3. Segment information

The Company has four reportable segments: retail, bulk, services and manufacturing. The retail segment primarily operates the water utility for the Seven Mile Beach and West Bay areas of Grand Cayman Island pursuant to an exclusive license granted by the Cayman Islands government. 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 a wide range of custom and specialty water treatment-related systems and 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 costs 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 March 31, 2018
	Retail		Bulk		Services		Manufacturing		Total
Revenues	$	6,431,348	$	8,228,515	$	123,764	$	552,768	$	15,336,395
Cost of revenues		2,761,554		5,396,591		134,871		438,861		8,731,877
Gross profit (loss)		3,669,794		2,831,924		(11,107)		113,907		6,604,518
General and administrative expenses		3,145,483		341,967		650,636		629,358		4,767,444
Loss on asset dispositions and impairments, net		1,340		-		-		-		1,340
Income (loss) from operations	$	522,971	$	2,489,957	$	(661,743)	$	(515,451)		1,835,734
Other income, net										144,910
Income before income taxes										1,980,644
Provision for (benefit from) income taxes										(77,388)
Net income										2,058,032
Loss attributable to non-controlling interests										(34,493)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	2,092,525

Depreciation and amortization expenses for the three months ended March 31, 2018 for the retail, bulk, services and manufacturing segments were $503,013, $809,148, $7,638 and $399,294, respectively.

	Three Months Ended March 31, 2017
	Retail		Bulk		Services		Manufacturing		Total
Revenues	$	6,476,604	$	7,690,402	$	130,252	$	1,379,848	$	15,677,106
Cost of revenues		2,684,286		5,015,789		102,166		1,041,297		8,843,538
Gross profit		3,792,318		2,674,613		28,086		338,551		6,833,568
General and administrative expenses		3,012,860		301,076		743,406		739,850		4,797,192
(Gain) on asset dispositions and impairments, net		(9,600)		-		-		(27)		(9,627)
Income (loss) from operations	$	789,058	$	2,373,537	$	(715,320)	$	(401,272)		2,046,003
Other income, net										393,752
Income before income taxes										2,439,755
Provision for (benefit from) income taxes										(139,697)
Net income										2,579,452
Loss attributable to non-controlling interests										(51,776)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	2,631,228

Depreciation and amortization expenses for the three months ended March 31, 2017 for the retail, bulk, services and manufacturing segments were $509,820, $826,779, $22,019 and $406,489, respectively.

	As of March 31, 2018
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	2,784,040	$	13,656,231	$	1,362,482	$	37,275	$	17,840,028
Property plant and equipment, net	$	22,982,719	$	24,675,709	$	76,701	$	1,784,008	$	49,519,137
Construction in progress	$	1,679,113	$	3,548,303	$	3,291	$	-	$	5,230,707
Intangibles, net	$	-	$	517,219	$	-	$	2,896,667	$	3,413,886
Goodwill	$	1,170,511	$	2,328,526	$	-	$	4,885,211	$	8,384,248
Land held for development	$	-	$	-	$	20,558,424	$	-	$	20,558,424
Total segment assets	$	51,709,730	$	77,994,082	$	24,945,642	$	11,264,441	$	165,913,895

	As of December 31, 2017
	Retail		Bulk		Services		Manufacturing		Total

Accounts receivable, net	$	2,406,595	$	10,177,620	$	1,155,318	$	1,308,313	$	15,047,846
Property, plant and equipment, net	$	23,172,382	$	25,420,819	$	84,339	$	1,847,524	$	50,525,064
Construction in progress	$	321,368	$	1,498,625	$	3,291	$	-	$	1,823,284
Intangibles, net	$	-	$	533,767	$	-	$	3,231,667	$	3,765,434
Goodwill	$	1,170,511	$	2,328,526	$	-	$	4,885,211	$	8,384,248
Land held for development	$	-	$	-	$	20,558,424	$	-	$	20,558,424
Total segment assets	$	52,095,524	$	75,785,323	$	24,488,173	$	13,111,875	$	165,480,895