Purchase of interest in Aerex Industries, Inc. (Tables)

9 Months Ended

Sep. 30, 2016

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The purchase price for Aerex is summarized as follows:

	February 11, 2016
Cash consideration
Purchase price (excluding working capital)	$	7,140,000
Working capital adjustment		605,179
Cash acquired		(2,326)
Total cash consideration	$	7,742,853

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following table summarizes the estimated fair values of the assets and liabilities assumed at the acquisition date:

	February 11, 2016
Financial assets	$	456,664
Inventory		70,487
Costs and estimated earnings in excess of billings		784,465
Property, plant and equipment		2,159,401
Identifiable intangible assets		5,900,000
Deferred tax liability		(2,451,298)
Accounts payable and accrued liabilities		(116,893)
Net liability arising from put/call options		(383,000)
Total identifiable net assets		6,419,826
Non-controlling interest in Aerex		(6,712,184)
Goodwill		8,035,211
	$	7,742,853

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

The identifiable intangible assets consist of the following items with amortization calculated using a straight line method over the useful life of the asset:

	February 11, 2016		Accumulated Amortization		September 30, 2016		Useful life
Non-compete agreement	$	400,000	$	53,333	$	346,667	5 years
Trade name		1,400,000		62,223		1,337,777	15 years
Certifications/programs		2,000,000		444,444		1,555,556	3 years
Customer backlog		100,000		66,667		33,333	1 year
Customer relationships		2,000,000		333,333		1,666,667	4 years
	$	5,900,000	$	960,000	$	4,940,000

Business Acquisition, Pro Forma Information [Table Text Block]

The following pro forma financial information presents the results of operations of the Company for the nine months ended September 30, 2016 and 2015, as if the acquisition of Aerex had taken place on January 1, 2015. The pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which would have actually occurred had the transaction taken place on January 1, 2015, or of future results of operations:

	Nine Months Ended September 30,
	2016		2015
Revenues	$	44,324,477	$	60,383,276
Cost of revenues		25,397,444		38,135,655
Gross profit		18,927,033		22,247,621
General and administrative expenses		14,240,156		12,601,144
Impairment loss on long-lived assets		2,000,000		-
Impairment of goodwill		1,750,000		-
Income from operations		936,877		9,646,477
Other income (expense), net		47,202		(487,401)
Income before income taxes		984,079		9,159,076
Provision for (benefit from) income taxes		(462,773)		1,027,589
Net income		1,446,852		8,131,487
Income (loss) attributable to non-controlling interests		(920,277)		1,417,703
Net income attributable to Consolidated Water Co. Ltd. stockholders	$	2,367,129	$	6,713,784

Basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders	$	0.16	$	0.46
Diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders	$	0.16	$	0.45

Weighted average number of common shares used in the determination of:
Basic earnings per share		14,803,216		14,734,799
Diluted earnings per share		14,940,635		14,787,904