4. Segment information

The Company has four reportable segments: retail, bulk, services and manufacturing. The retail segment consists of Cayman Water which owns and operates the water utility that provides water to the Seven Mile Beach and West Bay areas of Grand Cayman Island pursuant to an exclusive license granted by the Cayman Islands government. The bulk segment supplies potable water to government utilities in Grand Cayman, The Bahamas and Belize under long-term contracts. The services segment provides desalination plant management and operating services to affiliated companies and designs, constructs and sells desalination plants to third parties. The manufacturing segment manufactures and services a wide range of water-related products and provides design, engineering, management, operating and other services applicable to commercial, municipal and industrial water production, supply and treatment.

Consistent with prior periods, the Company records all non-direct general and administrative expenses in its retail business segment and does not allocate any of these non-direct expenses to its other three business segments.

The accounting policies of the segments are consistent with those described in Note 2. The Company evaluates each segment’s performance based upon its income from operations. All intercompany transactions are eliminated for segment presentation purposes.

The Company’s segments are strategic business units that are managed separately because each segment sells different products and/or services, serves customers with distinctly different needs and generates different gross profit margins.

	Three Months Ended June 30, 2017
	Retail		Bulk		Services		Manufacturing		Total
Revenues	$	6,029,449	$	8,043,921	$	119,204	$	1,056,047	$	15,248,621
Cost of revenues		2,659,066		5,152,212		103,753		847,760		8,762,791
Gross profit		3,370,383		2,891,709		15,451		208,287		6,485,830
General and administrative expenses		3,163,902		323,654		891,714		580,900		4,960,170
Income (loss) from operations	$	206,481	$	2,568,055	$	(876,263)	$	(372,613)		1,525,660
Other income, net										21,528
Income before income taxes										1,547,188
Benefit from income taxes										(136,448)
Net income from continuing operations before non-controlling interests										1,683,636
Loss from continuing operations attributable to non-controlling interests										(8,354)
Net income from continuing operations										1,691,990
Net loss from discontinued operations										(1,067,442)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	624,548

Depreciation and amortization expenses from continuing operations for the three months ended June 30, 2017 for the retail, bulk, services and manufacturing segments were $488,895, $827,037, $7,638 and $399,455, respectively.

	Three Months Ended June 30, 2016
	Retail		Bulk		Services		Manufacturing		Total
Revenues	$	6,273,400	$	7,441,061	$	403,935	$	1,260,806	$	15,379,202
Cost of revenues		2,555,545		4,813,261		272,537		1,035,142		8,676,485
Gross profit (loss)		3,717,855		2,627,800		131,398		225,664		6,702,717
General and administrative expenses		2,832,425		441,987		913,159		701,223		4,888,794
Income (loss) from operations	$	885,430	$	2,185,813	$	(781,761)	$	(475,559)		1,813,923
Other income, net										404,178
Income before income taxes										2,218,101
Benefit from income taxes										(170,393)
Net income from continuing operations before non-controlling interests										2,388,494
Income from continuing operations attributable to non-controlling interests										48,544
Net income from continuing operations										2,339,950
Net loss from discontinued operations										(135,617)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	2,204,333

Depreciation and amortization expenses from continuing operations for the three months ended June 30, 2016 for the retail, bulk, services and manufacturing segments were $483,009, $841,184, $29,038 and $493,270, respectively.

	Six Months Ended June 30, 2017
	Retail		Bulk		Services		Manufacturing		Total
Revenues	$	12,478,399	$	15,734,323	$	249,456	$	2,435,895	$	30,898,073
Cost of revenues		5,278,713		10,168,001		205,919		1,889,057		17,541,690
Gross profit		7,199,686		5,566,322		43,537		546,838		13,356,383
General and administrative expenses		6,134,079		624,731		1,635,120		1,320,750		9,714,680
Income (loss) from operations	$	1,065,607	$	4,941,591	$	(1,591,583)	$	(773,912)		3,641,703
Other income, net										425,089
Income before income taxes										4,066,792
Benefit from income taxes										(276,145)
Net income from continuing operations before non-controlling interests										4,342,937
Loss from continuing operations attributable to non-controlling interests										(56,146)
Net income from continuing operations										4,399,083
Loss from discontinued operations										(1,143,307)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	3,255,776

Depreciation and amortization expenses from continuing operations for the six months ended June 30, 2017 for the retail, bulk, services and manufacturing segments were $975,133, $1,653,816, $29,657 and $805,945, respectively.

	Six Months Ended June 30, 2016
	Retail		Bulk		Services		Manufacturing		Total
Revenues	$	12,216,660	$	14,706,354	$	584,647	$	1,879,335		29,386,996
Cost of revenues		5,065,540		9,423,585		469,813		1,455,609		16,414,547
Gross profit		7,151,120		5,282,769		114,834		423,726		12,972,449
General and administrative expenses		5,676,366		877,882		1,719,731		1,021,877		9,295,856
Income (loss) from operations	$	1,474,754	$	4,404,887	$	(1,604,897)	$	(598,151)		3,676,593
Other income, net										632,425
Income before income taxes										4,309,018
Benefit from income taxes										(243,662)
Net income from continuing operations before non-controlling interests										4,552,680
Income from continuing operations attributable to non-controlling interests										172,040
Net income from continuing operations										4,380,640
Loss from discontinued operations										(121,666)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	4,258,974

Depreciation and amortization expenses from continuing operations for the six months ended June 30, 2016 for the retail, bulk, services and manufacturing segments were $995,552, $1,668,573, $58,076 and $703,939, respectively.

	As of June 30, 2017
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	2,109,492	$	10,461,311	$	974,505	$	545,811	$	14,091,119
Property plant and equipment, net		23,621,754		24,783,102		104,337		1,953,942		50,463,135
Construction in progress		105,681		2,714,010		(22,633)		7,900		2,804,958
Intangibles, net		-		566,863		-		3,901,667		4,468,530
Goodwill		1,170,511		2,328,526		-		6,285,211		9,784,248
Land held for development		-		-		20,558,424		-		20,558,424
Total segment assets		52,776,187		72,904,263		24,561,282		15,243,583		165,485,315
Assets of discontinued operations										308,832
Total assets										165,794,147

	As of December 31, 2016
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	2,626,469	$	12,692,714	$	629,930	$	531,526	$	16,480,639
Property plant and equipment, net		24,277,463		26,124,724		91,030		1,978,320		52,471,537
Construction in progress		134,392		743,296		-		7,806		885,494
Intangibles, net		-		599,960		15,516		4,580,000		5,195,476
Goodwill		1,170,511		2,328,526		-		6,285,211		9,784,248
Land held for development		-		-		20,558,424		-		20,558,424
Total segment assets		53,049,868		68,663,628		25,558,495		15,079,394		162,351,385
Assets of discontinued operations										1,253,143
Total assets										163,604,528