Consolidated Water Co. Ltd. 10-K

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA ​ Page CONSOLIDATED WATER CO. LTD. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Report of Independent Registered Public Accounting Firm (PCAOB ID No. 199 ) 42 Report of Independent Registered Public Accounting Firm (PCAOB ID No. 688 ) 44 Consolidated Balance Sheets as of December 31, 2025 and 2024 45 Consolidated Statements of Income for the Years Ended December 31, 2025, 2024 and 2023 46 Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2025, 2024 and 2023 47 Consolidated Statements of Cash Flows for the Years Ended December 31, 2025, 2024 and 2023 48 Notes to Consolidated Financial Statements 49 ​ Schedule II, Valuation and Qualifying Accounts, is omitted because the information is included in the financial statements and notes. ​ 41 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ​ To the Shareholders and Board of Directors of Consolidated Water Co. Ltd. ​ Opinion on the Financial Statements ​ We have audited the accompanying consolidated balance sheet of Consolidated Water Co. Ltd. (the “Company”) as of December 31, 2025, and the related consolidated statements of income, stockholders’ equity and cash flows for the year ended December 31, 2025, and the related notes (collectively referred to as the “financial statements”). ​ In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and the results of its operations and its cash flows for the year ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. ​ We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) ("PCAOB"), the Company's internal control over financial reporting as of December 31, 2025, based on the criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in 2013 and our report dated March 16, 2026 , expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. ​ Basis for Opinion ​ These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. ​ We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. ​ Critical Audit Matters ​ The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. ​ Revenue Recognition - Estimated Costs to Complete ​ As described in Note 2 to the consolidated financial statements, the Company recognizes revenue for its construction and custom/specialized manufacturing contracts over time under the input method using costs incurred 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. The cost estimation process for these contracts is based on the knowledge and experience of the Company's project managers, engineers, and financial professionals. Changes in job performance, job conditions and management's assessment of expected variable 42 Table of Contents consideration are factors that influence estimates of the total contract transaction price, total costs to complete those contracts and the Company's revenue recognition. ​ We identified the estimated costs to complete on these revenue contracts as a critical audit matter. The determination of the total estimated cost and progress toward completion requires management to make significant estimates and assumptions. Total estimated costs to complete projects include various contracts costs that include labor, materials and subcontractor costs. Due to the extended time it may take to complete many of the Company’s contracts and the scope and nature of the work required to be performed on those contracts, the estimations of total revenue and costs at completion is complicated and subject to many variables and, accordingly, are subject to changes. Changes in these estimates can have a significant impact on the revenue recognized each period. Auditing these estimates involved especially challenging auditor judgment in evaluating the reasonableness of management's assumptions and estimates over the duration of these contracts. ​ The primary procedures we performed to address this critical audit matter included: ​ ● We obtained an understanding and evaluated the design and implementation of the internal controls over management's process related to estimated costs to complete, including controls over management's review of: (i) the development of project budgets and key cost inputs, (ii) the ongoing assessment and revisions to project budgets, and (iii) the ongoing review of project status, including the nature of activities to complete open projects. ● Evaluating management’s ability to generate reasonable estimated costs to complete through performing a retrospective review of budget to actual variances. ● Assessing the reasonableness of the estimated costs to complete by evaluating the reasonableness of projects budgets and the nature of costs required to complete the project. Evaluation consists of investigating significant differences or unexpected results that take into consideration known changes in client operations, industry, and/or business conditions. ● Assessing the accuracy and the occurrence of the actual cost amount used in the percentage of completion by testing a sample of project costs incurred to date. ● Evaluating the reasonableness of project status by performing inquiries of project managers to assess the nature and costs of activities required to complete the project. ● Assessing the reasonableness of changes in estimated costs to complete by comparing project profitability estimates in the current period to historical estimates and actual performance including during the period under audit and subsequent to the period end and investigating reasons for changes in expected costs and project margins. ​ ​ ​ ​ ​ ​ /s/ CBIZ CPAs P.C. ​ ​ ​ We have served as the Company’s auditor since 2005 (such date takes into account the acquisition of the attest business of Marcum llp by CBIZ CPAs P.C. effective November 1, 2024). ​ ​ Fort Lauderdale, FL ​ March 16, 2026 ​ ​ ​ ​ ​ 43 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ​ To the Shareholders and Board of Directors of Consolidated Water Co. Ltd. ​ Opinion on the Financial Statements ​ We have audited the accompanying consolidated balance sheet of Consolidated Water Co. Ltd. (the “Company”) as of December 31, 2024, the related consolidated statements of income, stockholders’ equity and cash flows for each of the two years in the period ended December 31, 2024, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America. ​ Basis for Opinion ​ These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. ​ We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. ​ ​ ​ ​ P ​ /s/ Marcum LLP ​ ​ We served as the Company’s auditor from 2005 through April 2025. ​ West Palm Beach, FL March 17, 2025 ​ ​ 44 Table of Contents CONSOLIDATED WATER CO. LTD. ​ CONSOLIDATED BALANCE SHEETS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ ​ ​ ​ ​ ​ ASSETS ​ ​ ​ ​ ​ Current assets ​ ​ ​ ​ ​ Cash and cash equivalents ​ ​ $ 123,788,390 ​ $ 99,350,121 Accounts receivable, net ​ ​ 32,768,537 ​ 39,580,982 Inventory ​ ​ 3,736,845 ​ 8,960,350 Prepaid expenses and other current assets ​ ​ 5,927,675 ​ 5,112,183 Contract assets ​ ​ 3,290,815 ​ 4,470,243 Current assets of discontinued operations ​ ​ 124,630 ​ 272,485 Total current assets ​ ​ ​ 169,636,892 ​ 157,746,364 Property, plant and equipment, net ​ ​ 55,151,758 ​ 52,432,282 Construction in progress ​ ​ 6,695,656 ​ 5,143,717 Inventory, noncurrent ​ ​ 5,563,142 ​ 5,338,961 Investment in affiliates ​ ​ 1,186,849 ​ 1,504,363 Goodwill ​ ​ 12,861,404 ​ 12,861,404 Intangible assets, net ​ ​ 2,101,555 ​ 2,696,815 Operating lease right-of-use assets ​ ​ ​ 2,930,441 ​ ​ 3,232,786 Other assets ​ ​ 1,437,648 ​ 2,356,489 Total assets ​ ​ $ 257,565,345 ​ $ 243,313,181 ​ ​ ​ ​ ​ ​ ​ ​ LIABILITIES AND EQUITY ​ ​ ​ ​ ​ Current liabilities ​ ​ ​ ​ ​ Accounts payable, accrued expenses and other current liabilities ​ ​ $ 9,620,880 ​ $ 9,057,179 Accrued compensation ​ ​ 3,039,142 ​ 3,336,946 Dividends payable ​ ​ 2,285,317 ​ 1,780,841 Current maturities of operating leases ​ ​ ​ 661,047 ​ ​ 634,947 Current portion of long-term debt ​ ​ ​ 47,549 ​ ​ 126,318 Contract liabilities ​ ​ 11,528,634 ​ 9,126,654 Deferred revenue ​ ​ ​ 248,719 ​ ​ 365,879 Current liabilities of discontinued operations ​ ​ 271,159 ​ 509,745 Total current liabilities ​ ​ 27,702,447 ​ 24,938,509 Long-term debt, noncurrent ​ ​ ​ 25,954 ​ ​ 70,320 Deferred tax liabilities ​ ​ 707,444 ​ 210,893 Noncurrent operating leases ​ ​ ​ 2,297,161 ​ ​ 2,630,812 Other liabilities ​ ​ 153,000 ​ 153,000 Total liabilities ​ ​ 30,886,006 ​ 28,003,534 Commitments and contingencies ​ ​ ​ ​ ​ Equity ​ ​ ​ ​ ​ Consolidated Water Co. Ltd. stockholders' equity ​ ​ ​ ​ ​ Redeemable preferred stock, $ 0.60 par value. Authorized 200,000 shares; issued and outstanding 39,507 and 44,004 shares, respectively ​ ​ 23,704 ​ 26,402 Common stock, $ 0.60 par value. Authorized 24,800,000 shares; issued and outstanding 15,945,233 and 15,846,345 shares, respectively ​ ​ 9,567,140 ​ 9,507,807 Additional paid-in capital ​ ​ 95,310,630 ​ 93,550,905 Retained earnings ​ ​ 116,749,048 ​ 106,875,581 Total Consolidated Water Co. Ltd. stockholders' equity ​ ​ 221,650,522 ​ 209,960,695 Non-controlling interests ​ ​ 5,028,817 ​ 5,348,952 Total equity ​ ​ 226,679,339 ​ 215,309,647 Total liabilities and equity ​ ​ $ 257,565,345 ​ $ 243,313,181 ​ The accompanying notes are an integral part of these consolidated financial statements. 45 Table of Contents CONSOLIDATED WATER CO. LTD. ​ CONSOLIDATED STATEMENTS OF INCOME ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2025 ​ ​ ​ 2024 2023 Revenue ​ $ 132,073,368 ​ $ 133,966,633 ​ $ 180,211,233 Cost of revenue ​ 83,694,558 ​ 88,342,185 ​ 118,284,128 Gross profit ​ 48,378,810 ​ 45,624,448 ​ 61,927,105 General and administrative expenses ​ 30,116,328 ​ 27,537,436 ​ 24,752,366 Gain on asset dispositions, net ​ 97,709 ​ 197,786 ​ ( 7,112 ) Income from operations ​ 18,360,191 ​ 18,284,798 ​ 37,167,627 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense): ​ ​ ​ ​ ​ ​ Interest income ​ 2,670,040 ​ 2,094,190 ​ 696,408 Interest expense ​ ( 4,420 ) ​ ( 101,847 ) ​ ( 145,284 ) Equity in the earnings of affiliates ​ 227,886 ​ 269,455 ​ 169,728 Other ​ 131,438 ​ 131,878 ​ 107,461 Other income, net ​ 3,024,944 ​ 2,393,676 ​ 828,313 Income before income taxes ​ 21,385,135 ​ 20,678,474 ​ 37,995,940 Provision for income taxes ​ 2,164,648 ​ 2,218,514 ​ 6,750,014 Net income from continuing operations ​ 19,220,487 ​ 18,459,960 ​ 31,245,926 Income from continuing operations attributable to non-controlling interests ​ 593,179 ​ 577,590 ​ 573,791 Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders ​ 18,627,308 ​ 17,882,370 ​ 30,672,135 Net income (loss) from discontinued operations ​ ​ ( 290,635 ) ​ ​ 10,355,184 ​ ​ ( 1,086,744 ) Net income attributable to Consolidated Water Co. Ltd. stockholders ​ $ 18,336,673 ​ $ 28,237,554 ​ $ 29,585,391 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders ​ ​ ​ ​ ​ ​ Continuing operations ​ $ 1.17 ​ $ 1.13 ​ $ 1.95 Discontinued operations ​ ​ ( 0.02 ) ​ ​ 0.65 ​ ​ ( 0.07 ) Basic earnings per share ​ $ 1.15 ​ $ 1.78 ​ $ 1.88 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders ​ ​ ​ ​ ​ ​ Continuing operations ​ $ 1.16 ​ $ 1.12 ​ $ 1.93 Discontinued operations ​ ​ ( 0.02 ) ​ ​ 0.65 ​ ​ ( 0.07 ) Diluted earnings per share ​ $ 1.14 ​ $ 1.77 ​ $ 1.86 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends declared per common and redeemable preferred shares ​ $ 0.53 ​ $ 0.41 ​ $ 0.36 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average number of common shares used in the determination of: ​ ​ ​ ​ ​ ​ Basic earnings per share ​ 15,923,032 ​ 15,832,328 ​ 15,739,056 Diluted earnings per share ​ 16,008,063 ​ 15,935,962 ​ 15,865,897 ​ The accompanying notes are an integral part of these consolidated financial statements. ​ ​ 46 Table of Contents CONSOLIDATED WATER CO. LTD. ​ CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Redeemable ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ ​ ​ ​ Total ​ ​ preferred stock ​ Common stock ​ paid-in ​ Retained ​ Non-controlling ​ stockholders’ ​ ​ ​ ​ Shares ​ ​ ​ Dollars ​ ​ ​ Shares ​ ​ ​ Dollars ​ ​ ​ capital ​ ​ ​ earnings ​ ​ ​ interests ​ ​ ​ equity Balance as of December 31, 2022 34,383 ​ $ 20,630 15,322,875 ​ $ 9,193,725 ​ $ 89,205,159 ​ $ 61,247,699 ​ $ 8,096,976 ​ $ 167,764,189 Issuance of share capital 13,309 ​ 7,985 68,864 ​ 41,319 ​ ( 49,304 ) ​ — ​ — ​ — Conversion of preferred stock ( 8,848 ) ​ ( 5,309 ) 8,848 ​ 5,309 ​ — ​ — ​ — ​ — Buyback of preferred stock ( 203 ) ​ ( 122 ) — ​ — ​ ( 1,708 ) ​ — ​ — ​ ( 1,830 ) Net income — ​ — — ​ — ​ — ​ 29,585,391 ​ 573,791 ​ 30,159,182 Purchase of remaining non-controlling interest in PERC ​ — ​ ​ — ​ 368,383 ​ ​ 221,030 ​ ​ 1,006,248 ​ ​ ​ ​ ​ ( 3,667,305 ) ​ ​ ( 2,440,027 ) Exercise of options 5,656 ​ 3,394 2,575 ​ 1,544 ​ 94,826 ​ — ​ — ​ 99,764 Dividends declared — ​ — — ​ — ​ — ​ ( 5,684,270 ) ​ — ​ ( 5,684,270 ) Stock-based compensation — ​ — — ​ — ​ 1,933,666 ​ — ​ — ​ 1,933,666 Balance as of December 31, 2023 44,297 ​ ​ 26,578 15,771,545 ​ ​ 9,462,927 ​ ​ 92,188,887 ​ ​ 85,148,820 ​ ​ 5,003,462 ​ ​ 191,830,674 Issuance of share capital 5,904 ​ 3,542 68,832 ​ 41,299 ​ ( 44,841 ) ​ — ​ — ​ — Conversion of preferred stock ( 5,968 ) ​ ( 3,581 ) 5,968 ​ 3,581 ​ — ​ — ​ — ​ — Buyback of preferred stock ( 1,272 ) ​ ( 763 ) — ​ — ​ ( 13,851 ) ​ — ​ — ​ ( 14,614 ) Net income — ​ — — ​ — ​ — ​ 28,237,554 ​ 577,590 ​ 28,815,144 Exercise of options 1,043 ​ 626 — ​ — ​ 23,127 ​ — ​ — ​ 23,753 Dividends declared — ​ — — ​ — ​ — ​ ( 6,510,793 ) ​ ( 232,100 ) ​ ( 6,742,893 ) Stock-based compensation — ​ — — ​ — ​ 1,397,583 ​ — ​ — ​ 1,397,583 Balance as of December 31, 2024 44,004 ​ 26,402 15,846,345 ​ 9,507,807 ​ 93,550,905 ​ 106,875,581 ​ 5,348,952 ​ 215,309,647 Issuance of share capital 8,534 ​ 5,120 80,661 ​ 48,396 ​ ( 53,516 ) ​ — ​ — ​ — Conversion of preferred stock ( 13,287 ) ​ ( 7,973 ) 13,287 ​ 7,973 ​ — ​ — ​ — ​ — Buyback of preferred stock ( 1,764 ) ​ ( 1,057 ) — ​ — ​ ( 28,032 ) ​ — ​ — ​ ( 29,089 ) Net income — ​ — — ​ — ​ — ​ 18,336,673 ​ 593,179 ​ 18,929,852 Stock issued for services rendered ​ — ​ ​ — ​ 2,000 ​ ​ 1,200 ​ ​ 68,240 ​ ​ — ​ ​ — ​ ​ 69,440 Exercise of options 2,020 ​ 1,212 2,940 ​ 1,764 ​ 71,129 ​ — ​ — ​ 74,105 Dividends declared — ​ — — ​ — ​ — ​ ( 8,463,206 ) ​ ( 913,314 ) ​ ( 9,376,520 ) Stock-based compensation — ​ — — ​ — ​ 1,701,904 ​ — ​ — ​ 1,701,904 Balance as of December 31, 2025 39,507 ​ $ 23,704 15,945,233 ​ $ 9,567,140 ​ $ 95,310,630 ​ $ 116,749,048 ​ $ 5,028,817 ​ $ 226,679,339 ​ The accompanying notes are an integral part of these consolidated financial statements. ​ ​ 47 Table of Contents CONSOLIDATED WATER CO. LTD. ​ CONSOLIDATED STATEMENTS OF CASH FLOWS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2025 ​ ​ ​ 2024 2023 Cash flows from operating activities ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to Consolidated Water Co. Ltd. stockholders ​ $ 18,336,673 ​ $ 28,237,554 ​ $ 29,585,391 Income from continuing operations attributable to non-controlling interests ​ ​ 593,179 ​ ​ 577,590 ​ ​ 573,791 Net income ​ ​ 18,929,852 ​ ​ 28,815,144 ​ ​ 30,159,182 Adjustments to reconcile net income to net cash provided by operating activities: ​ ​ ​ ​ ​ ​ Gain on sale of land and project documentation ​ ​ — ​ ​ ( 12,134,766 ) ​ ​ — Foreign currency transaction adjustment - discontinued operations ​ ​ 247 ​ ​ 64,960 ​ ​ ( 2,003 ) Loss from discontinued operations ​ 290,388 ​ 1,714,622 ​ 1,088,747 Depreciation and amortization ​ 6,903,438 ​ 6,691,658 ​ 6,576,454 Deferred income tax provision (benefit) ​ 496,551 ​ ( 319,887 ) ​ ( 524,999 ) Provision for credit losses ​ ​ 292,824 ​ ​ 442,828 ​ ​ 408,489 Amortization of operating lease right-of-use assets ​ ​ 714,653 ​ ​ 617,903 ​ ​ 868,057 Stock issued for services rendered ​ ​ 69,440 ​ ​ — ​ ​ — Compensation expense relating to stock and stock option grants ​ 1,701,904 ​ 1,397,583 ​ 1,933,666 (Gain) loss on asset dispositions, net ​ ( 97,709 ) ​ ( 197,786 ) ​ 7,112 Equity in earnings of affiliates ​ ( 227,886 ) ​ ( 269,455 ) ​ ( 169,728 ) Distribution of earnings from OC-BVI ​ 545,400 ​ 227,250 ​ 303,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in: ​ ​ ​ ​ ​ ​ Accounts receivable ​ 6,519,621 ​ ( 1,796,919 ) ​ ( 10,970,521 ) Contract assets ​ ​ 1,179,428 ​ ​ 17,082,814 ​ ​ ( 18,639,335 ) Inventory ​ 4,240,636 ​ ( 3,747,675 ) ​ ( 891,405 ) Prepaid expenses and other assets ​ ( 585,337 ) ​ ( 361,359 ) ​ ( 755,391 ) Accounts payable, accrued expenses and other current liabilities ​ ( 31,587 ) ​ ( 2,547,190 ) ​ 2,268,939 Accrued compensation ​ ​ ( 297,804 ) ​ ​ 176,916 ​ ​ 892,447 Contract liabilities ​ ​ 2,401,980 ​ ​ 2,889,643 ​ ​ ( 2,566,910 ) Operating lease liabilities ​ ​ ( 719,859 ) ​ ​ ( 623,110 ) ​ ​ ( 873,262 ) Deferred revenue ​ ​ ( 117,160 ) ​ ​ 48,862 ​ ​ 1,192 Net cash provided by operating activities - continuing operations ​ ​ 42,209,020 ​ ​ 38,172,036 ​ ​ 9,113,731 Net cash used in operating activities - discontinued operations ​ ( 495,449 ) ​ ( 1,656,504 ) ​ ( 1,142,969 ) Net cash provided by operating activities ​ ​ 41,713,571 ​ ​ 36,515,532 ​ ​ 7,970,762 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from investing activities ​ ​ ​ ​ ​ ​ Additions to property, plant and equipment and construction in progress ​ ( 8,541,364 ) ​ ( 6,696,580 ) ​ ( 5,047,884 ) Proceeds from asset dispositions ​ 102,142 ​ 446,337 ​ 20,808 Investment in affiliate ​ ​ — ​ ​ ( 50,000 ) ​ ​ — Proceeds from Mexico settlement agreement ​ — ​ 33,261,664 ​ — Acquisition of REC, net of cash acquired ​ ​ — ​ ​ — ​ ​ ( 3,419,916 ) Purchase of remaining non-controlling interest in PERC ​ ​ — ​ ​ — ​ ​ ( 2,440,027 ) Net cash provided by (used in) investing activities ​ ​ ( 8,439,222 ) ​ ​ 26,961,421 ​ ​ ( 10,887,019 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities ​ ​ ​ ​ ​ ​ Dividends paid to common shareholders ​ ( 7,936,842 ) ​ ( 6,284,645 ) ​ ( 5,472,790 ) Dividends paid to preferred shareholders ​ ( 21,888 ) ​ ( 17,962 ) ​ ( 14,228 ) Dividends paid to non-controlling interests ​ ​ ( 913,314 ) ​ ​ ( 232,100 ) ​ ​ — Buyback of redeemable preferred stock ​ ( 29,089 ) ​ ( 14,614 ) ​ ( 1,830 ) Proceeds received from exercise of stock options ​ ​ 74,105 ​ ​ 23,753 ​ ​ 99,764 Principal repayments on long-term debt ​ ​ ( 123,135 ) ​ ​ ( 186,586 ) ​ ​ ( 135,481 ) Net cash used in financing activities ​ ( 8,950,163 ) ​ ( 6,712,154 ) ​ ( 5,524,565 ) Net increase (decrease) in cash and cash equivalents ​ 24,324,186 ​ 56,764,799 ​ ( 8,440,822 ) Cash and cash equivalents at beginning of period ​ 99,350,121 ​ 42,621,898 ​ 50,711,751 Cash and cash equivalents at beginning of period - discontinued operations ​ ​ 127,859 ​ ​ 91,283 ​ ​ 442,252 Less: cash and cash equivalents at end of period - discontinued operations ​ ​ ( 13,776 ) ​ ​ ( 127,859 ) ​ ​ ( 91,283 ) Cash and cash equivalents at end of period ​ $ 123,788,390 ​ $ 99,350,121 ​ $ 42,621,898 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The accompanying notes are an integral part of these consolidated financial statements. ​ 48 Table of Contents CONSOLIDATED WATER CO. LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Principal activity Consolidated Water Co. Ltd. and its subsidiaries (collectively, the “Company”) supply potable water, treat wastewater and water for reuse, and provide water-related products and services to customers in the Cayman Islands, The Bahamas, the United States and the British Virgin Islands. The Company produces potable water from seawater using reverse osmosis technology and sells this water to a variety of customers, including public utilities, commercial and tourist properties, residential properties and government facilities. The Company designs, constructs and sells water production and water treatment infrastructure and manages water infrastructure for commercial and governmental customers. The Company also manufactures a wide range of specialized and custom water industry related products and provides design, engineering, operating and other services applicable to commercial, municipal and industrial water production, supply and treatment. ​ 2. Accounting policies Basis of preparation: The consolidated financial statements presented are prepared in accordance with the accounting principles generally accepted in the United States of America. Use of estimates: The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant items subject to estimates and assumptions include the carrying value of property, plant and equipment, intangible assets, goodwill and revenue recognition on construction and manufacturing contracts. Actual results could differ significantly from such estimates. Basis of consolidation: The accompanying consolidated financial statements include the accounts of the Company’s (i) wholly-owned subsidiaries, Aerex Industries, Inc. (“Aerex”), Aquilex, Inc. (“Aquilex”), Cayman Water Company Limited (“Cayman Water”), Consolidated Water Cooperatief, U.A. (“CW-Cooperatief”), Consolidated Water U.S. Holdings, Inc. (“CW-Holdings”), DesalCo Limited (“DesalCo”), Kalaeloa Desalco LLC (“Kalaeloa Desalco”), Ocean Conversion (Cayman) Limited (“OC-Cayman”), PERC Water Corporation ("PERC") and Ramey Environmental Compliance, Inc. (“REC”); and (ii) majority-owned subsidiaries Consolidated Water (Bahamas) Ltd. (“CW-Bahamas”), N.S.C. Agua, S.A. de C.V. (“NSC”), and Aguas de Rosarito S.A.P.I. de C.V. (“AdR”). The Company’s investment in its affiliate Ocean Conversion (BVI) Ltd. (“OC-BVI”) is accounted for using the equity method of accounting. All significant intercompany balances and transactions have been eliminated in consolidation. In 2019 and 2020, CW-Holdings acquired 61 % of PERC. In January 2023, CW-Holdings purchased the remaining 39 % ownership interest in PERC for $ 2.4 million in cash, and 368,383 shares of the Company’s common stock having a value of approximately $ 5.36 million based upon the opening trading price of the Company’s common stock on The Nasdaq Global Market on the date of the transaction. In September 2021, Kalaeloa Desalco was formed to pursue a project in Oahu, Hawaii. On June 2, 2023, Kalaeloa Desalco signed a definitive agreement with the Honolulu Board of Water Supply to design, construct, operate and maintain a 1.7 million gallons per day seawater reverse osmosis desalination plant in Oahu, Hawaii. Effective October 1, 2023, the Company purchased, through its wholly-owned subsidiary PERC, a 100 % ownership interest in REC, a Colorado company that operates and maintains water and wastewater treatment facilities and provides technical services to clients throughout the Rocky Mountain and Eastern Plains Regions of Colorado. PERC acquired REC for approximately $ 4.1 million and recorded goodwill and intangible assets from this acquisition of $ 2,436,391 and $ 1,108,390 respectively. 49 Table of Contents Foreign currency: The Company’s reporting currency is the United States dollar (“US$”). The functional currency of the Company and its foreign operating subsidiaries (other than NSC, AdR, and CW-Cooperatief) is the currency for each respective country. The functional currency for NSC, AdR, and CW-Cooperatief is the US$. NSC and AdR conduct business in US$ and Mexican pesos and CW-Cooperatief conducts business in US$ and euros. The exchange rates for the Cayman Islands dollar and the Bahamian dollar are fixed to the US$. The exchange rates for conversion of Mexican pesos and euros into US$ vary based upon market conditions. Net foreign currency gains arising from transactions and re-measurements were $ 39,259 , $ 74,993 and $ 84,678 for the years ended December 31, 2025, 2024, and 2023, respectively, and are included in “Other income (expense) - Other” in the accompanying consolidated statements of income. Cash and cash equivalents: Cash and cash equivalents consist of demand deposits at banks, certificates of deposit at banks with an original maturity of three months or less and a money market fund with a brokerage firm. Cash and cash equivalents as of December 31, 2025 and 2024 include $ 17.0 million and $ 5.2 million, respectively, of certificates of deposit with an original maturity of three months or less, and $ 18.1 million and $ 10.6 million, respectively, in the money market fund. As of December 31, 2025, the Company had deposits in U.S. banks in excess of federally insured limits of approximately $ 44.0 million. As of December 31, 2025, the Company held cash in foreign bank accounts of approximately $ 58.7 million. Certain transfers from the Company’s Bahamas bank accounts to Company bank accounts in other countries require the approval of the Central Bank of The Bahamas. The equivalent United States dollar cash balances held in The Bahamas as of December 31, 2025 and 2024 were approximately $ 12.0 million and $ 7.7 million, respectively. Accounts receivable: Accounts receivable are recorded at invoiced amounts based on meter readings, contractual amounts, fixed fees plus reimbursables or time and materials per contractual agreements. Trade accounts receivable also represent our unconditional right, subject only to the passage of time, to receive consideration arising from our performance under contracts with customers. Trade accounts receivable include amounts billed and billable on construction contracts, service and maintenance contracts and contracts for the sale of goods. Billed contract receivables have been invoiced to customers based on contracted amounts. Allowance for credit losses: The allowance for credit losses is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable and contract assets balances. The Company determines the current expected credit losses based on historical loss experience, current conditions, and reasonable and supportable forecasts. The Company also considers the nature of the financial asset, the credit quality of the counterparty, and other relevant factors. Past due balances are reviewed individually for collectability. Account balances are charged off against the allowance for credit losses after all means of collection have been exhausted and the potential for recovery is considered by management to be remote. Inventory: Inventory primarily consists of consumables stock and spare parts stock that are valued at cost, less an allowance for obsolescence, with cost determined on the first-in, first-out basis. Inventory also includes (i) raw materials purchased for specific manufacturing contracts that are valued at cost on the first-in, first-out basis; and (ii) potable water held in the Company’s reservoirs that is valued at the lower of the average cost of producing water during the year or its net realizable value. Contract assets and liabilities: Billing practices for the Company’s contracts are governed by the contract terms of each project based upon costs incurred, achievement of milestones or predetermined schedules. Billings do not necessarily correlate with revenue, which is recognized over time using the input method based on cost incurred. The Company records contract assets and contract liabilities to account for these differences in timing. Contract assets, which include costs and estimated earnings in excess of billings on uncompleted contracts, arise when the Company recognizes revenue for services performed under its construction and manufacturing contracts, but the Company 50 Table of Contents is not yet entitled to bill the customer under the terms of the contract. Contract liabilities, which include billings in excess of costs and estimated earnings on uncompleted contracts, represent the Company's obligation to transfer goods or services to a customer for which the Company has been paid by the customer or for which the Company has billed the customer under the terms of the contract. Revenue for future services reflected in this account is recognized, and the liability is reduced, as the Company subsequently satisfies the performance obligation under the contract. ​ Costs and estimated earnings in excess of billings on uncompleted contracts and billings in excess of costs and estimated earnings on uncompleted contracts are typically resolved within one year and are not considered significant financing components. The Company considers retention that is withheld on progress billings as not creating an unconditional right to payment until contractual milestones are reached (typically substantial completion). Accordingly, withheld retention is considered a component of contracts assets and liabilities until finally billed to the customer, when obligations have been satisfied and the right to receipt is subject only to the passage of time. The Company’s contract assets and liabilities are reported in a net asset or liability position on a contract-by-contract basis at the end of each reporting period. The Company classifies contract assets and liabilities related to construction and manufacturing contracts in current assets and current liabilities as they will be liquidated in the normal course of contract completion, although this may require more than one year. Property, plant and equipment, net: Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is calculated using a straight-line method with an allowance for estimated residual values. Rates are determined based on the estimated useful lives of the assets as follows: ​ ​ ​ ​ Buildings ​ ​ ​ 5 to 40 years Plant and equipment 4 to 40 years Distribution system 3 to 40 years Office furniture, fixtures and equipment 3 to 10 years Vehicles 3 to 10 years Leasehold improvements Shorter of 5 years or lease term Lab equipment 5 to 10 years ​ Assets under construction are recorded as additions to property, plant and equipment upon completion of the projects. Depreciation commences in the month the asset is placed in service. Additions to construction in progress are comprised of the cost of the contracted services, direct labor and materials. Interest costs directly attributable to the acquisition and construction of qualifying assets, which are assets that necessarily take a substantial amount of time to be ready for their intended use, are added to the cost of those assets until such time as the assets are substantially ready for use. No interest was capitalized during the years ended December 31, 2025 or 2024. Long-lived assets: Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or a significant adverse change that would indicate that the carrying amount of an asset or group of assets is not recoverable. For long-lived assets to be held and used, the Company recognizes an impairment loss only if their carrying amounts are not recoverable through their undiscounted cash flows and measures the impairment loss based on the difference between the carrying amounts and estimated fair values. 51 Table of Contents Goodwill and intangible assets: Goodwill represents the excess cost of an acquired business over the fair value of the assets and liabilities of the acquired business as of the date of acquisition. Goodwill and intangible assets recorded as a result of a business combination and determined to have an indefinite useful life are not amortized but are tested for impairment annually or upon the identification of a triggering event. Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed periodically for impairment. The Company evaluates the possible impairment of goodwill annually as part of its reporting process for the fourth quarter of each fiscal year. Management identifies the Company’s reporting units for goodwill impairment testing purposes, which consist of Cayman Water, the bulk segment (which is comprised of CW-Bahamas and OC-Cayman), PERC, REC, and the manufacturing segment (i.e., Aerex), and determines the carrying value of each reporting unit by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units. The Company determines the fair value of each reporting unit and compares these fair values to the carrying amounts of the reporting units. To the extent the carrying amount of a reporting unit exceeds the fair value of the reporting unit, an impairment loss is recorded. ​ For the years ended December 31, 2025 and 2024, the Company elected to assess qualitative factors to determine whether it was necessary to perform the quantitative goodwill impairment testing that was conducted in prior years for its reporting units. The Company assessed the relevant events and circumstances to evaluate whether it is more likely than not that the fair values of such reporting units were less than their carrying values. The events and circumstances assessed for each reporting unit included macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, and other relevant events. Based upon this qualitative assessment, the Company determined that it is more likely than not that the fair values of its reporting units exceeded their carrying values as of December 31, 2025 and 2024. ​ Investments: Investments where the Company does not exercise significant influence over the operating and financial policies of the investee and holds less than 20% of the voting stock are recorded at cost. The Company uses the equity method of accounting for investments in common stock where the Company holds 20% to 50% of the voting stock of the investee and has significant influence over its operating and financial policies but does not meet the criteria for consolidation. The Company recognizes impairment losses on declines in the fair value of the stock of investees that are other than temporary. ​ Income taxes: The Company accounts for the income taxes arising from the operations of its United States subsidiaries under the asset and liability method. Deferred tax assets and liabilities, if any, are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided to the extent any deferred tax asset may not be realized. ​ The Company is not presently subject to income taxes in the other countries in which it operates. ​ Revenue recognition: Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. ​ The following table presents the Company’s revenue disaggregated by revenue source. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Retail revenue ​ ​ $ 33,587,952 ​ $ 31,741,343 ​ $ 30,158,051 Bulk revenue ​ ​ 33,481,307 ​ 33,673,387 ​ 34,595,058 Services revenue ​ ​ 46,312,325 ​ 50,956,489 ​ 97,966,650 Manufacturing revenue ​ ​ 18,691,784 ​ 17,595,414 ​ 17,491,474 Total revenue ​ ​ $ 132,073,368 ​ $ 133,966,633 ​ $ 180,211,233 ​ 52 Table of Contents Services revenue consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Construction revenue ​ $ 13,470,641 ​ $ 18,602,919 ​ $ 77,306,704 Operations and maintenance revenue ​ 32,075,046 ​ 29,307,405 ​ 19,368,365 Design and consulting revenue ​ 766,638 ​ 3,046,165 ​ 1,291,581 Total services revenue ​ $ 46,312,325 ​ $ 50,956,489 ​ $ 97,966,650 ​ Retail revenue ​ The Company produces and supplies water to end-users, including residential, commercial and governmental customers in the Cayman Islands under an exclusive retail license issued to Cayman Water by the Cayman Islands government to provide water in two of the three most populated areas on Grand Cayman. Customers are billed on a monthly basis based on metered consumption and bills are typically collected within 30 to 45 days after the billing date. Receivables not collected within 45 days subject the customer to disconnection from water service. ​ The Company recognizes revenue from retail water sales at the end of the billing cycle based on the water supplied to the customers’ premises. The amount of water supplied is determined and invoiced based upon water meter readings performed at the end of each month. All retail water contracts are month-to-month contracts. The Company has elected the “right to invoice” practical expedient for revenue recognition on its retail water sale contracts and recognizes revenue in the amount to which the Company has a right to invoice, recognizing this revenue from the transfer of goods or services to customers during the billing cycle. Bulk revenue The Company produces and supplies water to government-owned utilities in the Cayman Islands and The Bahamas. OC-Cayman provides bulk water to the Water Authority-Cayman (“WAC”), a government-owned utility and regulatory agency, under three agreements. The WAC in turn distributes such water to properties in Grand Cayman outside of Cayman Water’s retail license area. The Company sells bulk water in The Bahamas through its majority-owned subsidiary, CW-Bahamas, under two agreements with the Water and Sewerage Corporation of The Bahamas (“WSC”), which distributes such water through its own pipeline system to residential, commercial and tourist properties on the island of New Providence. The Company has elected the “right to invoice” practical expedient for revenue recognition on its bulk water sale contracts and recognizes revenue in the amount to which the Company has a right to invoice, recognizing this revenue from the transfer of goods or services to customers during the billing cycle. Services and Manufacturing revenue The Company designs, constructs, sells, operates and maintains, and provides consulting services related to water, wastewater and water reuse infrastructure through PERC. All of PERC's customers are companies or governmental entities located in the United States. The Company provides operations and maintenance and consulting services to companies and governmental entities located in the state of Colorado through REC. The Company also provides design, engineering, management, procurement and construction services for desalination infrastructure through DesalCo, which serves customers in the Cayman Islands, The Bahamas and the British Virgin Islands. The Company, through Aerex, is a custom and specialty manufacturer of systems and products applicable to commercial, municipal and industrial water production and treatment. Substantially all of Aerex’s customers are U.S. companies. 53 Table of Contents 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. The Company generates construction, operations and maintenance, and design and consulting revenue from PERC and DesalCo; construction revenue from Kalaeloa Desalco; manufacturing revenue from Aerex; and operations and maintenance and consulting revenue from REC. The Company recognizes revenue for its construction and custom/specialized manufacturing contracts (and some of its 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. The Company follows this method since it can make reasonably dependable estimates of the revenue and costs applicable to the various stages of a contract. Under this input method, the Company records revenue and recognizes profit or loss as work on the contract progresses. The Company estimates total costs to be incurred and profit to be earned on each long-term, fixed price contract prior to the commencement of work on the contract and updates these estimates as work on the contract progresses. The cumulative amount of revenue recorded on a contract at a specified point in time is that percentage of total estimated revenue that incurred costs to date comprised of estimated total contract costs. Due to the extended time it may take to complete many of the Company’s contracts and the scope and nature of the work required to be performed on those contracts, the estimations of total revenue and costs at completion are complicated and subject to many variables and, accordingly, are subject to changes. When adjustments in estimated total contract revenue or estimated total contract costs are required, any changes from prior estimates are recognized in the current period for the inception-to-date effect of such changes. The Company recognizes the full amount of any estimated loss on a contract at the time the estimates indicate such a loss. Any contract assets are classified as current assets. Contract liabilities on uncompleted contracts, if any, are classified as current liabilities. During the year ended December 31, 2023, the Company adjusted its prior year estimates of the total contract costs for two of its construction contracts. These changes in accounting estimates resulted in an increase in the services segment’s income from operations and the Company’s consolidated net income by $ 2,356,439 and $ 1,750,750 , respectively, for the year ended December 31, 2023. This adjustment increased basic and diluted earnings per share by $ 0.11 for the year ended December 31, 2023. The Company has elected the “right to invoice” practical expedient for revenue recognition on its operations and maintenance and consulting contracts and recognizes revenue in the amount to which the Company has a right to invoice, recognizing this revenue from the transfer of goods or services to customers during the billing cycle. During the years ended December 31, 2025, 2024, and 2023, the Company recognized $ 13,696,856 , $ 18,613,466 and $ 77,411,792 , respectively, of its services revenue from the transfer of goods or services to customers over time. The remaining services revenue of $ 32,615,469 , $ 32,343,023 and $ 20,554,858 , respectively, was recognized from the transfer of goods or services to customers when invoiced. During the years ended December 31, 2025, 2024, and 2023, the Company recognized all of its manufacturing revenue from the transfer of goods or services to customers over time. Practical Expedients and Exemptions The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed. ​ Comparative amounts: Revenue of $ 965,487 for 2024 presented in the services segment as design and consulting revenue in the financial statements previously issued for 2024 has been reclassified to construction revenue in the services segment information for 2024 provided herein to conform to the current period’s presentation. Such reclassifications had no effect on consolidated or services segment revenue, gross profit, operating income or net income . ​ 54 Table of Contents 3. Cash and cash equivalents Cash and cash equivalents are not restricted as to withdrawal or use. As of December 31, 2025 and 2024, the equivalent United States dollars of the Company’s cash and cash equivalents, including those accounts denominated in currencies other than the U.S. dollar, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Bank accounts: ​ ​ ​ ​ United States dollar ​ $ 34,460,275 ​ $ 39,094,067 Cayman Islands dollar ​ 15,511,230 ​ 17,499,492 Bahamian dollar ​ 12,037,796 ​ 7,717,705 ​ ​ 62,009,301 ​ 64,311,264 ​ ​ ​ ​ ​ ​ ​ Short-term deposits: ​ ​ ​ ​ United States dollar ​ 54,944,598 ​ 31,908,220 Cayman Islands dollar ​ 6,834,491 ​ 3,130,637 ​ ​ 61,779,089 ​ 35,038,857 Total cash and cash equivalents ​ $ 123,788,390 ​ $ 99,350,121 ​ Transfers from the Company’s Bahamas bank accounts to Company bank accounts in other countries require the approval of the Central Bank of The Bahamas. ​ 4. Accounts receivable, net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Trade accounts receivable ​ $ 32,809,474 ​ $ 39,986,234 Receivable from OC-BVI ​ 47,288 ​ 42,515 Other accounts receivable ​ 735,796 ​ 373,655 ​ ​ 33,592,558 ​ 40,402,404 Allowance for credit losses ​ ( 824,021 ) ​ ( 821,422 ) Accounts receivable, net ​ $ 32,768,537 ​ $ 39,580,982 ​ The activity for the allowance for credit losses consisted of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Opening allowance for credit losses ​ $ 821,422 ​ $ 583,401 Provision for credit losses ​ 292,824 ​ 442,828 Accounts written off during the year ​ ( 290,225 ) ​ ( 205,467 ) Recovery of accounts written off ​ ​ — ​ ​ 660 Ending allowance for credit losses ​ $ 824,021 ​ $ 821,422 ​ Significant concentrations of credit risk are disclosed in Note 17. ​ 55 Table of Contents 5. Inventory ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Spare parts stock ​ $ 8,366,230 ​ $ 8,341,395 Raw materials ​ ​ 720,602 ​ ​ 5,828,568 Consumables stock ​ 181,020 ​ 89,689 Water stock ​ ​ 32,135 ​ ​ 39,659 Total inventory ​ 9,299,987 ​ 14,299,311 Less current portion ​ 3,736,845 ​ 8,960,350 Inventory (non-current) ​ $ 5,563,142 ​ $ 5,338,961 ​ ​ 6. Contracts in progress Revenue recognized and amounts billed on contracts in progress are summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Revenue recognized to date on contracts in progress ​ $ 127,237,229 ​ ​ ​ $ 114,590,991 Amounts billed to date on contracts in progress ​ ( 138,121,977 ) ​ ( 121,833,354 ) Retainage ​ ​ 2,646,929 ​ ​ 2,585,952 Net contract liability ​ $ ( 8,237,819 ) ​ $ ( 4,656,411 ) ​ The above net balances are reflected in the accompanying consolidated balance sheet as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2025 ​ 2024 Contract assets ​ $ 3,290,815 ​ ​ ​ $ 4,470,243 Contract liabilities ​ ( 11,528,634 ) ​ ( 9,126,654 ) Net contract liability ​ $ ( 8,237,819 ) ​ $ ( 4,656,411 ) ​ ​ ​ The significant increase in contract liabilities from December 31, 2024 to December 31, 2025 is attributable to the Kalaeloa Desalco construction project with the Honolulu Board of Water Supply to construct and operate a seawater reverse osmosis desalination plant in Oahu, Hawaii. ​ As of December 31, 2025, the Company had unsatisfied or partially unsatisfied performance obligations for contracts in progress representing approximately $ 148.8 million in aggregate transaction price for contracts with an original expected length of greater than one year. The Company expects to earn revenue as it satisfies its performance obligations under those contracts in the amount of approximately $ 56.7 million during the year ending December 31, 2026 and $ 92.1 million thereafter . In addition, the Company recognized revenue of approximately $ 5.5 million in the year ended December 31, 2025, that was included in the contract liability balance as of December 31, 2024. ​ ​ ​ ​ ​ ​ 56 Table of Contents 7. Property, plant and equipment and construction in progress ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Land ​ $ 5,903,738 ​ $ 5,903,738 Land improvement ​ ​ 1,639,615 ​ ​ 403,351 Buildings ​ 27,552,216 ​ 26,033,866 Plant and equipment ​ 59,933,437 ​ 61,089,877 Distribution system ​ 40,639,053 ​ 40,402,691 Office furniture, fixtures and equipment ​ 3,398,386 ​ 3,277,313 Vehicles ​ 5,072,211 ​ 3,830,539 Leasehold improvements ​ 306,545 ​ 306,545 Lab equipment ​ 7,404 ​ 12,456 ​ ​ 144,452,605 ​ 141,260,376 Less accumulated depreciation ​ 89,300,847 ​ 88,828,094 Property, plant and equipment, net ​ $ 55,151,758 ​ $ 52,432,282 Construction in progress ​ $ 6,695,656 ​ $ 5,143,717 ​ The Company maintains insurance for loss or damage to all fixed assets that it deems susceptible to loss. During the years ended December 31, 2025, and 2024, $ 5,883,845 and $ 1,395,485 , respectively, of construction in progress was placed in service. Depreciation expense was $ 6,128,825 , $ 5,855,935 and $ 5,823,008 for the years ended December 31, 2025, 2024 and 2023, respectively. ​ 8. Discontinued operations – Mexico project development In 2010, the Company began the pursuit, through its Netherlands subsidiary, CW-Cooperatief, and its Mexico subsidiary, NSC, of a project (the “Project”) that encompassed the construction, operation and minority ownership of a 100 million gallons per day seawater reverse osmosis desalination plant to be located in northern Baja California, Mexico and accompanying pipelines to deliver water to the Mexican potable water system. Through a series of transactions that began in 2012, NSC purchased 20.1 hectares of land for approximately $ 21.1 million on which the proposed Project’s plant was to be constructed. ​ In November 2015, the State of Baja California (the “State”) officially commenced a public tender for the Project, and in June 2016 a consortium comprised of NSC and two other parties was selected by the State as the winner of the tender process for the Project. NSC subsequently formed AdR to pursue the completion of the Project. ​ On August 22, 2016, the Public Private Partnership Agreement for the Project (the “APP Contract”) was executed between AdR, the State Water Commission of Baja California (“CEA”), and the Government of Baja California, as represented by the Secretary of Planning and Finance and the Public Utilities Commission of Tijuana (“CESPT”). The APP Contract required AdR to design, construct, finance and operate a seawater reverse osmosis desalination plant (and accompanying aqueduct) with a capacity of up to 100 million gallons per day in two phases: the first with a capacity of 50 million gallons per day and an aqueduct to the Mexican public water system in Tijuana, Baja California and the second phase with a capacity of 50 million gallons per day. The first phase was to be operational within 36 months of commencing construction and the second phase was to be operational by January 2025. The APP Contract further required AdR to operate and maintain the plant and aqueduct for a period of 37 years starting from the commencement of operation of the first phase. At the end of the operating period, the plant and aqueduct would have been transferred to CEA. ​ On June 29, 2020, AdR received a letter (the “Letter”) from CEA and CESPT terminating the APP Contract. The Letter requested that AdR provide an inventory of the assets that comprised the “Project Works” (as defined in the APP Contract) for the purpose of acknowledging and paying the non-recoverable expenses made by AdR in connection with the Project, with such reimbursement to be calculated in accordance with the terms of the APP Contract. On August 28, 2020, AdR submitted their list of non-recoverable expenses, including those of NSC, to CEA and CESPT which amounted to 51,144,525 United States dollars and an additional 137,333,114 Mexican pesos. 57 Table of Contents ​ CW-Cooperatief, as a Netherlands company, had certain rights relating to its investments in NSC and AdR under the Agreement on Promotion, Encouragement and Reciprocal Protection of Investments between the Kingdom of the Netherlands and the United Mexican States entered into force as of October 1, 1999 (the “Treaty”). On April 16, 2021, CW-Cooperatief submitted a letter to the President of Mexico and other Mexican federal government officials alleging that the State’s termination of the APP Contract constituted a breach by Mexico of its international obligations under the Treaty, entitling CW-Cooperatief to full reparation, including monetary damages. This letter invited Mexico to seek a resolution of this investment dispute through consultation and negotiation but stated that if the dispute cannot be resolved in this manner, CW-Cooperatief would refer the dispute to the International Centre for the Settlement of International Disputes for arbitration, as provided for in the Treaty. ​ In February 2022, CW-Cooperatief, filed a Request for Arbitration with the International Centre for Settlement of International Disputes (“ICSID”) requesting that the United Mexican States pay CW-Cooperatief damages in excess of US$ 51 million plus MXN$ 137 million (with the exact amount to be quantified in the proceedings), plus fees, costs and pre- and post-award interest. In May 2024, the Company, through CW-Cooperatief; NSC, and AdR, entered into a settlement agreement (the “Settlement Agreement”) with the State and Banco Nacional de Obras y Servicios Públicos, S.N.C., as trustee under the trust agreement for the trust named Fondo Nacional de Infraestructura (the “Trust”). Under the Settlement Agreement, CW-Cooperatief requested that ICSID discontinue the arbitration and on May 31, 2024, ICSID issued an order discontinuing the arbitration. Pursuant to the Settlement Agreement, the Trust purchased the 20.1 hectares of land on which the Project’s plant was to be constructed, including related rights of way (the “Land”), on an “as-is” basis, from NSC for MXN$ 596,144,000 . The sale of the Land to the Trust was closed on June 14, 2024 at which time the MXN$ 596,144,000 was paid to the Company and converted at the prevailing exchange rate on that date into US$ 31,959,685 . ​ In connection with the Settlement Agreement on June 14, 2024, the State also paid NSC MXN$ 20,000,000 to purchase certain documentation owned by NSC relating to the Project. ​ As a result of the Settlement Agreement: (i) the parties have been released from all obligations owed to each other in connection with the APP Contract and the arbitration; 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. ​ The Settlement Agreement and any matter arising out of or in connection with it are governed by the federal laws of Mexico. ​ The Company’s net income (losses) from discontinued operations for the years ended December 31, 2025, 2024 and 2023 were ($ 290,635 ), $ 10,355,184 , and ($ 1,086,744 ), respectively. ​ Summarized financial information for the discontinued Mexico project development operation is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ December 31, ​ ​ 2025 ​ 2024 Cash ​ ​ $ 13,776 ​ ​ $ 127,859 Prepaid expenses and other current assets ​ ​ 110,854 ​ ​ 144,626 Total assets of discontinued operations ​ $ 124,630 ​ $ 272,485 ​ ​ ​ ​ ​ Total liabilities of discontinued operations ​ $ 271,159 ​ $ 509,745 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ ​ ​ 2025 ​ ​ 2024 ​ ​ 2023 Loss from discontinued operations ​ ​ $ ( 290,635 ) ​ $ ( 1,779,582 ) ​ $ ( 1,086,744 ) Gain on sale of land and project documentation ​ ​ $ — ​ $ 12,134,766 ​ $ — ​ ​ 58 Table of Contents 9. Intangible assets The Company’s purchase transactions for Aerex and PERC identified certain intangible assets. The remaining intangible assets and their respective useful lives are as follows: trade names ( 15 years ) and facility management contracts ( 6 years ). Effective October 2023, the Company purchased a 100 % ownership interest in REC. The purchase transaction identified certain intangible assets with a fair value of $ 1,108,390 and useful lives as follows: non-compete ( 5 years ), trade name ( 15 years ) and customer relationships ( 15 years ). The costs and accumulated amortization for these assets were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Cost ​ ​ ​ ​ Non-compete agreements ​ $ 268,590 ​ $ 268,590 Trade names ​ 3,096,900 ​ 3,096,900 Customer relationships ​ ​ 442,900 ​ ​ 442,900 Facility management contracts ​ 2,200,000 ​ 2,200,000 ​ ​ 6,008,390 ​ 6,008,390 Accumulated amortization ​ ​ ​ ​ Non-compete agreements ​ ( 120,865 ) ​ ( 67,147 ) Trade names ​ ( 1,519,535 ) ​ ( 1,313,075 ) Customer relationships ​ ​ ( 66,435 ) ​ ​ ( 36,908 ) Facility management contracts ​ ( 2,200,000 ) ​ ( 1,894,445 ) ​ ​ ( 3,906,835 ) ​ ( 3,311,575 ) Intangible assets, net ​ $ 2,101,555 ​ $ 2,696,815 ​ Amortization of intangible assets for each of the next five years and thereafter is expected to be as follows: ​ ​ ​ ​ ​ 2026 ​ ​ ​ $ 289,705 2027 ​ 289,705 2028 ​ 276,275 2029 ​ 235,987 2030 ​ 235,987 Thereafter ​ 773,896 ​ ​ $ 2,101,555 ​ Amortization expense was $ 595,260 , $ 656,370 and $ 574,093 for the years ended December 31, 2025, 2024 and 2023, respectively. ​ 10. Leases The Company’s leases consist principally of leases for office and warehouse space. For leases with terms greater than twelve months, the related asset and obligation are recorded at the present value of the lease payments over the term. Many of these leases contain rental escalation clauses which are factored into the determination of the lease payments when appropriate. When available, the lease payments are discounted using the rate implicit in the lease; however, the Company’s current leases do not provide a readily determinable implicit rate. Therefore, the Company’s incremental borrowing rate is estimated to discount the lease payments based on information available at the lease commencement. These leases contain both lease and non-lease components, which the Company has elected to treat as a single lease component. The Company elected not to recognize leases that have an original lease term, including reasonably certain renewal or purchase obligations, of twelve months or less in its consolidated balance sheets for all classes of underlying assets. Lease costs for such short-term leases are expensed on a straight-line basis over the lease term. 59 Table of Contents All lease assets denominated in a foreign currency are measured using the exchange rate at the commencement of the lease. All lease liabilities denominated in a foreign currency are remeasured using the exchange rate as of the consolidated balance sheet date. Lease assets and liabilities The following table presents the lease-related assets and liabilities and their respective classification on the consolidated balance sheets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2025 ​ 2024 ASSETS ​ ​ ​ ​ Noncurrent ​ ​ ​ ​ Operating lease right-of-use assets ​ $ 2,930,441 ​ $ 3,232,786 Total operating lease right-of-use assets ​ $ 2,930,441 ​ $ 3,232,786 ​ ​ ​ ​ ​ ​ ​ LIABILITIES ​ ​ ​ ​ ​ ​ ​ Current ​ ​ ​ ​ ​ Current maturities of operating leases ​ $ 661,047 ​ $ 634,947 Noncurrent ​ ​ ​ ​ Noncurrent operating leases ​ ​ 2,297,161 ​ ​ 2,630,812 Total lease liabilities ​ $ 2,958,208 ​ $ 3,265,759 ​ ​ ​ ​ ​ ​ ​ Weighted average remaining lease term: ​ ​ ​ ​ Operating leases ​ 4.2 years ​ 5.0 years ​ ​ ​ ​ ​ Weighted average discount rate: ​ ​ ​ ​ Operating leases ​ 6.55 % ​ 6.56 % ​ The components of lease costs were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ 2025 ​ 2024 ​ 2023 Operating lease costs ​ $ 854,452 ​ $ 847,540 ​ $ 751,261 Short-term lease costs ​ 349,498 ​ 361,176 ​ ​ 217,640 Lease costs - discontinued operations ​ ​ 7,016 ​ ​ 31,946 ​ ​ 45,979 Total lease costs ​ $ 1,210,966 ​ $ 1,240,662 ​ $ 1,014,880 ​ Supplemental cash flow information related to leases is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ 2025 ​ 2024 ​ 2023 Cash paid for amounts included in measurement of liabilities: ​ ​ ​ ​ ​ ​ ​ ​ Operating cash outflows for operating leases ​ $ 899,511 ​ $ 924,461 ​ $ 760,847 Operating cash outflows for operating leases - discontinued operations ​ ​ — ​ ​ — ​ ​ 11,337 ​ 60 Table of Contents Future lease payments relating to the Company's operating lease liabilities from continuing operations as of December 31, 2025 are as follows: ​ ​ ​ ​ ​ Years ending December 31, ​ ​ ​ Total 2026 ​ $ 839,297 2027 ​ 813,538 2028 ​ 833,242 2029 ​ 541,378 2030 ​ ​ 296,859 Thereafter ​ 74,159 Total future lease payments ​ 3,398,473 Less: imputed interest ​ ( 440,265 ) Total lease obligations ​ 2,958,208 Less: current obligations ​ ( 661,047 ) Noncurrent lease obligations ​ $ 2,297,161 ​ ​ ​ ​ ​ ​ ​ ​ 11. Income taxes The components of income before income taxes for the years ended December 31, 2025, 2024, and 2023 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Foreign (not subject to income taxes) ​ $ 12,274,013 ​ $ 10,699,269 ​ $ 10,002,233 Mexico ​ ( 131,596 ) ​ 10,922,374 ​ ( 742,367 ) United States ​ 8,952,083 ​ 9,412,015 ​ 27,649,330 ​ ​ 21,094,500 ​ 31,033,658 ​ 36,909,196 Discontinued operations ​ 290,635 ​ ( 10,355,184 ) ​ 1,086,744 ​ ​ $ 21,385,135 ​ $ 20,678,474 ​ $ 37,995,940 ​ The Company’s provision for (benefit from) income taxes for the years ended December 31, 2025, 2024, and 2023, which related to U.S. operations, consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Current: ​ ​ ​ ​ ​ ​ ​ ​ ​ Federal ​ $ 1,160,917 ​ $ 2,282,566 ​ $ 5,611,360 State ​ ​ 507,180 ​ ​ 255,835 ​ ​ 1,663,653 Foreign ​ ​ — ​ ​ — ​ ​ — Total current income tax provision (benefit) ​ ​ 1,668,097 ​ ​ 2,538,401 ​ ​ 7,275,013 Deferred: ​ ​ ​ ​ ​ ​ Federal ​ ​ 457,068 ​ ​ ( 267,100 ) ​ ​ ( 276,070 ) State ​ ​ 39,483 ​ ​ ( 52,787 ) ​ ​ ( 248,929 ) Foreign ​ ​ — ​ ​ — ​ ​ — Total deferred income tax provision (benefit) ​ ​ 496,551 ​ ​ ( 319,887 ) ​ ​ ( 524,999 ) Total provision for (benefit from) income taxes ​ $ 2,164,648 ​ $ 2,218,514 ​ $ 6,750,014 ​ 61 Table of Contents A reconciliation of the U.S. statutory federal tax rate to the effective rate for the year ended December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ ​ ​ ​ Amount ​ Percent ​ U.S. statutory federal tax rate ​ $ 4,490,879 ​ 21.00 % State and local income taxes, net of federal effect (a) ​ 440,154 ​ 2.06 % Foreign tax effects - tax rate differential ​ ​ ​ ​ ​ Cayman Islands ​ ​ ( 1,265,705 ) ​ ( 5.92 ) % The Bahamas ​ ​ ( 1,363,912 ) ​ ( 6.38 ) % Nontaxable or nondeductible items ​ ​ ( 135,296 ) ​ ( 0.63 ) % Other adjustments ​ ​ ( 1,472 ) ​ ( 0.01 ) % Effective tax rate $ 2,164,648 ​ 10.12 % (a) State taxes in California made up the majority (greater than 50 percent) of the tax effect in the State and local income taxes category. ​ Below is a tabular rate reconciliation previously disclosed for the years ended December 31, 2024 and 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ ​ ​ 2024 ​ ​ ​ ​ 2023 ​ ​ ​ Amount ​ Percent ​ ​ Amount ​ Percent ​ U.S. statutory federal rate ​ $ 4,342,478 ​ 21.00 % $ 7,979,149 ​ 21.00 % State taxes, net of federal effect ​ 149,323 ​ 0.72 % ​ 1,093,433 ​ 2.88 % Foreign rate differential ​ ( 2,365,946 ) ​ ( 11.45 ) % ​ ( 2,172,793 ) ​ ( 5.71 ) % Permanent items ​ 94,551 ​ 0.46 % ​ ( 120,739 ) ​ ( 0.32 ) % Change in valuation allowance ​ ( 1,892 ) ​ — % ​ ( 29,036 ) ​ ( 0.08 ) % Effective tax rate $ 2,218,514 ​ 10.73 % $ 6,750,014 ​ 17.77 % ​ The tax effects of significant items comprising the Company’s net long-term deferred tax liability as of December 31, 2025 and 2024 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Continuing Operations ​ ​ ​ ​ ​ ​ Deferred tax assets: ​ ​ ​ ​ Net operating loss carryforwards ​ $ 212,772 ​ $ 80,285 Accruals and reserves ​ ​ 220,343 ​ ​ 209,549 Operating lease liabilities ​ ​ 439,254 ​ ​ 425,797 Capitalized research expenditures ​ ​ — ​ ​ 316,937 Others ​ ​ 156,196 ​ ​ 88,750 Valuation allowances ​ — ​ — ​ ​ 1,028,565 ​ 1,121,318 Deferred tax liabilities: ​ ​ ​ ​ Property and equipment ​ 764,116 ​ 239,830 Intangible assets ​ 525,359 ​ 672,973 Operating lease right-of-use assets ​ 433,058 ​ 419,408 Others ​ ​ 13,476 ​ ​ — ​ ​ 1,736,009 ​ 1,332,211 ​ ​ ​ ​ ​ ​ ​ Net deferred tax liabilities ​ $ ( 707,444 ) ​ $ ( 210,893 ) ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2025, the Company’s continuing operations have a federal net loss carryforward of approximately $ 914,000 and a state net loss carryforward of approximately $ 552,000 . The net operating losses (“NOLs”) generated in taxable years beginning before January 1, 2018, may be carried forward up to 20 taxable years. The unused federal NOLs 62 Table of Contents will expire on various dates starting from 2030. For NOLs generated in taxable years beginning after December 31, 2017, they are carried forward indefinitely until used and never expire. The Company made tax payments, net of refunds received during the year ended December 31, 2025, as follows: ​ ​ ​ ​ ​ December 31, ​ 2025 Jurisdiction ​ ​ United States $ 1,989,000 Florida 203,000 Other States 175,076 Net Payment $ 2,367,076 ​ ​ ​ 12. Earnings per share Earnings per share (“EPS”) is computed on a basic and diluted basis. Basic EPS is computed by dividing net income (less preferred stock dividends) available to common stockholders by the weighted average number of common shares outstanding during the period. The computation of diluted EPS assumes the issuance of common shares for all potential common shares outstanding during the reporting period and, if dilutive, the effect of stock options as computed under the treasury stock method. ​ The following summarizes information related to the computation of basic and diluted EPS: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders ​ $ 18,627,308 ​ $ 17,882,370 ​ $ 30,672,135 Less: preferred stock dividends ​ ( 22,572 ) ​ ( 18,595 ) ​ ( 15,513 ) Net income from continuing operations available to common shares in the determination of basic earnings per common share ​ 18,604,736 ​ 17,863,775 ​ 30,656,622 Income (loss) from discontinued operations ​ ( 290,635 ) ​ 10,355,184 ​ ( 1,086,744 ) Net income available to common shares in the determination of basic earnings per common share ​ $ 18,314,101 ​ $ 28,218,959 ​ $ 29,569,878 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders ​ 15,923,032 ​ 15,832,328 ​ 15,739,056 Plus: ​ ​ ​ ​ ​ ​ Weighted average number of preferred shares outstanding during the period ​ 41,907 ​ 44,257 ​ 39,885 Potential dilutive effect of unexercised options and unvested stock grants ​ 43,124 ​ 59,377 ​ 86,956 Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders ​ 16,008,063 ​ 15,935,962 ​ 15,865,897 ​ ​ ​ 63 Table of Contents 13. Dividends Interim dividends declared on common stock and redeemable preferred stock for each quarter of the years ended December 31, 2025, 2024, and 2023, were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ 2024 ​ ​ ​ 2023 First Quarter ​ $ 0.11 ​ $ 0.095 ​ $ 0.085 Second Quarter ​ 0.14 ​ 0.095 ​ 0.085 Third Quarter ​ 0.14 ​ 0.11 ​ 0.095 Fourth Quarter ​ 0.14 ​ 0.11 ​ 0.095 ​ ​ $ 0.53 ​ $ 0.41 ​ $ 0.36 ​ ​ ​ 14. Segment information The Company has five reportable segments: retail, bulk, services, manufacturing and corporate. The retail segment operates the water utility for the Seven Mile Beach and West Bay areas of Grand Cayman pursuant to an exclusive license granted by the Cayman Islands government. The bulk segment supplies potable water to government utilities in Grand Cayman and The Bahamas under long-term contracts. The services segment designs, constructs and sells water infrastructure and provides management and operating services to third parties. The manufacturing segment manufactures and services a wide range of custom and specialized water-related products applicable to commercial, municipal and industrial water production, supply and treatment. The corporate segment consists of various expenses of a general and administrative nature incurred at the parent company level, as well as the expenses incurred by Aquilex, a U.S. subsidiary that provides financial, engineering, information technology, administrative and supply chain management support services to all the Company’s subsidiaries and its affiliate. ​ Frederick W. McTaggart, Chief Executive Officer and President, is the Company’s chief operating decision maker (“CODM”). ​ For the retail, bulk, services, and manufacturing segments, the CODM uses revenue, gross profit, and income before income taxes to assess segment performance and in deciding the allocation of resources to each segment. The CODM considers actual versus budget and current period versus prior period variances on a monthly, quarterly, and annual basis for each of these financial measures. The CODM also considers variances from the budget and the prior period for major corporate expenses (such as employee costs, insurance and professional fees) when making decisions regarding capital and resource allocation. ​ The accounting policies of the segments are consistent with those described in Note 2. All intercompany transactions are eliminated for segment presentation purposes. Intersegment revenue transactions are insignificant to the Company and are eliminated. Segment information previously disclosed in 2023 did not separately disclose those expenses currently reported in the corporate segment, as such expenses were previously included in the retail segment. The 2023 segment information provided herein has been recast to conform to the current period presentation. 64 Table of Contents ​ 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. ​ The following sets forth the Company’s income statements by segment. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2025 ​ ​ ​ ​ Retail ​ ​ ​ Bulk ​ ​ ​ Services ​ ​ ​ Manufacturing ​ ​ ​ Corporate ​ ​ ​ Total Revenue ​ $ 33,587,952 ​ $ 33,481,307 ​ $ 46,312,325 ​ $ 18,691,784 ​ $ — ​ ​ ​ $ 132,073,368 Cost of revenue ​ 14,593,693 ​ 22,470,197 ​ 34,449,844 ​ 12,180,824 ​ — ​ 83,694,558 Gross profit ​ 18,994,259 ​ 11,011,110 ​ 11,862,481 ​ 6,510,960 ​ — ​ 48,378,810 General and administrative expenses ​ 3,734,676 ​ 1,614,759 ​ 7,885,756 ​ 2,102,759 ​ 14,778,378 ​ 30,116,328 Gain on asset dispositions, net ​ 40,578 ​ — ​ 52,131 ​ 5,000 ​ — ​ 97,709 Income (loss) from operations ​ ​ 15,300,161 ​ ​ 9,396,351 ​ ​ 4,028,856 ​ ​ 4,413,201 ​ ​ ( 14,778,378 ) ​ 18,360,191 Interest income ​ 171,351 ​ 772,514 ​ 839,190 ​ 3 ​ ​ 886,982 ​ ​ 2,670,040 Interest expense ​ ​ — ​ ​ — ​ ​ ( 4,420 ) ​ ​ — ​ ​ — ​ ​ ( 4,420 ) Income (loss) from affiliates ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 29,354 ) ​ ​ 257,240 ​ ​ 227,886 Other ​ ​ 71,262 ​ ​ ( 9,322 ) ​ ​ 69,735 ​ ​ 344 ​ ​ ( 581 ) ​ ​ 131,438 Other income (loss), net ​ ​ 242,613 ​ ​ 763,192 ​ ​ 904,505 ​ ​ ( 29,007 ) ​ ​ 1,143,641 ​ ​ 3,024,944 Income (loss) before income taxes ​ 15,542,774 ​ 10,159,543 ​ 4,933,361 ​ 4,384,194 ​ ​ ( 13,634,737 ) ​ 21,385,135 Provision for income taxes ​ — ​ — ​ 1,132,590 ​ 1,026,316 ​ ​ 5,742 ​ 2,164,648 Net income (loss) from continuing operations ​ 15,542,774 ​ 10,159,543 ​ 3,800,771 ​ 3,357,878 ​ ​ ( 13,640,479 ) ​ 19,220,487 Income from continuing operations attributable to non-controlling interests ​ — ​ 593,179 ​ — ​ — ​ ​ — ​ 593,179 Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders ​ $ 15,542,774 ​ $ 9,566,364 ​ $ 3,800,771 ​ $ 3,357,878 ​ $ ( 13,640,479 ) ​ 18,627,308 Net loss from discontinued operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 290,635 ) Net income attributable to Consolidated Water Co. Ltd. stockholders ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 18,336,673 ​ ​ 65 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2024 ​ ​ ​ ​ Retail ​ ​ ​ Bulk ​ ​ ​ Services ​ ​ ​ Manufacturing ​ Corporate ​ ​ ​ Total Revenue ​ $ 31,741,343 ​ $ 33,673,387 ​ $ 50,956,489 ​ $ 17,595,414 ​ ​ ​ $ — ​ $ 133,966,633 Cost of revenue ​ 14,199,088 ​ 23,360,360 ​ 38,511,535 ​ 12,271,202 ​ — ​ 88,342,185 Gross profit ​ 17,542,255 ​ 10,313,027 ​ 12,444,954 ​ 5,324,212 ​ — ​ 45,624,448 General and administrative expenses ​ 3,263,593 ​ 1,564,975 ​ 6,055,409 ​ 2,456,807 ​ 14,196,652 ​ 27,537,436 Gain on asset dispositions, net ​ 2,286 ​ — ​ 2,714 ​ — ​ 192,786 ​ 197,786 Income (loss) from operations ​ ​ 14,280,948 ​ ​ 8,748,052 ​ ​ 6,392,259 ​ ​ 2,867,405 ​ ​ ( 14,003,866 ) ​ 18,284,798 Interest income ​ 198,180 ​ 865,584 ​ 458,732 ​ 4 ​ ​ 571,690 ​ ​ 2,094,190 Interest expense ​ ​ ( 93,368 ) ​ ​ — ​ ​ ( 8,409 ) ​ ​ — ​ ​ ( 70 ) ​ ​ ( 101,847 ) Income from affiliates ​ ​ — ​ ​ — ​ ​ — ​ ​ 16,701 ​ ​ 252,754 ​ ​ 269,455 Other ​ ​ 78,647 ​ ​ 39,625 ​ ​ ( 5,634 ) ​ ​ 11,993 ​ ​ 7,247 ​ ​ 131,878 Other income, net ​ ​ 183,459 ​ ​ 905,209 ​ ​ 444,689 ​ ​ 28,698 ​ ​ 831,621 ​ ​ 2,393,676 Income (loss) before income taxes ​ 14,464,407 ​ 9,653,261 ​ 6,836,948 ​ 2,896,103 ​ ​ ( 13,172,245 ) ​ 20,678,474 Provision for income taxes ​ — ​ — ​ 1,528,398 ​ 672,040 ​ ​ 18,076 ​ 2,218,514 Net income (loss) from continuing operations ​ 14,464,407 ​ 9,653,261 ​ 5,308,550 ​ 2,224,063 ​ ​ ( 13,190,321 ) ​ 18,459,960 Income from continuing operations attributable to non-controlling interests ​ — ​ 577,590 ​ — ​ — ​ ​ — ​ 577,590 Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders ​ $ 14,464,407 ​ $ 9,075,671 ​ $ 5,308,550 ​ $ 2,224,063 ​ $ ( 13,190,321 ) ​ 17,882,370 Net income from discontinued operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 10,355,184 Net income attributable to Consolidated Water Co. Ltd. stockholders ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 28,237,554 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2023 ​ ​ ​ ​ Retail ​ ​ ​ Bulk ​ ​ ​ Services ​ ​ ​ Manufacturing ​ Corporate ​ ​ ​ Total Revenue ​ $ 30,158,051 ​ $ 34,595,058 ​ $ 97,966,650 ​ $ 17,491,474 ​ ​ ​ $ — ​ $ 180,211,233 Cost of revenue ​ 13,891,229 ​ 24,128,132 ​ 66,797,762 ​ 13,467,005 ​ — ​ 118,284,128 Gross profit ​ 16,266,822 ​ 10,466,926 ​ 31,168,888 ​ 4,024,469 ​ — ​ 61,927,105 General and administrative expenses ​ 2,978,164 ​ 1,737,264 ​ 4,271,808 ​ 1,838,284 ​ 13,926,846 ​ 24,752,366 Gain (loss) on asset dispositions, net ​ ( 21,716 ) ​ 12,720 ​ — ​ 2,233 ​ ( 349 ) ​ ( 7,112 ) Income (loss) from operations ​ ​ 13,266,942 ​ ​ 8,742,382 ​ ​ 26,897,080 ​ ​ 2,188,418 ​ ​ ( 13,927,195 ) ​ 37,167,627 Interest income ​ 181,468 ​ 362,422 ​ 151,706 ​ 4 ​ ​ 808 ​ ​ 696,408 Interest expense ​ ​ ( 123,867 ) ​ ​ — ​ ​ ( 21,417 ) ​ ​ — ​ ​ — ​ ​ ( 145,284 ) Income from affiliate ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 169,728 ​ ​ 169,728 Other ​ ​ 93,795 ​ ​ 10,793 ​ ​ 1,024 ​ ​ 2,020 ​ ​ ( 171 ) ​ ​ 107,461 Other income, net ​ ​ 151,396 ​ ​ 373,215 ​ ​ 131,313 ​ ​ 2,024 ​ ​ 170,365 ​ ​ 828,313 Income (loss) before income taxes ​ 13,418,338 ​ 9,115,597 ​ 27,028,393 ​ 2,190,442 ​ ​ ( 13,756,830 ) ​ 37,995,940 Provision (benefit) for income taxes ​ — ​ — ​ 6,388,457 ​ 440,111 ​ ​ ( 78,554 ) ​ 6,750,014 Net income (loss) from continuing operations ​ 13,418,338 ​ 9,115,597 ​ 20,639,936 ​ 1,750,331 ​ ​ ( 13,678,276 ) ​ 31,245,926 Income from continuing operations attributable to non-controlling interests ​ — ​ 573,791 ​ — ​ — ​ ​ — ​ 573,791 Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders ​ $ 13,418,338 ​ $ 8,541,806 ​ $ 20,639,936 ​ $ 1,750,331 ​ $ ( 13,678,276 ) ​ 30,672,135 Net loss from discontinued operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 1,086,744 ) Net income attributable to Consolidated Water Co. Ltd. stockholders ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 29,585,391 ​ ​ 66 Table of Contents The Company’s cost of revenue consists of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2025 ​ ​ Retail ​ Bulk ​ Services ​ Manufacturing ​ Corporate ​ Total Subcontractor and other project costs ​ ​ ​ $ — ​ ​ ​ $ — ​ ​ ​ $ 16,416,318 ​ ​ ​ $ 9,043,929 ​ ​ ​ $ — ​ ​ ​ $ 25,460,247 Employee costs ​ ​ 3,039,052 ​ ​ 2,103,790 ​ ​ 16,721,727 ​ ​ 2,452,499 ​ ​ — ​ ​ 24,317,068 Electricity ​ ​ 4,527,864 ​ ​ 4,177,008 ​ ​ 138,467 ​ ​ 44,415 ​ ​ — ​ ​ 8,887,754 Fuel oil ​ ​ — ​ ​ 7,477,674 ​ ​ — ​ ​ — ​ ​ — ​ ​ 7,477,674 Depreciation ​ ​ 2,510,023 ​ ​ 2,794,444 ​ ​ 416,486 ​ ​ 190,351 ​ ​ — ​ ​ 5,911,304 Maintenance ​ ​ 934,015 ​ ​ 2,001,297 ​ ​ 413,831 ​ ​ 313,657 ​ ​ — ​ ​ 3,662,800 Insurance ​ ​ 717,718 ​ ​ 1,475,176 ​ ​ 99,034 ​ ​ — ​ ​ — ​ ​ 2,291,928 Retail license royalties ​ ​ 2,120,923 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 2,120,923 Other ​ ​ 744,098 ​ ​ 2,440,808 ​ ​ 243,981 ​ ​ 135,973 ​ ​ — ​ ​ 3,564,860 ​ ​ $ 14,593,693 ​ $ 22,470,197 ​ $ 34,449,844 ​ $ 12,180,824 ​ $ — ​ $ 83,694,558 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2024 ​ ​ ​ ​ Retail ​ ​ ​ Bulk ​ ​ ​ Services ​ ​ ​ Manufacturing ​ ​ ​ Corporate ​ ​ ​ Total Subcontractor and other project costs ​ $ — ​ $ 3,787 ​ $ 20,366,236 ​ $ 9,535,078 ​ $ — ​ $ 29,905,101 Employee costs ​ ​ 2,895,606 ​ ​ 2,069,920 ​ ​ 17,062,858 ​ ​ 2,042,518 ​ ​ — ​ ​ 24,070,902 Electricity ​ ​ 4,755,308 ​ ​ 3,864,863 ​ ​ 212,337 ​ ​ 33,551 ​ ​ — ​ ​ 8,866,059 Fuel oil ​ ​ — ​ ​ 8,330,914 ​ ​ — ​ ​ — ​ ​ — ​ ​ 8,330,914 Depreciation ​ ​ 2,427,254 ​ ​ 2,689,432 ​ ​ 364,473 ​ ​ 160,211 ​ ​ — ​ ​ 5,641,370 Maintenance ​ ​ 877,882 ​ ​ 2,138,584 ​ ​ 439,883 ​ ​ 344,042 ​ ​ — ​ ​ 3,800,391 Insurance ​ ​ 686,073 ​ ​ 1,721,846 ​ ​ 38,408 ​ ​ — ​ ​ — ​ ​ 2,446,327 Retail license royalties ​ ​ 1,945,470 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 1,945,470 Other ​ ​ 611,495 ​ ​ 2,541,014 ​ ​ 27,340 ​ ​ 155,802 ​ ​ — ​ ​ 3,335,651 ​ ​ $ 14,199,088 ​ $ 23,360,360 ​ $ 38,511,535 ​ $ 12,271,202 ​ $ — ​ $ 88,342,185 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2023 ​ ​ ​ ​ Retail ​ ​ ​ Bulk ​ ​ ​ Services ​ ​ ​ Manufacturing ​ ​ ​ Corporate ​ ​ ​ Total Subcontractor and other project costs ​ $ — ​ $ — ​ $ 53,830,817 ​ $ 10,869,688 ​ $ — ​ $ 64,700,505 Employee costs ​ ​ 2,797,130 ​ ​ 1,927,313 ​ ​ 12,311,403 ​ ​ 1,899,167 ​ ​ — ​ ​ 18,935,013 Electricity ​ ​ 4,846,974 ​ ​ 4,306,439 ​ ​ 301,247 ​ ​ 48,006 ​ ​ — ​ ​ 9,502,666 Fuel oil ​ ​ — ​ ​ 9,024,836 ​ ​ — ​ ​ — ​ ​ — ​ ​ 9,024,836 Depreciation ​ ​ 2,376,747 ​ ​ 2,831,368 ​ ​ 256,537 ​ ​ 168,347 ​ ​ — ​ ​ 5,632,999 Maintenance ​ ​ 845,596 ​ ​ 1,705,585 ​ ​ 83,998 ​ ​ 357,693 ​ ​ — ​ ​ 2,992,872 Insurance ​ ​ 587,238 ​ ​ 1,468,508 ​ ​ 5,751 ​ ​ — ​ ​ — ​ ​ 2,061,497 Retail license royalties ​ ​ 1,842,924 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 1,842,924 Other ​ ​ 594,620 ​ ​ 2,864,083 ​ ​ 8,009 ​ ​ 124,104 ​ ​ — ​ ​ 3,590,816 ​ ​ $ 13,891,229 ​ $ 24,128,132 ​ $ 66,797,762 ​ $ 13,467,005 ​ $ — ​ $ 118,284,128 ​ Other cost of revenue segment expenses above primarily include chemicals and other supplies, government fees and licenses, and freight costs. ​ The Company’s general and administrative expenses consist of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2025 ​ ​ Retail ​ Bulk ​ Services ​ Manufacturing ​ Corporate ​ Total Employee costs ​ ​ ​ $ 1,654,945 ​ ​ ​ $ 383,111 ​ ​ ​ $ 4,624,683 ​ ​ ​ $ 1,178,544 ​ ​ ​ $ 8,115,730 ​ ​ ​ $ 15,957,013 Professional fees ​ ​ 66,338 ​ ​ 105,113 ​ ​ 831,897 ​ ​ 156,997 ​ ​ 2,738,962 ​ ​ 3,899,307 Insurance ​ ​ 421,156 ​ ​ 388,840 ​ ​ 170,005 ​ ​ 269,620 ​ ​ 869,877 ​ ​ 2,119,498 Depreciation and amortization ​ ​ 42,042 ​ ​ 19,940 ​ ​ 571,689 ​ ​ 106,408 ​ ​ 72,702 ​ ​ 812,781 Other ​ ​ 1,550,195 ​ ​ 717,755 ​ ​ 1,687,482 ​ ​ 391,190 ​ ​ 2,981,107 ​ ​ 7,327,729 ​ ​ $ 3,734,676 ​ $ 1,614,759 ​ $ 7,885,756 ​ $ 2,102,759 ​ $ 14,778,378 ​ $ 30,116,328 ​ ​ 67 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2024 ​ ​ ​ ​ Retail ​ ​ ​ Bulk ​ ​ ​ Services ​ ​ ​ Manufacturing ​ ​ ​ Corporate ​ ​ ​ Total Employee costs ​ $ 1,555,619 ​ $ 375,479 ​ $ 3,443,005 ​ $ 1,286,141 ​ $ 8,031,817 ​ $ 14,692,061 Professional fees ​ ​ 85,739 ​ ​ 82,452 ​ ​ 646,610 ​ ​ 133,229 ​ ​ 2,448,386 ​ ​ 3,396,416 Insurance ​ ​ 417,604 ​ ​ 384,932 ​ ​ 214,983 ​ ​ 215,241 ​ ​ 834,612 ​ ​ 2,067,372 Depreciation and amortization ​ ​ 37,691 ​ ​ 25,086 ​ ​ 630,544 ​ ​ 103,674 ​ ​ 73,940 ​ ​ 870,935 Other ​ ​ 1,166,940 ​ ​ 697,026 ​ ​ 1,120,267 ​ ​ 718,522 ​ ​ 2,807,897 ​ ​ 6,510,652 ​ ​ $ 3,263,593 ​ $ 1,564,975 ​ $ 6,055,409 ​ $ 2,456,807 ​ $ 14,196,652 ​ $ 27,537,436 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2023 ​ ​ ​ ​ Retail ​ ​ ​ Bulk ​ ​ ​ Services ​ ​ ​ Manufacturing ​ ​ ​ Corporate ​ ​ ​ Total Employee costs ​ $ 1,485,647 ​ $ 359,923 ​ $ 2,529,548 ​ $ 1,071,012 ​ $ 8,244,023 ​ $ 13,690,153 Professional fees ​ ​ 122,067 ​ ​ 93,754 ​ ​ 422,196 ​ ​ 88,882 ​ ​ 1,285,193 ​ ​ 2,012,092 Insurance ​ ​ 351,259 ​ ​ 341,391 ​ ​ 127,993 ​ ​ 196,539 ​ ​ 886,674 ​ ​ 1,903,856 Depreciation and amortization ​ ​ 38,883 ​ ​ 22,180 ​ ​ 528,810 ​ ​ 105,013 ​ ​ 69,216 ​ ​ 764,102 Other ​ ​ 980,308 ​ ​ 920,016 ​ ​ 663,261 ​ ​ 376,838 ​ ​ 3,441,740 ​ ​ 6,382,163 ​ ​ $ 2,978,164 ​ $ 1,737,264 ​ $ 4,271,808 ​ $ 1,838,284 ​ $ 13,926,846 ​ $ 24,752,366 ​ General and administrative segment expenses set forth in the “Other” category above include Board of Directors fees and expenses, maintenance, office rent, information technology costs, amortization of intangible assets, provisions for credit losses and investor relations costs. ​ The Company’s segment assets are presented below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2025 ​ ​ ​ ​ Retail ​ ​ ​ Bulk ​ ​ ​ Services ​ ​ ​ Manufacturing ​ ​ ​ Corporate ​ ​ ​ Total Cash and cash equivalents ​ $ 15,693,394 ​ $ 20,343,683 ​ $ 46,444,679 ​ $ 6,620,358 ​ $ 34,686,276 ​ $ 123,788,390 Accounts receivable, net ​ $ 3,274,109 ​ $ 20,882,114 ​ $ 6,364,226 ​ $ 2,240,036 ​ $ 8,052 ​ $ 32,768,537 Inventory, current and non-current ​ $ 3,555,946 ​ $ 4,999,261 ​ $ 24,178 ​ $ 720,602 ​ $ — ​ $ 9,299,987 Contract assets ​ $ — ​ $ — ​ $ 1,144,943 ​ $ 2,145,872 ​ $ — ​ $ 3,290,815 Property, plant and equipment, net ​ $ 32,371,991 ​ $ 16,284,441 ​ $ 1,666,099 ​ $ 4,608,544 ​ $ 220,683 ​ $ 55,151,758 Construction in progress ​ $ 1,348,572 ​ $ 5,316,061 ​ $ — ​ $ 31,023 ​ $ — ​ $ 6,695,656 Intangibles, net ​ $ — ​ $ — ​ $ 1,627,110 ​ $ 474,445 ​ $ — ​ $ 2,101,555 Goodwill ​ $ 1,170,511 ​ $ 1,948,875 ​ $ 7,756,807 ​ $ 1,985,211 ​ $ — ​ $ 12,861,404 Total segment assets ​ $ 59,410,635 ​ $ 71,300,554 ​ $ 69,172,997 ​ $ 19,454,784 ​ $ 38,101,745 ​ $ 257,440,715 Assets of discontinued operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 124,630 Total assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 257,565,345 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2024 ​ ​ ​ ​ ​ Retail ​ ​ ​ Bulk ​ ​ ​ Services ​ ​ ​ Manufacturing ​ ​ ​ Corporate ​ ​ ​ Total Cash and cash equivalents ​ $ 19,167,484 ​ $ 13,339,206 ​ $ 34,181,902 ​ $ 4,768,376 ​ $ 27,893,153 ​ $ 99,350,121 Accounts receivable, net ​ $ 3,223,190 ​ $ 28,807,257 ​ $ 6,593,276 ​ $ 946,846 ​ $ 10,413 ​ $ 39,580,982 Inventory, current and non-current ​ $ 3,437,771 ​ $ 4,865,117 ​ $ 167,856 ​ $ 5,828,567 ​ $ — ​ $ 14,299,311 Contract assets ​ $ — ​ $ — ​ $ 1,204,522 ​ $ 3,265,721 ​ $ — ​ $ 4,470,243 Property, plant and equipment, net ​ $ 31,689,586 ​ $ 18,093,155 ​ $ 858,352 ​ $ 1,601,501 ​ $ 189,688 ​ $ 52,432,282 Construction in progress ​ $ 1,951,559 ​ $ 2,480,999 ​ $ — ​ $ 711,159 ​ $ — ​ $ 5,143,717 Intangibles, net ​ $ — ​ $ — ​ $ 2,129,037 ​ $ 567,778 ​ $ — ​ $ 2,696,815 Goodwill ​ $ 1,170,511 ​ $ 1,948,875 ​ $ 7,756,807 ​ $ 1,985,211 ​ $ — ​ $ 12,861,404 Total segment assets ​ $ 62,994,011 ​ $ 71,743,161 ​ $ 56,792,772 ​ $ 20,095,648 ​ $ 31,415,104 ​ $ 243,040,696 Assets of discontinued operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 272,485 Total assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 243,313,181 ​ ​ Revenue earned by major geographic region was: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Cayman Islands ​ $ 37,840,267 ​ $ 37,137,424 ​ $ 41,728,340 The Bahamas ​ 29,298,791 ​ 29,675,947 ​ 31,221,633 United States ​ 64,421,664 ​ 66,662,406 ​ 106,768,621 Revenue earned from management services agreement with OC-BVI ​ 512,646 ​ 490,856 ​ 492,639 ​ ​ $ 132,073,368 ​ $ 133,966,633 ​ $ 180,211,233 ​ 68 Table of Contents Revenue earned from major customers was: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Revenue earned from the WSC ​ $ 29,298,791 ​ $ 29,675,947 ​ $ 31,221,633 Percentage of consolidated revenue earned from the WSC ​ 22 % ​ 22 % ​ 17 % Revenue earned from one service segment customer ​ $ — ​ $ — ​ $ 64,149,170 Percentage of consolidated revenue earned from the one service segment customer ​ 0 % ​ 0 % ​ 36 % ​ Property, plant and equipment, net by major geographic region was: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Cayman Islands ​ $ 32,530,208 ​ $ 31,882,111 The Bahamas ​ 16,201,134 ​ 17,903,191 United States ​ 6,420,416 ​ 2,646,980 ​ ​ $ 55,151,758 ​ $ 52,432,282 ​ ​ ​ 15. Stock-based compensation The Company has the following stock compensation plans that form part of its employees’ and Directors’ remuneration: Employee Share Incentive Plan (Preferred Stock) Employees (i.e., other than Directors and Officers), after four consecutive years of employment, become eligible to receive shares of the Company’s preferred stock for $ nil consideration under the Company’s Employee Share Incentive Plan. Once an individual becomes eligible for this plan, they are awarded shares of preferred stock in the month of June following their date of eligibility for the plan (the “grant date”) and in June of each subsequent year of the individual's employment for as long as the individual remains employed with the Company. If the employee remains with the Company through the fourth anniversary of a grant date, the preferred stock can be converted into shares of the Company’s common stock on a one for one basis. In addition, at the time the preferred stock is granted, the employee receives options to purchase an equal number of shares of preferred stock at a discount to the average trading price of the Company’s common stock for the first seven days of the October immediately preceding the date of the preferred stock grant. If these options are exercised, the shares of preferred stock obtained may also be converted to shares of common stock if the employee remains with the Company through the fourth anniversary of a grant date. Each employee’s option to purchase shares of preferred stock must be exercised within 30 days of the grant date, which is the 90 th day after the date of the independent registered public accountants’ audit opinion on the Company’s consolidated financial statements. Shares of preferred stock not subsequently converted to shares of common stock are redeemable only at the discretion of the Company. Shares of preferred stock granted under this plan during the years ended December 31, 2025, 2024 and 2023 totaled 8,534 , 5,904 and 13,309 , respectively, and an equal number of preferred stock options were granted in each of these years. Employee Share Option Plan (Common Stock Options) The Company has an employee stock option plan for four long-serving employees of the Company. Under the plan, these employees are granted in each calendar year, as long as the employee is a participant in the Employee Share Incentive Plan, options to purchase common shares. The price at which the option may be exercised is the closing market price on the grant date, which is the 40 th day after the date of the Company’s Annual Shareholder Meeting. The number of options each employee is granted is equal to five times the sum of (i) the number of shares of preferred stock that employee receives for $ nil consideration and (ii) the number of preferred stock options that employee exercises in that given year. Options may be exercised during the period commencing on the fourth anniversary of the grant date and ending on the 30 th day after the fourth anniversary of the grant date. Options granted under this plan during the years ended December 31, 2025, 2024 and 2023 totaled 1,695 , 1,300 and 3,010 , respectively. The fair value of each option award is estimated on the date of grant using a Black-Scholes option-pricing model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s 69 Table of Contents common stock. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding. The Company uses historical data to estimate stock option exercises and forfeitures within its valuation model. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. 2008 Equity Incentive Plan On May 14, 2008, the Company’s stockholders approved the 2008 Equity Incentive Plan (the “2008 Plan”) and reserved 1,500,000 shares of the Company’s common shares for issuance under this plan. All Directors, executives and key employees of the Company or its affiliates are eligible for participation in the 2008 Plan which provides for the issuance of common stock options, shares of common stock and common stock equivalents at the discretion of the Board. The Company measures and recognizes compensation expense at fair value for all share-based payments, including stock options. Stock-based compensation for the Employee Share Incentive Plan, Employee Share Option Plan and the 2008 Equity Incentive Plan totaled $ 390,282 , $ 142,566 and $ 703,289 for the years ended December 31, 2025, 2024 and 2023, respectively, and is included in general and administrative expenses in the accompanying consolidated statements of income. The significant weighted average assumptions for the years ended December 31, 2025, 2024 and 2023 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 2023 Risk free interest rate 4.17 % 5.23 % 5.06 % Expected option life (years) 0.7 0.8 ​ 1.0 ​ Expected volatility 25.29 % 32.93 % 42.42 % Expected dividend yield 1.48 % 1.48 % 1.60 % ​ A summary of the Company’s stock option activity for the year ended December 31, 2025 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ Average ​ ​ ​ ​ ​ ​ ​ Average ​ Remaining ​ Aggregate ​ ​ ​ ​ Exercise ​ Contractual ​ Intrinsic ​ ​ ​ ​ Options ​ ​ ​ Price ​ ​ ​ Life (Years) ​ ​ ​ Value (1) Outstanding at beginning of period 13,475 ​ $ 16.97 ​ ​ ​ Granted 10,229 ​ 20.72 ​ ​ ​ Exercised ( 4,960 ) ​ 14.94 ​ ​ ​ Forfeited/expired ( 9,074 ) ​ 16.87 ​ ​ ​ Outstanding as of December 31, 2025 9,670 ​ $ 22.08 1.69 years $ 127,743 Exercisable as of December 31, 2025 — ​ $ — — years $ — (1) The intrinsic value of a stock option represents the amount by which the fair value of the underlying stock, measured by reference to the closing price of the common shares of $ 35.29 on the Nasdaq Global Select Market on December 31, 2025, exceeds the exercise price of the option. As of December 31, 2025, 9,670 non-vested options were outstanding, with weighted average exercise price of $ 22.08 , and average remaining contractual life of 1.69 years. The total remaining unrecognized compensation costs related to unvested stock-based arrangements were $ 33,222 as of December 31, 2025, and are expected to be recognized over a weighted average period of 1.69 years. 70 Table of Contents The following table summarizes the weighted average fair value of options at the date of grant and the intrinsic value of options exercised during the years ended December 31, 2025, 2024 and 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 2023 Options granted with an exercise price below market price on the date of grant: ​ ​ ​ ​ ​ ​ ​ Employees — preferred stock ​ $ 9.59 ​ $ 2.58 ​ $ 12.21 Overall weighted average ​ 9.59 ​ 2.58 ​ 12.21 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Options granted with an exercise price at market price on the date of grant: ​ ​ ​ ​ ​ ​ Management employees ​ $ — ​ $ — ​ $ — Employees — common stock ​ 10.10 ​ 8.50 ​ 8.29 Overall weighted average ​ 10.10 ​ 8.50 ​ 8.29 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Options granted with an exercise price above market price on the date of grant: ​ ​ ​ ​ ​ ​ Management employees ​ $ — ​ $ — ​ $ — Employees — preferred stock ​ — ​ — ​ — Overall weighted average ​ — ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total intrinsic value of options exercised ​ $ 109,868 ​ $ 2,482 ​ $ 104,559 ​ Senior Management Long-Term Incentive Compensation ​ The Board of Directors has established the long-term incentive compensation for the Company’s senior management to better align the interests of its senior management with those of its shareholders. The long-term compensation plan includes a combination of performance and non-performance-based grants of common stock from the shares of Company stock provided for issuance under the 2008 Equity Incentive Plan. ​ The non-performance-based stock grant rights, which are issued on January 1 of each year, vest in one-third increments at the end of each year over a three-year period. The number of non-performance-based stock grant rights issued on the first stock trading day of January 2025, 2024, and 2023, were 17,275 , 12,837 and 29,508 , respectively. These stock grant rights vest in one-third increments over the three-year periods ending December 31, 2027, 2026 and 2025, respectively. The total number of vested shares issued under prior years’ non-performance stock grant rights totaled 24,875 , 29,392 and 25,986 in the years ended December 31, 2025, 2024 and 2023, respectively. For the years ended December 31, 2025, 2024 and 2023, the Company recognized $ 423,923 , $ 412,520 and $ 366,058 in stock-based compensation expense, respectively, related to the incremental vesting of the non-performance stock grant rights. The performance-based grants may be earned at the end of each year based upon the Company's three-year cumulative financial performance relative to three-year cumulative financial performance targets. The Company recognized $ 514,947 , $ 509,357 and $ 522,925 in stock-based compensation for the year ended December 31, 2025, 2024 and 2023, respectively, related to these grants. A total of 35,981 stock grant rights were earned as of December 31, 2025, based upon the Company’s actual financial performance relative to the cumulative financial performance targets for the three-year period ended December 31, 2025. The shares associated with these grants will be issued in 2026. A total of 41,889 stock grant rights were earned as of December 31, 2024, based upon the Company’s actual financial performance relative to the cumulative financial performance targets for the three -year period ended December 31, 2024. The shares associated with these grants were issued in 2025. ​ A total of 26,742 stock grant rights were earned as of December 31, 2023, based upon the Company’s actual financial performance relative to the cumulative financial performance targets for the three-year period ended December 31, 2023. The shares associated with these grants were issued in 2024. ​ 71 Table of Contents Non-Executive Directors’ Share Plan This stock grant plan provides part of the Directors’ remuneration. Under this plan, non-Executive Directors receive a combination of cash and common stock for their participation in Board meetings. The number of shares of common stock granted is calculated based upon the market price of the Company’s common stock on October 1 of the year preceding the grant. Common stock granted under this plan during the years ended December 31, 2025, 2024 and 2023, totaled 13,897 , 11,448 and 22,831 shares, respectively. The Company recognized stock-based compensation for these share grants of $ 372,752 , $ 333,140 and $ 341,394 for the years ended December 31, 2025, 2024 and 2023, respectively. ​ Other Stock Expense ​ In 2025, the Company issued 2,000 shares of its common stock for professional services at an expense to the Company of $ 69,440 . ​ 16. Retirement benefits Retirement plans are offered to all employees in California, Florida, Colorado, the Cayman Islands and The Bahamas. The plans are administered by third parties and are defined contribution plans pursuant to which the Company matches participating employees’ contributions up to certain amounts. The Company’s expense for these plans was $ 918,496 , $ 898,457 and $ 771,616 for the years ended December 31, 2025, 2024, and 2023, respectively. ​ 17. Financial instruments Credit risk: The Company is not exposed to significant credit risk on its retail customer accounts as its policy is to cease supply of water to customers’ accounts that are more than 45 days overdue. The Company’s exposure to credit risk is concentrated on receivables from its bulk water, services, and manufacturing customers. The Company considers these receivables fully collectible and therefore has not recorded a material allowance for these receivables. Interest rate risk: The Company is not subject to significant interest rate risk arising from fluctuations in interest rates. Foreign exchange risk: All relevant foreign currencies other than the Mexican peso and the euro have been fixed to the dollar for more than 50 years and as a result, the Company does not employ a hedging strategy against exchange rate risk associated with the reporting in dollars. If any of these fixed exchange rates become a floating exchange rate or if any of the foreign currencies in which the Company conducts business depreciate significantly against the dollar, the Company’s consolidated results of operations could be adversely affected. Fair values: As of December 31, 2025 and 2024, the carrying amounts of cash equivalents, accounts receivable, accounts payable, accrued expenses, accrued compensation, dividends payable and other current liabilities approximate their fair values due to the short-term maturities of these instruments. As of December 31, 2025 and 2024, the Company does not have assets and liabilities measured at fair value to present in the fair value hierarchy. ​ ​ ​ 72 Table of Contents 18. Commitments and contingencies Commitments The Company has entered into employment agreements with certain executives, which expire through December 31, 2028 and provide for, among other things, base annual salaries in an aggregate amount of approximately $ 5.4 million, performance bonuses and various employee benefits. The Company has purchase obligations totaling approximately $ 10.9 million as of December 31, 2025. Contingencies Cayman Water The Company sells water through its Cayman Water retail operations under a license issued in July 1990 by the Cayman Islands government (the “1990 license”) that granted Cayman Water the exclusive right to provide potable water to customers within its licensed service area. Pursuant to the 1990 license, Cayman Water has the exclusive right to produce potable water and distribute it by pipeline to its licensed service area, which consists of two of the three most populated areas of Grand Cayman Island: Seven Mile Beach and West Bay. In 2025, 2024, and 2023, the Company generated approximately 26 %, 24 % and 17 %, respectively, of its consolidated revenue and 39 %, 38 % and 26 %, respectively, of its 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 in order to provide the parties with additional time to negotiate the terms of a new license agreement. The most recent express extension of the 1990 license expired on January 31, 2018. From that date until February 18, 2025, the Company continued to operate under the terms of the 1990 license, treating such terms as operative notwithstanding the expiration of the express extension. The Company continues to pay the royalty of 7.5 % of the revenue that Cayman Water collects as required under the 1990 license. 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 the Company for a new retail license to OfReg. 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 operating 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. Negotiations between Cayman Water and OfReg for the new license remain on-going. The Company has been informed during its retail license negotiations, both by OfReg and its predecessor in these negotiations, that they seek to restructure the terms of the license in a manner that could significantly reduce the operating income and cash flows the Company has historically generated from its retail license. The Company is presently unable to determine what impact the resolution of its retail license negotiations will have on its 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 the Company has historically generated from Cayman Water’s retail operations and could require the Company to record impairment losses to reduce the carrying values of its retail segment assets. Such impairment losses could have a material adverse impact on the Company’s consolidated financial condition and results of operations. CW-Bahamas CW-Bahamas’ accounts receivable balances (which include accrued interest) due from the WSC amounted to $ 20.7 million and $ 28.4 million as of December 31, 2025 and 2024. Approximately 71 % and 81 % of the accounts receivable balances were delinquent as of those dates, respectively. As of February 28, 2026, this receivable amounted to $ 22.6 million, of which 75 % was delinquent. 73 Table of Contents From time to time (including presently), CW-Bahamas has experienced delays in collecting its accounts receivable from the WSC. When these delays occur, the Company holds discussions and meetings with representatives of the WSC and the government of The Bahamas. All previous delinquent accounts receivable from the WSC, including accrued interest thereon, were eventually paid in full. Based upon this payment history, CW-Bahamas has not provided a material allowance for credit losses for its accounts receivable from the WSC as of December 31, 2025, or prior periods. ​ In a report dated October 6, 2022, Moody’s Investor Services (“Moody’s”) downgraded The Bahamas’ long-term issuer and senior unsecured ratings to B1 from Ba3. Moody’s also lowered The Bahamas’ local currency ceiling to Baa3 from Baa2 and its foreign currency ceiling to Ba1 from Baa3. Moody’s has maintained these ratings through the date of its most current report issued in April 2025. Based upon the Company’s review of this Moody’s correspondence, the CW-Bahamas continues to believe that no material allowance for credit losses is required for CW-Bahamas’ accounts receivable from the WSC. ​ If CW-Bahamas is unable to collect a sufficient portion of its delinquent accounts receivable, one or more of the following events may occur: (i) CW-Bahamas may not have sufficient liquidity to meet its obligations; (ii) the Company may be required to cease the recognition of revenue on CW-Bahamas’ water supply agreements with the WSC; and (iii) the Company may be required to provide an additional allowance for credit losses for CW-Bahamas’ accounts receivable. Any of these events could have a material adverse impact on the Company’s consolidated financial condition, results of operations, and cash flows. ​ CW-Bahamas Supply Guarantees The contracts to supply water to the WSC from the Blue Hills and Windsor plants require CW-Bahamas to guarantee delivery of a minimum quantity of water per week. If the WSC requires the water and CW-Bahamas does not meet this minimum, CW-Bahamas is required to pay the WSC for the difference between the minimum and actual gallons delivered at a per gallon rate equal to the price per gallon that the WSC is currently paying CW-Bahamas under the contract. The Blue Hills contract expires in 2032 and requires CW-Bahamas to deliver 63.0 million gallons of water each week. The Windsor contract expires in 2033 and requires CW-Bahamas to deliver 16.8 million gallons of water each week. CW-Bahamas has been in compliance with the supply guarantees under these contracts for all periods since the inception of the contracts. ​ Fiscal, Regulation and Other Federal Policies ​ Significant changes in, and uncertainty with respect to, legislation, regulation, government policy and economic conditions could adversely affect the Company’s business. Specific legislative and regulatory proposals that could have a material impact on the Company include, but are not limited to, modifications to international trade policy (such as tariffs); public company reporting requirements; and environmental regulation. ​ The Company cannot predict what actions may ultimately be taken with respect to tariffs or trade relations between the U.S. and other countries, what products may be subject to such actions, or what actions may be taken by the other countries in retaliation. Accordingly, it is difficult to predict how such actions may impact the Company’s business, or the business or habits of its customers. The Company’s business operations, as well as the businesses of its customers on which it is substantially dependent, are located in countries at risk for escalating trade disputes, including the U.S. Any resulting trade wars could have a significant adverse effect on world trade and could adversely impact the Company’s consolidated financial condition, results of operations and cash flows. ​ ​ ​ ​ ​ ​ 74 Table of Contents 19. Supplemental disclosure of cash flow information ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 2023 Interest paid in cash ​ $ 4,420 ​ $ 8,479 ​ $ 21,417 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends declared but not paid ​ $ 2,237,864 ​ $ 1,747,938 ​ $ 1,502,506 Transfers from inventory to property, plant and equipment and construction in progress ​ $ 758,688 ​ $ 538,777 ​ $ 317,853 Transfers from construction in progress to property, plant and equipment ​ $ 5,883,845 ​ $ 1,395,485 ​ $ 7,093,158 Right-of-use assets obtained in exchange for new operating lease liabilities ​ $ 412,308 ​ $ 1,604,702 ​ $ 745,078 Transfers from prepaid expenses to property, plant and equipment ​ $ 509,133 ​ $ 67,136 ​ $ 271,922 Transfers from prepaids to inventory ​ $ — ​ $ — ​ $ 238,032 Expenditures for property, plant and equipment and construction in progress not yet paid ​ $ 595,288 ​ $ — ​ $ — ​ ​ ​ 20. Impact of recent accounting standards Adoption of new accounting standards: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The Company adopted the standard as of December 31, 2025, including a recast of 2024 and 2023 information, by including the additional required disclosures within the notes to the consolidated financial statements. The adoption this guidance did not impact the Company’s consolidated financial position, results of operations or cash flows. ​ Effect of newly issued but not yet effective accounting standards: ​ In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The ASU requires public companies to disclose, in the notes to financial statements, specific information about certain costs and expenses at each interim and annual reporting period. The amended ASU is effective on a prospective basis for annual periods beginning after December 15, 2026. The Company is currently evaluating the impact of this guidance on its financial statements. ​ 21. Subsequent events The Company evaluated subsequent events through the time of the filing of its Annual Report on Form 10-K. Other than as disclosed in these consolidated financial statements, the Company is not aware of any significant events that occurred subsequent to the balance sheet date but prior to the filing of this report that would have a material impact on its consolidated financial statements. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE ​ None. ​