Acquisition of PERC (Tables)

12 Months Ended

Dec. 31, 2019

Acquisition of PERC

Summary of purchase price for PERC

Cash consideration
Purchase price (excluding working capital)	$	4,088,817
Cash acquired		(941,379)
Total cash consideration	$	3,147,438

Summary of estimated fair values of the assets and liabilities assumed at the acquisition date

Financial assets	$	1,371,532
Costs and estimated earnings in excess of billings		20,854
Property, plant and equipment		86,287
Identifiable intangible assets		3,990,000
Deferred tax liability		(1,117,200)
Accounts payable and accrued liabilities		(1,260,722)
Working capital adjustment payable		(23,467)
Deferred revenue		(117,636)
Billings in excess of costs and estimated earnings		(760,992)
Net liability arising from put/call options		(744,000)
Total identifiable net assets		1,444,656
Non-controlling interest in PERC		(3,617,634)
Goodwill		5,320,416
	$	3,147,438

Summary of components of identifiable intangible assets assumed at the acquisition date

	Amount		Useful life
Non-compete agreement	$	130,000	3 years
Trade name		1,300,000	15 years
Customer backlog		360,000	2 years
Facility management contracts		2,200,000	6 years
	$	3,990,000

Summary of results of operations of PERC included in the Company's results of operations

Revenue	$	1,376,793
Gross profit		407,604
Amortization of intangibles, net of tax benefit		(81,200)
Net income		37,924

Summary of pro forma financial information

	December 31,
	2019		2018
Revenue	$	77,615,958	$	76,787,893
Cost of revenue		47,162,564		47,608,703
Gross profit		30,453,394		29,179,190
General and administrative expenses		21,620,106		21,451,898
Gain (loss) on asset dispositions and impairments, net		447,681		(58,434)
Income from operations		9,280,969		7,668,858
Other income (expense), net		805,093		2,749,833
Income before income taxes		10,086,062		10,418,691
Provision for (benefit from) income taxes		72,814		(651,300)
Net income from continuing operations		10,013,248		11,069,991
Income from continuing operations attributable to non-controlling interests		1,505,068		792,092
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders		8,508,180		10,277,899
Gain on sale of discontinued operations		3,621,170		—
Net income from discontinued operations		—		1,115,825
Total income from discontinued operations		3,621,170		1,115,825
Net income attributable to Consolidated Water Co. Ltd. stockholders	$	12,129,350	$	11,393,724
Basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders
Continuing operations	$	0.57	$	0.69
Discontinued operations		0.24		0.07
Basic earnings per share	$	0.81	$	0.76
Diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders
Continuing operations	$	0.56	$	0.68
Discontinued operations		0.24		0.07
Diluted earnings per share	$	0.80	$	0.75
Weighted average number of common shares used in the determination of:
Basic earnings per share		15,025,639		14,962,760
Diluted earnings per share		15,137,076		15,074,147