Consolidated Water (CWCO) closed the most recent trading day at $29.77, moving +0.98% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.13%.The the stock of developer and operator of desalination plants has fallen by 8.98% in the past month, lagging the Utilities sector's gain of 1.32% and the S&P 500's gain of 4.74%.Analysts and investors alike will be keeping a close eye on the perfo ...

Consolidated Water (CWCO) closed the most recent trading day at $30.26, moving +0.83% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.57%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, added 1.25%.Shares of the developer and operator of desalination plants witnessed a loss of 8.84% over the previous month, trailing the performance of the Utilities sector with its loss of 6.88% and the S&P 500's gain of 5.07%.Analysts and investors alike ...

A downtrend has been apparent in Consolidated Water (CWCO) lately with too much selling pressure. The stock has declined 6.2% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicator ...

Financial Data and Key Metrics Changes - The company reported record quarterly revenue of $49.9 million, representing a nearly 100% increase compared to the same quarter last year [1][89] - Gross profit for Q3 2023 was $16.6 million, or 33% of total revenue, compared to $6.8 million, or 27% of total revenue for the same quarter last year [5] - Net income from continuing operations attributable to shareholders was $8.8 million, or $0.55 per diluted share, compared to $800,000, or $0.05 per diluted share for the same quarter last year [5][91] - Cash and cash equivalents totaled $48.8 million as of September 30, 2023, up from $47.7 million as of June 30, 2023 [72] Business Line Data and Key Metrics Changes - Retail revenue increased due to a 16% rise in the volume of water sold, attributed to increased tourism in Grand Cayman [4][98] - The Services segment revenue increased by $20.7 million, driven by construction revenue and O&M revenue, with approximately $20 million recognized from the construction of a water treatment plant in Goodyear, Arizona [86][90] - Manufacturing segment revenue increased due to improved production activity as supply chain issues abated [93][101] Market Data and Key Metrics Changes - The company anticipates a strong tourism season in the Cayman Islands, supported by increased flights from major airlines [9][116] - The Western U.S. continues to experience unprecedented drought conditions, with over 22% of the region affected, creating a growing market for water solutions [117] Company Strategy and Development Direction - The company aims to focus on projects in water-stressed areas of the U.S. and the Caribbean, providing desalination and advanced wastewater treatment solutions [80] - The acquisition of Ramey Environmental Compliance (REC) is expected to enhance the company's operational presence in Colorado and leverage PERC's capabilities [94][118] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth due to the recovery of tourism, ongoing construction projects, and increased bidding activity in the U.S. [13][78] - The company believes that its recent successes and positive market trends will drive growth and profitability [13][80] Other Important Information - The company has approximately $4.7 million in outstanding raw material purchase commitments as of September 30, 2023 [6] - Future liquidity requirements include capital commitments of approximately $5.1 million for existing operations [104] Q&A Session Summary Question: What are the opportunities from the water treatment contract on the military base? - Management indicated that they anticipate continuing to pursue similar contracts, as they have been operating the Camp Pendleton wastewater system for several years [36] Question: How does the Hawaii contract revenue recognition work? - Revenue is booked based on costs incurred to date, with meaningful revenues expected to start being recognized by next year [40][41] Question: Is the pipeline of projects larger due to federal funding? - Management clarified that the current projects are driven by necessity rather than federal funding [45] Question: How is the company managing its cash position? - The company is investing in short-term, secure money market accounts to generate interest income [56][62]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements and management's analysis of its financial condition and results of operations [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income statements, and cash flows, with detailed notes on accounting policies and segment performance [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$211.6 million** by September 30, 2023, driven by higher accounts receivable and contract assets, with corresponding increases in liabilities and equity Condensed Consolidated Balance Sheet Highlights (in millions) | Balance Sheet Item | Sep 30, 2023 | Dec 31, 2022 | Change | | :--- | :--- | :--- | :--- | | **Total Current Assets** | $109.6 | $92.6 | +$17.0 | | Accounts Receivable, net | $38.1 | $27.0 | +$11.1 | | Contract Assets | $9.0 | $2.9 | +$6.1 | | **Total Assets** | $211.6 | $193.0 | +$18.6 | | **Total Current Liabilities** | $26.5 | $22.7 | +$3.8 | | **Total Liabilities** | $28.7 | $25.2 | +$3.5 | | **Total Equity** | $182.9 | $167.8 | +$15.1 | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q3 2023 revenue nearly doubled to **$49.9 million**, significantly increasing gross profit and net income attributable to stockholders to **$8.6 million** or **$0.54 per diluted share** Q3 2023 vs Q3 2022 Performance | Metric | Q3 2023 (USD) | Q3 2022 (USD) | Change | | :--- | :--- | :--- | :--- | | Revenue | $49,854,075 | $25,051,705 | +99.0% | | Gross Profit | $16,614,428 | $6,843,773 | +142.8% | | Income from Operations | $10,741,938 | $1,236,622 | +768.6% | | Net Income Attributable to Stockholders | $8,605,129 | $317,694 | +2609.2% | | Diluted EPS | $0.54 | $0.02 | +$0.52 | Nine Months 2023 vs 2022 Performance | Metric | Nine Months 2023 (USD) | Nine Months 2022 (USD) | Change | | :--- | :--- | :--- | :--- | | Revenue | $126,960,328 | $65,676,737 | +93.3% | | Gross Profit | $42,637,059 | $21,465,034 | +98.6% | | Income from Operations | $24,749,908 | $6,082,813 | +306.9% | | Net Income Attributable to Stockholders | $19,742,526 | $4,324,395 | +356.5% | | Diluted EPS | $1.24 | $0.28 | +$0.96 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased to **$8.4 million** for the nine months ended September 30, 2023, while investing and financing activities used **$6.5 million** and **$4.0 million** respectively Cash Flow Summary (Nine Months Ended Sep 30) | Cash Flow Activity | 2023 (USD) | 2022 (USD) | | :--- | :--- | :--- | | Net cash provided by operating activities | $8,395,625 | $15,803,236 | | Net cash used in investing activities | ($6,542,387) | ($416,756) | | Net cash used in financing activities | ($3,972,022) | ($4,977,296) | | **Net (decrease) increase in cash** | **($2,118,784)** | **$10,409,184** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes cover principal activities, accounting policies, segment performance, discontinued operations, lease obligations, contingencies, and a subsequent acquisition of Ramey Environmental Compliance, Inc - On January 4, 2023, the company acquired the remaining **39%** interest in PERC Water Corporation for **$2.4 million** cash and approximately **$5.36 million** in stock, making PERC a wholly-owned subsidiary[23](index=23&type=chunk) - Unsatisfied performance obligations for long-term contracts totaled approximately **$189.3 million** as of September 30, 2023, with **$28.8 million** expected in 2023 and **$160.5 million** thereafter[54](index=54&type=chunk) - Subsequent to quarter end, on November 2, 2023, PERC acquired Ramey Environmental Compliance, Inc. (REC) for approximately **$4.2 million**[113](index=113&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant increase in revenue and profitability for Q3 and nine months 2023, driven by the services segment, detailing performance across all four business segments, financial condition, liquidity, and key contingencies [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Q3 2023 revenue increased **99%** to **$49.9 million**, and nine-month revenue grew **93%** to **$127.0 million**, primarily driven by the services segment's construction projects and improved gross profit margin Q3 2023 Revenue by Segment (in millions) | Segment | Q3 2023 Revenue | Q3 2022 Revenue | Change | | :--- | :--- | :--- | :--- | | Retail | $7.2 | $6.3 | +15.0% | | Bulk | $8.5 | $8.7 | -2.1% | | Services | $29.4 | $8.7 | +237.1% | | Manufacturing | $4.7 | $1.4 | +242.6% | | **Total** | **$49.9** | **$25.1** | **+98.8%** | - The services segment's revenue growth was primarily due to a water treatment plant construction contract with Liberty Utilities in Arizona, contributing approximately **$20.0 million** in Q3 2023 revenue[167](index=167&type=chunk) - Favorable cost efficiencies from changes in accounting estimates for construction contracts increased the services segment's revenue, gross profit, and income from operations by **$1,787,275** for Q3 2023[168](index=168&type=chunk)[52](index=52&type=chunk) [Financial Condition](index=37&type=section&id=Financial%20Condition) The company's financial condition strengthened by September 30, 2023, with accounts receivable increasing by **$11.1 million** and contract assets growing by **$6.1 million**, resulting in **$83.1 million** in working capital - Accounts receivable increased by **$11.1 million**, primarily due to a **$6.9 million** rise in CW-Bahamas' receivables and **$3.3 million** from the Kalaeloa Desalination facility construction in Hawaii[197](index=197&type=chunk) - Contract assets increased by **$6.1 million**, mainly from construction progress on the Red Gate plant for the Water Authority-Cayman (WAC)[198](index=198&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$48.8 million** in cash and **$83.1 million** in working capital, though delinquent receivables from WSC in The Bahamas totaling **$23.2 million** remain a key concern - CW-Bahamas' accounts receivable from the WSC increased to **$23.2 million** as of September 30, 2023, with approximately **76%** of the balance delinquent[205](index=205&type=chunk)[103](index=103&type=chunk) - No allowance for doubtful accounts has been provided for WSC receivables, based on historical full payment and recent discussions with The Bahamas' Ministry of Finance[206](index=206&type=chunk)[207](index=207&type=chunk) - The company has an undrawn **$10.0 million** revolving credit facility available for general working capital purposes[214](index=214&type=chunk)[219](index=219&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes in the company's exposure to market risk were reported from December 31, 2022, through September 30, 2023 - No material changes in market risk exposure were reported for the period[233](index=233&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting identified - The company's disclosure controls and procedures were deemed effective as of the end of the quarter[234](index=234&type=chunk) - No material changes in internal control over financial reporting were identified during the quarter[235](index=235&type=chunk) [PART II - OTHER INFORMATION](index=43&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This part provides information on legal proceedings, risk factors, unregistered sales of equity securities, and exhibits [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) Ongoing litigation related to the discontinued Mexico project involves EWG Water LLC's motion to secure NSC assets, against which NSC obtained a definitive injunction pending a guarantee - EWG Water LLC filed a motion in July 2023 seeking precautionary measures to secure NSC's real estate assets related to the discontinued Rosarito project dispute[240](index=240&type=chunk) - NSC filed an amparo suit and obtained a definitive injunction to stay precautionary measures, subject to posting a guarantee[244](index=244&type=chunk)[245](index=245&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) Significant risks include uncertainty regarding the Cayman Islands retail water license, substantial delays in collecting Bahamas receivables, potential impairment of manufacturing segment assets, and adverse economic impacts on supply chain and contract profitability - The company's exclusive retail license in the Cayman Islands has not been extended since January 2018, and ongoing negotiations could materially reduce operating income and cash flows[247](index=247&type=chunk)[249](index=249&type=chunk) - CW-Bahamas faces significant delays in collecting **$23.2 million** in accounts receivable, with **76%** delinquent, potentially impacting liquidity and results[251](index=251&type=chunk) - Future impairment charges are possible for the manufacturing segment's goodwill (**$1,985,211**) and intangible assets (**$684,444**) if Aerex's future cash flows fall short of expectations[258](index=258&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In July 2023, the company issued **5,057** preferred shares to **28** employees for **$55,795**, exempt from registration under Regulation S and Section 4(a)(2) of the Securities Act - The company issued **5,057** shares of preferred stock to **28** employees in July 2023 for total consideration of **$55,795**[262](index=262&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files

Consolidated Water Co. Ltd. (NASDAQ:CWCO) Q2 2023 Earnings Conference Call August 11, 2023 11:00 AM ET Company Participants Frederick McTaggart - President, CEO & Director David Sasnett - EVP & CFO Conference Call Participants Gerry Sweeney - ROTH Capital Operator Good morning. Thank you for joining us today to discuss Consolidated Water Company's Second Quarter of 2023 Results. Hosting the call today is the Chief Executive Officer of Consolidated Water Company, Rick McTaggart; and the company's Chief Finan ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 0-25248 CONSOLIDATED WATER CO. LTD. (Exact name of registrant as specified in its charter) C ...

Financial Data and Key Metrics Changes - The company reported a 68% increase in revenue to $32.9 million for Q1 2023, with revenue growth across all four business segments [2][17] - Net income attributable to shareholders for Q1 2023 was $3.8 million or $0.24 per share, up from $1.7 million or $0.11 per share in Q1 2022 [19] - Gross profit for Q1 2023 was $10.6 million, representing 32.1% of total revenue, an increase of 48% from $7.1 million in Q1 2022 [34] Business Segment Data and Key Metrics Changes - Retail segment revenue increased by $1.5 million, driven by a 20% increase in water volume sold, partly due to increased tourist activity [17][21] - Services segment revenue rose by $8 million, primarily due to PERC Water's progress on a water treatment plant project in Goodyear, Arizona [3][18] - Manufacturing segment revenue increased by $2.2 million, attributed to improved production activity and supply chain conditions [8][22] Market Data and Key Metrics Changes - The Bahamas operations saw a 9% increase in water volume sold, reflecting a rebound in the local economy post-COVID [33] - Tourist arrivals in the Cayman Islands were higher than in Q4 2022 but still below pre-pandemic levels, impacting retail water sales [11][13] Company Strategy and Development Direction - The company is optimistic about growth due to the recovery of tourism in Grand Cayman and ongoing construction projects in the U.S. and Caribbean [24][39] - The acquisition of PERC Water has significantly enhanced the company's operational capabilities and financial performance, with plans for further strategic transactions [4][38] Management's Comments on Operating Environment and Future Outlook - Management noted that retail sales are expected to return to normal seasonal patterns, with lower sales during rainier periods and off-peak tourism months [36] - The company anticipates positive impacts from over $150 million in major multi-year projects secured last year [24][39] Other Important Information - Cash and cash equivalents totaled $51.1 million, with working capital at $70.6 million and minimal debt of $300,000 [9] - The company is evaluating two potential acquisitions to complement PERC Water and enhance its technology offerings [23] Q&A Session Summary Question: What are the expectations for future revenue growth? - Management expressed optimism about continued growth due to recovering tourism and ongoing projects, expecting significant revenue contributions from secured contracts [24][39] Question: How is the company addressing supply chain issues? - The company reported relief from supply chain constraints, allowing for improved order backlog management and production activity [22] Question: What is the outlook for the manufacturing segment? - Management expects improved and consistent results in the manufacturing segment due to a diversified customer base and returning business from major clients [37]

```markdown PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the three months ended March 31, 2023, compared to the same period in 2022. It includes the balance sheets, statements of income, stockholders' equity, and cash flows, along with comprehensive notes detailing accounting policies, segment performance, discontinued operations, and key contingencies Q1 2023 vs Q1 2022 Consolidated Income Statement Highlights | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Revenue | $32,868,990 | $19,557,905 | | Gross Profit | $10,559,082 | $7,145,764 | | Income from Operations | $4,528,336 | $2,292,105 | | Net Income (to Stockholders) | $3,813,626 | $1,716,815 | | Diluted EPS | $0.24 | $0.11 | Consolidated Balance Sheet Highlights | Metric | March 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $51,104,268 | $50,711,751 | | Total Assets | $201,612,348 | $193,006,849 | | Total Liabilities | $33,189,561 | $25,242,660 | | Total Equity | $168,422,787 | $167,764,189 | - Net cash provided by operating activities increased to **$5.3 million** in Q1 2023 from **$4.6 million** in Q1 2022. Net cash used in investing activities was **$3.8 million**, primarily due to the purchase of the remaining non-controlling interest in PERC for **$2.4 million**[17](index=17&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies and financial data. Key disclosures include the full acquisition of PERC Water Corporation, segment revenue breakdown, the status of the discontinued Mexico project, and significant contingencies related to the Cayman Islands retail license and accounts receivable in The Bahamas - On January 4, 2023, the company purchased the remaining **39%** ownership interest in PERC Water Corporation for **$2.4 million** in cash and approximately **$5.36 million** in company stock, making PERC a wholly-owned subsidiary[21](index=21&type=chunk) Revenue by Source (Three Months Ended March 31) | Revenue Source | 2023 | 2022 | | :--- | :--- | :--- | | Retail revenue | $7,771,095 | $6,313,200 | | Bulk revenue | $9,004,373 | $7,350,644 | | Services revenue | $12,721,701 | $4,743,820 | | Manufacturing revenue | $3,371,821 | $1,150,241 | | **Total revenue** | **$32,868,990** | **$19,557,905** | - The company's discontinued operations in Mexico, related to the terminated Rosarito desalination plant project, resulted in a net loss of **$259,163** for Q1 2023. The company is pursuing arbitration against Mexico for damages[68](index=68&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) - A significant contingency exists regarding the Cayman Water retail license, which has not been formally extended since January 2018. Ongoing negotiations with the regulator (OfReg) could result in terms that materially reduce operating income[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) - As of March 31, 2023, CW-Bahamas had accounts receivable from the Water and Sewerage Corporation (WSC) of **$16.6 million**, with approximately **65%** being delinquent, posing a liquidity risk[90](index=90&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management provides an analysis of the company's financial performance for Q1 2023, highlighting a **68%** increase in consolidated revenue driven by strong growth across all four business segments. The discussion covers segment-level performance, changes in financial condition, liquidity, capital resources, and material commitments, including the ongoing Cayman retail license negotiations and collection delays in The Bahamas - Consolidated revenue for Q1 2023 increased **68%** to **$32.9 million** from **$19.6 million** in Q1 2022, with growth across all four segments[141](index=141&type=chunk) - Gross profit for Q1 2023 was **$10.6 million** (**32%** margin), up from **$7.1 million** (**37%** margin) in Q1 2022. The margin decrease is attributed to a change in revenue mix[141](index=141&type=chunk) - General and administrative (G&A) expenses rose to **$6.0 million** from **$4.9 million** year-over-year, primarily due to a **$945,571** increase in employee costs from pay raises, new hires, and higher bonus accruals[142](index=142&type=chunk) - As of March 31, 2023, the company had cash and cash equivalents of **$51.1 million** and working capital of **$70.6 million**[166](index=166&type=chunk) [Results by Segment](index=32&type=section&id=Results%20by%20Segment) All four segments reported significant revenue growth in Q1 2023. The Services segment saw the largest increase, driven by a major construction project in Arizona. The Retail segment benefited from increased tourism, while the Bulk segment's revenue grew due to higher energy pass-through costs and volume. The Manufacturing segment recovered strongly as supply chain issues eased - **Retail:** Revenue increased **23%** to **$7.8 million** due to a **20%** rise in water sales volume, reflecting increased tourist activity on Grand Cayman[145](index=145&type=chunk) - **Bulk:** Revenue grew **22%** to **$9.0 million**, driven by higher energy pass-through components in rates and a **9%** increase in water volume sold[148](index=148&type=chunk) - **Services:** Revenue surged **168%** to **$12.7 million**, primarily from PERC's progress on a water treatment plant construction contract with Liberty Utilities in Arizona, which contributed **$6.4 million** in revenue[152](index=152&type=chunk) - **Manufacturing:** Revenue jumped **193%** to **$3.4 million**, reflecting increased production as supply chain conditions and customer demand improved compared to the prior year[156](index=156&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=33&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) The company's financial condition strengthened, with working capital at **$70.6 million**. Key balance sheet changes include increases in accounts receivable, inventory, and contract assets due to heightened project activity. The company projects **$12.0 million** in capital expenditures for the remainder of 2023. A significant liquidity risk remains with CW-Bahamas due to **$16.6 million** in accounts receivable from the WSC, of which **65%** is delinquent - Projected capital expenditures for the rest of 2023 are approximately **$12.0 million**, including funds for replacing the West Bay desalination plant and constructing the new Red Gate plant for WAC[164](index=164&type=chunk) - A revolving credit facility of up to **$10.0 million** with Scotiabank & Trust (Cayman) Ltd. remains available but has not yet been utilized[175](index=175&type=chunk)[180](index=180&type=chunk) - The company paid dividends of **$0.085** per share in January and April 2023[189](index=189&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company states that there have been no material changes in its exposure to market risk between December 31, 2022, and March 31, 2023 - There were no material changes in the company's market risk exposure from the end of the previous fiscal year[192](index=192&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2023. No material changes to internal control over financial reporting were identified during the quarter - Based on an evaluation as of the end of the period, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective[193](index=193&type=chunk) - No changes in internal control over financial reporting occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, these controls[194](index=194&type=chunk) PART II - OTHER INFORMATION [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) This section outlines key business risks, emphasizing the uncertainty surrounding the renewal of the exclusive retail water license in the Cayman Islands, which could significantly reduce future income. Other major risks include substantial delays in collecting receivables in The Bahamas, potential impairment of goodwill in the manufacturing segment (Aerex), and adverse impacts from supply chain disruptions and inflation - The company's exclusive retail license in the Cayman Islands has not been expressly extended since January 2018. Ongoing negotiations with the regulator could lead to a material reduction in operating income and cash flows from these operations[198](index=198&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk) - The Bahamas subsidiary (CW-Bahamas) faces significant liquidity risk due to delayed collection of accounts receivable from the WSC, with **$16.6 million** outstanding and **65%** delinquent as of March 31, 2023[202](index=202&type=chunk)[205](index=205&type=chunk) - The services segment's revenue is largely dependent on short-term O&M contracts. For Q1 2023, approximately **8%** of PERC's revenue was from contracts expiring by the end of 2023, posing a risk if not renewed or replaced[206](index=206&type=chunk) - The manufacturing segment's goodwill and intangible assets, valued at **$1.99 million** and **$0.73 million** respectively, are at risk of impairment if the financial performance of Aerex does not meet projections[212](index=212&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports that there were no unregistered sales of its equity securities during the first quarter of 2023 - There were no unregistered sales of equity securities during the three months ended March 31, 2023[215](index=215&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, which primarily consist of the required CEO and CFO certifications under Sarbanes-Oxley and the interactive data files (XBRL) - The exhibits filed with this report include certifications from the Chief Executive Officer and Chief Financial Officer as required by Rule 13a-14(a)/15d-14(a) and Section 1350, along with XBRL data files[216](index=216&type=chunk) ```

Consolidated Water Co. Ltd. (NASDAQ:CWCO) Q4 2022 Earnings Conference Call March 31, 2023 11:00 AM ET Company Participants Rick McTaggart - CEO David Sasnett - CFO Conference Call Participants Gerard Sweeney - ROTH Capital Partners John Bair - Ascend Wealth Advisors Operator Good morning, and thank you for joining us today to discuss Consolidated Water Company's Full Year 2022 Results. Hosting the call today is the Chief Executive Officer, Consolidated Water Company, Rick McTaggart; and the company's Chief ...