Consolidated Water (CWCO) risk factors, FY2024 10-K

Other

1. 01Our exclusive license to provide water to retail customers in the Cayman Islands is presently under renegotiation with OfReg, the Cayman Islands government utility regulatory authority, and we are presently unable to predict the outcome of these on-going negotiations
2. 021990 license as operative notwithstanding the expiration of the express extension. We continued to pay a royalty of 7.5% of the revenue we collected as required under the 1990 license
3. 03Periodically, our Bahamas subsidiary experiences substantial delays in the collection of its accounts receivable. As a result, our Bahamas subsidiary could have insufficient liquidity to continue operations, and our consolidated financial results could be materially adversely affected
4. 04The profitability of our contracts is dependent upon our ability to accurately estimate construction and operating costs
5. 05A significant portion of our consolidated revenue is derived from our water supply agreements with the WSC. The loss of the WSC as a customer would adversely affect us
6. 06Our operations are affected by tourism and are subject to seasonal fluctuations and other factors beyond our control that could affect the demand for our water
7. 07Performance shortfalls under any of our bulk supply contracts could result in penalties or cancellation of the contract
8. 08Our operations could be harmed by natural disasters such as hurricanes or earthquakes
9. 09Contamination of our water may cause disruption in our services and adversely affect our revenue
10. 10Our internal controls over financial reporting were not considered to be effective as of December 31, 2024, and our independent auditors may not be able to certify as to their effectiveness in the future, which could adversely affect our business results and operations
11. 11Potential government decisions, actions and regulations could negatively affect our operations
12. 12Unforeseen environmental costs could adversely affect our business and results of operations
13. 13If we fail to abide by laws, rules and regulations relating to human and workers’ rights, we could be subject to various actions and our reputation, business and financial results could be adversely affected
14. 14We rely on the efforts of key employees. Our failure to retain these employees could adversely affect our results of operations
15. 15Our business could be adversely affected by cyber threats or other interruptions in information technology, communications networks and operations
16. 16We are exposed to credit risk through our relationships with several customers
17. 17We are exposed to the risk of variations in currency exchange rates
18. 18We may not pay dividends in the future. If dividends are paid, they may be in lesser amounts than past dividends
19. 19Service of process and enforcement of legal proceedings commenced against us in the United States may be difficult to obtain
20. 20brought in courts or jurisdictions located outside of the United States, rights predicated upon the United States securities laws
21. 21The relatively low trading volume of our stock may adversely impact the ability to sell our shares