and prospective customers. Accordingly, in light of this new information from Aerex’s former major customer, and the on-going weak economic conditions that the Company believed would continue through 2022, the Company updated its projections of future cash flows for the manufacturing reporting unit and tested its goodwill for possible impairment as of June 30, 2021 using the discounted cash flow and guideline public company methods, with a weighting of 80% and 20% applied to these two methods, respectively. Based upon this testing, the Company determined that the carrying value of its manufacturing reporting unit exceeded its fair value by $2.9 million, and the Company recorded an impairment loss to reduce its manufacturing segment’s goodwill by this amount for the three months ended June 30, 2021. For the year ended December 31, 2022, the Company estimated the fair value of its manufacturing reporting unit by applying the discounted cash flow method, which relied upon seven-year discrete projections of operating results, working capital and capital expenditures, along with a terminal value subsequent to the discrete period. These seven-year projections were based upon historical and anticipated future results, general economic and market conditions, and considered the impact of planned business and operational strategies. The discount rates for the calculations represented the estimated cost of capital for market participants at the time of each analysis. The Company also estimated the fair value of its manufacturing reporting unit for the year ended December 31, 2022 by applying the guideline public company method. The Company weighted the fair values estimated for its manufacturing reporting unit under each method and summed such weighted fair values to estimate the overall fair value for the reporting unit. The respective weightings the Company applied to each method for the year ended December 31, 2022 were 80% to the discounted cash flow method and 20% to the guideline public company method. The fair value the Company estimated for its manufacturing reporting unit exceeded its carrying amount by 63% as of December 31, 2022. Investments: Other assets: Income taxes: in income in the period that includes the enactment date. A valuation allowance is provided to the extent any deferred tax asset may not be realized. The Company is not presently subject to income taxes in the other countries in which it operates. Revenue recognition: The following table presents the Company’s revenue disaggregated by revenue source. Year Ended December 31, 2023 2022 Retail revenue $ 30,158,051 $ 25,954,013 Bulk revenue 34,595,058 32,991,066 Services revenue 97,966,650 28,835,428 Manufacturing revenue 17,491,474 6,324,465 Total revenue $ 180,211,233 $ 94,104,972 Services revenue consists of the following: Year Ended December 31, 2023 2022 Construction revenue $ 77,306,704 $ 11,616,274 Operations and maintenance revenue 19,368,365 14,152,158 Design and consulting revenue 1,291,581 3,066,996 Total services revenue $ 97,966,650 $ 28,835,428 Retail revenue The Company produces and supplies water to end-users, including residential, commercial and governmental customers in the Cayman Islands under an exclusive retail license issued to Cayman Water by the Cayman Islands government to provide water in two of the three most populated areas on Grand Cayman. Customers are billed on a monthly basis based on metered consumption and bills are typically collected within 30 to 45 days after the billing date. Receivables not collected within 45 days subject the customer to disconnection from water service. The Company recognizes revenue from water sales at the time water is supplied to the customer’s premises. The amount of water supplied is determined and invoiced based upon water meter readings performed at the end of each month. All retail water contracts are month-to-month contracts. The Company has elected the “right to invoice” practical expedient for revenue recognition on its retail water sale contracts and recognizes revenue in the amount to which the Company has a right to invoice, recognizing this revenue from the transfer of goods or services to customers at a point in time. Bulk revenue The Company produces and supplies water to government-owned utilities in the Cayman Islands and The Bahamas. OC-Cayman provides bulk water to the Water Authority-Cayman (“WAC”), a government-owned utility and regulatory agency, under two agreements. The WAC in turn distributes such water to properties in Grand Cayman outside of Cayman Water’s retail license area. The Company sells bulk water in The Bahamas through its majority-owned subsidiary, CW-Bahamas, under two agreements with the Water and Sewerage Corporation of The Bahamas (“WSC”), which distributes such water through its own pipeline system to residential, commercial and tourist properties on the island of New Providence. The Company has elected the “right to invoice” practical expedient for revenue recognition on its bulk water sale contracts and recognizes revenue in the amount to which the Company has a right to invoice, recognizing this revenue from the transfer of goods or services to customers at a point in time. Services and Manufacturing revenue The Company designs, builds, sells, operates and maintains, and provides consulting services related to water, wastewater and water reuse infrastructure through PERC. All of PERC's customers are companies or governmental entities located in the United States. Effective October 2023, PERC acquired REC, a company that provides operations and maintenance and consulting services to companies and governmental entities located in the United States. The Company also provides design, engineering, management, procurement and construction services for desalination infrastructure through DesalCo, which serves customers in the Cayman Islands, The Bahamas and the British Virgin Islands. The Company, through Aerex, is a custom and specialty manufacturer of systems and products applicable to commercial, municipal and industrial water production and treatment. Substantially all of Aerex’s customers are U.S. companies. The Company generates construction, operations and maintenance, design and consulting revenue from PERC and DesalCo and generates manufacturing revenue from Aerex. The Company also generates operations and maintenance and consulting revenue from REC. The Company recognizes revenue for its construction and custom/specialized manufacturing contracts During the year ended December 31, 2023, the Company adjusted its prior year estimates of the total contract costs for two of its construction contracts. These changes in accounting estimates resulted in an increase in the services segment’s income from operations and the Company’s consolidated net income by $2,356,439 and $1,750,750, respectively, for the year ended December 31, 2023. diluted The Company has elected the “right to invoice” practical expedient for revenue recognition on its operations and maintenance, design and consulting contracts and recognizes revenue in the amount to which the Company has a right to invoice, recognizing this revenue from the transfer of goods or services to customers at a point in time. During the years ended December 31, 2023 and 2022, the Company recognized $77,411,792 and $14,146,271, respectively, of its services revenue from the transfer of goods or services to customers over time. The remaining services revenue of $20,554,858 and $14,689,157, respectively, was recognized from the transfer of goods or services to customers at a point in time. During the years ended December 31, 2023 and 2022, the Company recognized all of its manufacturing revenue from the transfer of goods or services to customers over time. Practical Expedients and Exemptions The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed. Comparative amounts: |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2023 | |
Cash and cash equivalents | |
Cash and cash equivalents | 3. Cash and cash equivalents Cash and cash equivalents are not restricted by the terms of the Company’s bank accounts as to withdrawal or use. As of December 31, 2023 and 2022, the equivalent United States dollars of the Company’s cash and cash equivalents, including those accounts denominated in currencies other than the U.S. dollar, are as follows: December 31, 2023 2022 Bank accounts: United States dollar $ 15,857,612 $ 24,573,161 Cayman Islands dollar 11,826,102 14,956,162 Bahamian dollar 3,025,898 5,698,100 30,709,612 45,227,423 Short-term deposits: United States dollar 8,861,606 2,476,370 Cayman Islands dollar 3,050,680 3,007,958 11,912,286 5,484,328 Total cash and cash equivalents $ 42,621,898 $ 50,711,751 Transfers from the Company’s Bahamas bank accounts to Company bank accounts in other countries require the approval of the Central Bank of The Bahamas. |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Dec. 31, 2023 | |
Accounts receivable, net. | |
Accounts receivable, net | 4. Accounts receivable, net December 31, 2023 2022 Trade accounts receivable $ 38,446,554 $ 27,163,719 Receivable from OC-BVI 41,129 37,293 Other accounts receivable 322,609 28,384 38,810,292 27,229,396 Allowance for credit losses (583,401) (183,214) Accounts receivable, net $ 38,226,891 $ 27,046,182 The activity for the allowance for credit losses consisted of: December 31, 2023 2022 Opening allowance for credit losses $ 183,214 $ 183,020 Provision for credit losses 408,489 — Accounts written off during the year (9,215) (726) Recovery of accounts written off 913 920 Ending allowance for credit losses $ 583,401 $ 183,214 Significant concentrations of credit risk are disclosed in Note 18. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2023 | |
Inventory | |
Inventory | 5. Inventory December 31, 2023 2022 Spare parts stock $ 7,747,455 $ 6,514,333 Raw materials 3,135,357 3,481,486 Consumables stock 166,935 246,355 Water stock 40,666 36,655 Total inventory 11,090,413 10,278,829 Less current portion 6,044,642 5,727,842 Inventory (non-current) $ 5,045,771 $ 4,550,987 |
Contracts in progress
Contracts in progress | 12 Months Ended |
Dec. 31, 2023 | |
Contracts in progress. | |
Contracts in progress | 6. Contracts in progress Revenue recognized and amounts billed on contracts in progress are summarized as follows: December 31, 2023 2022 Revenue recognized to date on contracts in progress $ 108,952,682 $ 25,469,014 Amounts billed to date on contracts in progress (101,724,459) (33,407,182) Retainage 8,087,823 2,047,969 Net contract asset/(liability) $ 15,316,046 $ (5,890,199) The above net balances are reflected in the accompanying consolidated balance sheet as follows: December 31, 2023 2022 Contract assets $ 21,553,057 $ 2,913,722 Contract liabilities (6,237,011) (8,803,921) Net contract asset/(liability) $ 15,316,046 $ (5,890,199) The significant increase in contract assets from December 31, 2022 to December 31, 2023 is attributable to the construction contract with the WAC for the Red Gate plant in Grand Cayman and the construction contract with Liberty Utilities for a water treatment facility in Arizona. During the year ended December 31, 2023, the Company adjusted its prior year estimates of the total contract costs for two of its construction contracts. These changes in accounting estimates resulted in an increase in the services segment’s income from operations and the Company’s consolidated net income by $2,356,439 and $1,750,750, respectively, for the year ended December 31, 2023. This adjustment increased basic and diluted As of December 31, 2023, the Company had unsatisfied or partially unsatisfied performance obligations for contracts in progress representing approximately $162.2 million in aggregate transaction price for contracts with an original expected length of greater than one year. The Company expects to earn revenue as it satisfies its performance obligations under those contracts in the amount of approximately $22.2 million during the year ending December 31, 2024 and $140 million thereafter. In addition, the Company recognized revenue of approximately $8.7 million in the year ended December 31, 2023, that was included in the contract liability balance as of December 31, 2022. |
Property, plant and equipment a
Property, plant and equipment and construction in progress | 12 Months Ended |
Dec. 31, 2023 | |
Property, plant and equipment and construction in progress | |
Property, plant and equipment and construction in progress | 7. Property, plant and equipment and construction in progress December 31, 2023 2022 Land $ 6,488,400 $ 6,488,400 Buildings 26,044,551 23,280,880 Plant and equipment 66,000,977 64,532,994 Distribution system 39,546,175 39,544,395 Office furniture, fixtures and equipment 3,338,760 3,109,546 Vehicles 3,433,561 2,525,576 Leasehold improvements 306,545 287,980 Lab equipment 12,456 12,456 145,171,425 139,782,227 Less accumulated depreciation 89,288,904 87,252,682 Property, plant and equipment, net $ 55,882,521 $ 52,529,545 Construction in progress $ 495,471 $ 3,705,681 As of December 31, 2023, the Company had outstanding capital commitments of approximately $455,000. The Company maintains insurance for loss or damage to all fixed assets that it deems susceptible to loss. During the years ended December 31, 2023 and 2022, $7,093,158 and $297,723, respectively, of construction in progress was placed in service. Depreciation expense was $5,823,008 and $5,425,177 for the years ended December 31, 2023 and 2022 , |
Discontinued operations
Discontinued operations | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued operations | |
Discontinued operations - Mexico project development | 8. Discontinued operations – Mexico project development In 2010, the Company began the pursuit, through its Netherlands subsidiary, Consolidated Water Cooperatief, U.A. (“CW-Cooperatief”), and its Mexico subsidiary, N.S.C. Agua, S.A. de C.V. (“NSC”), of a project (the “Project”) that encompassed the construction, operation and minority ownership of a 100 million gallon per day seawater reverse osmosis desalination plant to be located in northern Baja California, Mexico and accompanying pipelines to deliver water to the Mexican potable water system. Through a series of transactions that began in 2012, NSC purchased 20.1 hectares of land for approximately $21.1 million on which the proposed Project’s plant was to be constructed. Following an assessment by the State of Baja, California (the “State”) of the need for such a desalination plant and the passage of enabling legislation in November 2015, the State officially commenced the required public tender for the Project. A consortium (the “Consortium”) comprised of NSC, Suez Medio Ambiente México, S.A. de C.V. (“Suez MA”), a subsidiary of SUEZ International, S.A.S., and NuWater S.A.P.I. de C.V. (“NuWater”) submitted its tender for the Project in April 2016 and in June 2016, the State designated the Consortium as the winner of the tender process for the Project. In August 2016, NSC and NuWater incorporated a new company under the name Aguas de Rosarito S.A.P.I. de C.V. (“AdR”) to pursue completion of the Project and executed a shareholders agreement for AdR agreeing among other things that (i) AdR would purchase the land and other Project assets from NSC on the date that the Project begins commercial operation and (ii) AdR would enter into a Management and Technical Services Agreement with NSC effective on the first day that the Project begins commercial operation. NSC initially owned 99.6% of the equity of AdR. In February 2018, CW-Holdings acquired the remaining 0.4% ownership in AdR from NuWater. On August 22, 2016, the Public Private Partnership Agreement for the Project (the “APP Contract”) was executed between AdR, the State Water Commission of Baja California (“CEA”), and the Government of Baja California, as represented by the Secretary of Planning and Finance and the Public Utilities Commission of Tijuana (“CESPT”). The APP Contract required AdR to design, construct, finance and operate a seawater reverse osmosis desalination plant (and accompanying aqueduct) with a capacity of up to 100 million gallons per day in two phases: the first with a capacity of 50 million gallons per day and an aqueduct to the Mexican public water system in Tijuana, Baja California and the second phase with a capacity of 50 million gallons per day. The first phase was to be operational within 36 months of commencing construction and the second phase was to be operational by January 2025. The APP Contract further required AdR to operate and maintain the plant and aqueduct for a period of 37 years starting from the commencement of operation of the first phase. At the end of the operating period, the plant and aqueduct would have been transferred to CEA. The APP Contract was subsequently amended by the parties in June 2018 to increase the scope of Phase 1 and to allow for changes in the water tariff due to the changes in the exchange rate for the peso, interest rates and construction costs that had and would occur from the date the APP Contract was signed to the date construction commenced. On June 29, 2020, AdR received a letter (the “Letter”) from the Director General of CEA and the Director General of CESPT terminating the APP Contract. The Letter requested that AdR provide an inventory of the assets that currently comprise the “Project Works” (as defined in the APP Contract) for the purpose of acknowledging and paying the non-recoverable expenses made by AdR in connection with the Project, with such reimbursement to be calculated in accordance with the terms of the APP Contract. The applicable law required that this list of non-recoverable expenses made by AdR in connection with the Project be submitted to CEA and CESPT within 20 business days from the date of receipt of the Letter. AdR initiated an amparo claim before a federal district court in Tijuana, Baja California, to challenge the provision of the applicable law requiring submittal of the list of non-recoverable expenses within the 20 business days term, as AdR considered such term to be unreasonably short due to the magnitude of the Project and the scope of supporting documentation required to be provided with respect to the non-recoverable expenses. AdR obtained an initial provisional suspension of the lapsing of such 20-day term from the court, and on August 10, 2020 the court made such suspension definitive until the completion of the amparo trial. As such, the 20-day term for filing the list of non-recoverable expenses was suspended. Therefore, on August 28, 2020, AdR submitted their list of non-recoverable expenses, including those of NSC, to CEA and CESPT which was comprised of 51,144,525 United States dollars and an additional 137,333,114 Mexican pesos. In February 2021, AdR withdrew this amparo claim, and such withdrawal was accepted by the federal district court in Tijuana. To date, AdR has not received a formal response from CEA or CESPT to its submission of non-recoverable expenses. The Company believes CW-Cooperatief, as a Netherlands company, has certain rights relating to its investments in NSC and AdR under the Agreement on Promotion, Encouragement and Reciprocal Protection of Investments between the Kingdom of the Netherlands and the United Mexican States On February 9, 2022, CW-Cooperatief, filed a Request for Arbitration with the International Centre for Settlement of International Disputes requesting that the United Mexican States pay CW-Cooperatief damages in excess of US$51 million plus MXN$137 million (with the exact amount to be quantified in the proceedings), plus fees, costs and pre- and post-award interest. CW-Cooperatief intends to pursue vigorously the relief sought in the arbitration, in addition to pursuing all other legal remedies and courses of action available under the operative contracts and applicable law with respect to their rights, damages, fees and expenses. The Company cannot provide any assurances that CW-Cooperatief will be able to obtain the relief sought in the arbitration, and the Company has incurred and will continue to incur legal and other arbitration-related expenses that are material to its consolidated results of operations and cash flows. During July 2022, the State initiated discussions with the Company to potentially resolve the issues related to the cancellation by the government of the Rosarito desalination plant contract as well as potentially addressing the State’s acute water shortage issues. The Company cannot presently determine the outcome of the discussions and the Company has not terminated its efforts to obtain relief through the international arbitration process as a result of these discussions. The Company cannot provide any assurances that it will be able to obtain reimbursement for any expenses or investments made with respect to the Project. As a result of the cancellation of the APP Contract, in 2020 the Company discontinued all development activities associated with the Project and commenced active marketing efforts to sell the land NSC purchased for the Project. Accordingly, the assets and liabilities of CW-Cooperatief, NSC and AdR, as well as the costs for legal and administrative activities to pursue reimbursement from the State of Baja California following the cancellation of the APP Contract, have been classified as discontinued operations in the accompanying consolidated financial statements. The Company’s net losses from discontinued operations for the years ended December 31, 2023 and 2022 were ($1,086,744) and ($2,371,049), respectively. Summarized financial information for the discontinued Mexico project development operation is as follows: December 31, 2023 2022 Cash $ 91,283 $ 442,252 Accounts receivable — 12,675 Prepaid expenses and other current assets 120,234 76,553 Land 21,126,898 21,126,898 Other assets 2,390 2,390 Total assets of discontinued operations $ 21,340,805 $ 21,660,768 Total liabilities of discontinued operations $ 364,665 $ 389,884 Year Ended December 31, 2023 2022 Revenue $ — $ — Loss from discontinued operations $ 1,086,744 $ 2,371,049 Depreciation expense $ — $ — Mexico Project litigation a) EWG request of precautionary measures In January 2018, EWG Water LLC (“EWG”) initiated an ordinary mercantile claim against, among others, N.S.C. Agua, S.A. de C.V. (“NSC”) and Consolidated Water Cooperatief, U.A. (“CW-Cooperatief”) (with Aguas de Rosarito S.A.P.I. de C.V. (“AdR”) being named as a third party to be called to trial) before the Tenth Civil Judge in Tijuana, Baja California for Mercantile Matters (the “Tenth Civil Judge”). In such claim, EWG challenged, among other things, the transactions contemplated under a certain option agreement (entered into in 2012), and therefore, the capital investment transactions occurring in May 2013 that increased the ownership interest of CW-Cooperatief in NSC to 99.99%. On October 1, 2020, and following an order from a Federal Judge obtained by NSC, the Tenth Civil Judge resolved to (i) move the claim of EWG to arbitration, and (ii) suspend the corresponding ordinary mercantile procedure. Within the above-mentioned claim, the Tenth Civil Judge granted EWG certain preliminary measures against NSC, which were later overturned by an Upper Court. In July 2023, EWG filed a motion before a local court in Playas de Rosarito, Baja California (the “Rosarito Court”) to obtain precautionary measures consisting of the securing of assets owned by NSC (particularly real estate), as a procedure prior to the commencement of an arbitration that allegedly would be initiated by EWG against NSC to claim the payment of an indemnification for damages derived from a so-called simulation of legal acts. In the opinion of the Rosarito Court, such motion did not require notification to NSC or the presentation of counterarguments by NSC to the motion prior to securing the assets of NSC. On July 28, 2023, the Rosarito Court issued a resolution in which it: (i) granted the precautionary measures requested by EWG, subject to the posting of a bond in the amount of MXN$1,500,000 (One Million Five Hundred Thousand Mexican Pesos), and (ii) ordered that once the precautionary measures were executed, EWG would have three business days counted as from the posting of the bond, to initiate and prove to the Rosarito Court that it initiated the arbitration. To the Company’s knowledge EWG has not posted the bond. Consequently, NSC has not been summoned to an arbitration procedure. As EWG has apparently not posted the bond set by the Rosarito Court (i) the precautionary measures have not been enforced, (ii) no securing or attachment has been registered against the real estate of NSC; and (iii) NSC has not been formally summoned to this procedure. As stated previously, NSC is unaware of any arbitration commenced by EWG regarding this matter. b) NSC amparo lawsuit On August 16, 2023, NSC filed an amparo suit (i.e. application for constitutional relief) before the Eleventh Federal District Court in Tijuana (“Federal District Court in Tijuana”) against the precautionary measures granted to EWG by the Rosarito Court. In its amparo suit, NSC also requested the Federal District Court in Tijuana to grant an order to put on hold said precautionary measures. A preliminary order to stay was granted by the Federal District Court in Tijuana, followed by a definitive injunction, subject to the posting of a guarantee. NSC has submitted the guarantee to the court. NSC subsequently filed an extension of the amparo suit introducing new arguments aiming to strengthen NSC´s position. The amparo extension was admitted through a resolution published on November 7, 2023. The Federal District Court in Tijuana has not been able to summon EWG on this amparo suit, as it has not been able to determine nor obtain information on an address where EWG can be summoned. As such, the Federal District Court in Tijuana has requested various authorities to provide information on any domicile where EWG can be summoned. The responses of some authorities are in process of being received by the Federal District Court in Tijuana. NSC is waiting until all the authorities provide their official response to determine if there is a viable alternative for summoning EWG. NSC offered certain evidence consisting of the docket of amparo file number 74/2020, which was processed by the Twelfth Civil District Court in Tijuana. The Amparo Law provides that any documentary evidence offered by the parties shall be issued without any cost. Therefore, NSC requested the Court to grant the expedition of said copies for free. However, this request was denied by the Federal District Court in Tijuana. Therefore, NSC filed an appeal for review against said decision, which was admitted by the Federal District Court in Tijuana and sent to the Second Collegiate Circuit Court in Tijuana, acting as Court of Appeals, which confirmed the admission of the appeal remedy through a resolution published on January 26, 2024. The judgment is still pending resolution. The Company cannot presently determine what impact the resolution of this matter may have on its consolidated financial statements. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets | |
Intangible assets | 9. Intangible assets The Company’s purchase transactions for Aerex and PERC identified certain intangible assets. The remaining intangible assets and their respective useful lives are as follows: trade names ( 15 years Effective October 2023, the Company purchased a 100% ownership interest in REC. The purchase transaction identified certain intangible assets with a fair value of $1,108,390 and useful lives as follows: non-compete (5 years), trade name (15 years) and customer relationships (15 years). The costs and accumulated amortization for these assets were as follows: December 31, 2023 2022 Cost Non-compete agreements $ 268,590 $ — Trade names 3,096,900 2,700,000 Customer relationships 442,900 — Facility management contracts 2,200,000 2,200,000 6,008,390 4,900,000 Accumulated amortization Non-compete agreements (13,430) — Trade names (1,106,615) (920,000) Customer relationships (7,382) — Facility management contracts (1,527,778) (1,161,112) (2,655,205) (2,081,112) Intangible assets, net $ 3,353,185 $ 2,818,888 Amortization of intangible assets for each of the next five years and thereafter is expected to be as follows: 2024 $ 656,371 2025 595,260 2026 289,705 2027 289,705 2028 276,275 Thereafter 1,245,869 $ 3,353,185 Amortization expense was $574,093 and $582,778 for the years ended December 31, 2023 and 2022, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Leases | 10. Leases The Company’s leases consist primarily of leases for office and warehouse space. For leases with terms greater than twelve months, the related asset and obligation are recorded at the present value of the lease payments over the term. Many of these leases contain rental escalation clauses which are factored into the determination of the lease payments when appropriate. When available, the lease payments are discounted using the rate implicit in the lease; however, the Company’s current leases do not provide a readily determinable implicit rate. Therefore, the Company’s incremental borrowing rate is estimated to discount the lease payments based on information available at the lease commencement. These leases contain both lease and non-lease components, which the Company has elected to treat as a single lease component. The Company elected not to recognize leases that have an original lease term, including reasonably certain renewal or purchase obligations, of twelve months or less in its consolidated balance sheets for all classes of underlying assets. Lease costs for such short-term leases are expensed on a straight-line basis over the lease term. All lease assets denominated in a foreign currency are measured using the exchange rate at the commencement of the lease. All lease liabilities denominated in a foreign currency are remeasured using the exchange rate as of the consolidated balance sheet date. Lease assets and liabilities The following table presents the lease-related assets and liabilities and their respective classification on the consolidated balance sheets: December 31, December 31, 2023 2022 ASSETS Current Prepaid expenses and other current assets $ 110,541 $ 35,624 Current assets of discontinued operations — 7,979 Noncurrent Operating lease right-of-use assets 2,135,446 2,058,384 Total lease right-of-use assets $ 2,245,987 $ 2,101,987 LIABILITIES Current Current maturities of operating leases $ 456,865 $ 546,851 Current liabilities of discontinued operations — 7,361 Noncurrent Noncurrent operating leases 1,827,302 1,590,542 Total lease liabilities $ 2,284,167 $ 2,144,754 Weighted average remaining lease term: Operating leases 6.1 years 6.6 years Operating leases - discontinued operations 0.0 years 0.8 years Weighted average discount rate: Operating leases 5.67% 5.11% Operating leases - discontinued operations 0.00% 4.96% The components of lease costs were as follows: Year Ended December 31, 2023 2022 Operating lease costs $ 751,261 $ 692,404 Short-term lease costs 217,640 100,975 Lease costs - discontinued operations 45,979 40,021 Total lease costs $ 1,014,880 $ 833,400 Supplemental cash flow information related to leases is as follows: Year Ended December 31, 2023 2022 Cash paid for amounts included in measurement of liabilities: Operating cash outflows for operating leases $ 760,847 $ 742,696 Operating cash outflows for operating leases - discontinued operations 11,337 9,590 Future lease payments relating to the Company's operating lease liabilities from continuing operations as of December 31, 2023 are as follows: Years ending December 31, Total 2024 $ 580,780 2025 462,990 2026 379,019 2027 336,597 2028 341,687 Thereafter 639,928 Total future lease payments 2,741,001 Less: imputed interest (456,834) Total lease obligations 2,284,167 Less: current obligations (456,865) Noncurrent lease obligations $ 1,827,302 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income taxes | |
Income taxes | 11. Income taxes The components of income before income taxes for the years ended December 31, 2023 and 2022 are as follows: Year Ended December 31, 2023 2022 Foreign (not subject to income taxes) $ 10,002,233 $ 6,958,583 Mexico (742,367) (987,279) United States 27,649,330 1,394,642 36,909,196 7,365,946 Discontinued operations 1,086,744 2,371,049 $ 37,995,940 $ 9,736,995 The Company’s provision for (benefit from) income taxes for the years ended December 31, 2023 and 2022, which related to U.S. operations, consisted of the following: Year Ended December 31, 2023 2022 Current: Federal $ 5,611,360 $ 430,116 State 1,663,653 (29,157) Foreign — — Total current income tax expense (benefit) 7,275,013 400,959 Deferred: Federal (276,070) (184,469) State (248,929) 180,249 Foreign — — Total deferred income tax expense (benefit) (524,999) (4,220) Total provision for (benefit from) income taxes $ 6,750,014 $ 396,739 A reconciliation of the U.S. statutory federal tax rate to the effective rate for the years ended December 31, 2023 and 2022 is as follows: Year Ended December 31, 2023 2022 U.S. statutory federal rate 21.00 % 21.00 % State taxes, net of federal effect 2.88 % 8.88 % Foreign rate differential (5.71) % (25.57) % Research and development tax credit — % (1.92) % Permanent items (0.32) % (0.70) % Change in valuation allowance (0.08) % 2.38 % 17.77 % 4.07 % The tax effects of significant items comprising the Company’s net long-term deferred tax liability as of December 31, 2023 and 2022 were as follows: December 31, 2023 2022 Continuing Operations Deferred tax assets: Research and development credit carryforwards $ — $ 58,069 Net operating loss carryforwards 130,911 443,076 Accruals and reserves 146,057 82,503 Operating lease liabilities 501,397 412,840 Capitalized research expenditures 326,178 — Others 29,094 — Valuation allowances — (29,036) 1,133,637 967,452 Deferred tax liabilities: Property and equipment 325,473 293,195 Intangible assets 847,450 821,723 Operating lease right-of-use assets 491,494 412,840 1,664,417 1,527,758 Net deferred tax liabilities $ (530,780) $ (560,306) Discontinued Operations Deferred tax assets: Operating loss carryforwards - Mexico $ 5,844,847 $ 5,378,177 Land basis difference - Mexico 2,818,663 2,163,681 Start-up costs - Mexico 7,015,484 4,274,858 Valuation allowances (15,678,994) (11,816,716) $ — $ — As of December 31, 2023, continuing operations has a federal net loss carryforward of $0.6 million and a state net loss carryforward of $0.3 million, both of which have an indefinite expiration date. Discontinued operations has a net loss carryforward of $19.5 million that will begin to expire, if unused, in various amounts between 2024 and 2033. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per share | |
Earnings per share | 12. Earnings per share Earnings per share (“EPS”) is computed on a basic and diluted basis. Basic EPS is computed by dividing net income (less preferred stock dividends) available to common stockholders by the weighted average number of common shares outstanding during the period. The computation of diluted EPS assumes the issuance of common shares for all potential common shares outstanding during the reporting period and, if dilutive, the effect of stock options as computed under the treasury stock method. The following summarizes information related to the computation of basic and diluted EPS: Year Ended December 31, 2023 2022 Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders $ 30,672,135 $ 8,227,343 Less: preferred stock dividends (15,513) (11,532) Net income from continuing operations available to common shares in the determination of basic earnings per common share 30,656,622 8,215,811 Loss from discontinued operations (1,086,744) (2,371,049) Net income available to common shares in the determination of basic earnings per common share $ 29,569,878 $ 5,844,762 Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders 15,739,056 15,290,509 Plus: Weighted average number of preferred shares outstanding during the period 39,885 31,885 Potential dilutive effect of unexercised options and unvested stock grants 86,956 79,259 Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders 15,865,897 15,401,653 |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2023 | |
Dividends. | |
Dividends | 13. Dividends Interim dividends declared on Class A common stock and redeemable preferred stock for each quarter of the respective years ended December 31, 2023 and 2022 were as follows: 2023 2022 First Quarter $ 0.085 $ 0.085 Second Quarter 0.085 0.085 Third Quarter 0.095 0.085 Fourth Quarter 0.095 0.085 $ 0.36 $ 0.34 |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2023 | |
Segment information | |
Segment information | 14. Segment information The Company has four reportable segments: retail, bulk, services and manufacturing. The retail segment operates the water utility for the Seven Mile Beach and West Bay areas of Grand Cayman pursuant to an exclusive license granted by the Cayman Islands government. The bulk segment supplies potable water to government utilities in Grand Cayman and The Bahamas under long-term contracts. The services segment designs, constructs and sells water infrastructure and provides management and operating services to third parties. The manufacturing segment manufactures and services a wide range of custom and specialized water-related products applicable to commercial, municipal and industrial water production, supply and treatment. Consistent with prior periods, the Company records all non-direct general and administrative expenses in its retail segment and does not allocate any of these non-direct expenses to its other three business segments. The accounting policies of the segments are consistent with those described in Note 2. The Company evaluates each segment’s performance based upon its income (or loss) from operations. All intercompany transactions are eliminated for segment presentation purposes. The Company’s segments are strategic business units that are managed separately because each segment sells different products and/or services, serves customers with distinctly different needs and generates different gross profit margins. Year Ended December 31, 2023 Retail Bulk Services Manufacturing Total Revenue $ 30,158,051 $ 34,595,058 $ 97,966,650 $ 17,491,474 $ 180,211,233 Cost of revenue 13,891,229 24,128,132 66,797,762 13,467,005 118,284,128 Gross profit 16,266,822 10,466,926 31,168,888 4,024,469 61,927,105 General and administrative expenses 16,905,010 1,737,264 4,271,808 1,838,284 24,752,366 Gain (loss) on asset dispositions and impairments, net (22,065) 12,720 — 2,233 (7,112) Income (loss) from operations $ (660,253) $ 8,742,382 $ 26,897,080 $ 2,188,418 37,167,627 Other income, net 828,313 Income before income taxes 37,995,940 Provision for income taxes 6,750,014 Net income from continuing operations 31,245,926 Income from continuing operations attributable to non-controlling interests 573,791 Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders 30,672,135 Loss from discontinued operations (1,086,744) Net income attributable to Consolidated Water Co. Ltd. stockholders $ 29,585,391 Depreciation and amortization expenses for the year ended December 31, 2023 for the retail, bulk, services and manufacturing segments were $2,484,845, $3,032,902, $785,347 and $273,360, respectively. As of December 31, 2023 Retail Bulk Services Manufacturing Total Accounts receivable, net $ 3,425,948 $ 26,965,126 $ 6,802,780 $ 1,033,037 $ 38,226,891 Inventory, current and non-current $ 3,041,460 $ 4,858,324 $ 55,272 $ 3,135,357 $ 11,090,413 Contract assets $ — $ — $ 17,715,872 $ 3,837,185 $ 21,553,057 Property, plant and equipment, net $ 32,809,487 $ 20,370,056 $ 1,143,884 $ 1,559,094 $ 55,882,521 Construction in progress $ 380,436 $ — $ — $ 115,035 $ 495,471 Intangibles, net $ — $ — $ 2,692,074 $ 661,111 $ 3,353,185 Goodwill $ 1,170,511 $ 1,948,875 $ 7,756,807 $ 1,985,211 $ 12,861,404 Total segment assets $ 58,774,647 $ 63,956,725 $ 58,476,773 $ 15,888,642 $ 197,096,787 Assets of discontinued operations $ 21,340,805 Total assets $ 218,437,592 Year Ended December 31, 2022 Retail Bulk Services Manufacturing Total Revenue $ 25,954,013 $ 32,991,066 $ 28,835,428 $ 6,324,465 $ 94,104,972 Cost of revenue 12,548,763 23,032,212 22,973,634 5,195,240 63,749,849 Gross profit 13,405,250 9,958,854 5,861,794 1,129,225 30,355,123 General and administrative expenses 14,552,866 1,570,732 3,461,294 1,485,342 21,070,234 Gain (loss) on asset dispositions and impairments, net (39,397) 5,607 23,717 (2,631) (12,704) Income (loss) from operations $ (1,187,013) $ 8,393,729 $ 2,424,217 $ (358,748) 9,272,185 Other income, net 464,810 Income before income taxes 9,736,995 Provision for income taxes 396,739 Net income from continuing operations 9,340,256 Income from continuing operations attributable to non-controlling interests 1,112,913 Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders 8,227,343 Loss from discontinued operations (2,371,049) Net income attributable to Consolidated Water Co. Ltd. stockholders $ 5,856,294 Depreciation and amortization expenses for the year ended December 31, 2022 for the retail, bulk, services and manufacturing segments were $2,391,603, $2,836,794, $674,508 and $284,403, respectively. As of December 31, 2022 Retail Bulk Services Manufacturing Total Accounts receivable, net $ 2,953,927 $ 16,554,940 $ 5,838,721 $ 1,698,594 $ 27,046,182 Inventory, current and non-current $ 2,759,659 $ 4,037,684 $ — $ 3,481,486 $ 10,278,829 Contract assets $ — $ — $ 1,249,069 $ 1,664,653 $ 2,913,722 Property, plant and equipment, net $ 27,697,490 $ 22,510,658 $ 759,409 $ 1,561,988 $ 52,529,545 Construction in progress $ 3,643,889 $ — $ — $ 61,792 $ 3,705,681 Intangibles, net $ — $ — $ 2,064,444 $ 754,444 $ 2,818,888 Goodwill $ 1,170,511 $ 1,948,875 $ 5,320,416 $ 1,985,211 $ 10,425,013 Total segment assets $ 65,853,789 $ 56,118,243 $ 36,319,078 $ 13,054,971 $ 171,346,081 Assets of discontinued operations $ 21,660,768 Total assets $ 193,006,849 Revenue earned by major geographic region was: Year ended December 31, 2023 2022 Cayman Islands $ 41,728,340 $ 30,375,985 The Bahamas 31,221,633 29,943,615 United States 106,768,621 33,338,466 Revenue earned from management services agreement with OC-BVI 492,639 446,906 $ 180,211,233 $ 94,104,972 Revenue earned from major customers was: Year ended December 31, 2023 2022 Revenue earned from the WSC $ 31,221,633 $ 29,943,615 Percentage of consolidated revenue earned from the WSC 17% 32% Revenue earned from one service segment customer $ 64,149,170 $ 11,805,752 Percentage of consolidated revenue earned from the one service segment customer 36% 13% Property, plant and equipment, net by major geographic region was: December 31, 2023 2022 Cayman Islands $ 32,902,949 $ 28,068,156 The Bahamas 20,039,049 22,031,690 United States 2,940,523 2,429,699 $ 55,882,521 $ 52,529,545 |
Cost of revenues and general an
Cost of revenues and general and administrative expenses | 12 Months Ended |
Dec. 31, 2023 | |
Cost of revenues and general and administrative expenses | |
Cost of revenues and general and administrative expenses | 15. Cost of revenue and general and administrative expenses Year Ended December 31, 2023 2022 Cost of revenue consist of: Subcontractor and other project costs $ 64,806,072 $ 17,847,124 Employee costs 18,935,014 14,036,117 Electricity 9,502,666 6,975,129 Fuel oil 9,024,836 10,203,690 Depreciation 5,632,998 5,261,463 Maintenance 2,992,872 2,786,258 Insurance 2,061,497 1,782,333 Retail license royalties 1,842,924 1,590,250 Other 3,485,249 3,267,485 $ 118,284,128 $ 63,749,849 Year Ended December 31, 2023 2022 General and administrative expenses consist of: Employee costs $ 13,690,152 $ 11,209,635 Professional fees 2,012,092 1,760,279 Insurance 1,903,856 2,067,625 Directors’ fees and expenses 980,759 991,592 Office rent 882,686 793,380 Amortization of intangible assets 574,093 582,778 Investor relations 534,979 354,158 Business development expenses 578,086 395,660 Provision for credit losses 408,489 — Computer supplies, software licenses 387,335 322,310 Bank charges 341,263 490,237 Depreciation 190,010 163,714 Other 2,268,566 1,938,866 $ 24,752,366 $ 21,070,234 |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Dec. 31, 2023 | |
Stock-based compensation | |
Stock-based compensation | 16. Stock-based compensation The Company has the following stock compensation plans that form part of its employees’ and Directors’ remuneration: Employee Share Incentive Plan (Preferred Stock) Employees (i.e., other than Directors and Officers), after four seven days 30 days th Employee Share Option Plan (Common Stock Options) The Company has an employee stock option plan for four long-serving employees of the Company. Under the plan, these employees are granted in each calendar year, as long as the employee is a participant in the Employee Share Incentive Plan, options to purchase common shares. The price at which the option may be exercised is the closing market price on the grant date, which is the 40 th th The fair value of each option award is estimated on the date of grant using a Black-Scholes option-pricing model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding. The Company uses historical data to estimate stock option exercises and forfeitures within its valuation model. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. 2008 Equity Incentive Plan On May 14, 2008, the Company’s stockholders approved the 2008 Equity Incentive Plan (the “2008 Plan”) and reserved 1,500,000 shares of the Company’s Class A common shares for issuance under this plan. All Directors, executives and key employees of the Company or its affiliates are eligible for participation in the 2008 Plan which provides for the issuance of options, restricted stock and stock equivalents at the discretion of the Board. The Company measures and recognizes compensation expense at fair value for all share-based payments, including stock options. Stock-based compensation for the Employee Share Incentive Plan, Employee Share Option Plan and the 2008 Equity Incentive Plan totaled $703,289 and $386,260 for the years ended December 31, 2023 and 2022, respectively, and is included in general and administrative expenses in the accompanying consolidated statements of income. The significant weighted average assumptions for the years ended December 31, 2023 and 2022 were as follows: 2023 2022 Risk free interest rate 5.06 % 1.64 % Expected option life (years) 1.0 1.2 Expected volatility 42.42 % 47.15 % Expected dividend yield 1.60 % 2.35 % A summary of the Company’s stock option activity for the year ended December 31, 2023 is as follows: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Life (Years) Value (1) Outstanding at beginning of period 11,740 $ 13.59 Granted 16,319 13.62 Exercised (8,231) 12.12 Forfeited/expired (7,653) 11.28 Outstanding as of December 31, 2023 12,175 $ 16.08 2.29 years $ 237,705 Exercisable as of December 31, 2023 — $ — — years $ — (1) The intrinsic value of a stock option represents the amount by which the fair value of the underlying stock, measured by reference to the closing price of the common shares of $ 35.60 on the Nasdaq Global Select Market on December 31, 2023, exceeds the exercise price of the option. As of December 31, 2023, 12,175 non-vested options were outstanding, with weighted average exercise price of $16.08, and average remaining contractual life of 2.29 years. The total remaining unrecognized compensation costs related to unvested stock-based arrangements were $14,867 as of December 31, 2023 and are expected to be recognized over a weighted average period of 2.29 years. The following table summarizes the weighted average fair value of options at the date of grant and the intrinsic value of options exercised during the years ended December 31, 2023 and 2022: 2023 2022 Options granted with an exercise price below market price on the date of grant: Employees — preferred stock $ 12.21 $ 5.58 Overall weighted average 12.21 5.58 Options granted with an exercise price at market price on the date of grant: Management employees $ — $ — Employees — common stock 8.29 4.32 Overall weighted average 8.29 4.32 Options granted with an exercise price above market price on the date of grant: Management employees $ — $ — Employees — preferred stock — — Overall weighted average — — Total intrinsic value of options exercised $ 104,559 $ 17,158 Senior Management Long-Term Incentive Compensation The Board of Directors has established the long-term incentive compensation for the Company’s senior management to better align the interests of its senior management with those of its shareholders. The long-term compensation plan includes a combination of performance and non-performance-based grants of common stock from the shares of Company stock provided for issuance under the 2008 Equity Incentive Plan. The non-performance-based stock grant rights, which are issued on January 1 of each year, vest in one-third increments at the end of each year over a three-year period. The number of non-performance-based stock grant rights issued on January 3, 2023 and 2022 were 29,508 and 32,265, respectively. These stock grant rights vest in one-third increments over the three-year The performance-based grants may be earned at the end of each year based upon the Company's three-year cumulative financial performance relative to three-year cumulative financial performance targets. The Company recognized $522,925 and $335,964 in stock-based compensation for the year ended December 31, 2023 and 2022, respectively, related to these grants. A total of 26,742 stock grant rights were earned as of December 31, 2023 based upon the Company’s actual financial performance relative to the cumulative financial performance targets for the three-year period ended December 31, 2023 The shares associated with these grants will be issued in 2024. A total of 13,797 stock grant rights were earned as of December 31, 2022 based upon the Company’s actual financial performance relative to the cumulative financial performance targets for the three Non-Executive Directors’ Share Plan This stock grant plan provides part of the Directors’ remuneration. Under this plan, non-Executive Directors receive a combination of cash and common stock for their participation in Board meetings. The number of shares of common stock granted is calculated based upon the market price of the Company’s common stock on October 1 of the year preceding the grant. Common stock granted under this plan during the years ended December 31, 2023 and 2022 totaled 22,831 and 30,767 shares, respectively. The Company recognized stock-based compensation for these share grants of $341,394 and $369,678 for the years ended December 31, 2023 and 2022, respectively. |
Retirement benefits
Retirement benefits | 12 Months Ended |
Dec. 31, 2023 | |
Retirement benefits | |
Retirement benefits | 17. Retirement benefits Retirement plans are offered to all employees in California, Florida, Colorado, the Cayman Islands and The Bahamas. The plans are administered by third parties and are defined contribution plans pursuant to which the Company matches participating employees’ contributions up to certain amounts. The Company’s expense for these plans was $771,616 and $624,798 for the years ended December 31, 2023 and 2022, respectively. |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2023 | |
Financial instruments | |
Financial instruments | 18. Financial instruments Credit risk: The Company is not exposed to significant credit risk on its retail customer accounts as its policy is to cease supply of water to customers’ accounts that are more than 45 days Interest rate risk: The Company is not subject to significant interest rate risk arising from fluctuations in interest rates. Foreign exchange risk: All relevant foreign currencies other than the Mexican peso and the euro have been fixed to the dollar for more than 20 years Fair values: As of December 31, 2023 and 2022, the carrying amounts of cash equivalents, accounts receivable, accounts payable, accrued expenses, accrued compensation, dividends payable and other current liabilities approximate their fair values due to the short-term maturities of these instruments. Under US GAAP, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. US GAAP guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. The Company reviews its fair value hierarchy classifications on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. As of December 31, 2023 and 2022, the Company does not have assets and liabilities measured at fair value to present in the fair value hierarchy. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and contingencies. | |
Commitments and contingencies | 19. Commitments and contingencies Commitments The Company has entered into employment agreements with certain executives, which expire through December 31, 2026 and provide for, among other things, base annual salaries in an aggregate amount of approximately $5.5 million, performance bonuses and various employee benefits. The Company has purchase obligations totaling approximately $16.6 million through December 31, 2024. Contingencies Cayman Water The Company sells water through its Cayman Water retail operations under a license issued in July 1990 by the Cayman Islands government (the “1990 license”) that granted Cayman Water the exclusive right to provide potable water to customers within its licensed service area. Although the 1990 license has not been expressly extended after January 2018, the Company continues to supply water under the terms of the 1990 license, as further discussed in the following paragraph. Pursuant to the 1990 license, Cayman Water has the exclusive right to produce potable water and distribute it by pipeline to its licensed service area, which consists of two of the three most populated areas of Grand Cayman Island: Seven Mile Beach and West Bay. In 2023 and 2022, the Company generated approximately 17% and 27%, respectively, of its consolidated revenue and 26% and 44%, respectively, of its consolidated gross profit from the retail water operations conducted under the 1990 license. The 1990 license was originally scheduled to expire in July 2010 but was extended several times by the Cayman Islands government in order to provide the parties with additional time to negotiate the terms of a new license agreement. The most recent express extension of the 1990 license expired on January 31, 2018. The Company continues to operate under the terms of the 1990 license, providing water services to the level and quality specified in the 1990 license and in accordance with its understanding of its legal obligations, treating those obligations set forth in the 1990 license as operative notwithstanding the expiration of the express extension. The Company continues to pay the royalty of 7.5% of the revenue that Cayman Water collects as required under the 1990 license. In October 2016, the Government of the Cayman Islands passed legislation which created a new utilities regulation and competition office (“OfReg”). OfReg is an independent and accountable regulatory body with a view of protecting the rights of consumers, encouraging affordable utility services and promoting competition. OfReg, which began operations in January 2017, has the ability to supervise, monitor and regulate multiple utility undertakings and markets. Supplemental legislation was passed by the Government of the Cayman Islands in April 2017, which transferred responsibility for the economic regulation of the water utility sector and the negotiations with the Company for a new retail license from the WAC to OfReg in May 2017. The Company began license negotiations with OfReg in July 2017 and such negotiations are ongoing. The Company has been informed during its retail license negotiations, both by OfReg and its predecessor in these negotiations, that the Cayman Islands government seeks to restructure the terms of its license in a manner that could significantly reduce the operating income and cash flows the Company has historically generated from its retail license. The Company is presently unable to determine what impact the resolution of its retail license negotiations will have on its consolidated financial condition or results of operations but such resolution could result in a material reduction (or the loss) of the operating income and cash flows the Company has historically generated from Cayman Water’s retail operations and could require the Company to record impairment losses to reduce the carrying values of its retail segment assets. Such impairment losses could have a material adverse impact on the Company’s consolidated financial condition and results of operations. CW-Bahamas CW-Bahamas’ accounts receivable balances (which include accrued interest) due from the WSC amounted to $26.9 million and $16.3 million as of December 31, 2023 and 2022. Approximately 80% and 65% of the accounts receivable balances were delinquent as of those dates, respectively. From time to time (including presently), CW-Bahamas has experienced delays in collecting its accounts receivable from the WSC. When these delays occur, the Company holds discussions and meetings with representatives of the WSC and The Bahamas government, and as a result, payment schedules are developed for WSC’s delinquent accounts receivable. All previous delinquent accounts receivable from the WSC, including accrued interest thereon, were eventually paid in full. Based upon this payment history, CW-Bahamas has not provided for a material allowance for credit losses for its accounts receivable from the WSC as of December 31, 2023. CW-Bahamas held discussions with the WSC in March 2024 during which the WSC stated that the Government intends to substantially reduce CW-Bahamas’ accounts receivable from the WSC over the course of 2024. In a report dated October 6, 2022, Moody’s Investor Services (“Moody’s”) downgraded the Government of The Bahamas’ long-term issuer and senior unsecured ratings to B1 from Ba3. Moody’s also lowered The Bahamas’ local currency ceiling to Baa3 from Baa2 and its foreign currency ceiling to Ba1 from Baa3. Moody’s iterated these ratings in April and October 2023, noting that such ratings are “stable.” If CW-Bahamas is unable to collect a sufficient portion of its delinquent accounts receivable, one or more of the following events may occur: (i) CW-Bahamas may not have sufficient liquidity to meet its obligations; (ii) the Company may be required to cease the recognition of revenue on CW-Bahamas’ water supply agreements with the WSC; and (iii) the Company may be required to provide an additional allowance for credit losses for CW-Bahamas’ accounts receivable. Any of these events could have a material adverse impact on the Company’s consolidated financial condition, results of operations, and cash flows. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions | |
Related party transactions | 20. Related party transactions The Company, through PERC, purchased engineering and technology support services from various companies formerly affiliated with PERC, as a minority shareholder in these companies was also a minority shareholder of PERC. On January 4, 2023, as a result of CW-Holdings' exercise of a call option in October 2022, CW-Holdings purchased the remaining 39% ownership interest in PERC. After giving effect to this purchase, CW-Holdings owns 100% of the outstanding capital stock of PERC and, consequently, transactions with the formerly affiliated companies no longer constitute related party transactions. During the year ended December 31, 2022, the Company made total purchases of services from these companies of approximately $2,695,000. These total purchases are included in the Company’s cost of revenue in the accompanying consolidated statements of income. PERC entered into a sublease agreement with one of these formerly affiliated companies that commenced on March 14, 2021 and ended August 31, 2021. This lease was extended on a month-to-month basis subsequent to August 31, 2021. During the year ended December 31, 2022, the Company recognized approximately $97,000 of expense related to this lease. This lease expense is included in the Company's general and administrative expenses in the accompanying consolidated statements of income. The total amount of accounts payable outstanding to these companies as of December 31, 2022, was approximately $404,000. |
Supplemental disclosure of cash
Supplemental disclosure of cash flow information | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental disclosure of cash flow information | |
Supplemental disclosure of cash flow information | 21. Supplemental disclosure of cash flow information Year Ended December 31, 2023 2022 Interest paid in cash $ 21,417 $ 14,797 Income taxes paid in cash $ 4,920,912 $ 211,000 Non-cash transactions: Issuance of 13,309 and 9,295, respectively, shares of redeemable preferred stock for services rendered $ 323,275 $ 133,197 Issuance of 68,864 and 72,597, respectively, shares of common stock for services rendered $ 1,015,177 $ 877,298 Conversion (on a one-to-one basis) of 8,848 and 6,585, respectively, shares of redeemable preferred stock to common stock $ 5,309 $ 3,951 Dividends declared but not paid $ 1,502,506 $ 1,305,367 Issuance of 368,383 and 0, respectively, shares of common stock for the purchase of non-controlling interest in PERC $ 5,359,973 $ — Transfers from inventory to property, plant and equipment and construction in progress $ 317,853 $ 346,024 Transfers from construction in progress to property, plant and equipment $ 7,093,158 $ 297,723 Right-of-use assets obtained in exchange for new operating lease liabilities $ 745,078 $ — Purchase of equipment through issuance of long-term debt $ — $ 188,645 |
Impact of recent accounting sta
Impact of recent accounting standards | 12 Months Ended |
Dec. 31, 2023 | |
Impact of recent accounting standards | |
Impact of recent accounting standards | 22. Impact of recent accounting standards Adoption of new accounting standards: Financial Accounting Standard Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments, Effect of newly issued but not yet effective accounting standards: In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent events | |
Subsequent events | 23. Subsequent events The Company evaluated subsequent events through the time of the filing of its Annual Report on Form 10-K. Other than as disclosed in these consolidated financial statements, the Company is not aware of any significant events that occurred subsequent to the balance sheet date but prior to the filing of this report that would have a material impact on its consolidated financial statements. |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting policies | |
Basis of preparation | Basis of preparation: |
Use of estimates | Use of estimates: |
Basis of consolidation | Basis of consolidation: In January 2023, as a result of CW-Holdings' exercise of a call option in October 2022, CW-Holdings purchased the remaining 39% ownership interest in PERC for $2.4 million in cash, and 368,383 shares of the Company’s common stock having a value of approximately $5.36 million based upon the opening trading price of the Company’s common stock on The Nasdaq Global Market on the date of the transaction. After giving effect to this purchase, CW-Holdings owns 100% of the outstanding capital stock of PERC. In September 2021, Kalaeloa Desalco was formed to pursue a project in Oahu, Hawaii. On June 2, 2023, Kalaeloa Desalco signed a definitive agreement with the Honolulu Board of Water Supply to design, build, operate and maintain a 1.7 million gallons per day seawater reverse osmosis desalination plant in Oahu, Hawaii. Effective October 1, 2023, the Company purchased, through its wholly-owned subsidiary PERC, a 100% ownership interest in Ramey Environmental Compliance, Inc., a Colorado company that operates and maintains water and wastewater treatment facilities and provides technical services to clients throughout the Rocky Mountain and Eastern Plains Regions of Colorado. PERC acquired REC in November 2023 for approximately $4.1 million and recorded goodwill and intangible assets from this acquisition of $2,436,391 and $1,108,390 respectively. |
Foreign currency | Foreign currency: Net foreign currency gains arising from transactions and re-measurements were $84,678 and $41,750 for the years ended December 31, 2023 and 2022, respectively, and are included in “Other income - Other” in the accompanying consolidated statements of income. |
Cash and cash equivalents | Cash and cash equivalents: As of December 31, 2023, the Company had deposits in U.S. banks in excess of federally insured limits of approximately $16.9 million. As of December 31, 2023, the Company held cash in foreign bank accounts of approximately $24.2 million. Certain transfers from the Company’s Bahamas bank accounts to Company bank accounts in other countries require the approval of the Central Bank of The Bahamas. The equivalent United States dollar cash balances for deposits held in The Bahamas as of December 31, 2023 and 2022 were approximately $3.0 million and $5.7 million, respectively. |
Accounts receivable | Accounts receivable: Trade accounts receivable also represent our unconditional right, subject only to the passage of time, to receive consideration arising from our performance under contracts with customers. Trade accounts receivable include amounts billed and billable on construction contracts, service and maintenance contracts and contracts for the sale of goods. Billed contract receivables have been invoiced to customers based on contracted amounts. |
Allowance for credit losses | Allowance for credit losses : current expected credit losses Past due balances are reviewed individually for collectability. Account balances are charged off against the allowance for credit losses after all means of collection have been exhausted and the potential for recovery is considered by management to be remote. |
Inventory | Inventory: |
Contract assets and liabilities | Contract assets and liabilities: Billing practices for the Company’s contracts are governed by the contract terms of each project based upon costs incurred, achievement of milestones or predetermined schedules. Billings do not necessarily correlate with revenue, which is recognized over time using the input method based on cost incurred. Contract assets, which include costs and estimated earnings in excess of billings on uncompleted contracts, arise when the Company recognizes revenue for services performed under its construction and manufacturing contracts, but the Company is not yet entitled to bill the customer under the terms of the contract. Contract liabilities, which include billings in excess of costs and estimated earnings on uncompleted contracts, represent the Company's obligation to transfer goods or services to a customer for which the Company has been paid by the customer or for which the Company has billed the customer under the terms of the contract. Revenue for future services reflected in this account is recognized, and the liability is reduced, as the Company subsequently satisfies the performance obligation under the contract. Costs and estimated earnings in excess of billings on uncompleted contracts and billings in excess of costs and estimated earnings on uncompleted contracts are typically resolved within one year and are not considered The Company considers retention that is withheld on progress billings as not creating an unconditional right to payment until contractual milestones are reached (typically substantial completion). Accordingly, withheld retention is considered a component of contracts assets and liabilities until finally billed to the customer, when obligations have been satisfied and the right to receipt is subject only to the passage of time. The Company’s contract assets and liabilities are reported in a net asset or liability position on a contract-by-contract basis at the end of each reporting period. The Company classifies contract assets and liabilities related to construction and manufacturing contracts in current assets and current liabilities as they will be liquidated in the normal course of contract completion, although this may require more than one year. |
Property, plant and equipment, net | Property, plant and equipment, net: Buildings 5 to 40 years Plant and equipment 4 to 40 years Distribution system 3 to 40 years Office furniture, fixtures and equipment 3 to 10 years Vehicles 3 to 10 years Leasehold improvements Shorter of 5 years or lease term Lab equipment 5 to 10 years Assets under construction are recorded as additions to property, plant and equipment upon completion of the projects. Depreciation commences in the month the asset is placed in service. Additions to construction in progress are comprised of the cost of the contracted services, direct labor and materials. Interest costs directly attributable to the acquisition and construction of qualifying assets, which are assets that necessarily take a substantial amount of time to be ready for their intended use, are added to the cost of those assets until such time as the assets are substantially ready for use. No interest was capitalized during the years ended December 31, 2023 or 2022. |
Long-lived assets | Long-lived assets: |
Goodwill and intangible assets | Goodwill and intangible assets: For the year ended December 31, 2023, the Company elected to assess qualitative factors to determine whether it was necessary to perform the quantitative goodwill impairment testing that was conducted in prior years for the reporting units. The Company assessed the relevant events and circumstances to evaluate whether it is more likely than not that the fair values of such reporting units are less than their carrying values. The events and circumstances assessed for each reporting unit included macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, and other relevant events. Based upon this qualitative assessment, the Company determined that it is more likely than not that the fair values of its reporting units exceeded their carrying values as of December 31, 2023. For the year ended December 31, 2022, the Company elected to assess qualitative factors to determine whether it was necessary to perform the quantitative goodwill impairment testing conducted in prior years for all reporting units other than the manufacturing reporting unit. The Company assessed relevant events and circumstances to evaluate whether it is more likely than not that the fair values of such reporting units are less than their carrying values. The events and circumstances assessed for each reporting unit included macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, and other relevant events. Based upon this qualitative assessment the Company determined that it was more likely than not that the fair values of its Cayman Water and bulk segment reporting units exceeded their carrying values as of December 31, 2022. Based upon the Company’s negotiated, arms-length purchase of the remaining 39% equity interest in PERC from its minority shareholders for $7.8 million in January 2023, the fair value of the Company’s PERC reporting unit exceeded its carrying value by 79% as of December 31, 2022. Due to the factors discussed in the following paragraphs, the Company elected to test the goodwill associated with its manufacturing reporting unit for possible impairment for 2022 using the quantitative tests applied in prior years. Approximately 80% of Aerex’s revenue, and 89% of Aerex’s gross profit, for the year ended December 31, 2020 were generated from sales to one customer. While Aerex sells various products to this customer, Aerex’s revenue from this customer had historically been derived primarily from one specialized product. In October 2020, this customer informed Aerex that, for inventory management purposes, it was suspending its purchases of the specialized product from Aerex following 2020 for a period of approximately one year. This customer informed Aerex at that time that it expected to recommence its purchases of the specialized product from Aerex beginning with the first quarter of 2022. As a result of this anticipated loss of revenue for Aerex, the Company updated its projections for its Manufacturing reporting unit’s future cash flows. Such projections assumed, in part, that Aerex’s major customer would recommence its purchases from Aerex in 2022 but at a reduced aggregate amount, as compared to 2020. Based upon these updated projections, the Company tested its manufacturing reporting unit’s goodwill for possible impairment as of December 31, 2020 using the discounted cash flow and guideline public company methods, with a weighting of 80% and 20% applied to these two methods, respectively. As a result of these impairment tests, the Company determined that the estimated fair value of its manufacturing reporting unit exceeded its carrying value by approximately 31% as of December 31, 2020. In late July 2021, this former major customer communicated to Aerex that it expected to recommence its purchases of the specialized product from Aerex in 2022 and subsequent years, but informed Aerex that such purchases would be at substantially reduced annual amounts, as compared to the amounts it had purchased from Aerex in 2020 and prior years. The Company’s updated sales estimate for this customer based on this new information was substantially below the anticipated sales to this customer for 2022 and subsequent years that the Company used in the discounted cash flow projections it prepared for purposes of testing its Manufacturing reporting unit’s goodwill for possible impairment as of December 31, 2020. Furthermore, Aerex’s efforts to replace the revenue previously generated from this customer with revenue from existing and new customers were adversely impacted by the negative economic conditions (caused in part by the COVID-19 pandemic). These negative economic conditions also increased Aerex’s raw material costs, resulted in raw material shortages and extended delivery times for such materials, and adversely affected the overall financial condition of Aerex’s current and prospective customers. Accordingly, in light of this new information from Aerex’s former major customer, and the on-going weak economic conditions that the Company believed would continue through 2022, the Company updated its projections of future cash flows for the manufacturing reporting unit and tested its goodwill for possible impairment as of June 30, 2021 using the discounted cash flow and guideline public company methods, with a weighting of 80% and 20% applied to these two methods, respectively. Based upon this testing, the Company determined that the carrying value of its manufacturing reporting unit exceeded its fair value by $2.9 million, and the Company recorded an impairment loss to reduce its manufacturing segment’s goodwill by this amount for the three months ended June 30, 2021. For the year ended December 31, 2022, the Company estimated the fair value of its manufacturing reporting unit by applying the discounted cash flow method, which relied upon seven-year discrete projections of operating results, working capital and capital expenditures, along with a terminal value subsequent to the discrete period. These seven-year projections were based upon historical and anticipated future results, general economic and market conditions, and considered the impact of planned business and operational strategies. The discount rates for the calculations represented the estimated cost of capital for market participants at the time of each analysis. The Company also estimated the fair value of its manufacturing reporting unit for the year ended December 31, 2022 by applying the guideline public company method. The Company weighted the fair values estimated for its manufacturing reporting unit under each method and summed such weighted fair values to estimate the overall fair value for the reporting unit. The respective weightings the Company applied to each method for the year ended December 31, 2022 were 80% to the discounted cash flow method and 20% to the guideline public company method. The fair value the Company estimated for its manufacturing reporting unit exceeded its carrying amount by 63% as of December 31, 2022. |
Investments | Investments: |
Other assets | Other assets: |
Income taxes | Income taxes: in income in the period that includes the enactment date. A valuation allowance is provided to the extent any deferred tax asset may not be realized. The Company is not presently subject to income taxes in the other countries in which it operates. |
Revenue recognition | Revenue recognition: The following table presents the Company’s revenue disaggregated by revenue source. Year Ended December 31, 2023 2022 Retail revenue $ 30,158,051 $ 25,954,013 Bulk revenue 34,595,058 32,991,066 Services revenue 97,966,650 28,835,428 Manufacturing revenue 17,491,474 6,324,465 Total revenue $ 180,211,233 $ 94,104,972 Services revenue consists of the following: Year Ended December 31, 2023 2022 Construction revenue $ 77,306,704 $ 11,616,274 Operations and maintenance revenue 19,368,365 14,152,158 Design and consulting revenue 1,291,581 3,066,996 Total services revenue $ 97,966,650 $ 28,835,428 Retail revenue The Company produces and supplies water to end-users, including residential, commercial and governmental customers in the Cayman Islands under an exclusive retail license issued to Cayman Water by the Cayman Islands government to provide water in two of the three most populated areas on Grand Cayman. Customers are billed on a monthly basis based on metered consumption and bills are typically collected within 30 to 45 days after the billing date. Receivables not collected within 45 days subject the customer to disconnection from water service. The Company recognizes revenue from water sales at the time water is supplied to the customer’s premises. The amount of water supplied is determined and invoiced based upon water meter readings performed at the end of each month. All retail water contracts are month-to-month contracts. The Company has elected the “right to invoice” practical expedient for revenue recognition on its retail water sale contracts and recognizes revenue in the amount to which the Company has a right to invoice, recognizing this revenue from the transfer of goods or services to customers at a point in time. Bulk revenue The Company produces and supplies water to government-owned utilities in the Cayman Islands and The Bahamas. OC-Cayman provides bulk water to the Water Authority-Cayman (“WAC”), a government-owned utility and regulatory agency, under two agreements. The WAC in turn distributes such water to properties in Grand Cayman outside of Cayman Water’s retail license area. The Company sells bulk water in The Bahamas through its majority-owned subsidiary, CW-Bahamas, under two agreements with the Water and Sewerage Corporation of The Bahamas (“WSC”), which distributes such water through its own pipeline system to residential, commercial and tourist properties on the island of New Providence. The Company has elected the “right to invoice” practical expedient for revenue recognition on its bulk water sale contracts and recognizes revenue in the amount to which the Company has a right to invoice, recognizing this revenue from the transfer of goods or services to customers at a point in time. Services and Manufacturing revenue The Company designs, builds, sells, operates and maintains, and provides consulting services related to water, wastewater and water reuse infrastructure through PERC. All of PERC's customers are companies or governmental entities located in the United States. Effective October 2023, PERC acquired REC, a company that provides operations and maintenance and consulting services to companies and governmental entities located in the United States. The Company also provides design, engineering, management, procurement and construction services for desalination infrastructure through DesalCo, which serves customers in the Cayman Islands, The Bahamas and the British Virgin Islands. The Company, through Aerex, is a custom and specialty manufacturer of systems and products applicable to commercial, municipal and industrial water production and treatment. Substantially all of Aerex’s customers are U.S. companies. The Company generates construction, operations and maintenance, design and consulting revenue from PERC and DesalCo and generates manufacturing revenue from Aerex. The Company also generates operations and maintenance and consulting revenue from REC. The Company recognizes revenue for its construction and custom/specialized manufacturing contracts During the year ended December 31, 2023, the Company adjusted its prior year estimates of the total contract costs for two of its construction contracts. These changes in accounting estimates resulted in an increase in the services segment’s income from operations and the Company’s consolidated net income by $2,356,439 and $1,750,750, respectively, for the year ended December 31, 2023. diluted The Company has elected the “right to invoice” practical expedient for revenue recognition on its operations and maintenance, design and consulting contracts and recognizes revenue in the amount to which the Company has a right to invoice, recognizing this revenue from the transfer of goods or services to customers at a point in time. During the years ended December 31, 2023 and 2022, the Company recognized $77,411,792 and $14,146,271, respectively, of its services revenue from the transfer of goods or services to customers over time. The remaining services revenue of $20,554,858 and $14,689,157, respectively, was recognized from the transfer of goods or services to customers at a point in time. During the years ended December 31, 2023 and 2022, the Company recognized all of its manufacturing revenue from the transfer of goods or services to customers over time. Practical Expedients and Exemptions The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed. |
Comparative amounts | Comparative amounts: |
Accounting policies (Tables)
Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting policies | |
Schedule of Estimated useful lives | Buildings 5 to 40 years Plant and equipment 4 to 40 years Distribution system 3 to 40 years Office furniture, fixtures and equipment 3 to 10 years Vehicles 3 to 10 years Leasehold improvements Shorter of 5 years or lease term Lab equipment 5 to 10 years |
Schedule of Disaggregation of revenue | The following table presents the Company’s revenue disaggregated by revenue source. Year Ended December 31, 2023 2022 Retail revenue $ 30,158,051 $ 25,954,013 Bulk revenue 34,595,058 32,991,066 Services revenue 97,966,650 28,835,428 Manufacturing revenue 17,491,474 6,324,465 Total revenue $ 180,211,233 $ 94,104,972 Services revenue consists of the following: Year Ended December 31, 2023 2022 Construction revenue $ 77,306,704 $ 11,616,274 Operations and maintenance revenue 19,368,365 14,152,158 Design and consulting revenue 1,291,581 3,066,996 Total services revenue $ 97,966,650 $ 28,835,428 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash and cash equivalents | |
Schedule of Cash and cash equivalents | December 31, 2023 2022 Bank accounts: United States dollar $ 15,857,612 $ 24,573,161 Cayman Islands dollar 11,826,102 14,956,162 Bahamian dollar 3,025,898 5,698,100 30,709,612 45,227,423 Short-term deposits: United States dollar 8,861,606 2,476,370 Cayman Islands dollar 3,050,680 3,007,958 11,912,286 5,484,328 Total cash and cash equivalents $ 42,621,898 $ 50,711,751 |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts receivable, net. | |
Schedule of Accounts receivable | December 31, 2023 2022 Trade accounts receivable $ 38,446,554 $ 27,163,719 Receivable from OC-BVI 41,129 37,293 Other accounts receivable 322,609 28,384 38,810,292 27,229,396 Allowance for credit losses (583,401) (183,214) Accounts receivable, net $ 38,226,891 $ 27,046,182 |
Schedule of Allowance for doubtful accounts | The activity for the allowance for credit losses consisted of: December 31, 2023 2022 Opening allowance for credit losses $ 183,214 $ 183,020 Provision for credit losses 408,489 — Accounts written off during the year (9,215) (726) Recovery of accounts written off 913 920 Ending allowance for credit losses $ 583,401 $ 183,214 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory | |
Schedule of Inventory | December 31, 2023 2022 Spare parts stock $ 7,747,455 $ 6,514,333 Raw materials 3,135,357 3,481,486 Consumables stock 166,935 246,355 Water stock 40,666 36,655 Total inventory 11,090,413 10,278,829 Less current portion 6,044,642 5,727,842 Inventory (non-current) $ 5,045,771 $ 4,550,987 |
Contracts in progress (Tables)
Contracts in progress (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Contracts in progress. | |
Summary of information relative to revenue recognized and amounts billed on contracts in progress | Revenue recognized and amounts billed on contracts in progress are summarized as follows: December 31, 2023 2022 Revenue recognized to date on contracts in progress $ 108,952,682 $ 25,469,014 Amounts billed to date on contracts in progress (101,724,459) (33,407,182) Retainage 8,087,823 2,047,969 Net contract asset/(liability) $ 15,316,046 $ (5,890,199) The above net balances are reflected in the accompanying consolidated balance sheet as follows: December 31, 2023 2022 Contract assets $ 21,553,057 $ 2,913,722 Contract liabilities (6,237,011) (8,803,921) Net contract asset/(liability) $ 15,316,046 $ (5,890,199) |
Property, plant and equipment_2
Property, plant and equipment and construction in progress (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, plant and equipment and construction in progress | |
Schedule of Property, plant and equipment and construction in progress | December 31, 2023 2022 Land $ 6,488,400 $ 6,488,400 Buildings 26,044,551 23,280,880 Plant and equipment 66,000,977 64,532,994 Distribution system 39,546,175 39,544,395 Office furniture, fixtures and equipment 3,338,760 3,109,546 Vehicles 3,433,561 2,525,576 Leasehold improvements 306,545 287,980 Lab equipment 12,456 12,456 145,171,425 139,782,227 Less accumulated depreciation 89,288,904 87,252,682 Property, plant and equipment, net $ 55,882,521 $ 52,529,545 Construction in progress $ 495,471 $ 3,705,681 |
Discontinued operations (Tables
Discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued operations | |
Schedule of financial information for Mexico project development | Summarized financial information for the discontinued Mexico project development operation is as follows: December 31, 2023 2022 Cash $ 91,283 $ 442,252 Accounts receivable — 12,675 Prepaid expenses and other current assets 120,234 76,553 Land 21,126,898 21,126,898 Other assets 2,390 2,390 Total assets of discontinued operations $ 21,340,805 $ 21,660,768 Total liabilities of discontinued operations $ 364,665 $ 389,884 Year Ended December 31, 2023 2022 Revenue $ — $ — Loss from discontinued operations $ 1,086,744 $ 2,371,049 Depreciation expense $ — $ — |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets | |
Schedule of Finite-Lived Intangible Assets | December 31, 2023 2022 Cost Non-compete agreements $ 268,590 $ — Trade names 3,096,900 2,700,000 Customer relationships 442,900 — Facility management contracts 2,200,000 2,200,000 6,008,390 4,900,000 Accumulated amortization Non-compete agreements (13,430) — Trade names (1,106,615) (920,000) Customer relationships (7,382) — Facility management contracts (1,527,778) (1,161,112) (2,655,205) (2,081,112) Intangible assets, net $ 3,353,185 $ 2,818,888 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Amortization of intangible assets for each of the next five years and thereafter is expected to be as follows: 2024 $ 656,371 2025 595,260 2026 289,705 2027 289,705 2028 276,275 Thereafter 1,245,869 $ 3,353,185 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Schedule of lease-related assets and liabilities | The following table presents the lease-related assets and liabilities and their respective classification on the consolidated balance sheets: December 31, December 31, 2023 2022 ASSETS Current Prepaid expenses and other current assets $ 110,541 $ 35,624 Current assets of discontinued operations — 7,979 Noncurrent Operating lease right-of-use assets 2,135,446 2,058,384 Total lease right-of-use assets $ 2,245,987 $ 2,101,987 LIABILITIES Current Current maturities of operating leases $ 456,865 $ 546,851 Current liabilities of discontinued operations — 7,361 Noncurrent Noncurrent operating leases 1,827,302 1,590,542 Total lease liabilities $ 2,284,167 $ 2,144,754 Weighted average remaining lease term: Operating leases 6.1 years 6.6 years Operating leases - discontinued operations 0.0 years 0.8 years Weighted average discount rate: Operating leases 5.67% 5.11% Operating leases - discontinued operations 0.00% 4.96% |
Schedule of Lease, Cost | The components of lease costs were as follows: Year Ended December 31, 2023 2022 Operating lease costs $ 751,261 $ 692,404 Short-term lease costs 217,640 100,975 Lease costs - discontinued operations 45,979 40,021 Total lease costs $ 1,014,880 $ 833,400 |
Schedule of Cash Flow, Supplemental | Supplemental cash flow information related to leases is as follows: Year Ended December 31, 2023 2022 Cash paid for amounts included in measurement of liabilities: Operating cash outflows for operating leases $ 760,847 $ 742,696 Operating cash outflows for operating leases - discontinued operations 11,337 9,590 |
Schedule of future lease payments relating to the Company's operating lease liabilities | Years ending December 31, Total 2024 $ 580,780 2025 462,990 2026 379,019 2027 336,597 2028 341,687 Thereafter 639,928 Total future lease payments 2,741,001 Less: imputed interest (456,834) Total lease obligations 2,284,167 Less: current obligations (456,865) Noncurrent lease obligations $ 1,827,302 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income taxes | |
Schedule of components of income before income taxes | The components of income before income taxes for the years ended December 31, 2023 and 2022 are as follows: Year Ended December 31, 2023 2022 Foreign (not subject to income taxes) $ 10,002,233 $ 6,958,583 Mexico (742,367) (987,279) United States 27,649,330 1,394,642 36,909,196 7,365,946 Discontinued operations 1,086,744 2,371,049 $ 37,995,940 $ 9,736,995 |
Schedule of provision for income taxes deferred tax benefit relating to U.S. operations | The Company’s provision for (benefit from) income taxes for the years ended December 31, 2023 and 2022, which related to U.S. operations, consisted of the following: Year Ended December 31, 2023 2022 Current: Federal $ 5,611,360 $ 430,116 State 1,663,653 (29,157) Foreign — — Total current income tax expense (benefit) 7,275,013 400,959 Deferred: Federal (276,070) (184,469) State (248,929) 180,249 Foreign — — Total deferred income tax expense (benefit) (524,999) (4,220) Total provision for (benefit from) income taxes $ 6,750,014 $ 396,739 |
Schedule of reconciliation of federal tax rate to the effective rate | A reconciliation of the U.S. statutory federal tax rate to the effective rate for the years ended December 31, 2023 and 2022 is as follows: Year Ended December 31, 2023 2022 U.S. statutory federal rate 21.00 % 21.00 % State taxes, net of federal effect 2.88 % 8.88 % Foreign rate differential (5.71) % (25.57) % Research and development tax credit — % (1.92) % Permanent items (0.32) % (0.70) % Change in valuation allowance (0.08) % 2.38 % 17.77 % 4.07 % |
Schedule of tax effects of significant items net long-term deferred tax assets liability | The tax effects of significant items comprising the Company’s net long-term deferred tax liability as of December 31, 2023 and 2022 were as follows: December 31, 2023 2022 Continuing Operations Deferred tax assets: Research and development credit carryforwards $ — $ 58,069 Net operating loss carryforwards 130,911 443,076 Accruals and reserves 146,057 82,503 Operating lease liabilities 501,397 412,840 Capitalized research expenditures 326,178 — Others 29,094 — Valuation allowances — (29,036) 1,133,637 967,452 Deferred tax liabilities: Property and equipment 325,473 293,195 Intangible assets 847,450 821,723 Operating lease right-of-use assets 491,494 412,840 1,664,417 1,527,758 Net deferred tax liabilities $ (530,780) $ (560,306) Discontinued Operations Deferred tax assets: Operating loss carryforwards - Mexico $ 5,844,847 $ 5,378,177 Land basis difference - Mexico 2,818,663 2,163,681 Start-up costs - Mexico 7,015,484 4,274,858 Valuation allowances (15,678,994) (11,816,716) $ — $ — |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per share | |
Schedule of computation of basic and diluted EPS | Year Ended December 31, 2023 2022 Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders $ 30,672,135 $ 8,227,343 Less: preferred stock dividends (15,513) (11,532) Net income from continuing operations available to common shares in the determination of basic earnings per common share 30,656,622 8,215,811 Loss from discontinued operations (1,086,744) (2,371,049) Net income available to common shares in the determination of basic earnings per common share $ 29,569,878 $ 5,844,762 Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders 15,739,056 15,290,509 Plus: Weighted average number of preferred shares outstanding during the period 39,885 31,885 Potential dilutive effect of unexercised options and unvested stock grants 86,956 79,259 Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders 15,865,897 15,401,653 |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Dividends. | |
Schedule of dividends | 2023 2022 First Quarter $ 0.085 $ 0.085 Second Quarter 0.085 0.085 Third Quarter 0.095 0.085 Fourth Quarter 0.095 0.085 $ 0.36 $ 0.34 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment information | |
Schedule of segment reporting information, by segment | The Company’s segments are strategic business units that are managed separately because each segment sells different products and/or services, serves customers with distinctly different needs and generates different gross profit margins. Year Ended December 31, 2023 Retail Bulk Services Manufacturing Total Revenue $ 30,158,051 $ 34,595,058 $ 97,966,650 $ 17,491,474 $ 180,211,233 Cost of revenue 13,891,229 24,128,132 66,797,762 13,467,005 118,284,128 Gross profit 16,266,822 10,466,926 31,168,888 4,024,469 61,927,105 General and administrative expenses 16,905,010 1,737,264 4,271,808 1,838,284 24,752,366 Gain (loss) on asset dispositions and impairments, net (22,065) 12,720 — 2,233 (7,112) Income (loss) from operations $ (660,253) $ 8,742,382 $ 26,897,080 $ 2,188,418 37,167,627 Other income, net 828,313 Income before income taxes 37,995,940 Provision for income taxes 6,750,014 Net income from continuing operations 31,245,926 Income from continuing operations attributable to non-controlling interests 573,791 Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders 30,672,135 Loss from discontinued operations (1,086,744) Net income attributable to Consolidated Water Co. Ltd. stockholders $ 29,585,391 Depreciation and amortization expenses for the year ended December 31, 2023 for the retail, bulk, services and manufacturing segments were $2,484,845, $3,032,902, $785,347 and $273,360, respectively. As of December 31, 2023 Retail Bulk Services Manufacturing Total Accounts receivable, net $ 3,425,948 $ 26,965,126 $ 6,802,780 $ 1,033,037 $ 38,226,891 Inventory, current and non-current $ 3,041,460 $ 4,858,324 $ 55,272 $ 3,135,357 $ 11,090,413 Contract assets $ — $ — $ 17,715,872 $ 3,837,185 $ 21,553,057 Property, plant and equipment, net $ 32,809,487 $ 20,370,056 $ 1,143,884 $ 1,559,094 $ 55,882,521 Construction in progress $ 380,436 $ — $ — $ 115,035 $ 495,471 Intangibles, net $ — $ — $ 2,692,074 $ 661,111 $ 3,353,185 Goodwill $ 1,170,511 $ 1,948,875 $ 7,756,807 $ 1,985,211 $ 12,861,404 Total segment assets $ 58,774,647 $ 63,956,725 $ 58,476,773 $ 15,888,642 $ 197,096,787 Assets of discontinued operations $ 21,340,805 Total assets $ 218,437,592 Year Ended December 31, 2022 Retail Bulk Services Manufacturing Total Revenue $ 25,954,013 $ 32,991,066 $ 28,835,428 $ 6,324,465 $ 94,104,972 Cost of revenue 12,548,763 23,032,212 22,973,634 5,195,240 63,749,849 Gross profit 13,405,250 9,958,854 5,861,794 1,129,225 30,355,123 General and administrative expenses 14,552,866 1,570,732 3,461,294 1,485,342 21,070,234 Gain (loss) on asset dispositions and impairments, net (39,397) 5,607 23,717 (2,631) (12,704) Income (loss) from operations $ (1,187,013) $ 8,393,729 $ 2,424,217 $ (358,748) 9,272,185 Other income, net 464,810 Income before income taxes 9,736,995 Provision for income taxes 396,739 Net income from continuing operations 9,340,256 Income from continuing operations attributable to non-controlling interests 1,112,913 Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders 8,227,343 Loss from discontinued operations (2,371,049) Net income attributable to Consolidated Water Co. Ltd. stockholders $ 5,856,294 Depreciation and amortization expenses for the year ended December 31, 2022 for the retail, bulk, services and manufacturing segments were $2,391,603, $2,836,794, $674,508 and $284,403, respectively. As of December 31, 2022 Retail Bulk Services Manufacturing Total Accounts receivable, net $ 2,953,927 $ 16,554,940 $ 5,838,721 $ 1,698,594 $ 27,046,182 Inventory, current and non-current $ 2,759,659 $ 4,037,684 $ — $ 3,481,486 $ 10,278,829 Contract assets $ — $ — $ 1,249,069 $ 1,664,653 $ 2,913,722 Property, plant and equipment, net $ 27,697,490 $ 22,510,658 $ 759,409 $ 1,561,988 $ 52,529,545 Construction in progress $ 3,643,889 $ — $ — $ 61,792 $ 3,705,681 Intangibles, net $ — $ — $ 2,064,444 $ 754,444 $ 2,818,888 Goodwill $ 1,170,511 $ 1,948,875 $ 5,320,416 $ 1,985,211 $ 10,425,013 Total segment assets $ 65,853,789 $ 56,118,243 $ 36,319,078 $ 13,054,971 $ 171,346,081 Assets of discontinued operations $ 21,660,768 Total assets $ 193,006,849 |
Schedule of revenues earned by major geographic region | Year ended December 31, 2023 2022 Cayman Islands $ 41,728,340 $ 30,375,985 The Bahamas 31,221,633 29,943,615 United States 106,768,621 33,338,466 Revenue earned from management services agreement with OC-BVI 492,639 446,906 $ 180,211,233 $ 94,104,972 Revenue earned from major customers was: Year ended December 31, 2023 2022 Revenue earned from the WSC $ 31,221,633 $ 29,943,615 Percentage of consolidated revenue earned from the WSC 17% 32% Revenue earned from one service segment customer $ 64,149,170 $ 11,805,752 Percentage of consolidated revenue earned from the one service segment customer 36% 13% |
Schedule of long-lived assets by geographic areas | December 31, 2023 2022 Cayman Islands $ 32,902,949 $ 28,068,156 The Bahamas 20,039,049 22,031,690 United States 2,940,523 2,429,699 $ 55,882,521 $ 52,529,545 |
Cost of revenues and general _2
Cost of revenues and general and administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cost of revenues and general and administrative expenses | |
Schedule of cost of revenues and general and administrative expenses | Year Ended December 31, 2023 2022 Cost of revenue consist of: Subcontractor and other project costs $ 64,806,072 $ 17,847,124 Employee costs 18,935,014 14,036,117 Electricity 9,502,666 6,975,129 Fuel oil 9,024,836 10,203,690 Depreciation 5,632,998 5,261,463 Maintenance 2,992,872 2,786,258 Insurance 2,061,497 1,782,333 Retail license royalties 1,842,924 1,590,250 Other 3,485,249 3,267,485 $ 118,284,128 $ 63,749,849 Year Ended December 31, 2023 2022 General and administrative expenses consist of: Employee costs $ 13,690,152 $ 11,209,635 Professional fees 2,012,092 1,760,279 Insurance 1,903,856 2,067,625 Directors’ fees and expenses 980,759 991,592 Office rent 882,686 793,380 Amortization of intangible assets 574,093 582,778 Investor relations 534,979 354,158 Business development expenses 578,086 395,660 Provision for credit losses 408,489 — Computer supplies, software licenses 387,335 322,310 Bank charges 341,263 490,237 Depreciation 190,010 163,714 Other 2,268,566 1,938,866 $ 24,752,366 $ 21,070,234 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stock-based compensation | |
Schedule of significant weighted average assumptions | 2023 2022 Risk free interest rate 5.06 % 1.64 % Expected option life (years) 1.0 1.2 Expected volatility 42.42 % 47.15 % Expected dividend yield 1.60 % 2.35 % |
Schedule of company's stock option activity | A summary of the Company’s stock option activity for the year ended December 31, 2023 is as follows: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Life (Years) Value (1) Outstanding at beginning of period 11,740 $ 13.59 Granted 16,319 13.62 Exercised (8,231) 12.12 Forfeited/expired (7,653) 11.28 Outstanding as of December 31, 2023 12,175 $ 16.08 2.29 years $ 237,705 Exercisable as of December 31, 2023 — $ — — years $ — (1) The intrinsic value of a stock option represents the amount by which the fair value of the underlying stock, measured by reference to the closing price of the common shares of $ 35.60 on the Nasdaq Global Select Market on December 31, 2023, exceeds the exercise price of the option. |
Schedule of weighted average fair value of options at the date of grant and the intrinsic value | 2023 2022 Options granted with an exercise price below market price on the date of grant: Employees — preferred stock $ 12.21 $ 5.58 Overall weighted average 12.21 5.58 Options granted with an exercise price at market price on the date of grant: Management employees $ — $ — Employees — common stock 8.29 4.32 Overall weighted average 8.29 4.32 Options granted with an exercise price above market price on the date of grant: Management employees $ — $ — Employees — preferred stock — — Overall weighted average — — Total intrinsic value of options exercised $ 104,559 $ 17,158 |
Supplemental disclosure of ca_2
Supplemental disclosure of cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental disclosure of cash flow information | |
Schedule of Supplemental disclosure of cash flow information | Year Ended December 31, 2023 2022 Interest paid in cash $ 21,417 $ 14,797 Income taxes paid in cash $ 4,920,912 $ 211,000 Non-cash transactions: Issuance of 13,309 and 9,295, respectively, shares of redeemable preferred stock for services rendered $ 323,275 $ 133,197 Issuance of 68,864 and 72,597, respectively, shares of common stock for services rendered $ 1,015,177 $ 877,298 Conversion (on a one-to-one basis) of 8,848 and 6,585, respectively, shares of redeemable preferred stock to common stock $ 5,309 $ 3,951 Dividends declared but not paid $ 1,502,506 $ 1,305,367 Issuance of 368,383 and 0, respectively, shares of common stock for the purchase of non-controlling interest in PERC $ 5,359,973 $ — Transfers from inventory to property, plant and equipment and construction in progress $ 317,853 $ 346,024 Transfers from construction in progress to property, plant and equipment $ 7,093,158 $ 297,723 Right-of-use assets obtained in exchange for new operating lease liabilities $ 745,078 $ — Purchase of equipment through issuance of long-term debt $ — $ 188,645 |
Accounting policies - Additiona
Accounting policies - Additional Information (Details) gal in Millions | 1 Months Ended | 12 Months Ended | 24 Months Ended | ||||
Jun. 02, 2023 gal | Nov. 30, 2023 USD ($) | Jan. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Oct. 01, 2023 | Jan. 04, 2023 | |
Intangibles, net | $ 2,818,888 | $ 3,353,185 | |||||
Goodwill | 10,425,013 | 12,861,404 | |||||
Interest Capitalized | 0 | 0 | |||||
PERC Water Corporation | |||||||
Ownership interest held | 100% | 100% | |||||
Shares of the Company's common stock | shares | 368,383 | ||||||
Amount of consideration paid | $ 7,800,000 | ||||||
Common stock value | $ 5,360,000 | ||||||
Kalaeloa Desalco | |||||||
Seawater Reverse Osmosis Desalination Plant Per Day Processing Capacity | gal | 1.7 | ||||||
PERC Water Corporation | |||||||
Ownership interest acquired | 39% | 39% | |||||
Amount of consideration paid | $ 2,400,000 | ||||||
Ramey Environmental Compliance, Inc (REC) | |||||||
Ownership interest acquired | 100% | ||||||
Amount of consideration paid | $ 4,100,000 | ||||||
Intangibles, net | 1,108,390 | ||||||
Goodwill | $ 2,436,391 | ||||||
Retail [Member] | |||||||
Goodwill | 1,170,511 | 1,170,511 | |||||
Bulk [Member] | |||||||
Goodwill | 1,948,875 | 1,948,875 | |||||
Services [Member] | |||||||
Intangibles, net | 2,064,444 | 2,692,074 | |||||
Goodwill | 5,320,416 | 7,756,807 | |||||
Manufacturing Units [Member] | |||||||
Intangibles, net | 754,444 | 661,111 | |||||
Goodwill | $ 1,985,211 | $ 1,985,211 |
Accounting policies - Cash and
Accounting policies - Cash and cash equivalents (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||
Net foreign currency gains | $ 84,678 | $ 41,750 |
Cash and cash equivalents | 11,912,286 | 5,484,328 |
Deposits | 16,900,000 | |
Cash held in foreign bank accounts | 24,200,000 | |
Deposits held in foreign bank | 3,000,000 | 5,700,000 |
Certificate of deposit | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 5,100,000 | $ 5,000,000 |
Accounting policies - Property,
Accounting policies - Property, plant and equipment (Details) | Dec. 31, 2023 |
Property, Plant and Equipment, Estimated Useful Lives | us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 40 years |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Plant And Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 40 years |
Plant And Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 4 years |
Distribution Systems [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 40 years |
Distribution Systems [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Office furniture, fixtures and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 10 years |
Office furniture, fixtures and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 10 years |
Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Lab equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 10 years |
Lab equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Accounting policies - Goodwill
Accounting policies - Goodwill and intangible assets (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jan. 31, 2023 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2023 | Jan. 04, 2023 | |
Goodwill | $ 10,425,013 | $ 12,861,404 | ||||
Intangible assets, net | 2,818,888 | 3,353,185 | ||||
Retail [Member] | ||||||
Goodwill | 1,170,511 | 1,170,511 | ||||
Bulk [Member] | ||||||
Goodwill | 1,948,875 | 1,948,875 | ||||
Services [Member] | ||||||
Goodwill | 5,320,416 | 7,756,807 | ||||
Intangible assets, net | 2,064,444 | 2,692,074 | ||||
Manufacturing Units [Member] | ||||||
Goodwill | 1,985,211 | 1,985,211 | ||||
Intangible assets, net | $ 754,444 | $ 661,111 | ||||
Aerex | Manufacturing Units [Member] | ||||||
Estimated Fair Value Carrying Amount Exceeded Percentage | 63 | 31 | ||||
Estimated Fair Value carrying Amount Exceeded Value | $ 2,900,000 | |||||
Aerex | Discounted Cash Flow Method [Member] | Manufacturing Units [Member] | ||||||
Estimated Fair Value Percentage Segment Reporting Information | 80% | 80% | 80% | |||
Aerex | Guideline Public Company Method [Member] | Manufacturing Units [Member] | ||||||
Estimated Fair Value Percentage Segment Reporting Information | 20% | 20% | 20% | |||
PERC Water Corporation | ||||||
Ownership interest acquired | 39% | 39% | ||||
Amount of consideration paid | $ 2,400,000 | |||||
Estimated Fair Value Percentage Segment Reporting Information | 79% |
Accounting policies - Investmen
Accounting policies - Investments and Other assets (Details) gal in Millions | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2023 USD ($) gal | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Criteria for recognizing investment at cost | Investments where the Company does not exercise significant influence over the operating and financial policies of the investee and holds less than 20% of the voting stock are recorded at cost. | ||
Equity Method Investment, Additional Information | The Company uses the equity method of accounting for investments in common stock where the Company holds 20% to 50% of the voting stock of the investee and has significant influence over its operating and financial policies but does not meet the criteria for consolidation. | ||
Accumulated Amortization of Other Deferred Costs | $ 3,100,000 | $ 3,100,000 | $ 2,900,000 |
Amortization of Other Deferred Charges | 179,353 | ||
Amount required to reduce the amount of water lost by the public water distribution system | gal | 438 | ||
Capitalized Engineering Labor and Materials Cost [Member] | |||
Other Assets | $ 3,500,000 | $ 3,500,000 |
Accounting policies - Disaggreg
Accounting policies - Disaggregated revenue (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Total Revenue | $ 180,211,233 | $ 94,104,972 |
Contracts in progress. | ||
Number of days after consumption billings are considered past due | 45 days | |
Net Income (Loss) | $ 29,585,391 | 5,856,294 |
Income from operations | $ 37,167,627 | $ 9,272,185 |
Increase in basic earnings | $ 1.95 | $ 0.54 |
Increase in diluted earnings | $ 1.93 | $ 0.54 |
Change in Accounting Method Accounted for as Change in Estimate [Member] | ||
Contracts in progress. | ||
Net Income (Loss) | $ 1,750,750 | |
Income from operations | $ 2,356,439 | |
Increase in basic earnings | $ 0.11 | |
Increase in diluted earnings | $ 0.11 | |
Minimum [Member] | ||
Contracts in progress. | ||
Number of days after consumption billings are collected | 30 days | |
Maximum [Member] | ||
Contracts in progress. | ||
Number of days after consumption billings are collected | 45 days | |
Retail revenue [Member] | ||
Total Revenue | $ 30,158,051 | $ 25,954,013 |
Bulk revenue [Member] | ||
Total Revenue | 34,595,058 | 32,991,066 |
Services revenue [Member] | ||
Total Revenue | 97,966,650 | 28,835,428 |
Services revenue [Member] | Change in Accounting Method Accounted for as Change in Estimate [Member] | ||
Contracts in progress. | ||
Income from operations | 2,356,439 | |
Services revenue [Member] | Transferred over Time [Member] | ||
Total Revenue | 77,411,792 | 14,146,271 |
Services revenue [Member] | Transferred at Point in Time [Member] | ||
Total Revenue | 20,554,858 | 14,689,157 |
Manufacturing revenue [Member] | ||
Total Revenue | 17,491,474 | 6,324,465 |
Construction Sevices [Member] | ||
Total Revenue | 77,306,704 | 11,616,274 |
Operations and Maintenance [Member] | ||
Total Revenue | 19,368,365 | 14,152,158 |
Design and Consulting Services [Member] | ||
Total Revenue | $ 1,291,581 | $ 3,066,996 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Line Items] | ||
Bank accounts | $ 30,709,612 | $ 45,227,423 |
Short term deposits | 11,912,286 | 5,484,328 |
Cash and cash equivalents at end of period | 42,621,898 | 50,711,751 |
United States dollar [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Bank accounts | 15,857,612 | 24,573,161 |
Short term deposits | 8,861,606 | 2,476,370 |
Cayman Islands dollar [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Bank accounts | 11,826,102 | 14,956,162 |
Short term deposits | 3,050,680 | 3,007,958 |
Bahamian dollar [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Bank accounts | $ 3,025,898 | $ 5,698,100 |
Accounts receivable, net (Detai
Accounts receivable, net (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts receivable, net. | |||
Trade accounts receivable | $ 38,446,554 | $ 27,163,719 | |
Receivable from OC-BVI | 41,129 | 37,293 | |
Other accounts receivable | 322,609 | 28,384 | |
Accounts Receivable, Gross, Current | 38,810,292 | 27,229,396 | |
Allowance for doubtful accounts | (583,401) | (183,214) | $ (183,020) |
Accounts receivable, net | $ 38,226,891 | $ 27,046,182 |
Accounts receivable, net - Allo
Accounts receivable, net - Allowance for doubtful accounts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts receivable, net. | ||
Opening allowance for doubtful accounts | $ 183,214 | $ 183,020 |
Provision for credit losses | 408,489 | 0 |
Accounts written off during the year | (9,215) | (726) |
Recovery of accounts written off | 913 | 920 |
Ending allowance for doubtful accounts | $ 583,401 | $ 183,214 |
Inventory (Details)
Inventory (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory [Line Items] | ||
Total inventory | $ 11,090,413 | $ 10,278,829 |
Less current portion | 6,044,642 | 5,727,842 |
Inventory (non-current) | 5,045,771 | 4,550,987 |
Spare parts stock [Member] | ||
Inventory [Line Items] | ||
Total inventory | 7,747,455 | 6,514,333 |
Raw Materials [Member] | ||
Inventory [Line Items] | ||
Total inventory | 3,135,357 | 3,481,486 |
Consumables stock [Member] | ||
Inventory [Line Items] | ||
Total inventory | 166,935 | 246,355 |
Water stock [Member] | ||
Inventory [Line Items] | ||
Total inventory | $ 40,666 | $ 36,655 |
Contracts in progress (Details)
Contracts in progress (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Contract With Customer, In Progress, Revenue Recognized And Amounts Billed, Disclosure [Line Items] | ||||
Revenues recognized to date on contracts in process | $ 108,952,682 | $ 25,469,014 | ||
Amounts billed to date on contracts in process | (101,724,459) | (33,407,182) | ||
Retainage | 8,087,823 | 2,047,969 | ||
Net contract asset (liability) | 15,316,046 | (5,890,199) | ||
Net Income (Loss) | 29,585,391 | 5,856,294 | ||
Income from operations | $ 37,167,627 | $ 9,272,185 | ||
Increase in diluted earnings | $ 1.93 | $ 0.54 | ||
Increase in basic earnings | $ 1.95 | $ 0.54 | ||
Balance Sheet location | ||||
Contract assets | $ 21,553,057 | $ 2,913,722 | ||
Contract liabilities | (6,237,011) | $ (8,803,921) | ||
Change in Accounting Method Accounted for as Change in Estimate [Member] | ||||
Contract With Customer, In Progress, Revenue Recognized And Amounts Billed, Disclosure [Line Items] | ||||
Net Income (Loss) | 1,750,750 | |||
Income from operations | $ 2,356,439 | |||
Increase in diluted earnings | $ 0.11 | |||
Increase in basic earnings | $ 0.11 | |||
Contracts in progress | ||||
Contract With Customer, In Progress, Revenue Recognized And Amounts Billed, Disclosure [Line Items] | ||||
Revenues recognized to date on contracts in process | $ 162,200,000 | |||
Contract with Customer, Liability, Revenue Recognized | $ 8,700,000 | |||
Contracts in progress | Forecast [Member] | ||||
Contract With Customer, In Progress, Revenue Recognized And Amounts Billed, Disclosure [Line Items] | ||||
Revenues recognized to date on contracts in process | $ 140,000,000 | $ 22,200,000 |
Property, plant and equipment_3
Property, plant and equipment and construction in progress (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 145,171,425 | $ 139,782,227 |
Less accumulated depreciation | 89,288,904 | 87,252,682 |
Property, Plant and Equipment, Net, Total | 55,882,521 | 52,529,545 |
Construction in progress | 495,471 | 3,705,681 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 6,488,400 | 6,488,400 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 26,044,551 | 23,280,880 |
Plant And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 66,000,977 | 64,532,994 |
Distribution Systems [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 39,546,175 | 39,544,395 |
Office furniture, fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,338,760 | 3,109,546 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,433,561 | 2,525,576 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 306,545 | 287,980 |
Lab equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 12,456 | $ 12,456 |
Property, plant and equipment_4
Property, plant and equipment and construction in progress - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, plant and equipment and construction in progress | ||
Capital Commitments | $ 455,000,000,000 | |
Construction In Progress Placed In Service | 7,093,158 | $ 297,723 |
Depreciation | $ 5,823,008 | $ 5,425,177 |
Discontinued operations - Mexic
Discontinued operations - Mexico project development- Narratives (Details) gal in Millions | 1 Months Ended | 12 Months Ended | |||||||||||
Feb. 09, 2022 USD ($) | Feb. 09, 2022 MXN ($) | Aug. 28, 2020 USD ($) | Aug. 28, 2020 MXN ($) | Jun. 29, 2020 | Aug. 22, 2016 gal | May 31, 2010 gal | Dec. 31, 2022 USD ($) | Dec. 31, 2012 USD ($) ha | Jul. 28, 2023 MXN ($) | Feb. 28, 2018 | Aug. 31, 2016 | May 31, 2013 | |
Schedule of Investments [Line Items] | |||||||||||||
Number of days to submit list of non-recoverable expenses made | 20 days | ||||||||||||
Amount of non-recoverable expenses | $ 51,144,525 | $ 137,333,114 | |||||||||||
Litigation Settlement, Expense | $ 137,000,000 | ||||||||||||
Impairment loss for Mexico assets - discontinued operations | $ 377,326 | ||||||||||||
Minimum [Member] | |||||||||||||
Schedule of Investments [Line Items] | |||||||||||||
Loss Contingency, Damages Sought, Value | $ 51,000,000 | ||||||||||||
NSC Agua [Member] | |||||||||||||
Schedule of Investments [Line Items] | |||||||||||||
Amount of bond posted | $ 1,500,000 | ||||||||||||
Area of Land | ha | 20.1 | ||||||||||||
Payments for land and rights of way held for development | $ 21,100,000 | ||||||||||||
Option agreement [Member] | NSC Agua [Member] | |||||||||||||
Schedule of Investments [Line Items] | |||||||||||||
Total Percentage Of Ownership Interest In An Acquired Company | 99.99% | ||||||||||||
NSC Agua [Member] | |||||||||||||
Schedule of Investments [Line Items] | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 0.40% | ||||||||||||
Seawater Reverse Osmosis Desalination Plant Per Day Processing Capacity | gal | 100 | 100 | |||||||||||
Period in which construction must be completed | 36 months | ||||||||||||
Period Required To Operate And Maintain Plant And Aqueduct | 37 years | ||||||||||||
NSC Agua [Member] | Aguas de Rosarito S.A.P.I. de C.V [Member] | |||||||||||||
Schedule of Investments [Line Items] | |||||||||||||
Equity Method Investment, Ownership Percentage | 99.60% | ||||||||||||
NSC Agua [Member] | First Phase [Member] | |||||||||||||
Schedule of Investments [Line Items] | |||||||||||||
Seawater Reverse Osmosis Desalination Plant Per Day Processing Capacity | gal | 50 | ||||||||||||
NSC Agua [Member] | Second Phase [Member] | |||||||||||||
Schedule of Investments [Line Items] | |||||||||||||
Seawater Reverse Osmosis Desalination Plant Per Day Processing Capacity | gal | 50 |
Discontinued operations - Mex_2
Discontinued operations - Mexico project development (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total assets of discontinued operations | $ 21,340,805 | $ 21,660,768 |
Discontinued Operations. | Mexico Project Development | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash | 91,283 | 442,252 |
Accounts receivable | 12,675 | |
Prepaid expenses and other current assets | 120,234 | 76,553 |
Land | 21,126,898 | 21,126,898 |
Other assets | 2,390 | 2,390 |
Total assets of discontinued operations | 21,340,805 | 21,660,768 |
Total liabilities of discontinued operations | $ 364,665 | $ 389,884 |
Discontinued operations - Mex_3
Discontinued operations - Mexico project development - Financial Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss from discontinued operations | $ 1,086,744 | $ 2,371,049 |
Discontinued Operations. | Mexico Project Development | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss from operations | $ (1,086,744) | $ (2,371,049) |
Intangible assets - Costs and a
Intangible assets - Costs and accumulated amortization (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Cost | ||
Finite-Lived Intangible Assets, Gross | $ 6,008,390 | $ 4,900,000 |
Accumulated amortization | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (2,655,205) | (2,081,112) |
Intangible assets, net | 3,353,185 | 2,818,888 |
Trade name | ||
Cost | ||
Finite-Lived Intangible Assets, Gross | 3,096,900 | 2,700,000 |
Accumulated amortization | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (1,106,615) | (920,000) |
Non-compete agreement | ||
Cost | ||
Finite-Lived Intangible Assets, Gross | 268,590 | |
Accumulated amortization | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (13,430) | |
Customer relationships | ||
Cost | ||
Finite-Lived Intangible Assets, Gross | 442,900 | |
Accumulated amortization | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (7,382) | |
Facility management contracts | ||
Cost | ||
Finite-Lived Intangible Assets, Gross | 2,200,000 | 2,200,000 |
Accumulated amortization | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ (1,527,778) | $ (1,161,112) |
Intangible assets - Amortizatio
Intangible assets - Amortization of intangible assets (Details) | Dec. 31, 2023 USD ($) |
Intangible assets | |
2024 | $ 656,371 |
2025 | 595,260 |
2026 | 289,705 |
2027 | 289,705 |
2028 | 276,275 |
Thereafter | 1,245,869 |
Finite Lived Intangible Assets Net | $ 3,353,185 |
Intangible assets (Details)
Intangible assets (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Oct. 31, 2023 | Oct. 31, 2019 | Feb. 29, 2016 | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 31, 2023 | Jan. 04, 2023 | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization of Intangible Assets | $ 574,093 | $ 582,778 | |||||
PERC Water Corporation | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 39% | 39% | |||||
PERC Water Corporation | Customer relationships | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years | ||||||
Ramey Environmental Compliance, Inc. | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Fair value of certain intangible assets | $ 1,108,390 | ||||||
Ramey Environmental Compliance, Inc. | Non-compete agreement | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | ||||||
Ramey Environmental Compliance, Inc. | Customer relationships | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||||||
Trade name | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||||||
Trade name | Ramey Environmental Compliance, Inc. | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years |
Leases - Lease assets and liabi
Leases - Lease assets and liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current | ||
Current assets of discontinued operations | $ 7,979 | |
Noncurrent | ||
Operating lease right-of-use assets | $ 2,135,446 | 2,058,384 |
Total lease right-of-use assets | 2,245,987 | 2,101,987 |
Current | ||
Current maturities of operating leases | 456,865 | 546,851 |
Current liabilities of discontinued operations | 7,361 | |
Noncurrent | ||
Noncurrent operating leases | 1,827,302 | 1,590,542 |
Total lease liabilities | $ 2,284,167 | $ 2,144,754 |
Operating leases, weighted average remaining lease term | 6 years 1 month 6 days | 6 years 7 months 6 days |
Operating leases, weighted average discount rate | 5.67% | 5.11% |
Discontinued Operations. | ||
Noncurrent | ||
Operating leases, weighted average remaining lease term | 0 years | 9 months 18 days |
Operating leases, weighted average discount rate | 0% | 4.96% |
Prepaid Expenses and Other Current Assets [Member] | ||
Current | ||
Operating lease assets, current | $ 110,541 | $ 35,624 |
Leases - Components of lease co
Leases - Components of lease cost (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases | ||
Operating lease costs | $ 751,261 | $ 692,404 |
Short-term lease costs | 217,640 | 100,975 |
Lease costs - discontinued operations | 45,979 | 40,021 |
Total lease costs | $ 1,014,880 | $ 833,400 |
Leases - Supplemental cash flow
Leases - Supplemental cash flow information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases | ||
Operating cash outflows for operating leases | $ 760,847 | $ 742,696 |
Operating cash flows from operating leases - discontinued operations | $ 11,337 | $ 9,590 |
Leases - Future lease payments
Leases - Future lease payments (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases | ||
2023 | $ 580,780 | |
2024 | 462,990 | |
2025 | 379,019 | |
2026 | 336,597 | |
2027 | 341,687 | |
Thereafter | 639,928 | |
Total future lease payments | 2,741,001 | |
Less: imputed interest | (456,834) | |
Total lease obligations | 2,284,167 | |
Less: current obligations | (456,865) | $ (546,851) |
Noncurrent lease obligations | $ 1,827,302 | $ 1,590,542 |
Income taxes - Components of in
Income taxes - Components of income before income taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income taxes | ||
Foreign (not subject to income taxes) | $ 10,002,233 | $ 6,958,583 |
Mexico | (742,367) | (987,279) |
United States | 27,649,330 | 1,394,642 |
Income before income taxes | 36,909,196 | 7,365,946 |
Less discontinued operations | 1,086,744 | 2,371,049 |
Income before income taxes | $ 37,995,940 | $ 9,736,995 |
Income taxes - Provision for in
Income taxes - Provision for income taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current: | ||
Federal | $ 5,611,360 | $ 430,116 |
State | 1,663,653 | (29,157) |
Total | 7,275,013 | 400,959 |
Deferred: | ||
Federal | (276,070) | (184,469) |
State | (248,929) | 180,249 |
Total | (524,999) | (4,220) |
Total provision (benefit) | $ 6,750,014 | $ 396,739 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of federal tax rate to the effective rate (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income taxes | ||
U.S. statutory federal rate | 21% | 21% |
State taxes, net of federal effect | 2.88% | 8.88% |
Nontaxable foreign income | 5.71% | 25.57% |
Research & Development Tax Credit | (1.92%) | |
Permanent items | (0.32%) | (0.70%) |
Valuation allowance for deferred tax assets | (0.08%) | 2.38% |
Total U.S. statutory federal tax rate to the effective rate | 17.77% | 4.07% |
Income taxes - Net long-term de
Income taxes - Net long-term deferred tax liability (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Research & development tax credits | $ 0 | $ 58,069 |
Loss carry forward | 130,911 | 443,076 |
Accrued compensation | 146,057 | 82,503 |
Operating lease liabilities | 501,397 | 412,840 |
Capitalized research expenditures | 326,178 | 0 |
Other | 29,094 | 0 |
Valuation allowances | 0 | (29,036) |
Deferred tax assets | 1,133,637 | 967,452 |
Deferred tax liabilities: | ||
Property and equipment | 325,473 | 293,195 |
Intangible assets | 847,450 | 821,723 |
Operating lease right-of-use assets | 491,494 | 412,840 |
Deferred Tax Liabilities, Gross | 1,664,417 | 1,527,758 |
Net deferred tax liability | 530,780 | 560,306 |
Discontinued Operations. | ||
Deferred tax assets: | ||
Operating loss carryforwards - Mexico | 5,844,847 | 5,378,177 |
Valuation allowances | (15,678,994) | (11,816,716) |
Land basis difference - Mexico | 2,818,663 | 2,163,681 |
Start-up costs - Mexico | 7,015,484 | 4,274,858 |
Deferred tax assets | $ 0 | $ 0 |
Income taxes - Additional Infor
Income taxes - Additional Information (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Discontinued Operations. | |
Operating Loss Carryforwards | $ 19.5 |
Domestic Tax Authority [Member] | |
Operating Loss Carryforwards | 0.6 |
State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards | $ 0.3 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings per share | ||
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders | $ 30,672,135 | $ 8,227,343 |
Less: preferred stock dividends | (15,513) | (11,532) |
Net income from continuing operations available to common shares in the determination of basic earnings per common share | 30,656,622 | 8,215,811 |
Total loss from discontinued operations | (1,086,744) | (2,371,049) |
Net income available to common shares in the determination of basic earnings per common share | $ 29,569,878 | $ 5,844,762 |
Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders (in shares) | 15,739,056 | 15,290,509 |
Weighted average number of preferred shares outstanding during the period (in shares) | 39,885 | 31,885 |
Potential dilutive effect of unexercised options and unvested stock grants | 86,956 | 79,259 |
Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders | 15,865,897 | 15,401,653 |
Dividends (Details)
Dividends (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Dividends. | ||||||||||
Dividends Per Share Declared | $ 0.095 | $ 0.095 | $ 0.085 | $ 0.085 | $ 0.085 | $ 0.085 | $ 0.085 | $ 0.085 | $ 0.36 | $ 0.34 |
Segment information (Details)
Segment information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 180,211,233 | $ 94,104,972 |
Cost of revenue | 118,284,128 | 63,749,849 |
Gross profit | 61,927,105 | 30,355,123 |
General and administrative expenses | 24,752,366 | 21,070,234 |
Gain (loss) on asset dispositions and impairments, net | (7,112) | (12,704) |
Income from operations | 37,167,627 | 9,272,185 |
Other income, net | 828,313 | 464,810 |
Income before income taxes | 37,995,940 | 9,736,995 |
Benefit for income taxes | 6,750,014 | 396,739 |
Net income from continuing operations | 31,245,926 | 9,340,256 |
Income from continuing operations attributable to non-controlling interests | 573,791 | 1,112,913 |
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders | 30,672,135 | 8,227,343 |
Total loss from discontinued operations | (1,086,744) | (2,371,049) |
Net income attributable to Consolidated Water Co. Ltd. stockholders | 29,585,391 | 5,856,294 |
Accounts receivable, net | 38,226,891 | 27,046,182 |
Inventory, current and non-current | 11,090,413 | 10,278,829 |
Contract assets | 21,553,057 | 2,913,722 |
Property, plant and equipment, net | 55,882,521 | 52,529,545 |
Construction in progress | 495,471 | 3,705,681 |
Intangibles, net | 3,353,185 | 2,818,888 |
Goodwill | 12,861,404 | 10,425,013 |
Total segment assets | 197,096,787 | 171,346,081 |
Assets of discontinued operations | 21,340,805 | 21,660,768 |
Total assets | 218,437,592 | 193,006,849 |
Retail [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 30,158,051 | 25,954,013 |
Cost of revenue | 13,891,229 | 12,548,763 |
Gross profit | 16,266,822 | 13,405,250 |
General and administrative expenses | 16,905,010 | 14,552,866 |
Gain (loss) on asset dispositions and impairments, net | (22,065) | (39,397) |
Income from operations | (660,253) | (1,187,013) |
Accounts receivable, net | 3,425,948 | 2,953,927 |
Inventory, current and non-current | 3,041,460 | 2,759,659 |
Property, plant and equipment, net | 32,809,487 | 27,697,490 |
Construction in progress | 380,436 | 3,643,889 |
Goodwill | 1,170,511 | 1,170,511 |
Total segment assets | 58,774,647 | 65,853,789 |
Bulk [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 34,595,058 | 32,991,066 |
Cost of revenue | 24,128,132 | 23,032,212 |
Gross profit | 10,466,926 | 9,958,854 |
General and administrative expenses | 1,737,264 | 1,570,732 |
Gain (loss) on asset dispositions and impairments, net | 12,720 | 5,607 |
Income from operations | 8,742,382 | 8,393,729 |
Accounts receivable, net | 26,965,126 | 16,554,940 |
Inventory, current and non-current | 4,858,324 | 4,037,684 |
Property, plant and equipment, net | 20,370,056 | 22,510,658 |
Goodwill | 1,948,875 | 1,948,875 |
Total segment assets | 63,956,725 | 56,118,243 |
Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 97,966,650 | 28,835,428 |
Cost of revenue | 66,797,762 | 22,973,634 |
Gross profit | 31,168,888 | 5,861,794 |
General and administrative expenses | 4,271,808 | 3,461,294 |
Gain (loss) on asset dispositions and impairments, net | 23,717 | |
Income from operations | 26,897,080 | 2,424,217 |
Accounts receivable, net | 6,802,780 | 5,838,721 |
Inventory, current and non-current | 55,272 | |
Contract assets | 17,715,872 | 1,249,069 |
Property, plant and equipment, net | 1,143,884 | 759,409 |
Intangibles, net | 2,692,074 | 2,064,444 |
Goodwill | 7,756,807 | 5,320,416 |
Total segment assets | 58,476,773 | 36,319,078 |
Manufacturing Units [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 17,491,474 | 6,324,465 |
Cost of revenue | 13,467,005 | 5,195,240 |
Gross profit | 4,024,469 | 1,129,225 |
General and administrative expenses | 1,838,284 | 1,485,342 |
Gain (loss) on asset dispositions and impairments, net | 2,233 | (2,631) |
Income from operations | 2,188,418 | (358,748) |
Accounts receivable, net | 1,033,037 | 1,698,594 |
Inventory, current and non-current | 3,135,357 | 3,481,486 |
Contract assets | 3,837,185 | 1,664,653 |
Property, plant and equipment, net | 1,559,094 | 1,561,988 |
Construction in progress | 115,035 | 61,792 |
Intangibles, net | 661,111 | 754,444 |
Goodwill | 1,985,211 | 1,985,211 |
Total segment assets | $ 15,888,642 | $ 13,054,971 |
Segment information - Revenues
Segment information - Revenues earned by major geographic region and major customer (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 180,211,233 | $ 94,104,972 |
Cayman Islands [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 41,728,340 | 30,375,985 |
Bahamas [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 31,221,633 | 29,943,615 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 106,768,621 | 33,338,466 |
Management Services Agreement With OC-BVI [Membre] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 492,639 | 446,906 |
Water and Sewerage Corporation [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 31,221,633 | $ 29,943,615 |
Percentage of consolidated revenues | 17% | 32% |
One Customer [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 64,149,170 | $ 11,805,752 |
Percentage of consolidated revenues | 36% | 13% |
Segment information - Property,
Segment information - Property, plant and equipment, net by major geographic region (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | $ 55,882,521 | $ 52,529,545 |
Cayman Islands [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | 32,902,949 | 28,068,156 |
Bahamas [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | 20,039,049 | 22,031,690 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | $ 2,940,523 | $ 2,429,699 |
Segment information - Additiona
Segment information - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Retail [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation, Depletion and Amortization | $ 2,484,845 | $ 2,391,603 |
Bulk [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation, Depletion and Amortization | 3,032,902 | 2,836,794 |
Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation, Depletion and Amortization | 785,347 | 674,508 |
Manufacturing Units [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation, Depletion and Amortization | $ 273,360 | $ 284,403 |
Cost of revenues and general _3
Cost of revenues and general and administrative expenses - Cost of revenues (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cost of revenues and general and administrative expenses [Line Items] | ||
Cost of revenue | $ 118,284,128 | $ 63,749,849 |
Subcontractor and other project costs | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
Cost of revenue | 64,806,072 | 17,847,124 |
Employee costs [Member] | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
Cost of revenue | 18,935,014 | 14,036,117 |
Fuel oil [Member] | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
Cost of revenue | 9,502,666 | 6,975,129 |
Electricity [Member] | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
Cost of revenue | 9,024,836 | 10,203,690 |
Maintenance [Member] | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
Cost of revenue | 5,632,998 | 5,261,463 |
Insurance [Member] | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
Cost of revenue | 2,992,872 | 2,786,258 |
Retail license royalties [Member] | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
Cost of revenue | 2,061,497 | 1,782,333 |
Cost of plant sales [Member] | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
Cost of revenue | 1,842,924 | 1,590,250 |
Other [Member] | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
Cost of revenue | $ 3,485,249 | $ 3,267,485 |
Cost of revenues and general _4
Cost of revenues and general and administrative expenses - General and administrative expenses (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cost of revenues and general and administrative expenses [Line Items] | ||
General and Administrative Expense | $ 24,752,366 | $ 21,070,234 |
Employee costs [Member] | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
General and Administrative Expense | 13,690,152 | 11,209,635 |
Insurance [Member] | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
General and Administrative Expense | 2,012,092 | 1,760,279 |
Professional fees [Member] | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
General and Administrative Expense | 1,903,856 | 2,067,625 |
Directors' fees and expenses [Member] | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
General and Administrative Expense | 980,759 | 991,592 |
Office Rent [Member] | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
General and Administrative Expense | 882,686 | 793,380 |
Amortization of intangibles [Member] | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
General and Administrative Expense | 574,093 | 582,778 |
Investor Relations [Member] | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
General and Administrative Expense | 534,979 | 354,158 |
Business Development Expenses [Member] | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
General and Administrative Expense | 578,086 | 395,660 |
Bad Debt Expense [Member] | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
General and Administrative Expense | 408,489 | |
Computer Supplies, Software Licenses [Member] | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
General and Administrative Expense | 387,335 | 322,310 |
Bank Charges [Member] | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
General and Administrative Expense | 341,263 | 490,237 |
Depreciation [Member] | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
General and Administrative Expense | 190,010 | 163,714 |
Other [Member]. | ||
Cost of revenues and general and administrative expenses [Line Items] | ||
General and Administrative Expense | $ 2,268,566 | $ 1,938,866 |
Stock-based compensation - Sign
Stock-based compensation - Significant weighted average assumptions (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Stock-based compensation | ||
Risk free interest rate | 5.06% | 1.64% |
Expected option life (years) | 1 year | 1 year 2 months 12 days |
Expected volatility | 42.42% | 47.15% |
Expected dividend yield | 1.60% | 2.35% |
Stock-based compensation - Stoc
Stock-based compensation - Stock option activity (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at the beginning of period -Options | shares | 11,740 |
Granted - Options | shares | 16,319 |
Exercised - Options | shares | (8,231) |
Forfeited/expired - Options | shares | (7,653) |
Outstanding at the ending of period -Options | shares | 12,175 |
Outstanding-Weighted Average Exercise Price at the beginning of period - Options | $ / shares | $ 13.59 |
Granted-Weighted Average Exercise Price | $ / shares | 13.62 |
Exercised-Weighted Average Exercise Price | $ / shares | 12.12 |
Forfeited/expired-Weighted Average Exercise Price | $ / shares | 11.28 |
Outstanding-Weighted Average Exercise Price at the ending of period - Options | $ / shares | $ 16.08 |
Outstanding-Weighted Average Remaining Contractual Life (Years) | 2 years 3 months 14 days |
Outstanding-Aggregate Intrinsic Value | $ | $ 237,705 |
Stock-based compensation - Weig
Stock-based compensation - Weighted average fair value of options at the date of grant and the intrinsic value of options exercised (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 104,559 | $ 17,158 |
Below Market Price [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 12.21 | $ 5.58 |
Below Market Price [Member] | Employees [Member] | Preferred stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | 12.21 | 5.58 |
At Market Price [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | 8.29 | 4.32 |
At Market Price [Member] | Management Employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | 0 | 0 |
At Market Price [Member] | Employees [Member] | Common stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | 8.29 | 4.32 |
Above Market Price [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | 0 | 0 |
Above Market Price [Member] | Management Employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | 0 | 0 |
Above Market Price [Member] | Employees [Member] | Preferred stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0 | $ 0 |
Stock-based compensation (Detai
Stock-based compensation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | May 14, 2008 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cumulative financial performance targets measurement period | 3 years | ||
Number of stock grant rights issued | 16,319 | ||
Allocated Share-based Compensation Expense, Net of Tax | $ 703,289 | $ 386,260 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 12,175 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price | $ 16.08 | ||
Share Based Compensation Arrangement By Share Based Payment Award Options Non Vested Outstanding Weighted Average Remaining Contractual Term | 2 years 3 months 14 days | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 3 months 14 days | ||
Preferred stock value | $ 26,578 | 20,630 | |
Number of days employee option to purchase preferred stock must be exercised | 30 days | ||
Share-based Compensation | $ 1,933,666 | $ 1,417,172 | |
Closing Price of Common Shares | $ 35.60 | ||
Non Executive Directors Share Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock grant rights issued | 30,767 | ||
Share-based Compensation | $ 341,394 | $ 369,678 | |
Non-Performance-Based Grants [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Cumulative financial performance targets measurement period | 3 years | ||
Number of stock grant rights issued | 29,508 | 32,265 | |
Number of vested shares issued | $ 25,986 | $ 23,411 | |
Allocated Share-based Compensation Expense | $ 366,058 | ||
Performance-Based Grants [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cumulative financial performance targets measurement period | 3 years | 3 years | |
Number of stock grant rights issued | 26,742 | 13,797 | |
Share-based Compensation | $ 522,925 | $ 335,964 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 14,867 | ||
Employee Stock Option [Member] | Common Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock grant rights issued | 3,010 | 3,665 | |
Equity Incentive Plan2008 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Capital Shares Reserved for Future Issuance | 1,500,000 | ||
Redeemable preferred stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Additional consecutive individual requisite service period required for eligibility in Employee Share Incentive Plan | 4 years | ||
Number of preferred shares converted to common shares dependent upon specific criteria | 1 | ||
Number of common shares received upon conversion of preferred shares dependent upon specific criteria | 1 | ||
Number of average trading price of the common stock | 7 days | ||
Stock Issued During Period, Shares, Issued for Services | 13,309 | 9,295 | |
Redeemable preferred stock [Member] | Non Executive Directors Share Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock grant rights issued | 22,831 |
Retirement benefits (Details)
Retirement benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined contribution plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Contribution Plan, Cost | $ 771,616 | $ 624,798 |
Financial instruments - Additio
Financial instruments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Number of days after consumption billings are considered past due | 45 days |
Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Duration certain foreign currencies are fixed to the dollar | 20 years |
Commitments and contingencies (
Commitments and contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Contingencies | ||
Employment Agreement Base Annual Salaries | $ 5.5 | |
Cayman Water Retail Operations, Percentage Of Revenue | 17% | 27% |
Cayman Water Retail Operations, Percentage Of Gross Profit | 26% | 44% |
Long-term Purchase Commitment, Amount | $ 16.6 | |
Consolidated Water Bahamas [Member] | ||
Contingencies | ||
Percentage of delinquent account receivables | 80% | 65% |
WSC [Member] | ||
Contingencies | ||
Accounts Receivable, Net | $ 26.9 | $ 16.3 |
Related party transactions (Det
Related party transactions (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2023 | Jan. 31, 2023 | Jan. 04, 2023 | |
Related Party Transaction [Line Items] | ||||
Accounts payable outstanding | $ 403,839 | $ 0 | ||
PERC Water Corporation | ||||
Related Party Transaction [Line Items] | ||||
Purchases of services | 2,695,000 | |||
Accounts payable outstanding | 404,000 | |||
Amount of expense related to sublease agreement | $ 97,000 | |||
PERC Water Corporation | ||||
Related Party Transaction [Line Items] | ||||
Ownership interest acquired | 39% | 39% | ||
PERC Water Corporation | ||||
Related Party Transaction [Line Items] | ||||
Ownership interest held | 100% | 100% |
Supplemental disclosure of ca_3
Supplemental disclosure of cash flow information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Supplemental Disclosure Of Cash Flow Information [Line Items] | ||
Interest paid in cash | $ 21,417 | $ 14,797 |
Income taxes paid in cash | 4,920,912 | 211,000 |
Non-cash transactions: | ||
Dividends declared but not paid | 1,502,506 | 1,305,367 |
Issuance of 368,383 and 0, respectively, shares of common stock for the purchase of non-controlling interests in PERC | 5,359,973 | 0 |
Transfers from inventory to property, plant and equipment and construction in progress | 317,853 | 346,024 |
Transfers from construction in progress to property, plant and equipment | 7,093,158 | 297,723 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 745,078 | 0 |
Purchase of equipment through issuance of long-term debt | 0 | 188,645 |
Redeemable preferred stock [Member] | ||
Non-cash transactions: | ||
Issuance of 13,309 and 9,295, respectively, shares of redeemable preferred stock for services rendered | 323,275 | 133,197 |
Conversion (on a one-to-one basis) of 8,848 and 6,585, respectively, shares of redeemable preferred stock to common stock | 5,309 | 3,951 |
Issuance of shares, respectively, shares of common stock for services rendered | $ 13,309 | $ 9,295 |
Conversion (on a one-to-one basis) of 8,848 and 6,585, respectively, shares of redeemable preferred stock to common stock | 8,848 | 6,585 |
Common stock [Member] | ||
Non-cash transactions: | ||
Issuance of 68,864 and 72,597, respectively, shares of common stock for services rendered | $ 1,015,177 | $ 877,298 |
Issuance of shares, respectively, shares of common stock for services rendered | $ 68,864 | $ 72,597 |
Supplemental disclosure of ca_4
Supplemental disclosure of cash flow information - Additional Information (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Redeemable preferred stock [Member] | ||
Supplemental Disclosure Of Cash Flow Information [Line Items] | ||
Stock Issued During Period, Shares, Issued for Services | 13,309 | 9,295 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 29,585,391 | $ 5,856,294 |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |