−Removed: Through our subsidiaries and affiliate, we provide the following services to our customers in the Cayman Islands, The Bahamas, the United States and the British Virgin Islands:
+Added: Through our subsidiaries and affiliate, we provide the following products and services to our customers in the Cayman Islands, The Bahamas, the United States and the British Virgin Islands:
● Retail Water Operations.
2 unchanged sentences
● Bulk Water Operations.
−Removed: We produce potable water from seawater utilizing reverse osmosis technology and supply this water to government-owned distributors in the Cayman Islands and The Bahamas.
+Added: We produce potable water from seawater utilizing reverse osmosis technology and supply this water to government-owned utilities in the Cayman Islands and The Bahamas.
In 2025, our bulk water operations generated approximately 25% of our consolidated revenue.
16 unchanged sentences
In estimated millions of gallons per day.
−Removed: In addition to the above plants, as of December 31, 2024, our wholly owned subsidiary, Ramey Environmental Compliance, Inc., performed operations, maintenance, and monitoring services for 64 wastewater and water treatment plants located in the Rocky Mountain and Eastern Plains Regions of Colorado.
+Added: (2) Consists of water treatment plants for which we are the “Certified Operator in Responsible Charge” under operations and maintenance and other service agreements.
We are a comprehensive water solutions company that serves a variety of customers through multiple product and service offerings.
13 unchanged sentences
(ii) expand our product and service offerings and markets;
−Removed: and (iii) support our objective to be a comprehensive water solutions provider.
+Added: (iii) access new markets;
+Added: and (iv) support our objective to be a comprehensive water solutions provider.
We conduct our operations in the Cayman Islands, The Bahamas, the United States, and the British Virgin Islands through our subsidiaries and our affiliate.
9 unchanged sentences
Ocean Conversion (Cayman) Limited (“OC-Cayman”).
−Removed: OC-Cayman provides bulk water under long-term contracts to the WAC, which distributes the water to properties located outside our exclusive retail license service area on Grand Cayman.
+Added: OC-Cayman provides bulk water under long-term contracts to the WAC, which distributes the water to areas of Grand Cayman located outside of Cayman Water’s exclusive retail license service area.
OC-Cayman operates three seawater reverse osmosis desalination plants owned by the WAC.
1 unchanged sentence
PERC Water Corporation (“PERC”).
−Removed: In October 2019, we purchased, through our wholly-owned U.S.
−Removed: subsidiary, Consolidated Water U.S.
−Removed: Holdings, Inc.
−Removed: (“CW-Holdings”), 51% of the equity in PERC, a U.S.
−Removed: company headquartered in Fountain Valley, California.
−Removed: In August 2020, we purchased an additional 10% ownership interest of PERC, increasing our ownership of this subsidiary to 61%.
−Removed: In January 2023, we acquired the remaining 39% ownership interest in PERC.
PERC designs, constructs, sells, operates and manages water, wastewater and water reuse infrastructure in the United States.
4 unchanged sentences
A Cayman Islands company, DesalCo provides design, management, engineering and construction services for desalination projects as well as management and engineering services relating to municipal water distribution and treatment.
−Removed: Serving as a subcontractor to OC-Cayman, DesalCo designed and constructed the four reverse osmosis plants that OC-Cayman currently operates for (and previously sold to) the WAC.
+Added: Serving as a subcontractor to OC-Cayman, DesalCo designed and constructed the four reverse osmosis plants that OC-Cayman sold to (and currently operates for) the WAC.
Kalaeloa Desalco LLC (“Kalaeloa Desalco”).
31 unchanged sentences
Accordingly, the assets and liabilities of CW-Cooperatief, NSC and AdR, as well as all expenses we incurred in connection with our international arbitration with the Mexico government to obtain reimbursement for the costs we incurred in connection with the Project are reported as discontinued operations in our consolidated financial statements.
−Removed: We are presently in the process of liquidating CW-Cooperatief, NSC and AdR.
+Added: We dissolved/terminated AdR in the first quarter of 2026 and expect to complete the dissolution and termination of CW-Cooperatief and NSC by mid-2026.
Our Operations
10 unchanged sentences
The most recent express extension of the license expired on January 31, 2018.
−Removed: From that date until February 18, 2025, we continued to operate under the terms of the 1990 license, providing water services to the level and quality specified in the 1990 license and in accordance with our understanding of its legal obligations, treating those obligations set forth in the 1990 license as operative notwithstanding the expiration of the express extension.
−Removed: We continued to pay the royalty of 7.5% of the revenue we collected as required under the 1990 license.
−Removed: In October 2016, the Government of the Cayman Islands passed legislation which created a new utilities regulation and competition office (“OfReg”).
−Removed: OfReg is an independent and accountable regulatory body with a view of protecting the rights of consumers, encouraging affordable utility services and promoting competition.
−Removed: OfReg, which began operations in January 2017, has the ability to supervise, monitor and regulate multiple utility undertakings and markets.
−Removed: Supplemental legislation was passed by the Government of the Cayman Islands in April 2017, which transferred responsibility for economic regulation of the water utility sector and the negotiations with us for a new retail license from the WAC to OfReg in May 2017.
−Removed: We began license negotiations with OfReg in July 2017 and such negotiations are ongoing.
−Removed: 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 our license in a manner that could significantly reduce the operating income and cash flows we have historically generated from our retail license.
−Removed: Under the new regulatory legislation passed in October 2016, Cayman Water must first be granted a concession by the government before obtaining a new (or renewing the old) retail operations license.
+Added: From that date through February 18, 2025, we continued to operate under the terms of the 1990 license, treating such terms as operative notwithstanding the expiration of the express extension.
+Added: We continued to pay a royalty of 7.5% of the revenue we collected as required under the 1990 license.
+Added: In October 2016, the Government of the Cayman Islands passed legislation which created a new utilities regulation and competition office (“OfReg”) and, in April 2017, passed supplemental legislation which transferred responsibility for the economic regulation of the water utility sector and the negotiations with us for a new retail license to OfReg.
+Added: Under the new regulatory legislation passed in October 2016, Cayman Water was required to first be granted a concession by the government before obtaining a new (or renewing the old) retail operations license.
On February 18, 2025, Cayman Water received a new concession from the government that authorizes and maintains the terms of the 1990 license until a new license from OfReg is negotiated and enacted.
+Added: Negotiations between Cayman Water and OfReg for a new license remain on-going.
See also ITEM 1A.
9 unchanged sentences
Standby generation capacity is available at our ACWW plants and West Bay plant to operate a portion of the water production capacity as well.
+Added: We generate renewable energy to power our distribution pumps at ACWW using solar panels installed on the top of one of our water storage reservoirs.
Our distribution system is connected to the distribution system of the WAC.
8 unchanged sentences
We bill our customers on a monthly basis based on metered consumption and bills are typically collected within 30 to 45 days after the billing date.
−Removed: Receivables not collected within 45 days subject the customer to disconnection from water
−Removed: The provision for credit losses has historically represented less than 1% of our total annual retail sales.
+Added: Receivables not collected within 45 days subject the customer to disconnection from water service.
+Added: The provision for credit losses for our retail operations has historically represented less than 1% of our total annual retail sales.
In addition to their past due invoice balance, customers that have had their service disconnected must pay re-connection charges.
Demand on our water production and pipeline distribution varies throughout the year.
−Removed: Demand depends upon various factors, most notably rainfall amounts and the number of tourists visiting Grand Cayman during any particular time of the year.
+Added: Demand depends upon various factors, most notably rainfall and the number of tourists staying on Grand Cayman during any particular time of the year.
In general, the majority of tourists come from the United States during the winter which is also the dry season in the Cayman Islands.
−Removed: The COVID-19 pandemic and the resulting cessation of tourism to the Cayman Islands significantly reduced demand for our water.
−Removed: In August 2022, the Cayman Islands government lifted the COVID-19 pandemic related travel restrictions that had eliminated tourist travel to the Cayman Islands since March 2020.
Bulk Water Operations
7 unchanged sentences
The plants we operate for the WAC are located on land owned by the WAC.
−Removed: Our agreement with the WAC for the North Sound and NSWW plants expires in 2026.
+Added: Our agreement with the WAC for the North Sound and NSWW plants expires on July 1, 2026.
Our agreement with the WAC for the Red Gate plant expires in 2034.
11 unchanged sentences
DesalCo also provides management and procurement services for desalination plants and engineering services relating to municipal water production, distribution and treatment.
−Removed: DesalCo sometimes tests new components and technology offered by suppliers in our business and, at times, collaborates with suppliers in the development of their products.
−Removed: Presently, DesalCo is providing engineering, management and purchasing services to our affiliate OC-BVI in the British Virgin Islands.
+Added: Presently, DesalCo is providing engineering, management and purchasing services to CW-Bahamas and our affiliate OC-BVI in the British Virgin Islands.
In the past, DesalCo has provided consulting services to the WSC and constructed the desalination plants sold by OC-Cayman to the WAC.
21 unchanged sentences
In the event of a tied vote of the Directors, the President of the Caribbean Water and Wastewater Association, a regional trade association comprised primarily of government representatives, is entitled to appoint a junior director to cast a deciding vote.
−Removed: Through DesalCo, we provide certain engineering and administrative services to OC-BVI for a monthly fee and a bonus arrangement which provides for payment of 4% of the net operating income of OC-BVI.
+Added: DesalCo provides certain engineering and administrative services to OC-BVI for a monthly fee and a bonus arrangement which provides for payment of 4% of the net operating income of OC-BVI.
We account for our investment in OC-BVI using the equity method of accounting.
16 unchanged sentences
Next, a high-pressure pump pressurizes the saline water thus enabling approximately 40% conversion of the saline water to fresh water as it passes through the membrane, while more than 99% of the dissolved salts are rejected and remain in the now concentrated saline water.
−Removed: This concentrate is discharged without passing through the membrane, and the remaining hydraulic energy in the concentrate is transferred to the initial saline feed water with an energy recovery device thus reducing the total energy requirement for the reverse osmosis system.
+Added: This concentrate is discharged without passing through the membrane, and the remaining hydraulic energy in the concentrate is transferred to the initial saline feed water stream with an energy recovery device thus reducing the total energy requirement for the reverse osmosis system.
The final step is post-treatment, which consists of stabilizing the produced fresh water and/or removing undesirable dissolved gases, adjusting the pH and (if necessary) the mineral content, and providing chlorination to prepare it for distribution.
5 unchanged sentences
Wastewater Treatment Technology
−Removed: Our approach to wastewater treatment integrates advanced technologies and processes to ensure high-quality water reuse while addressing environmental and operational concerns.
−Removed: Typical technology uses include that of micro and ultra filtration, reverse osmosis, and ultraviolet advanced oxidation systems, often with sodium hypochlorite or hydrogen peroxide as oxidizers, to meet the stringent water quality parameters set by California.
−Removed: This is particularly relevant for applications like Title 22 reuse and Indirect Potable Reuse, where safety and quality are paramount.
+Added: Our approach to wastewater treatment integrates advanced technologies and processes to ensure high-quality reuse water while addressing environmental and operational concerns.
+Added: Typical technologies employed include micro and ultra filtration, reverse osmosis, and ultraviolet advanced oxidation systems, often with sodium hypochlorite or hydrogen peroxide as oxidizers, to meet the stringent water quality parameters in the areas we serve.
+Added: This is particularly relevant for applications like reuse and indirect potable reuse, where safety and quality are paramount.
We utilize Membrane Bioreactor (“MBR”) technology, which is a wastewater treatment process that has been used for several decades to produce high quality recycled water for non-potable reuse.
3 unchanged sentences
We employ various methods to improve the aesthetic and environmental integration of our clients’ facilities.
−Removed: We conceal equipment and housing technologies in buildings that are both aesthetically pleasing and odor friendly, thereby addressing two of the common challenges in wastewater treatment facilities:
+Added: We conceal equipment and housing technologies in buildings that are both aesthetically pleasing and low odor, thereby addressing two of the common challenges in wastewater treatment facilities:
odor and visual impact.
12 unchanged sentences
In the Cayman Islands, we normally sell more water during the first and second quarters of the year, when the number of tourists is greater and local rainfall is less than in the third and fourth quarters.
−Removed: The COVID-19 pandemic and the resulting cessation of tourism to the Cayman Islands significantly reduced demand for our water in 2021.
−Removed: In August 2022, the Cayman Islands government lifted the COVID-19 pandemic related travel restrictions that had eliminated tourist travel to the Cayman Islands since March 2020.
−Removed: Demand for our water in The Bahamas was not affected to the same degree by the drop in tourism resulting from the COVID-19 pandemic.
The business conducted by Aerex, REC, and PERC is generally not subject to seasonal variations.
9 unchanged sentences
We do not pay import duty or taxes on reverse osmosis membranes, electric pumps and motors, and chemicals, but we do pay duty at the rate of 10% of the cost, including insurance and transportation to the Cayman Islands, of other plant and associated materials and equipment to manufacture or supply water in the Seven Mile Beach or West Bay areas.
−Removed: We have been advised by the
−Removed: Government of the Cayman Islands that we will not receive any duty concessions in any new retail water license signed with the government.
+Added: We have been advised by the Government of the Cayman Islands that we will not receive any duty concessions in any new retail water license signed with the government.
Under the current laws of the Commonwealth of The Bahamas, no income, corporation, capital gains or similar taxes are payable by us.
7 unchanged sentences
Cayman Islands.
+Added: The Cayman Islands are a British Overseas Territory situated in the central western Caribbean Sea.
The Cayman Islands government, through the WAC, supplies water to the areas of Grand Cayman that are not within our licensed area, as well as to Cayman Brac.
We operate all but one of the reverse osmosis desalination plants owned by the WAC on Grand Cayman and supply water under three agreements held by OC-Cayman with the WAC.
−Removed: According to the most recent information published by the Economics and Statistics Office of the Cayman Islands Government, the population of the Cayman Islands was estimated in 2023 to be 84,738 after the 2021 census count.
+Added: According to the most recent information published by the Economics and Statistics Office of the Cayman Islands Government, the population of the Cayman Islands was estimated in 2024 to be 88,833.
According to the figures published by the Department of Tourism Statistics Information Center, in 2025 as compared to 2024, tourist air arrivals increased by 2.9% to approximately 450,000 and tourist cruise ship arrivals decreased by 1.4% to approximately 1,062,000.
−Removed: We believe that our water sales in the Cayman Islands are more positively impacted by stay-over tourists that arrive by air than by those arriving by cruise ship, since cruise ship tourists generally only visit the island for less than one day and do not stay in hotels or condominiums.
+Added: Our water sales in the Cayman Islands are more positively impacted by stay-over tourists that arrive by air than by those arriving by cruise ship, since cruise ship tourists generally only visit the island for less than one day and do not stay in hotels or condominiums.
Our water sales in the Cayman Islands are also greatly impacted by rainfall patterns and amounts on Grand Cayman.
+Added: The Bahamas are an independent nation situated in the western Atlantic Ocean just off the east coast of the State of Florida, USA.
The Bahamas government, through the WSC, supplies all of the piped water on the island of New Providence, Bahamas, which includes Nassau, the largest city, political capital and commercial hub of The Bahamas.
4 unchanged sentences
British Virgin Islands .
−Removed: The British Virgin Islands are a British Overseas Territory and are situated east of Puerto Rico.
−Removed: They consist of 16 inhabited and more than 20 uninhabited islands, of which Tortola is the largest and most populated.
−Removed: The British Virgin Islands serve as a hub for many large yacht-chartering businesses.
+Added: The British Virgin Islands are a British Overseas Territory situated east of Puerto Rico.
+Added: They comprise 16 inhabited islands out of approximately 60 islands and cays, with Tortola being the largest and most populated.
+Added: The British Virgin Islands serve as a hub for yacht-chartering businesses.
+Added: According to government statements, tourism arrivals to the British Virgin Islands in 2025 increased by 10% compared to 2024.
Cayman Islands.
2 unchanged sentences
The Cayman Islands government, through the WAC, supplies water to parts of Grand Cayman located outside of our licensed service area.
−Removed: Although we have no competition within our exclusive retail license service area for potable water, our ability to expand our service area is at
−Removed: the discretion of the Cayman Islands government.
−Removed: We have competed with such companies as Veolia, IDE Technologies and small local contractors for bulk water supply contracts with the WAC and expect to compete with these and other companies for any new water supply contracts awarded by the WAC.
+Added: Although we have no competition within our exclusive retail license service area for potable water, our ability to expand our service area is at the discretion of the Cayman Islands government.
+Added: We have competed with companies such as Veolia, IDE Technologies and small local contractors for bulk water supply contracts with the WAC, and expect to compete with these and other companies for any new water supply contracts awarded by the WAC.
The Bahamas .
39 unchanged sentences
We have adopted a written code of conduct and ethics that applies to all of our employees and Directors, including, but not limited to, our Chief Executive Officer, Chief Financial Officer, and principal accounting officer or controller, or persons performing similar functions.
−Removed: The Code of Business Conduct and Ethics, the charters of the Audit Committee, Compensation Committee, Nominations and Corporate Governance Committee, Environmental and Social Governance Committee and the Corporate Governance Guidelines of our Board of Directors are available at the Investors section of our website.
+Added: The Code of Business Conduct and Ethics;
+Added: the charters of the Audit Committee, Compensation Committee, Nominations and Corporate Governance Committee, and Environmental and Social Governance Committee;
+Added: and the Corporate Governance Guidelines of our Board of Directors are available at the Investors section of our website.
You may access, free of charge, our annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, plus amendments to such reports as filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, on our website and on the website of the Securities and Exchange Commission (the “SEC”) as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.
6 unchanged sentences
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.