62 unchanged sentences
Aerex is a custom and specialty manufacturer in the United States of water-related systems and products applicable to commercial, municipal and industrial water production and treatment.
−Removed: We recognize revenue for our construction and our specialized/custom manufacturing contracts over time under the input method using costs incurred (which represents work performed) to date relative to the total estimated costs at completion to measure progress toward satisfying a contract’s performance obligations, as such measure best reflects the transfer of control of the promised good to the customer.
+Added: We recognize revenue for our construction and our specialized/custom manufacturing contracts (and some of our design contracts) over time under the input method using costs incurred (which represents work performed) to date relative to the total estimated costs at completion to measure progress toward satisfying a contract’s performance obligations, as such measure best reflects the transfer of control of the promised good to the customer.
Contract costs include labor, materials, subcontractor costs and other expenses.
15 unchanged sentences
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2024 Form 10-K.
−Removed: Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024
+Added: Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024
Discontinued Operations – Mexico Project Development
26 unchanged sentences
and (ii) no party to the Settlement Agreement may institute any legal proceedings against another party thereto with respect to the matters which have been addressed by the Settlement Agreement.
−Removed: We are presently in the process of legally terminating/dissolving CW-Cooperatief, NSC and AdR and will continue to incur expenses for these subsidiaries while such process is completed.
−Removed: Our net loss from discontinued operations for the three months ended June 30, 2025 was ($82,556).
−Removed: We generated net income from discontinued operations of $11,607,846 for the three months ended June 30, 2024 as a result of the Settlement Agreement discussed previously.
+Added: We are presently in the process of legally terminating/dissolving CW-Cooperatief, NSC and AdR and will continue to incur expenses for these subsidiaries until such processes are completed.
+Added: Our net losses from discontinued operations for the three months ended September 30, 2025 and 2024 were $($37,220) and ($502,854), respectively.
Consolidated Results
1 unchanged sentence
stockholders for 2025 was $5,532,344 ($0.34 per share on a fully diluted basis), as compared to net income of $4,454,464 ($0.28 per share on a fully diluted basis) for 2024.
−Removed: The following discussion and analysis of our consolidated results of operations and results of operations by segment for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024 relates only to our continuing operations.
+Added: The following discussion and analysis of our consolidated results of operations and results of operations by segment for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024 relates only to our continuing operations.
Net income from continuing operations attributable to Consolidated Water Co.
stockholders for 2025 was $5,569,564 ($0.34 per share on a fully diluted basis), as compared to net income from continuing operations of $4,957,318 ($0.31 per share on a fully diluted basis) for 2024.
−Removed: Revenue for 2025 increased to $33,591,079 from $32,479,158 in 2024, as a result of revenue increases in the retail and manufacturing segments.
−Removed: These increases were partially offset by a decline in revenue for both the services and bulk segments.
+Added: Revenue for 2025 increased to $35,118,706 from $33,390,557 in 2024, as a result of revenue increases in the retail, services and manufacturing segments.
+Added: These increases were partially offset by a slight decline in revenue for the bulk segment.
Gross profit for 2025 was $12,945,909 (37% of total revenue) as compared to $11,634,658 (35% of total revenue) for 2024.
1 unchanged sentence
General and administrative (“G&A”) expenses on a consolidated basis increased to $7,218,722 for 2025 as compared to $6,955,969 for 2024.
−Removed: The increase in G&A expenses for 2025 arises principally from incremental (i) employee costs of $665,396 attributable to new hires and salary increases;
−Removed: and (ii) information technology expenses of $141,592 resulting from the in-process implementation of a new billing system for our retail operations.
−Removed: Other income, net, increased to $820,182 for 2025 as compared to $418,426 for 2024 primarily due to approximately $376,000 of additional interest income resulting from additional interest earned on higher balances of interest earning assets.
+Added: The increase in G&A expenses for 2025 arises principally from incremental employee costs of approximately $193,000 attributable to new hires and salary increases.
+Added: Other income, net, remained relatively consistent at $811,227 for 2025 as compared to $724,040 for 2024.
Results by Segment
2 unchanged sentences
Revenue generated by retail water operations increased to $7,770,344 in 2025 from $7,585,992 in 2024 due to a 6% increase in the volume of water sold.
−Removed: We believe significantly lower rainfall amounts on Grand Cayman in 2025 as compared to 2024 was the principal reason for the increase in the volume of water sold in 2025.
+Added: We believe significantly lower rainfall in 2025 on Grand Cayman as compared to 2024 and an increase in total number of customer service connections were the principal reasons for the increase in the volume of water sold in 2025.
+Added: The impact of greater volume sales on retail revenue for 2025 was partially offset by a decrease in energy costs in 2025 from 2024 that decreased the energy pass-through component of Cayman Water’s rates.
As a result of the revenue increase, retail segment gross profit increased in both total dollars and as a percentage of revenue to $4,323,082 (56% of retail revenue) for 2025 from $3,979,048 (52% of retail revenue) for 2024.
−Removed: Retail G&A expenses increased to $985,617 for 2025 compared to $781,706 for 2024 principally due to information technology expenses of $141,592 resulting from the in-process implementation of a new billing system.
+Added: Retail G&A expenses increased to $952,102 for 2025 compared to $787,403 for 2024 principally due to incremental information technology expenses resulting from the ongoing implementation of a new utility billing system and an increase in employee costs attributable to salary increases.
Bulk Segment:
2 unchanged sentences
The decrease in bulk revenue from 2024 to 2025 resulted from lower diesel fuel prices, which decreased the pass-through energy component of CW-Bahamas’ rates.
−Removed: Gross profit for our bulk segment increased to $2,535,909 (31% of bulk revenue) for 2025 as compared to $2,350,498 (28% of bulk revenue) for 2024 due to improved plant efficiency and slight reductions in various operating expenses.
−Removed: Bulk segment G&A expenses remained relatively consistent at $394,750 for 2025 as compared to $363,268 for 2024.
+Added: Gross profit for our bulk segment increased to $2,910,001 (35% of bulk revenue) for 2025 as compared to $2,797,876 (32% of bulk revenue) for 2024 due to improved plant efficiency and reductions in various operating expenses.
+Added: Bulk segment G&A expenses decreased to $267,292 for 2025 as compared to $381,230 for 2024 due to a decrease in the provision for credit losses of approximately $122,000.
S ervices Segment:
The services segment generated $1,911,730 and $1,798,667 in income from operations for 2025 and 2024, respectively.
−Removed: Services segment revenue decreased to $11,448,202 for 2025 from $11,922,469 for 2024.
−Removed: Construction revenue declined to $2,825,935 as compared to $4,004,072 for 2024 as a result of a $1.0 million decrease in revenue recognized for the Hawaii project due to the completion of the pilot plant testing phase of the project, which resulted in a decrease in project expenditures pending commencement of the construction phase of the project.
−Removed: Revenue generated under operations and maintenance contracts increased to $8,255,408 for 2025 as compared to $7,068,922 for 2024 as a result of incremental revenue generated by both PERC and REC.
−Removed: Design and consulting revenue decreased to $366,859 in 2025 from $849,475 in 2024.
−Removed: Gross profit for the services segment decreased to $3,391,319 (30% of services revenue) in 2025 from $3,463,932 (29% of services revenue) in 2024 due to the overall decline in revenue.
−Removed: During 2025, we adjusted our previous estimate of the total costs to be incurred for one construction contract.
−Removed: This change in accounting estimate resulted in an increase in the services segment’s revenue, gross profit and income from operations of $167,904 for 2025 under the input method we use to account for construction contracts.
−Removed: G&A expenses for the services segment increased to $1,993,042 for 2025 as compared to $1,196,624 for 2024 primarily due to incremental employee costs of $649,976 attributable to new hires and salary increases and a net increase of $108,286 in the provision for credit losses.
+Added: Services segment revenue increased to $14,289,315 for 2025 from $12,677,837 for 2024.
+Added: Construction revenue increased to $6,360,333 as compared to $4,251,237.
+Added: Revenue generated under operations and maintenance contracts increased to $7,715,000 for 2025 as compared to $7,492,121 for 2024 primarily due to the amendment, effective June 2025, of an operating and maintenance contract for a US federal client which increased the scope of services we provide (and thus increased the fees we charge) under that contract.
+Added: Design and consulting revenue decreased to $213,982 in 2025 from $934,479 in 2024 due to the completion in the fourth quarter of 2024 of a contract for a major plant commissioning and startup project.
+Added: Gross profit for the services segment increased to $3,844,421 (27% of services revenue) in 2025 from $3,268,512 (26% of services revenue) in 2024 due to the overall increase in revenue.
+Added: We have been informed by one of our significant operations and maintenance customers that it is unlikely such customer will extend its existing contract with PERC beyond the current expiration date of this contract in March 2026.
+Added: We recognized approximately $1.4 million and $474,000 in revenue and gross profit, respectively, under this contract for 2025 .
+Added: G&A expenses for the services segment increased to $1,955,186 for 2025 as compared to $1,469,845 for 2024 primarily due to incremental employee costs of $318,518 attributable to new hires and salary increases.
Manufacturing Segment:
2 unchanged sentences
Manufacturing gross profit was $1,868,405 (40% of manufacturing revenue) for 2025 as compared to a gross profit of $1,589,222 (36% of manufacturing revenue) for 2024.
−Removed: The increase in manufacturing gross profit in dollars and as a percentage of revenue results from increased production activity and a higher margin product mix.
−Removed: In addition, d uring 2025 we adjusted our previous estimates of the total costs to be incurred for two manufacturing contracts.
−Removed: These changes in accounting estimates resulted in an increase in the manufacturing segment’s revenue, gross profit and income from operations of $445,150 for 2025 under the input method we use to account for manufacturing contracts.
−Removed: G&A expenses for the manufacturing segment decreased slightly to $530,552 for 2025 as compared to $667,586 for 2024.
+Added: The increase in manufacturing gross profit in dollars and as a percentage of revenue results from production efficiencies and a higher margin product mix.
+Added: G&A expenses for the manufacturing segment decreased to $459,038 for 2025 as compared to $745,418 for 2024 due to a decrease in the provision for credit losses of $184,000.
Corporate G&A expenses remained relatively consistent at $3,585,104 for 2025 as compared to $3,572,073 for 2024.
−Removed: Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
+Added: Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Discontinued Operations – Mexico Project Development
4 unchanged sentences
We received the proceeds from the sale of the land and documentation in June 2024.
−Removed: We are presently in the process of legally terminating/dissolving CW-Cooperatief, NSC and AdR and will continue to incur expenses for these subsidiaries while such process is completed.
−Removed: Our net loss from discontinued operations for the six months ended June 30, 2025 was ($215,637).
−Removed: We generated net income from discontinued operations of $11,140,780 for the six months ended June 30, 2024 as a result of the Settlement Agreement discussed previously.
+Added: We are presently in the process of legally terminating/dissolving CW-Cooperatief, NSC and AdR and will continue to incur expenses for these subsidiaries until such processes are completed.
+Added: Our net loss from discontinued operations for the nine months ended September 30, 2025 was ($252,857).
+Added: We generated net income from discontinued operations of $10,637,926 for the nine months ended September 30, 2024 as a result of the gain generated from the sale of the Project land and documentation under the Settlement Agreement.
Consolidated Results
1 unchanged sentence
stockholders for 2025 was $15,419,578 ($0.96 per share on a fully diluted basis), as compared to net income of $26,779,069 ($1.68 per share on a fully diluted basis) for 2024.
−Removed: The following discussion and analysis of our consolidated results of operations and results of operations by segment for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 relates only to our continuing operations.
+Added: The following discussion and analysis of our consolidated results of operations and results of operations by segment for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 relates only to our continuing operations.
Net income from continuing operations attributable to Consolidated Water Co.
5 unchanged sentences
G&A expenses on a consolidated basis increased to $22,522,919 for 2025 as compared to $20,126,292 for 2024.
−Removed: The increase in G&A expenses for 2025 arises principally from (i) incremental legal costs and other professional fees totaling $537,215 (which includes $139,000 in costs related to a legal settlement);
−Removed: (ii) added employee costs of $1.0 million attributable to new hires, salary increases and a retirement payment of $158,000 made to a former executive;
−Removed: and (iii) a net increase of approximately $171,000 in the provision for credit losses.
−Removed: Other income, net, increased to $1,509,073 for 2025 as compared to $836,610 for 2024 primarily due to approximately $659,000 of additional interest income resulting from additional interest earned on higher balances of interest earning assets.
+Added: The increase in G&A expenses for 2025 arises principally from (i) incremental legal, consulting and other professional fees of approximately $642,000;
+Added: (ii) added employee costs of approximately $1.2 million attributable to new hires, salary
+Added: increases and (iii) incremental information technology expenses of almost $240,000 resulting from the ongoing implementation of a new utility billing system for the retail segment.
+Added: Other income, net, increased to $2,320,300 for 2025 as compared to $1,560,650 for 2024 primarily due to approximately $669,000 of additional interest income earned on higher balances of interest earning assets.
Results by Segment
2 unchanged sentences
Revenue generated by our retail water operations increased to $25,819,712 in 2025 from $24,392,814 in 2024 due to a 9% increase in the volume of water sold.
−Removed: We believe significantly lower rainfall amounts in 2025 on Grand Cayman as compared to 2024 was the principal reason for the increase in the volume of water sold in 2025.
+Added: We believe significantly lower rainfall in 2025 on Grand Cayman as compared to 2024 and an increase in total number of customer service connections were the principal reasons for the increase in the volume of water sold in 2025.
+Added: The impact of greater volume sales on retail revenue for 2025 was partially offset by a decrease in energy costs in 2025 from 2024 that decreased the energy pass-through component of Cayman Water’s rates.
As a result of the revenue increase, retail segment gross profit increased in both total dollars and as a percentage of revenue to $14,890,629 (58% of retail revenue) for 2025 from $13,564,393 (56% of retail revenue) for 2024.
−Removed: Retail G&A expenses increased to $1,774,429 for 2025 compared to $1,548,404 for 2024 due to approximately $142,000 incurred for the in-process implementation of a new billing system.
+Added: Retail G&A expenses increased to $2,726,531 for 2025 compared to $2,335,807 for 2024 primarily as a result of incremental information technology expenses to approximately $240,000 for the ongoing implementation of a new utility billing system.
Bulk Segment:
6 unchanged sentences
The services segment generated $3,160,696 and $7,219,793 in income from operations for 2025 and 2024, respectively.
−Removed: Services segment revenue decreased to $21,526,470 for 2025 from $29,340,080 for 2024.
−Removed: Construction revenue declined to $5,044,167 for 2025 as compared to $13,381,536 for 2024 primarily as a result of $6.2 million of additional revenue generated from PERC’s contract with Liberty Utilities and $1.1 million in additional revenue generated from the Red Gate contract in 2024.
−Removed: Such contracts were substantially completed in the second quarter of 2024.
−Removed: Construction revenue recognized on the Hawaii contract also declined by $2.1 million in 2025 due to the completion of the pilot plant testing phase of the project, which resulted in a decrease in project expenditures pending commencement of the construction phase of the project.
+Added: Construction revenue declined to $11,404,500 for 2025 as compared to $17,632,772 for 2024 primarily as a result of approximately $8.0 million of additional revenue generated from PERC’s contract with Liberty Utilities and $1.3 million in revenue generated from the Red Gate contract in Grand Cayman in 2024.
+Added: Such contracts were substantially completed by the end of the second quarter of 2024.
+Added: Construction revenue recognized on the Hawaii contract also declined by $3.1 million in 2025 due to the completion of the pilot plant testing phase of the project, which has resulted in a decrease in project expenditures pending commencement of the construction phase of the project.
These decreases in construction revenue were partially offset by construction revenue generated under new contracts.
Revenue generated under operations and maintenance contracts increased to $23,695,704 for 2025 as compared to $21,660,396 for 2024 as a result of incremental revenue generated by both PERC and REC.
−Removed: Design and consulting revenue decreased to $501,599 in 2025 from $1,790,269 in 2024 due to the completion of a large consulting contract in December 2024 that generated $1.3 million in the six months ended June 30, 2024.
+Added: Design and consulting revenue decreased to $715,581 in 2025 from $2,724,749 in 2024 due to the completion in the fourth quarter of 2024 of a contract for a major plant commissioning and startup project.
Gross profit for the services segment decreased to $9,252,131 (26% of services revenue) in 2025 from $11,481,116 (27% of services revenue) in 2024 due to the substantial decline in construction and design and consulting revenue.
−Removed: During 2025, we adjusted our previous estimate of the total costs to be incurred for one construction contract.
−Removed: This change in accounting estimate resulted in an increase in the services segment’s revenue, gross profit and income from operations of $167,904 for 2025 under the input method we use to account for construction contracts.
−Removed: G&A expenses for the services segment increased to $4,188,380 for 2025 as compared to $2,794,478 for 2024 primarily due to an increase of $718,212 of added employee costs attributable to new hires, salary increases, incremental legal costs and other professional fees of $267,098 (which includes $139,000 in costs related to a legal settlement) and a net increase of approximately $291,000 in the provision for credit losses.
+Added: We have been informed by one of our significant operations and maintenance customers that it is unlikely such customer will extend its existing contract with PERC beyond the current expiration date of this contract in March 2026.
+Added: We recognized approximately $3.7 million and $1.2 million in revenue and gross profit, respectively, under this contract for 2025.
+Added: G&A expenses for the services segment increased to $6,143,566 for 2025 as compared to $4,264,323 for 2024 primarily due to increases of (i) $1,036,730 in employee costs attributable to new hires and salary increases;
+Added: (ii) incremental legal costs and other professional fees of $300,866;
+Added: and (iii) approximately $329,000 for the provision for credit losses.
Manufacturing Segment:
2 unchanged sentences
Manufacturing gross profit was $5,667,884 (36% of manufacturing revenue) for 2025 as compared to $4,162,176 (31% of manufacturing revenue) for 2024.
−Removed: The increase in manufacturing gross profit in dollars and as a percentage of revenue results from increased production activity and a higher margin product mix.
−Removed: In addition, d uring 2025 we adjusted our previous estimates of the total costs to be incurred for two manufacturing contracts.
−Removed: These changes in accounting estimates resulted in an increase in the manufacturing segment’s revenue, gross profit and income from operations of $445,150 for 2025 under the input method we use to account for manufacturing contracts.
−Removed: G&A expenses for the manufacturing segment remained relatively consistent at $1,194,630 for 2025 as compared to $1,185,288 for 2024.
−Removed: Corporate G&A expenses increased to $7,405,927 for 2025 as compared to $6,934,744 for 2024 due to a retirement payment of approximately $158,000 made to a former executive and incremental legal, audit and other professional fees of approximately $232,000.
+Added: The increase in manufacturing gross profit in dollars and as a percentage of revenue results from increased production activity, production efficiencies and a higher margin product mix.
+Added: G&A expenses for the manufacturing segment decreased to $1,653,668 for 2025 as compared to $1,930,706 for 2024 due to a reduction of $327,000 in the provision for credit losses.
+Added: Corporate G&A expenses increased to $10,991,031 for 2025 as compared to $10,506,817 for 2024 due to incremental legal, and other professional fees of approximately $353,000.
FINANCIAL CONDITION
−Removed: The significant changes in the components of our condensed consolidated balance sheet as of June 30, 2025 as compared to December 31, 2024 (other than the change in our cash and cash equivalents, which is discussed later in “LIQUIDITY AND CAPITAL RESOURCES”) and the reasons for these changes are discussed in the following paragraphs.
−Removed: Accounts receivable increased by approximately $2.4 million primarily due to a $1.5 million increase in the manufacturing segment accounts receivable as well as an increase in the CW-Bahamas accounts receivable of approximately $876,000.
−Removed: Current inventory decreased by approximately $2.8 million primarily due to a decrease of $3.7 million in Aerex’s inventory resulting from increased production activity, which was partially offset by an increase in PERC’s current inventory of approximately $905,000.
−Removed: Prepaid expenses and other current assets decreased by approximately $1.6 million primarily due to the amortization of prepaid insurance premiums.
−Removed: Contract assets increased by approximately $1.3 million primarily due to a $1.9 million increase in the manufacturing segment contract assets attributable to work started in the first quarter for one major client and an increase in PERC’s contract assets of approximately $419,000.
−Removed: These increases were partially offset by a decrease of approximately $1.1 million in DesalCo’s contract assets due to the collection of the final payment on the Red Gate plant.
−Removed: Property, plant and equipment, net, increased by approximately $1.3 million primarily due to the expansion of the new West Bay plant in Cayman Islands as well as a specialized equipment truck purchased for the services segment.
−Removed: Construction in progress increased by approximately $1.4 million primarily due to $1.8 million spent on the expansion of the Aerex manufacturing facility and $1.1 million spent on CW-Bahamas’ plant construction on Cat Island.
−Removed: These increases were offset by a reduction of $1.4 million due to the additional capitalization of the expansion of the West Bay plant.
−Removed: Accounts payable, accrued expenses and other liabilities increased by approximately $3.7 million primarily due to $3.4 million increase in CW-Bahamas accounts payable.
−Removed: Contract liabilities increased by $3.8 million primarily due to the Kalaeloa Desalco construction project.
+Added: The significant changes in the components of our condensed consolidated balance sheet as of September 30, 2025 as compared to December 31, 2024 (other than the change in our cash and cash equivalents, which is discussed later in “LIQUIDITY AND CAPITAL RESOURCES”) and the reasons for these changes are discussed in the following paragraphs.
+Added: Accounts receivable decreased by approximately $10.6 million primarily due to a $11.5 million decrease in CW-Bahamas’ accounts receivable.
+Added: Current inventory decreased by approximately $4.4 million primarily due to a decrease of $4.3 million in Aerex’s inventory resulting from the consumption of materials used in product production.
+Added: Contract assets increased by approximately $2.3 million primarily due to a $1.0 million increase in the manufacturing segment contract assets attributable to work started in the third quarter for one client and an increase in PERC’s contract assets of approximately $2.3 million.
+Added: These increases were partially offset by a decrease of approximately $1.1 million in DesalCo’s contract assets due to the collection of the final payment for the design and construction of the WAC’s Red Gate plant.
+Added: Property, plant and equipment, net, increased by approximately $3.1 million primarily due to the completion of the expansion of Aerex’s manufacturing facility this quarter as well as specialized equipment purchased for the services segment.
+Added: Contract liabilities increased by $2.6 million due to a $3.2 million increase for the Kalaeloa Desalco construction project.
LIQUIDITY AND CAPITAL RESOURCES
4 unchanged sentences
Liquidity Position
−Removed: Our projected liquidity requirements for the balance of 2025 include capital expenditures for our existing operations of approximately $8.5 million, which includes approximately $1.5 million to be incurred during 2025 for a project in The Bahamas and $700,000 for the expansion of Aerex's manufacturing facility.
−Removed: We paid approximately $2.3 million for dividends in July 2025.
+Added: Our projected liquidity requirements for the balance of 2025 include capital expenditures for our existing operations of approximately $4.5 million, which includes approximately $1.3 million to be incurred during 2025 for a project in The Bahamas and $266,000 for new equipment for Aerex’s manufacturing facility.
+Added: We paid approximately $2.3 million for dividends in October 2025.
Our liquidity requirements may also include future quarterly dividends, if such dividends are declared by our Board.
−Removed: As of June 30, 2025, we had cash and cash equivalents of $112.2 million and working capital of $137.4 million.
+Added: As of September 30, 2025, we had cash and cash equivalents of $123.6 million and working capital of $141.7 million.
With the exception of the liquidity matter relating to CW-Bahamas that is discussed in the paragraphs that follow, we are not presently aware of anything that would lead us to believe that we will not have sufficient liquidity to meet our needs.
CW-Bahamas Liquidity
−Removed: CW-Bahamas’ accounts receivable balances (which include accrued interest) due from the WSC amounted to $29.3 million and $28.4 million as of June 30, 2025 and December 31, 2024, respectively.
−Removed: Approximately 81% of the accounts receivable balances were delinquent as of those dates, respectively.
+Added: CW-Bahamas’ accounts receivable balances (which include accrued interest) due from the WSC amounted to $16.8 million and $28.4 million as of September 30, 2025 and December 31, 2024, respectively.
+Added: Approximately 66% and 81% of the accounts receivable balances were delinquent as of those dates, respectively.
The delay in collecting these accounts receivable has adversely impacted the liquidity of this subsidiary.
2 unchanged sentences
All previous delinquent accounts receivable from the WSC, including accrued interest thereon, were eventually paid in full.
−Removed: Based upon this payment history, we have not provided for a material allowance for credit losses for CW-Bahamas’ accounts receivable from the WSC as of June 30, 2025.
−Removed: We continue to be in frequent contact with officials of The Bahamas government, who continue to express their intention to significantly reduce CW-Bahamas accounts receivable balances in the near future.
+Added: Based upon this payment history, we have not provided for a material allowance for credit losses for CW-Bahamas’ accounts receivable from the WSC as of September 30, 2025.
+Added: We continue to be in frequent contact with officials of The Bahamas government, who continue to express their intention to eliminate CW-Bahamas delinquent accounts receivable balances in the near future.
However, we are unable to determine when such reduction will occur.
1 unchanged sentence
Moody’s also lowered The Bahamas’ local currency ceiling to Baa3 from Baa2 and its foreign currency ceiling to Ba1 from Baa3.
−Removed: Moody’s has maintained these ratings through the date of its most
−Removed: current report issued in April 2025.
+Added: Moody’s has maintained these ratings through the date of its most current report issued in April 2025.
Based upon our review of this Moody’s correspondence, we continue to believe that no material allowance for credit losses is required for CW-Bahamas’ accounts receivable from the WSC.
4 unchanged sentences
Any of these events could have a material adverse impact on our consolidated financial condition, results of operations, and cash flows.
−Removed: Discussion of Cash Flows for the Six Months Ended June 30, 2025
−Removed: Our cash and cash equivalents increased to $112,246,599 as of June 30, 2025 from $99,350,121 as of December 31, 2024.
+Added: Discussion of Cash Flows for the Nine Months Ended September 30, 2025
+Added: Our cash and cash equivalents increased to $123,554,648 as of September 30, 2025 from $99,350,121 as of December 31, 2024.
Cash Flows from Operating Activities
Net cash provided by our operating activities was $35,932,833.
−Removed: This net cash reflects the net income generated for the six months ended June 30, 2025 of $10,182,039 as adjusted for (i) various items included in the determination of net income that do not affect cash flows during the year;
+Added: This net cash reflects the net income generated for the nine months ended September 30, 2025 of $15,890,319 as adjusted for (i) various items included in the determination of net income that do not affect cash flows during the year;
and (ii) changes in the other components of working capital.
−Removed: The more significant of such items and changes in working capital components included depreciation and amortization of $3,400,039, an increase in accounts receivable of $2,752,672, an increase in contract assets of $1,288,787, an increase in contract liabilities of $3,772,012 and an increase in accounts payable, accrued expenses and other current liabilities of $3,074,188.
+Added: Significant adjustments included depreciation and amortization of $5,163,826, a decrease in accounts receivable of $10,290,048, a decrease in inventory of $3,610,403, an increase in contract assets of $2,261,618, and an increase in contract liabilities of $2,555,352.
Cash Flows from Investing Activities
7 unchanged sentences
Seven Mile Beach and West Bay.
−Removed: For the three months ended June 30, 2025 and 2024, we generated approximately 26% and 25%, respectively, of our consolidated revenue and 38% and 39%, respectively, of our consolidated gross profit from the retail water operations conducted under the 1990 license.
−Removed: For the six months ended June 30, 2025 and 2024, we generated approximately 27% and 23%, respectively, of our consolidated revenue and 42% and 38%, respectively, of our consolidated gross profit from the retail water operations conducted under the 1990 license.
+Added: For the three months ended September 30, 2025 and 2024, we generated approximately 22% and 23%, respectively, of our consolidated revenue and 33% and 34%, respectively, of our consolidated gross profit from the retail water operations conducted under the 1990 license.
+Added: For the nine months ended September 30, 2025 and 2024, we generated approximately 25% and 23%, respectively, of our consolidated revenue and 39% and 36%, respectively, of our 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 to provide the parties with additional time to negotiate the terms of a new license agreement.
7 unchanged sentences
We have been informed during our retail license negotiations, both by OfReg and its predecessor in these negotiations, that they seek to restructure the terms of its license in a manner that could significantly reduce the operating income and cash flows we have historically generated from our retail license.
−Removed: We are presently unable to determine what impact the resolution of our retail license negotiations will have on our consolidated financial condition, results of operations, or cash flows but such resolution could result in a material reduction (or the loss) of the operating income and cash flows we have historically generated from our retail operations and could require us to record impairment losses to reduce the carrying values of our retail segment assets.
+Added: We are presently unable to determine what impact the resolution of our retail license negotiations will have on our consolidated financial condition, results of operations, or cash flows but such resolution could result in a material reduction (or the loss) of the operating income and cash flows we have historically generated from our retail operations and could require us to record impairment losses to reduce the carrying
+Added: values of our retail segment assets.
Such impairment losses could have a material adverse impact on our consolidated financial condition and results of operations .
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We are currently evaluating the impact of this guidance.
+Added: In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40):
+Added: Targeted Improvements to the Accounting for Internal-Use Software .
+Added: The ASU requires entities to begin capitalizing software costs when management authorizes and commits to funding the software project, and it is probable that the project will be completed and the software will be used for its intended purpose.
+Added: The ASU is effective for annual periods beginning after December 15, 2027.
+Added: Early adoption is permitted and the guidance can be applied on a prospective basis, a modified basis for in-process projects, or on a retrospective basis.
+Added: The Company is currently evaluating the impact of this guidance.
● On January 31, 2025, we paid a dividend of $0.11 to shareholders of record on January 2, 2025.
● On April 30, 2025, we paid a dividend of $0.11 to shareholders of record on April 1, 2025.
−Removed: ● On May 28, 2025, our Board declared a dividend of $0.14 payable on July 31, 2025 to shareholders of record on July 1, 2025.
+Added: ● On July 31, 2025, we paid a dividend of $0.14 to shareholders of record on July 1, 2025.
+Added: ● On August 19, 2025, our Board declared a dividend of $0.14 payable on October 31, 2025 to shareholders of record on October 1, 2025.
We have paid dividends to owners of our common stock and redeemable preferred stock since we began declaring dividends in 1985.
−Removed: Our payment of any future cash dividends will depend upon our earnings, financial condition, cash flows, capital requirements and other factors our Board of Directors deems relevant in determining the amount and timing of such dividends.
+Added: Our payment of any future cash dividends will depend upon our earnings, financial condition, cash
+Added: flows, capital requirements and other factors our Board of Directors deems relevant in determining the amount and timing of such dividends.
Dividend Reinvestment and Common Stock Purchase Plan
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Impact of Inflation
−Removed: Under the terms of our Cayman Islands license and our bulk water sales agreements in The Cayman Islands, The Bahamas and the British Virgin Islands, our water rates are automatically adjusted for inflation on an annual basis.
+Added: Under the terms of our bulk water sales agreements in The Cayman Islands, The Bahamas and the British Virgin Islands, our water rates are automatically adjusted for inflation on an annual basis.
Therefore, the impact of inflation on our gross profit from these revenue sources, measured in consistent dollars, historically has not been material.
−Removed: However, while we have received annual inflation adjustments for the rates we charge under our bulk water agreements, we have not increased the retail water rates for Cayman Water since January 2018 (despite the inflation that has occurred since that date) due to the lack of a resolution of our negotiations with OfReg for a new retail license.
−Removed: This lack of a rate increase over the long-term could adversely affect the profitability of our retail segment.
+Added: However, while we have received annual inflation adjustments for the rates we charge under our bulk water agreements, we were unable to increase the water rates for Cayman Water since January 2018 (despite the inflation that has occurred since that date) due to the delayed resolution of our negotiations with OfReg for a new retail license.
+Added: While we believe that we are entitled to apply to OfReg for future rate adjustments under the terms of the February 18, 2025 concession agreement with the Cayman Islands government, the denial by OfReg of such application or approval of an increase that is less than the increase in our costs could adversely affect the profitability of our retail segment.
Furthermore, our manufacturing segment has in the past been adversely impacted by significant increases in raw material costs and our manufacturing and services segments could suffer similar adverse impacts in the future.
−Removed: While our operations and maintenance contracts are generally adjusted for inflation on an annual basis, such adjustment for many of these contracts is limited to 3% annually.
+Added: While our operations and maintenance contracts are generally adjusted for inflation on an annual basis, such adjustment for many of these contracts is capped at 3% annually.
Kalaeloa Desalco has signed a contract with the Honolulu Board of Water Supply pursuant to which it is presently designing and expects to construct and operate a 1.7 million gallons per day seawater reverse osmosis desalination plant in Oahu, Hawaii.
−Removed: Approximately 80% of the $147 million price for the construction of this plant is subject to adjustment based upon changes in inflation indices from the date the contract was signed to the date construction begins.
+Added: Approximately 80% of the $147 million price for the construction of this plant is subject to adjustment based upon changes in inflation indices from September 29, 2022 (the date that was 120 days after the original proposal was submitted) until the date that the notice to proceed with construction is issued by the client.
Increases in fuel and energy costs and other items could create additional credit risks for us, as our customers’ ability to pay our invoices could be adversely affected by such increases.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.