4. Segment information

The Company has four reportable segments: retail, bulk, services and manufacturing. The retail segment consists of Cayman Water which owns and operates the water utility that provides potable water to the Seven Mile Beach and West Bay areas of Grand Cayman Island pursuant to an exclusive license granted by the Cayman Islands government and CW-Bali which sells water to resort properties in Bali, Indonesia. The bulk segment supplies potable water to government utilities in Grand Cayman, The Bahamas and Belize under long-term contracts. The services segment provides desalination plant management and operating services to affiliated companies and designs, constructs and sells desalination plants to third parties. The manufacturing segment manufactures and services a wide range of water-related products and provides design, engineering, management, operating and other services 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 business 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 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.

	Three Months Ended September 30, 2017
	Retail		Bulk		Services		Manufacturing		Total
Revenues	$	5,570,654	$	7,881,464	$	111,302	$	3,008,783	$	16,572,203
Cost of revenues		2,488,441		5,582,401		114,667		2,078,888		10,264,397
Gross profit (loss)		3,082,213		2,299,063		(3,365)		929,895		6,307,806
General and administrative expenses		3,070,681		315,374		863,646		646,622		4,896,323
Impairment loss on long-lived assets		578,480		-		-		-		578,480
Income (loss) from operations	$	(566,948)	$	1,983,689	$	(867,011)	$	283,273		833,003
Other income, net										447,294
Income before income taxes										1,280,297
Provision for (benefit from) income taxes										(136,447)
Net income										1,416,744
Income from attributable to non-controlling interests										255,605
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	1,161,139

Depreciation and amortization expenses for the three months ended September 30, 2017 for the retail, bulk, services and manufacturing segments were $ 491,771, $1,274,471, $7,638, and $398,368 respectively.

	Three Months Ended September 30, 2016
	Retail		Bulk		Services		Manufacturing		Total
Revenues	$	5,447,200	$	7,429,732	$	125,929	$	1,382,492	$	14,385,353
Cost of revenues		2,464,841		4,922,162		168,577		910,450		8,466,030
Gross profit (loss)		2,982,359		2,507,570		(42,648)		472,042		5,919,323
General and administrative expenses		2,811,262		425,000		643,660		648,757		4,528,679
Impairment loss on long-lived assets		2,000,000		-		-		-		2,000,000
Impairment of goodwill		-		-		-		1,750,000		1,750,000
Income (loss) from operations	$	(1,828,903)	$	2,082,570	$	(686,308)	$	(1,926,715)		(2,359,356)
Other expense, net										(762,696)
Loss before income taxes										(3,122,052)
Provision for (benefit from) income taxes										(146,198)
Net loss										(2,975,854)
Loss attributable to non-controlling interests										(1,110,522)
Net loss attributable to Consolidated Water Co. Ltd. stockholders									$	(1,865,332)

Depreciation and amortization expenses for the three months ended September 30, 2016 for the retail, bulk, services and manufacturing segments were $567,833, $811,741, $29,037 and $422,230 respectively.

	Nine Months Ended September 30, 2017
	Retail		Bulk		Services		Manufacturing		Total
Revenues	$	18,111,274	$	23,615,787	$	360,758	$	5,444,678	$	47,532,497
Cost of revenues		7,895,617		15,750,402		320,586		3,967,945		27,934,550
Gross profit		10,215,657		7,865,385		40,172		1,476,733		19,597,947
General and administrative expenses		9,288,941		940,105		2,498,766		1,967,372		14,695,184
Impairment loss on long-lived assets		1,578,480		-		-		-		1,578,480
Income (loss) from operations	$	(651,764)	$	6,925,280	$	(2,458,594)	$	(490,639)		3,324,283
Other income (expense), net										871,956
Income before income taxes										4,196,239
Provision for (benefit from) income taxes										(412,592)
Net income										4,608,831
Income from attributable to non-controlling interests										191,916
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	4,416,915

Depreciation and amortization expenses for the nine months ended September 30, 2017 for the retail, bulk, services and manufacturing segments were $1,514,069, $2,928,287, $37,295, and $1,204,313 respectively.

	Nine Months Ended September 30, 2016
	Retail		Bulk		Services		Manufacturing		Total
Revenues	$	17,710,271	$	22,136,086	$	710,576	$	3,261,827	$	43,818,760
Cost of revenues		7,779,831		14,345,747		638,389		2,366,060		25,130,027
Gross profit		9,930,440		7,790,339		72,187		895,767		18,688,733
General and administrative expenses		8,588,529		1,302,884		2,363,392		1,670,634		13,925,439
Impairment loss on long-lived assets		2,000,000		-		-		-		2,000,000
Impairment of goodwill		-		-		-		1,750,000		1,750,000
Income (loss) from operations	$	(658,089)	$	6,487,455	$	(2,291,205)	$	(2,524,867)		1,013,294
Other income (expense), net										45,698
Income before income taxes										1,058,992
Provision for (benefit from) income taxes										(389,860)
Net income										1,448,852
Loss attributable to non-controlling interests										(944,790)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	2,393,642

Depreciation and amortization expenses for the nine months ended September 30, 2016 for the retail, bulk, services and manufacturing segments were $1,714,928, $2,480,314, $87,113 and $1,126,169 respectively.

	As of September 30, 2017
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	1,855,483	$	9,457,940	$	1,343,756	$	350,704	$	13,007,883
Property plant and equipment, net	$	23,466,107	$	25,311,839	$	96,698	$	1,884,614	$	50,759,258
Construction in progress	$	195,508	$	1,226,677	$	3,256	$	7,900	$	1,433,341
Intangibles, net	$	-	$	550,315	$	-	$	3,566,667	$	4,116,982
Goodwill	$	1,170,511	$	2,328,526	$	-	$	6,285,211	$	9,784,248
Land held for development	$	-	$	-	$	20,558,424	$	-	$	20,558,424
Total segment assets	$	54,650,263	$	72,474,419	$	24,197,958	$	14,517,817	$	165,840,457

	As of December 31, 2016
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	2,646,628	$	12,692,714	$	629,930	$	531,526	$	16,500,798
Property plant and equipment, net	$	24,890,031	$	26,124,724	$	91,030	$	1,978,320	$	53,084,105
Construction in progress	$	134,392	$	743,296	$	-	$	7,806	$	885,494
Intangibles, net	$	-	$	599,960	$	15,516	$	4,580,000	$	5,195,476
Goodwill	$	1,170,511	$	2,328,526	$	-	$	6,285,211	$	9,784,248
Land held for development	$	-	$	-	$	20,558,424	$	-	$	20,558,424
Total segment assets	$	54,303,011	$	68,663,628	$	25,558,495	$	15,079,394	$	163,604,528