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Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	Dec. 31, 2018	Jun. 30, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	Tecnoglass Inc.
Entity Central Index Key	0001534675
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Public Float		$ 109,957,829
Entity Common Stock, Shares Outstanding	38,092,996
Trading Symbol	TGLS
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2018

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 33,040	$ 40,923
Investments	1,163	1,680
Trade accounts receivable	92,791	110,464
Unbilled receivables on uncompleted contracts		9,996
Due from related parties	8,239	8,500
Inventories	91,849	71,656
Contract assets - current portion	46,018
Prepaid expenses	1,367	1,165
Other current assets	18,932	17,514
Total current assets	293,399	261,898
Long term assets:
Property, plant and equipment, net	149,199	168,701
Contract assets - non-current	6,986
Intangible assets	9,006	11,517
Goodwill	23,561	23,130
Deferred income tax	4,770	103
Other long term assets	2,853	2,651
Total long term assets	196,375	206,102
Total assets	489,774	468,000
Current liabilities:
Short-term debt and current portion of long-term debt	21,606	3,260
Trade accounts payable	65,510	55,182
Accrued interest expense	7,567	7,392
Dividend Payable	736	585
Due to related parties	1,500	975
Payable associated to GM&P acquisition		29,000
Taxes payable	7,154	12,076
Labor liabilities	1,733	1,550
Contract liabilities - current portion	16,789
Current portion of customer advances on uncompleted contracts		11,429
Total current liabilities	122,595	121,449
Deferred income taxes	2,706	2,317
Long Term Payable associated to GM&P acquisition	8,500
Long term note payable to related party	600
Customer advances on uncompleted contracts		1,571
Contract liabilities - non-current	1,436
Long-term debt	220,709	220,998
Total long term liabilities	233,951	224,886
Total liabilities	356,546	346,335
Commitments and contingencies
Shareholders' equity
Preferred shares, $0.0001 par value, 1,000,000 shares authorized, 0 shares issued and outstanding at December 31, 2018 and 2017
Ordinary shares, $0.0001 par value, 100,000,000 shares authorized, 38,092,996 and 34,836,575 shares issued and outstanding at December 31, 2018 and 2017, respectively	4	3
Legal reserves	1,367	1,367
Additional paid-in capital	157,604	125,317
Retained earnings	10,439	22,212
Accumulated other comprehensive income (loss)	(37,058)	(28,651)
Shareholders' equity attributable to controlling interest	132,356	120,248
Shareholders' equity attributable to non-controlling interest	872	1,417
Total shareholders' equity	133,228	121,665
Total liabilities and shareholders' equity	$ 489,774	$ 468,000

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred shares, par value	$ 0.0001	$ 0.0001
Preferred shares, shares authorized	1,000,000	1,000,000
Preferred shares, shares issued	0	0
Preferred shares, shares outstanding	0	0
Ordinary shares, par value	$ 0.0001	$ 0.0001	$ 0.0001
Ordinary shares, shares authorized	100,000,000	100,000,000
Ordinary shares, shares issued	38,092,996	34,836,575
Ordinary shares, shares outstanding	38,092,996	34,836,575

Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating revenue:
Total operating revenue	$ 370,984	$ 314,456	$ 305,016
Cost of sales	250,767	215,274	192,369
Gross profit	120,217	99,182	112,647
Operating expenses:
Selling	39,390	33,784	36,953
General and administration	33,632	31,034	27,846
Operating expenses	73,022	64,818	64,799
Operating income	47,195	34,364	47,848
Change in fair value of warrant liability			776
Change in fair value of earnout shares liability			4,674
Non-operating income, net	2,915	3,190	4,155
Foreign currency transaction gains (losses)	(14,461)	(3,028)	(1,387)
Loss on extinguishment of debt		(3,136)
Interest expense	(21,187)	(19,872)	(16,814)
Income before taxes	14,462	11,518	39,252
Income tax provision	5,976	5,793	16,072
Net income (loss)	8,486	5,725	23,180
Less: Loss (income) attributable to non-controlling interest	545	(276)
Net income (loss) attributable to parent	9,031	5,449	23,180
Comprehensive income:
Net income (loss)	8,486	5,725	23,180
Foreign currency translation adjustments	(8,407)	549	1,969
Total comprehensive income (loss)	79	6,274	25,149
Less: Loss (income) attributable to non-controlling interest	545	(276)
Total comprehensive income attributable to parent	$ 624	$ 5,998	$ 25,149
Basic income (loss) per share	$ 0.23	$ 0.16	$ 0.71
Diluted income (loss) per share	$ 0.22	$ 0.15	$ 0.69
Basic weighted average common shares outstanding	37,511,851	36,836,075	32,864,628
Diluted weighted average common shares outstanding	38,062,635	37,386,858	33,415,412
Customers Revenue [Member]
Operating revenue:
Total operating revenue	$ 365,646	$ 309,375	$ 295,274
Related Parties Revenue [Member]
Operating revenue:
Total operating revenue	$ 5,338	$ 5,081	$ 9,742

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Ordinary Shares [Member]	Additional Paid in Capital [Member]	Legal Reserve [Member]	Retained Earnings (Accumulated Deficit) [Member]	Accumulated Other Comprehensive Loss [Member]	Total Shareholders' Equity Attributable to Parent [Member]	Non-Controlling Interest [Member]	Total
Balance beginning at Dec. 31, 2015	$ 3	$ 45,584	$ 1,367	$ 22,028	$ (31,169)	$ 37,813		$ 37,813
Balance beginning, shares at Dec. 31, 2015	26,895,636
Issuance of common stock		30,279				30,279		30,279
Issuance of common stock, shares	2,500,000
Cash Dividend				(4,226)		(4,226)		(4,226)
Stock dividend		12,171		(12,171)				0
Stock dividend, shares	272,505
Exercise of warrants		30,437				30,437		30,437
Exercise of warrants, shares	2,690,261
Exercise of Unit Purchase Options		404				404		404
Exercise of Unit Purchase Options, shares	58,297
Share based compensation		292				292		292
Share based compensation, shares	21,045
ESWindows Distribution prior to acquisiiton		(4,320)		(2,263)		(6,583)		(6,583)
ESWindows Distribution prior to acquisiiton, shares	734,400
Foreign currency translation					1,969	1,969		1,969
Net Income				23,180		23,180		23,180
Balance ending at Dec. 31, 2016	$ 3	114,847	1,367	26,548	(29,200)	113,565		113,565
Balance ending, shares at Dec. 31, 2016	33,172,144
Stock dividend		10,212		(9,785)		427		427
Stock dividend, shares	1,619,812
Exercise of Unit Purchase Options
Exercise of Unit Purchase Options, shares	8,559
Share based compensation		258				258		258
Share based compensation, shares	36,060
Non Controlling Interest GM&P							1,141	1,141
Foreign currency translation					549	549		549
Net Income				5,449		5,449	276	5,725
Balance ending at Dec. 31, 2017	$ 3	125,317	1,367	22,212	(28,651)	120,248	1,417	121,665
Balance ending, shares at Dec. 31, 2017	34,836,575
Issuance of common stock	$ 1	14,534				14,535		14,535
Issuance of common stock, shares	1,242,659
Stock dividend		17,753		(20,617)		(2,864)		(2,864)
Stock dividend, shares	2,013,762
Foreign currency translation					(8,407)	(8,407)		(8,407)
Adoption of ASC 606				(187)		(187)		(187)
Net Income				9,031		9,031	(545)	8,486
Balance ending at Dec. 31, 2018	$ 4	$ 157,604	$ 1,367	$ 10,439	$ (37,058)	$ 132,356	$ 872	$ 133,228
Balance ending, shares at Dec. 31, 2018	38,092,996

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Stockholders' Equity [Abstract]
Ordinary shares, par value	$ 0.0001	$ 0.0001	$ 0.0001

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 8,486	$ 5,725	$ 23,180
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	23,157	20,969	15,522
Provision for bad debts	369	3,128	4,686
Provision for obsolete inventory	(20)	80	238
Other fair value adjustments, net	(155)	(72)	(54)
(Gain) Loss on disposition of assets	33	17	(477)
Change in fair value of earnout share liability			(4,674)
Change in fair value of warrant liability			(776)
Director Stock compensation		284	300
Deferred income taxes	(3,289)	(6,137)	(247)
Extinguishment of Debt		2,558
Amortization of deferred financing costs	1,468	1,204
Changes in operating assets and liabilities, net of effects from acquisitions:
Trade accounts receivable	(23,700)	2,497	(25,979)
Inventories	(28,064)	(16,447)	(4,305)
Prepaid expenses	(1,161)	22	799
Other assets	(4,645)	(2,004)	1,343
Unbilled receivables		(10,653)	(7,768)
Trade accounts payable	34,588	13,055	(985)
Accrued interest expense	466	3,769	2,559
Taxes payable	(4,315)	(8,542)	(2,299)
Labor liabilities	340	134	439
Related parties	(23)	1,815	2,259
Contract assets and liabilities	(8,566)
Advances from customers		2,807	(6,846)
CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES	(5,031)	14,209	(3,085)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment	(13,117)	(7,027)	(22,906)
Proceeds from sale of property and equipment			686
Acquisition of businesses and intangible assets	(6,000)	(7,873)
Proceeds from sale of investments	1,575	571	24,486
Purchase of investments	(1,184)	(600)	(26,975)
CASH USED IN INVESTING ACTIVITIES	(18,726)	(14,929)	(24,709)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceed from bond issuance		201,801
Repayments of debt and capital leases	(8,860)	(205,330)	(163,126)
Proceeds from debt	28,600	20,761	196,468
Proceeds from the exercise of unit purchase options			404
Dividends paid	(2,714)	(2,471)	(741)
Subsidiary distributions prior to acquisition			(2,263)
Proceeds from the exercise of warrants			800
CASH PROVIDED BY FINANCING ACTIVITIES	17,026	14,761	31,542
Effect of exchange rate changes on cash and cash equivalents	(1,152)	(36)	499
NET (DECREASE) INCREASE IN CASH	(7,883)	14,005	4,247
CASH - Beginning of year	40,923	26,918	22,671
CASH - End of year	33,040	40,923	26,918
Cash paid during the year for:
Interest	18,223	15,774	8,696
Taxes	8,399	17,834	25,825
NON-CASH INVESTING AND FINANCING ACTIVITES:
Assets acquired under capital lease, financial obligations or credit	447	1,751	19,641
Gain in extinguishment of GM&P payment settlement	$ 3,606

General

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

General

Note 1.

General

Business Description

The Company manufactures hi-specification, architectural glass and windows for the global residential and commercial construction industries. Currently the Company offers design, production, marketing, and installation of architectural systems for buildings of high, medium and low elevation size. Products include windows and doors in glass and aluminum, office partitions and interior divisions, floating facades and commercial window showcases. The Company sells to customers in North, Central and South America, and exports about half of its production to foreign countries.

The Company manufactures both glass and aluminum products. Its glass products include tempered glass, laminated glass, thermo-acoustic glass, curved glass, silk-screened glass, acoustic glass and digital print glass. Its Alutions plant produces mill finished, anodized, painted aluminum profiles and rods, tubes, bars and plates. Alutions’ operations include extrusion, smelting, painting and anodizing processes, and exporting, importing and marketing aluminum products.

The Company also designs, manufactures, markets and installs architectural systems for high, medium and low rise construction, glass and aluminum windows and doors, office dividers and interiors, floating facades and commercial display windows.

On March 1, 2017, the Company entered into and consummated a purchase agreement with Giovanni Monti, the owner of 100% of the outstanding shares of GM&P. GM&P is a consulting and glazing contracting company located in Miami, Florida with over 15 years of experience in the design and installation of various building enclosure systems such as curtain window walls and a long-standing commercial relationship with the Company, working alongside it in different projects within the U.S, by providing engineering and installation services to those projects.

Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Note 2.

Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation and Management’s Estimates

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the accounting and disclosure rules and regulations of the Securities and Exchange Commission (“SEC”).

Prior year financial information has been retroactively adjusted for an acquisition under common control. As the acquisition of ESW LLC was deemed to be a transaction between entities under common control, the assets and liabilities were transferred at the historical cost of ESW LLC, with prior periods retroactively adjusted to include the historical financial results of the acquired company for the period they were controlled by ESW LLC in the Company’s financial statements. The accompanying financial statements and related notes have been retroactively adjusted to include the historical results and financial position of the acquired company prior to the acquisition date during the periods the assets were under common control. All financial information presented for the periods after the ESW LLC acquisition represent the consolidated results of operations, financial position and cash flows of the Company with retroactive adjustments of the results of operations, financial position and cash flows of the acquired company during the periods the assets were under common control.

The preparation of the accompanying consolidated financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities at the date of the Company’s financial statements. Actual results may differ from these estimates under different assumptions and conditions. Estimates inherent in the preparation of these consolidated financial statements relate to the collectability of account receivables, the valuation of inventories, estimated earnings on uncompleted contracts, useful lives and potential impairment of long-lived assets, and valuation of warrants and other derivative financial instruments.

Principles of Consolidation

These financial statements consolidate Tecnoglass, its indirect wholly-owned subsidiaries TG, ES and ESW LLC, its direct wholly owned subsidiaries GM&P, Tecno LLC and Tecno RE, and majority owned subsidiary Componenti, which are entities in which we have a controlling financial interest because we hold a majority voting interest. To determine if we hold a controlling financial interest in an entity, we first evaluate if we are required to apply the variable interest entity (“VIE”) model to the entity, otherwise the entity is evaluated under the voting interest model. All significant intercompany accounts and transactions are eliminated in consolidation.

Non-controlling interest

When the Company owns a majority of a subsidiary’s stock, the Company includes in its consolidated financial statements the non-controlling interest in the subsidiary. The non-controlling interest in the Consolidated Statements of Operations and Other Comprehensive Income is equal to the non-controlling proportionate share of the subsidiary’s net income and, as included in Shareholders’ Equity on the Consolidated Balance Sheet, is equal to the non-controlling proportionate share of the subsidiary’s net assets.

Foreign Currency Translation and Transactions

The consolidated financial statements are presented in U.S. Dollars, the reporting currency. Our foreign subsidiaries’ local currency is the Colombian Peso, which is also their functional currency as determined by the market analysis, costs and expenses, assets, liabilities, financing and cash flow indicators. As such, our subsidiaries’ assets and liabilities are translated at the exchange rate in effect at the balance sheet date, with equity being translated at the historical rates. Revenues and expenses of our foreign subsidiaries are translated at the average exchange rates for the period. The resulting cumulative foreign currency translation adjustments from this process are included as a component of accumulated other comprehensive income (loss). Therefore, the U.S. Dollar value of these items in our financial statements fluctuates from period to period.

Cash and Cash Equivalents

Cash and cash equivalents include investments with original maturities of three months or less. As of December 31, 2018, 2017 and 2016, cash and cash equivalents were primarily comprised of deposits held in operating accounts in Colombia, Panama and United States. As of December 31, 2018, 2017 and 2016 the Company had no restricted cash.

Investments

The Company’s investments are comprised of marketable securities, short term deposits and income producing real estate.

Investments which are held for trading are recorded at fair value and fluctuations in value are recorded as a non-operating income or expense. In addition, we have investments in long-term marketable equity securities which are classified as available-for-sale securities and are recorded at fair value.

Short- term deposits and other financial instruments with maturities greater than 90 days and shares in other companies that do not meet the requirements for equity method treatment are recorded for at cost.

We also have investments in income-producing real estate. This real estate is recorded at cost and is depreciated using the straight-line method over its estimated useful life. The depreciation and rental income associated with this real estate are recognized in the consolidated statement of operations. These investments are recorded within long term assets on the Company’s balance sheet.

Trade Accounts Receivable

Trade accounts receivable are recorded net of allowances for cash discounts for prompt payment, doubtful accounts and sales returns. The Company’s policy is to reserve for uncollectible accounts based on its best estimate of the amount of probable credit losses in its existing accounts receivable. The Company periodically reviews its accounts receivable to determine whether an allowance for doubtful accounts is necessary based on an analysis of past due accounts and other factors that may indicate that the collectability of an account may be in doubt. Other factors that the Company considers include its existing contractual obligations, historical payment patterns of its customers and individual customer circumstances, and a review of the local economic environment and its potential impact on the collectability of accounts receivable. Account balances deemed to be uncollectible are written off after all means of collection have been exhausted and the potential for recovery is considered remote.

On certain fixed price contracts, a portion of the amounts billed are withheld by the customer as a retainage which typically amount to 10% of the invoiced amount and can remain outstanding for several months until a final good receipt of the complete project to the customers satisfaction.

Concentration of Risks and Uncertainties

Financial instruments which potentially subject the Company to credit risk consist primarily of cash and trade accounts receivable. The Company mitigates its cash risk by maintaining its cash deposits with major financial institutions in the United States and Colombia. As discussed above, the Company mitigates its risk to trade accounts receivable by performing on-going credit evaluations of its customers.

Related party transactions

The Company has related party transactions such as sales, purchases, leases, guarantees, and other payments. We periodically performed a related party analysis to identify transactions to disclose. Depending on the transactions, we aggregate some related party information by type.

Inventories

Inventories of raw materials, which consist primarily of purchased and processed glass, aluminum, parts and supplies held for use in the ordinary course of business, are valued at the lower of cost or market. Cost is determined using a weighted-average method. Inventory consisting of certain job specific materials not yet installed (work in process) are valued using the specific identification method. Cost for finished product inventory are recorded and maintained at the lower of cost or market. Cost includes raw materials and direct and applicable indirect manufacturing overheads. Also, inventories related to contracts in progress are included within work in process and finished goods, and are stated at using the specific identification method and lower of cost or market, respectively, and are expected to turn over in less than one year.

Reserves for excess or slow-moving raw materials inventories are updated based on historical experience of a variety of factors including sales volume and levels of inventories at the end of the period. The Company does not maintain allowances for the lower of cost or market for inventories of finished products as its products are manufactured based on firm orders rather than built-to-stock.

Property, Plant and Equipment

Property, plant and equipment are recorded at cost. Significant improvements and renewals that extend the useful life of the asset are capitalized. Interest caused while acquired property is under construction and installation are capitalized. Repairs and maintenance are charged to expense as incurred. When property is retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any related gains or losses are included in income as a reduction to or increase in selling, general and administrative expenses. Depreciation is computed on a straight-line basis, based on the following estimated useful lives:

Buildings		20 years
Machinery and equipment		10 years
Furniture and fixtures		10 years
Office equipment and software		5 years
Vehicles		5 years

The Company also records within fixed assets all the underlying assets of a capital lease. Initial recognition of these assets are done at the present value of all future lease payments. A capital lease is a lease in which the lessor transferred substantially all of the benefits and risks associated with the ownership of the property.

Long Lived Assets

The Company periodically reviews the carrying values of its long lived assets when events or changes in circumstances would indicate that it is more likely than not that their carrying values may exceed their realizable values, and record impairment charges when considered necessary.

When circumstances indicate that an impairment may have occurred, the Company tests such assets for recoverability by comparing the estimated undiscounted future cash flows expected to result from the use of such assets and their eventual disposition to their carrying amounts. If the undiscounted future cash flows are less than the carrying amount of the asset, an impairment loss, measured as the excess of the carrying value of the asset over its estimated fair value, is recognized. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary.

Goodwill

We review goodwill for impairment each year on December 31^st or more frequently when events or significant changes in circumstances indicate that the carrying value may not be recoverable. Under ASC 350-20-35-4 through 35-8A, the goodwill impairment test requires a comparison of the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit is greater than zero and its fair value exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. The Company has only one reporting unit and as such the impairment analysis was done by comparing the Company’s market capitalization with its book value of equity. As of December 31, 2018, the Company’s market capitalization substantially exceeded its book value of equity and as such no impairment of goodwill was indicated. See Note 9- Goodwill and Intangible Assets for additional information.

Intangible Assets

Intangible assets with definite lives subject to amortization are amortized on a straight-line basis. We also review these intangibles for impairment when events or significant changes in circumstance indicate that the carrying value may not be recoverable. Events or circumstances that indicate that impairment testing may be required include changes in building codes and regulation, loss of key personnel or a significant adverse change in business climate or regulations. There were no triggering events or circumstances noted and as such no impairment was needed for the intangible assets subject to amortization. See Note 9 - Goodwill and Intangible Assets for additional information.

Common Stock Purchase Warrants

The Company classifies as equity any warrants contracts that (i) require physical settlement or net-share settlement or (ii) gives the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the Company’s control) or (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement).

The Company assesses classification of its common stock purchase warrants and other freestanding derivatives, if any, at each reporting date to determine whether a change in classification between assets and liabilities is required. As of December 20, 2016, the Company no longer has warrants outstanding.

Financial Liabilities

Financial liabilities correspond to the financing obtained by the Company through bank credit facilities and accounts payable to suppliers and creditors. Financial liabilities are initially recognized based on their fair value, which is usually equal to the transaction value less directly attributable costs. Subsequently, such financial liabilities are carried at their amortized cost according to the effective interest rate method determined at initial recognition, and recognized in the results of the period during the time of amortization of the financial obligation.

Stock-Based Compensation

We account for stock-based compensation in accordance with ASC 718, Compensation - Stock Compensation. ASC 718 requires compensation costs related to share-based transactions, including employee stock options, to be recognized based on fair value. The Company accounts for share-based awards exchanged for employee services at the estimated grant date fair value of the award. In October 2015, the Company authorized to grant each non-employee director $50 worth of ordinary shares of the Company payable annually and first payment was made in October 2016. In November 2016 the Company authorized additional payment of $8 on an annual basis to members of the Company´s Audit Committee members and $18 on an annual basis to the Chair of the Audit Committee, all of whom are members of the board of directors. The Company recorded director stock compensation of $284 and $247 during the years ended December 31, 2017 and 2016. In 2018 the Company began paying non employee directors in cash.

Fair Value of Financial Instruments

ASC 820, Fair Value Measurements, establishes a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. We primarily apply the market approach for financial assets and liabilities measured at fair value on a recurring basis. Fair value is the price we would receive to sell and asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date.

The standard describes three level of inputs that may be used to measure fair value:

Level 1: Quoted prices in active markets for identical assets or liabilities.

Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable by observable market data for substantially the full term of the assets or liabilities.

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

See Note 13 - Fair Value Measurements.

Revenue Recognition

Our principal sources of revenue are derived from product sales, sometimes referred to as standard form sales, and supply and installation contracts, sometimes referred to as revenues from fixed price contracts. We identified one single performance obligation for both forms of sales. Revenue is recognized when control is transferred to our customers. For product sales, the performance obligations are satisfied at a point in time and control is deemed to be transferred upon delivery.

Approximately 43.3% of the Company’s consolidated net sales is generated supply and installation contracts with customers that require to design, develop, test, manufacture, and install windows according to the customers’ specifications. These contracts are primarily multi-year contracts with real estate general contractors and are generally priced on a fixed-price basis and are invoiced based on contract progress.

To determine the proper revenue recognition method, the Company first evaluates each of its contractual arrangements to identify its performance obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. All the Company’s contracts have a single performance obligation because the promise to transfer the individual good or service is not separately identifiable from other promises within the contract and is, therefore, not distinct. These contractual arrangements either require the use of a highly specialized manufacturing process to provide goods according to customer specifications or represent a bundle of contracted goods and services that are integrated and together represent a combined output, which may include the delivery of multiple units.

These performance obligations are satisfied over time. Sales are recognized over time when control is continuously transferred to the customer during the contract. The continuous transfer of control to the customer is supported by contract clauses that provide for progress or performance-based payments. Generally, if a customer unilaterally terminates a contract, the Company has the right to receive payment for costs incurred plus a reasonable profit for products and services that do not have alternative use to the Company.

Sales are recorded using the cost-to-cost method on supply and installation contracts that include performance obligations satisfied over time. These sales are generally recorded at amounts equal to the ratio of actual cumulative costs incurred divided by total estimated costs at completion, multiplied by (i) the transaction price, less (ii) the cumulative sales recognized in prior periods.

Accounting for the sales and profits on performance obligations for which progress is measured using the cost-to-cost method involves the preparation of estimates of: (1) transaction price and (2) total costs at completion, which is equal to the sum of the actual incurred costs to date on the contract and the estimated costs to complete the contract’s statement of work. Incurred costs include labor, material, and overhead and represent work performed, which corresponds with and thereby represents the transfer of ownership to the customer. Performance obligations are satisfied over time when the risk of ownership has been passed to the customer and/or services are performed. The estimated profit or loss at completion on a contract is equal to the difference between the transaction price and the total estimated cost at completion.

Contract modifications routinely occur to account for changes in contract specifications or requirements. In most cases, contract modifications are for goods or services that are not distinct and, therefore, are accounted for as part of the existing contract. Transaction price estimates include additional consideration for submitted contract modifications or claims when the Company believes it has an enforceable right to the modification or claim, the amount can be reliably estimated and its realization is reasonably assured. Amounts representing modifications accounted for as part of the existing contract are included in the transaction price and recognized as an adjustment to sales on a cumulative catch-up basis.

The Company’s supply and installation contracts allow for progress payments to bill the customer as contract costs are incurred and the customer often retains a small portion of the contract price until satisfactory completion of the contractual statement of work, which is a retainage of approximately 10%. The Company records an asset for unbilled receivables due to completing more work than the progress payment schedule allows to collect at a point in time. For certain supply and installation contracts, the Company receives advance payments. Advanced payments are not considered a significant financing component because they are a negotiated contract term to ensure the customer meets its financial obligation, particularly when there are significant upfront working capital requirements. The Company records a liability for advance payments received in excess of sales recognized, which is presented as a contract liability on the balance sheet.

Revisions or adjustments to estimates of the transaction price, estimated costs at completion and estimated profit or loss of a performance obligation are often required as work progresses under a contract, as experience is gained, as facts and circumstances change and as new information is obtained, even though the scope of work required under the contract may not change. Revisions or adjustments may also be required if contract modifications occur. The impact of revisions in profit or loss estimates are recognized on a cumulative catch-up basis in the period in which the revisions are made. The revisions in contract estimates, if significant, can materially affect the Company’s results of operations and cash flows, as well as reduce the valuations of contract assets and inventories, and in some cases result in liabilities to complete contracts in a loss position. The Company recognizes a liability for non-recurring obligations as situations considering that projects actual costs are usually adjusted to estimated costs. The Company did not recognize sales for performance obligations satisfied in prior periods during year ended December 31, 2018.

Shipping and Handling Costs

The Company classifies amounts billed to customers related to shipping and handling as product revenues. The Company records and presents shipping and handling costs in selling expenses.

Sales Tax and Value Added Taxes

The Company accounts for sales taxes and value added taxes imposed on its goods and services on a net basis - value added taxes paid for goods and services purchased is netted against value added tax collected from customers and the net amount is paid to the government. The current value added tax rate in Colombia for all of the Company’s products is 19%. A municipal industry and commerce tax (ICA) sales tax of 0.7% is payable on all of the Company’s products sold in the Colombian market.

Product Warranties

The Company offers product warranties in connection with the sale and installation of its products that are competitive in the markets in which the products are sold. Standard warranties depend upon the product and service, and are generally from five to ten years for architectural glass, curtain wall, laminated and tempered glass, window and door products. Warranties are not priced or sold separately and do not provide the customer with services or coverages in addition to the assurance that the product complies with original agreed-upon specifications. Claims are settled by replacement of the warrantied products.

The Company evaluated historical information regarding claims for replacements under warranties and concluded that the costs that the Company has incurred in relation to these warranties have not been material.

Advertising Costs

Advertising costs are expensed as they are incurred and are included in general and administrative expenses. Advertising costs for the years ended December 31, 2018, 2017 and 2016 amounted to approximately $1,526, $1,385 and $1,293, respectively.

Employee Benefits

The Company provides benefits to its employees in accordance with Colombian labor laws. Employee benefits do not give rise to any long term liability.

Income Taxes

The Company’s operations in Colombia are subject to the taxing jurisdiction of the Republic of Colombia. Tecnoglass LLC and Tecnoglass RE LLC are subject to the taxing jurisdiction of the United States. Tecnoglass is subject to the taxing jurisdiction of the Cayman Islands. Annual tax periods prior to December 2014 are no longer subject to examination by taxing authorities in Colombia. GM&P, Componenti and ESW LLC are U.S. entities based in Florida subject to U.S. federal and state income taxes.

The Company accounts for income taxes using the asset and liability approach of accounting for income taxes (ASC 740 “Income Taxes”). Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. For each tax jurisdiction in which the Company operates, deferred tax assets and liabilities are offset against one another and are presented as a single noncurrent amount within the consolidated balance sheets.

The Company presents deferred tax assets and liabilities net as either a non-current asset or liability, depending on the net deferred tax position. The Company recognizes the financial statement effects of uncertain income tax positions when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. The Company accrues for other tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. Interest accrued related to unrecognized tax and income tax related penalties are included in the provision for income taxes. The uncertain income taxes positions are recorded in “Taxes payable” in the consolidated balance sheets.

Earnings per Share

The Company computes basic earnings per share by dividing net income by the weighted-average number of ordinary shares outstanding during the period. Income per share assuming dilution (diluted earnings per share) would give effect to dilutive options, warrants, and other potential ordinary shares outstanding during the period. See Note 16 - Shareholders’ Equity for further detail on the calculation of earnings per share.

Recently Issued Accounting Pronouncements

In November 2019, the FASB issued ASU 2018-19 – Codification Improvements to Topic 326, Financial Instruments – Credit Losses (“ASU 2018-19”). In June 2016, FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326). This ASU represents a significant change in the allowance for credit losses accounting model by requiring immediate recognition of management’s estimates of current expected credit losses. Under the prior model, losses were recognized only as they were incurred, which FASB has noted delayed recognition of expected losses that might not yet have met the threshold of being probable. The new model is applicable to all financial instruments that are not accounted for at fair value through net income, thereby bringing consistency in accounting treatment across different types of financial instruments and requiring consideration of a broader range of variables when forming loss estimates. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, (with early application permitted). The Company is currently evaluating the potential effect of this ASU on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842)” (“ASU 2016-02”). The FASB issued ASU 2016-02 to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Under ASU 2016-02, a lessee will recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-to-use asset representing its right to use the underlying asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from current GAAP. ASU 2016-02 retains a distinction between finance leases (i.e. capital leases under current GAAP) and operating leases. The classification criteria for distinguishing between finance leases and operating leases will be substantially similar to the classification criteria for distinguishing between capital leases and operating leases under current GAAP. The amendments of this ASU are effective for reporting periods beginning after December 15, 2018, with early adoption permitted. In July 2018, the FASB provided entities the option to instead apply the provisions of the new leases guidance at the effective date, without adjusting the comparative periods presented. The Company expects to apply the provisions of the new leases guidance at the effective date, without adjusting the comparative periods presented. The Company is currently evaluating the potential effect of this ASU on its consolidated financial statements and expects no material impact to Consolidated Balance Sheet and Consolidated Statement of Operations.

New Accounting Standards Implemented

12 Months Ended

Dec. 31, 2018

Accounting Changes and Error Corrections [Abstract]

New Accounting Standards Implemented

Note 3.

New Accounting Standards Implemented

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, as amended (commonly referred to as ASC 606), which replaces numerous requirements in U.S. GAAP, including industry-specific requirements, and provides companies with a single revenue recognition model for recognizing revenue from contracts with customers and significantly expanded the disclosure requirements for revenue arrangements. The new standard, as amended, was effective for the Company for interim and annual reporting periods beginning on January 1, 2018.

As discussed in Note 2, the Company adopted ASC 606 using the modified retrospective transition method. Results for reporting periods beginning after December 31, 2017 are presented under ASC 606, while prior period comparative information has not been restated and continues to be reported in accordance with ASC 605, Revenue Recognition, the accounting standard in effect for periods ending prior to January 1, 2018. With the adoption of ASC 606, the Company recognizes sales over time by using the cost-to-cost method on all of its supply and installation contracts and measures the extent of progress toward completion using the cost-to-cost method after adjusting inventory for uninstalled materials and that control has not been passed to the customer. Previously, under ASC 605, the Company recognized sales over time by using the percentage of completion method on all of its fixed-type contracts and measured the extent of progress toward completion using the cost-to-cost method but adjusted inventory for uninstalled materials only for those projects were this method was not appropriately reflecting the progress on the contracts. Accordingly, the adoption of ASC 606 impacted all contracts that had uninstalled materials were control has not been passed to the customer regardless of the extent of progress toward completion.

Based on the analysis performed of the uninstalled materials at January 1, 2018, the Company recorded, upon adoption of ASC 606, a net decrease to retained earnings of $187, as shown on the table below. The adjustment to retained earnings primarily relates to contracts that had uninstalled material that were not previously included in inventory since the cost-to-cost method was appropriately reflecting the progress of these contracts.

The Company made certain presentation changes to its consolidated balance sheet on January 1, 2018 to comply with ASC 606. The components of contracts in process as reported under ASC 605, which included unbilled contract receivables and inventoried contract costs, have been reclassified as contract assets and inventories, respectively, after certain adjustments described below under ASC 606. The remainder of inventoried contract costs, primarily related to inventories not controlled by the Company’s customers, were reclassified to inventories. The Company expenses costs to obtain a contract and costs to fulfill a contract as incurred. Other revenues not related to fixed-type contracts did not result in any changes under ASC 606 and the revenues are still been recognized when control is transferred to the customer based on the sales terms.

The table below presents the cumulative effect of the changes made to the consolidated January 1, 2018 balance sheet due to the adoption of ASC 606.

	December 31, 2017 As Reported Under ASC 605		Adjustments Due to ASC 606			January 1, 2018 As Adjusted Under ASC 606
ASSETS
Trade accounts receivable, net	$	110,464	$	(30,223	)	$	80,241
Inventories		71,656		1,975			73,631
Unbilled receivables on uncompleted contracts		9,996		(9,996	)		-
Contract assets		-		45,468			45,468
Other Assets		275,884		-			275,884
Total Assets	$	468,000	$	7,224		$	475,224

LIABILITIES
Contract liabilities - current		-		18,945			18,945
Current portion of customer advances on uncompleted contracts		11,429		(11,429	)		-
Other current liabilities		13,626		(105	)		13,521
Customer advances on uncompleted contracts - non-current		1,571		(1,571	)		-
Contract liabilities - current		-		1,571			1,571
Other Liabilities		319,709		-			319,709
Total liabilities	$	346,335	$	7,411		$	353,746

SHAREHOLDERS’ EQUITY
Retained earnings		22,212		(187	)		22,025
Total shareholders’ equity	$	121,665	$	(187	)	$	121,478

The adjustment of trade accounts receivable upon adoption of ASC 606 is related to the reclassification of retainage receivables to contract assets. See breakdown of contract assets further below.

The table below presents the impact of the adoption of ASC 606 on the Company’s balance sheet.

	December 31, 2018
	Under ASC 605		Effect of ASC 606			As Reported Under ASC 606

ASSETS
Trade accounts receivable	$	117,106	$	(24,315	)	$	92,791
Inventories		90,716		1,133			91,849
Unbilled receivables on uncompleted contracts		18,556		(18,556	)		-
Contract assets - current portion		-		46,018			46,018
Other Assets		252,130		-			252,130
Contract assets - Non-current		6,986		-			6,986
Total Assets	$	485,494	$	4,280		$	489,774

LIABILITIES
Contract liabilities - current		-		16,789			16,789
Current portion of customer advances on uncompleted contracts		12,396		(12,396	)		-
Other current liabilities		105,806		-			105,806
Customer advances on uncompleted contracts - non-current		1,436		(1,436	)		-
Contract liabilities - non-current		-		1,436			1,436
Other Liabilities		232,590		(75	)		232,515
Total liabilities	$	352,228	$	4,318		$	356,546

SHAREHOLDERS’ EQUITY
Retained earnings		10,477		(38	)		10,439
Total shareholders’ equity	$	133,266	$	(38	)	$	133,228

The table below presents the impact of the adoption of ASC 606 on the Company’s statement of operations.

	Year ended December 31, 2018
	Under ASC 605			Effect of ASC 606			As Reported Under ASC 606

Operating Revenues	$	372,230		$	(1,246	)	$	370,984
Cost of Sales		251,900			(1,133	)		250,767
Gross Profit		120,330			(113	)		120,217

Operating Expenses		(73,022	)					-73,022
Other Income and Expenses		47,308			(113	)		47,195

Income Before Tax		14,575			(113	)		14,462
Income Tax Provision		6,051			(75	)		5,976
Net Income		8,524			(38	)		8,486
Net Income Attributable to Parent	$	9,069		$	(38	)	$	9,031

Basic earnings per share	$	0.23		$	-		$	0.23
Diluted earnings per share	$	0.22		$	-		$	0.22

Disaggregation of Total Net Sales

The Company disaggregates its sales with customers by revenue recognition method for its only segment, as the Company believes these factors affect the nature, amount, timing, and uncertainty of the Company’s revenue and cash flows.

	Year ended December 31,
	2018		2017		2016
Supply and installation contracts	$	160,503	$	148,317	$	48,725
Product sales		210,481		166,139		256,291
Total Revenues	$	370,984	$	314,456	$	305,016

Remaining Performance Obligations

As of December 31, 2018, the Company had $251.7 million of remaining performance obligations, which represents the transaction price of firm orders minus sales recognized from inception to date. Remaining performance obligations exclude unexercised contract options, verbal commitments and potential orders under basic ordering agreements. The Company expects to recognize 100% of sales relating to existing performance obligations within three years, of which $217.4 million are expected to be recognized during the year ended December 31, 2019, and $34.4 million during the year ended December 31, 2020.

Contract Assets and Contract Liabilities

Contract assets represent accumulated incurred costs and earned profits on contracts with customers that have been recorded as sales but have not been billed to customers and are classified as current. Contract liabilities consist of advance payments and billings in excess of costs incurred and deferred revenue, and represent amounts received in excess of sales recognized on contracts. The Company classifies advance payments and billings in excess of costs incurred as current, and deferred revenue as current or non-current based on the expected timing of sales recognition. Contract assets and contract liabilities are determined on a contract by contract basis at the end of each reporting period. The non-current portion of contract liabilities is included in other liabilities in the Company’s consolidated balance sheets.

The table below presents the components of net contract assets (liabilities).

	December 31, 2018			January 1, 2018
Contract assets — current	$	46,018		$	45,468
Contract assets — non-current		6,986			-
Contract liabilities — current		(16,789	)		(18,945	)
Contract liabilities — non-current		(1,436	)		(1,571	)
Net contract assets	$	34,779		$	24,952

The components of contract assets are presented in the table below.

	December 31, 2018		January 1, 2018
Unbilled contract receivables, gross	$	21,703	$	15,245
Retainage		31,301		30,223
Total contract assets		53,004		45,468
Less: current portion		46,018		45,468
Contract Assets – non-current	$	6,986	$	-

The components of contract liabilities are presented in the table below.

	December 31, 2018		January 1, 2018
Billings in excess of costs	$	4,393	$	7,516
Advances from customers on uncompleted contracts		13,832		13,000
Total contract liabilties		18,225		20,516
Less: current portion		16,789		18,945
Contract liabilities – non-current	$	1,436	$	1,571

During the year ended December 31, 2018, the Company recognized $6,381 of sales related to its contract liabilities at January 1, 2018.

GM&P Acquisition

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

GM&P Acquisition

Note 4.

GM&P Acquisition

On March 1, 2017, the Company entered into and consummated a purchase agreement, as amended, with Giovanni Monti, the owner of 100% of the outstanding shares of GM&P. GM&P is a consulting and glazing contracting company located in Miami, Florida with over 15 years of experience in the design and installation of various building enclosure systems such as curtain window walls and a long-standing commercial relationship with the Company, working alongside it in the past in different projects within the U.S, by providing engineering and installation services to those projects.

The Company acquired all of the shares of GM&P for a purchase price of $35 million, of which the Company paid $6 million in May 2017 with the remaining $29 million of the purchase price to be paid by May 15, 2018. The Company paid an additional $6 million in cash on April 2018 and entered into a Debt Settlement Agreement to pay the remaining consideration price through a combination of stock, by issuing 1,238,095 ordinary shares valued at $10.50 per share and a $10 million Subordinated Seller´s Note. The Seller´s Note was subsequently reduced to $8.5 million to atone the Buyer for adjustments and process inefficiencies caused by changes in GM&P´s supply chain and other business optimization costs seen during the second quarter of 2018. Following our process optimization and changes in the supply chain process, we believe the associated cost impacts to be non-recurring. The Company originally intended to complete the payment for the acquisition in the short term but opted to classify the liability as long term in line with its contractual maturity as the Company prioritizes its short-term working capital needs to fund ongoing growth. The Seller’s Note bears semi-annual interest payments at approximately 6% per annum and matures in 2022.

Based on the implicit price at which the shares were issued, which at the time of the issuance in June 2018 was higher than the market price of those shares, the Company recorded a gain of $2,106. Additionally, including the reduction of the nominal amount of the Seller´s Note by $1,500, the Company recorded a gain on extinguishment of debt of $3,606. The gain on extinguishment of debt was recorded into Additional Paid-In Capital per guidance of ASC 470-50-40 because it is considered a related party transaction as the former owner of GM&P holds a management position within the Company.

With the acquisition of GM&P, the Company also acquired a 60% equity interest in Componenti, a subsidiary of GM&P that provides architectural specialties in the US, specializing in design-build systems for individual projects and with experience in value engineering to create products that comply with the architects’ original design intent, while maintaining focus on affordable construction methods and materials.

The following table summarizes the consideration transferred to acquire GM&P and the amounts of identified assets acquired and liabilities assumed at the acquisition date, as well as the fair value of the non-controlling interest in Componenti as of the acquisition date. Under ASC 805, a company can apply measurement period adjustments during the twelve-month period after the date of acquisition. During this period, the acquirer may adjust preliminary amounts recognized at the acquisition date to their subsequently determined final fair values. The allocation of the consideration transferred was based on management’s judgment after evaluation of several factors, including a preliminary valuation assessment. The analysis was completed on March 2018 and results in measurement period adjustments are included in the final purchase price allocation as shown on the table below. The goodwill from the GM&P acquisition represents the expected synergies from combining operations with Tecnoglass Inc., and is not deductible for tax purposes

The following table summarizes the purchase price allocation of the total consideration transferred:

Consideration Transferred:
Notes payable (Cash or Stock)	$	35,000
Fair value of the non-controlling interest in Componenti		1,141

Recognized amounts of identifiable assets acquired and liabilities assumed:	Preliminary Purchase Price Allocation			Measurement Period Adjustments			Final Purchase Price Allocation
Cash and equivalents	$	509						509
Accounts receivable		42,314						42,314
Other current assets		5,287			242			5,529
Property, plant, and equipment		684						684
Other non-current tangible assets		59						59
Trade name		980						980
Non-compete agreement		165						165
Contract backlog		3,090						3,090
Customer relationships		4,140						4,140
Accounts payable		(22,330	)		275			(22,055	)
Other current liabilities assumed		(13,967	)		(673	)		(14,640
Non-current liabilities assumed		(3,634	)		(3,231	)		(6,865	)
Total identifiable net assets		17,297			(3,387	)		13,910
Goodwill (including Workforce)	$	18,844			3,387		$	22,231

The adjustment made to the preliminary purchase price allocation to Non-current liabilities assumed is related to an adjustment in deferred tax liability and billings in excess of cost incurred. The excess of the consideration transferred over the estimated fair values of assets acquired and liabilities assumed was recorded as goodwill. The identifiable intangible asset subject to amortization was the tradename, customer relationships, non-compete agreement, and backlog, which have a remaining useful life of two to five years. See Note 9 – Goodwill and Intangible Assets for additional information.

The following unaudited pro forma financial information assumes the acquisition had occurred as of January 1, 2017 which does not include GM&P actual results for the entire period. Pro forma results have been prepared by adjusting our historical results to include the results of GM&P adjusted for the amortization expense related to the intangible assets arising from the acquisition. The unaudited pro forma results below do not necessarily reflect the results of operations that would have resulted had the acquisition been completed at the beginning of the earliest periods presented, nor does it indicate the results of operations in future periods. The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the following unaudited pro forma results.

	Pro-Forma		Pro-Forma
	Twelve months		Twelve months
	Ended		Ended
(in thousands, except per share amounts)	December 31, 2017		December 31, 2016
Pro Forma Results
Net sales	$	324,523	$	365,047

Net (loss) income attributable to parent	$	4,719	$	27,600

Net income per common share:
Basic	$	0.14	$	0.89

Diluted	$	0.13	$	0.85

Non-controlling interest

With the acquisition of GM&P, the Company also acquired a 60% equity interest in Componenti USA LLC, a subsidiary of GM&P that provides architectural specialties in the US, specializing in design-build systems for individual projects and with experience in value engineering to create products that comply with the architects’ original design intent, while maintaining focus on affordable construction methods and materials. The 40% non-controlling interest in Componenti is included in the opening balance sheet as of the acquisition date and its fair value amounted to $1,141. When the company owns a majority (but less than 100%) of a subsidiary’s stock, the Company includes in its Consolidated Financial Statements the non-controlling interest in the subsidiary. The non-controlling interest in the Consolidated Statements of Operations and Other Comprehensive Income is equal to the non-controlling interests’ proportionate share of the subsidiary’s net income and, as included in Shareholders’ Equity on the Consolidated Balance Sheet, is equal to the non-controlling interests’ proportionate share of the subsidiary’s net assets. In determining the fair value we used the income approach amd the market approach which was performed by third party valuation specialists under management.

Trade Accounts Receivable

12 Months Ended

Dec. 31, 2018

Receivables [Abstract]

Trade Accounts Receivable

Note 5.

Trade Accounts Receivable

Trade accounts receivable consists of the following:

	December 31,
	2018			2017
Current accounts receivable	$	95,474		$	82,970
Retainage (1)		-			30,223
Trade accounts receivable		95,474			113,193
Less: Allowance for doubtful accounts		(2,683	)		(2,729	)
	$	92,791		$	110,464

(1)

Retainage as of December 31, 2018 amount to $31,301 and is presented as contract assets as a result of the adoption of the new accounting standard for revenue recognition, ASC 606, further described in Note 3. New Accounting Standards Implemented.

The changes in the allowance for doubtful accounts for the years ended December 31, 2018 and 2017 are as follows:

	December 31,
	2018			2017
Balance at beginning of year	$	2,729		$	2,083
Provision for bad debts		369			3,128
Deductions and write-offs, net of foreign currency adjustment		(415	)		(2,482	)
Balance at end of year	$	2,683		$	2,729

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Inventories

12 Months Ended

Dec. 31, 2018

Inventory Disclosure [Abstract]

Inventories

Note 6.

Inventories

Inventories are comprised of the following

	December 31, 2018			December 31, 2017
Raw materials	$	43,744		$	40,509
Work in process		25,957			11,468
Finished goods		14,251			13,236
Stores and spares		7,437			6,134
Packing material		540			438
		91,929			71,785
Less: inventory allowances		(80	)		(129	)
	$	91,849		$	71,656

There are no third party liens or pledges on our inventories as of December 31, 2018.

Other Current Assets

12 Months Ended

Dec. 31, 2018

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Current Assets

Note 7.

Other Current Assets

Other assets consists of the following:

	December 31,
	2018		2017
Advances to Suppliers and Loans	$	1,100	$	795
Prepaid Income Taxes		16,000		15,573
Employee Receivables		418		455
Other Creditors		1,414		691
	$	18,932	$	17,514

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Note 8.

Property, Plant and Equipment

Property, plant and equipment is comprised of the following:

	December 31, 2018			December 31, 2017

Building	$	53,784		$	59,237
Machinery and equipment		133,663			134,536
Office equipment and software		6,238			5,936
Vehicles		1,887			1,834
Furniture and fixtures		2,339			2,274
Total property, plant and equipment		197,911			203,817
Accumulated depreciation		(77,884	)		(66,083	)
Net book value of property and equipment		120,027			137,734
Land		29,172			30,967
Total property, plant and equipment, net	$	149,199		$	168,701

Depreciation expense was $18,807, $17,472 and $14,508 for the years ended December 31, 2018, 2017 and 2016, respectively.

The roll forward of Property, plant and equipment for the years ended December 31, 2018 and 2017 is as follows:

	December 31,
	2018			2017
Property, Plant and Equipment
Beginning balance	$	234,784		$	220,074
Beginning balance Acquisitions GM&P, Componenti		-			961
Acquisitions		13,563			8,782
Tax incentive on installation of solar panels		(1,531	)
Disposals		(72	)		(17	)
Reclassification to investment property		-			5,459
Effect of Foreign currency translation		(19,662	)		(475	)
Ending Balance	$	227,083		$	234,784

Accumulated Depreciation
Beginning Balance	$	(66,083	)	$	(49,277	)
Beginning balance Acquisitions GM&P, Componenti		-			(277	)
Depreciation Expense		(18,807	)		(17,472	)
Disposals		39			-
Reclassification to investment property		-			(585	)
Effect of Foreign Currency Translation		6,967			1,528
Ending balance	$	(77,884	)	$	(66,083	)
Property, plant and Equipment, Net	$	149,199		$	168,701

The effect of foreign currency translation is the adjustment resulting from translating the amounts from Colombian Pesos, functional currency of some of the Company’s subsidiaries, into U.S. Dollars, the reporting currency.

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 9.

Goodwill and Intangible Assets

Goodwill

The table below provides a reconciliation of the beginning and ending balances of the Goodwill recorded on the Company’s balance sheet:

Beginning balance - December 31, 2016	$	1,330
GM&P Acquisition		21,800
Ending balance – December 31, 2017	$	23,130
GM&P measurement period adjustment		431
Ending balance – December 31, 2018	$	23,561

Intangible Assets, Net

Intangible assets include Miami-Dade County Notices of Acceptances (NOA’s), which are certificates in the required to market hurricane- resistant glass in Florida. Also, it includes the intangibles related to the acquisition of GM&P.

	December 31, 2018
	Gross		Acc. Amort.			Net
Trade Names	$	980	$	(359	)	$	621
Notice of Acceptances (NOAs), product designs and other intellectual property		10,881		(5,425	)		5,456
Non-compete Agreement		165		(60	)		105
Contract Backlog		3,090		(2,832	)		258
Customer Relationships		4,140		(1,626	)		2,514
Total	$	19,256	$	(10,302	)	$	8,954

	December 31, 2017
	Gross		Acc. Amort.			Net
Trade Names	$	980	$	(163	)	$	817
Notice of Acceptances (NOAs), product designs and other intellectual property		10,826		(5,467	)		5,359
Non-compete Agreement		165		(28	)		137
Contract Backlog		3,090		(1,287	)		1,803
Customer Relationships		4,140		(739	)		3,401
Total	$	19,201	$	(7,684	)	$	11,517

	December 31, 2016
	Gross		Acc. Amort.			Net
Notice of Acceptances (NOAs) and product designs		8,524		(3,969	)		4,555

The weighted average amortization period is 5.2 years.

During the twelve months ended December 31, 2018, 2017 and 2016, the amortization expense amounted to $4,350, $3,497 and $825, respectively, and was included within the general and administration expenses in our consolidated statement of operations.

The estimated aggregate amortization expense for each of the five succeeding years as of December 31, 2018 is as follows:

Year ending	(in thousands)
2019	$	2,545
2020		2,133
2021		2,103
2022		1,225
2023		760
Thereafter		188
	$	8,954

Other Long Term Assets

12 Months Ended

Dec. 31, 2018

Investments, All Other Investments [Abstract]

Other Long Term Assets

Note 10.

Other Long Term Assets

Other long term assets are comprised of the following:

	December 31,
	2018		2017
Real estate investments	$	2,271	$	2,069
Cost method investment		500		500
Other long term assets		82		82
	$	2,853	$	2,651

Debt

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Debt

Note 11.

Debt

The Company’s debt is comprised of the following:

	December 31, 2018			December 31, 2017
Revolving lines of credit	$	19,146		$	638
Capital lease		380			245
Unsecured senior note		210,000			210,000
Other loans		17,804			20,293
Less: Deferred cost of financing		(5,015	)		(6,918	)
Total obligations under borrowing arrangements		242,315			224,258
Less: Current portion of long-term debt and other current borrowings		21,606			3,260
Long-term debt	$	220,709		$	220,998

As December 31, 2018 and December 31, 2017, the Company had $242,106 and $224,041 of debt denominated in US Dollars with the remaining amounts denominated in Colombian Pesos. The Company’s Other loans amounting to $17,804 have maturities ranging from sixty days to 11 years on a real estate mortgage. Our credit facilities bear interest at rates ranging from 3.9% to 8.2% and weighted average of 7.65%. Short term borrowings outstanding bear a weighted average interest rate of 4.7%. As December 31, 2018 and December 31, 2017, the Company had $208 and $216 of debt denominated in Colombian Pesos with the remaining amounts denominated in U.S. Dollars.

On January 23, 2017, the Company issued a U.S. dollar denominated, $210 million offering of 5-year senior unsecured notes at a coupon rate of 8.2% in the international debt capital markets under Rule 144A of the Securities Act to Qualified Institutional Buyers. The Company used approximately $179 million of the proceeds to repay outstanding indebtedness, including Capital leases, and as a result will achieve a lower cost of debt and strengthen its capital structure given the non-amortizing structure of the new bond. Of these repayments, $59,444 were used to refinance short term debt into long term debt. The senior note does not have negative covenants with an acceleration clause, however requires the Company to meet certain performance indicators in order to take on more debt.

The Company had $5,037 and $4,758 of property, plant and equipment pledged as collateral for various lines of credit as of December 31, 2018 and December 31, 2017, respectively.

Maturities of long term debt and other current borrowings are as follows as of December 31, 2018:

Year Ending December 31,
2019	$	21,606
2020		2,447
2021		2,411
2022		212,412
2023		2,380
Thereafter		6,074
Total	$	247,330

The Company had $18,257 and $19,146 available and outstanding in several lines of credit under a revolving note arrangement as of December 31, 2018. The floating interest rates on the revolving notes range between 3.9% and 7.9% and a weighted average interest rate of 4.7%. The Company had $4,250 and $638 available and outstanding in several lines of credit under a revolving note arrangement as of December 31, 2017.

As of December 31, 2018, the Company was obligated under various capital leases under which the aggregate present value of the minimum lease payments amounted to $380. Differences between capital lease obligations and the value of property, plant and equipment under capital lease arises from differences between the maturities of capital lease obligations and the useful lives of the underlying assets.

Interest expense for the year ended December 31, 2018, 2017 and 2016 was $21,187, $19,872 and $16,814, respectively. During the years ended December 31, 2018, 2017 and 2016, the Company capitalized interests in the amounts of $0, $10 and $377, respectively.

Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Note 12.

Income Taxes

The Company files income tax returns for TG and ES in the Republic of Colombia. On December 28, 2016, the Colombian congress enacted a structural tax reform that took effect on January 1, 2017 which reduces corporate income tax from 42% to 40% for fiscal year 2017, 37% in 2018 and 33% in 2019 and thereafter. As a result of the Colombian tax reform from December 28, 2016, the Company’s net deferred tax liability decreased $586 as of December 31, 2016.

GM&P, Componenti and ESW LLC are U.S. entities based in Florida subject to U.S. federal and state income taxes. The estimated combined state and federal income tax rate ranges between 34% and 39.5%. Tecnoglass Inc. as well as all the other subsidiaries in the Cayman Islands and Panama do not currently have any tax obligations. On December 20, 2017, the Tax Cuts and Jobs Act (the “2017 Act”) was signed into law. We analyzed the impact of the 2017 Act on our accounting for income taxes, including the remeasurement of our deferred tax assets and liabilities, and expect to see a reduction in U.S. tax expense as the new reform reduces the federal corporate tax rate from 35% to 21%.

The components of income tax expense (benefit) are as follows:

	December 31,
	2018			2017			2016
Current income tax
United States	$	639		$	4,558		$	-
Colombia		8,626			7,372			16,318
		9,265			11,930			16,318

Deferred income Tax
United States		391			(2,328	)		-
Colombia		(3,680	)		(3,809	)		(247	)
		(3,289	)		(6,137	)		(247	)
Total Provision for Income Tax	$	5,976		$	5,793		$	16,071

A reconciliation of the statutory tax rate in Colombia to the Company’s effective tax rate is as follows:

	December 31,
	2018			2017			2016
Income tax expense at statutory rates		31.3	%		37.0	%		40.00	%
Non-deductible expenses		13.0	%		18.6	%		1.20	%
Non-taxable income		-3.0	%		-20.4	%		-0.30	%
Effective tax rate		41.3	%		35.3	%		40.9	%

The Company’s effective tax rate of 35.3% for the year ended December 2017 reflects $4,628 of non-taxable income, including 7.7% related to certain intercompany gains of foreign exempt subsidiaries of $1,740 and 5.5% an unrecognized tax benefit related to GM&P’s uncertain tax position of $1,255, further described below, as well as $4,230 of non-deductible expenses including withholding taxes on debt payments, and other non-deductible expenses. Comparably, the Company had nontaxable gains of $776 and $4,674 related to the change in the fair value of warrant liability and earnout share liability during the year ended December 31, 2016.

There were no other individual items that contributed 5 percentage points or more in the reconciliation of the Company’s effective tax rate and the statutory rate during the years ended December 31, 2016 and 2015.

The Company has the following deferred tax assets and liabilities:

	December 31,
	2018			2017
Deferred tax assets:
Accounts Receivable Clients - not delivered FOB	$	(1,119	)	$	-
Property, plant and equipment adjustments		427			483
Tax benefit on installation of renewable energy project		448			-
Operating loss carryforward		1,581			-
Financial Liabilities		30			-
Deferred profit on other assets		99			108
Foreign currency transactions		6,560			1,552
Provision Inventory obsolescence		24			35
Total deferred tax assets	$	8,050		$	2,178

Deferred tax liabilities:
Inventory - not delivered FOB	$	-		$	(1,134)
Investments		(118	)		-
Property, plant and equipment adjustment		(130	)		-
Unbilled receivables uncompleted contracts		(3,293	)		(726)
Depreciation and Amortization		(2,445	)		(2,532)
Total deferred tax liabilities	$	(5,986	)	$	(2,124)

Net deferred tax	$	2,064		$	(2,214)

Net deferred tax is presented on the balance sheet as follows:

	December 31,
	2018		2017
Long term deferred income tax asset	$	4,770	$	103
Less: long term deferred income tax liability	$	2,706	$	2,317

Fair Value Measurements

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 13.

Fair Value Measurements

The Company accounts for financial assets and liabilities in accordance with accounting standards that define fair value and establish a framework for measuring fair value. The hierarchy prioritizes the inputs into three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. A financial asset’s or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and advances from customers approximate their fair value due to their relatively short-term maturities. The Company bases its fair value estimate for long term debt obligations on its internal valuation.

As of December 31, 2018, financial instruments carried at amortized cost that do not approximate fair value consist of long-term debt. See Note 11 - Debt. The fair value of long-term debt was calculated based on an analysis of future cash flows discounted with our average cost of debt which is based on market rates, which are level 2 inputs.

The following table summarizes the fair value and carrying amounts of our long-term debt:

	December 31
	2018		2017
Fair Value		234,163		240,057
Carrying Value		220,709		220,998

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Related Parties

12 Months Ended

Dec. 31, 2018

Related Parties

Note 14.

Related Parties

The following is a summary of assets, liabilities, and income and expense transactions with all related parties, shareholders, directors and managers:

	December 31, 2018		December 31, 2017
Assets
Current Assets
Due from VS	$	6,229	$	6,240
Due from other related parties		2,010		2,260
	$	8,239	$	8,500

Liabilities
Due to related parties - Current	$	1,500	$	975
Due to related parties – Long Term		600		-

	December 31, 2018		December 31, 2017		December 31, 2016

Revenues	$	5,338	$	5,081	$	9,742
Interest Income		-		-		235

Expenses
Paid to other related parties		6,925		4,254		2,395

Ventanas Solar S.A. (“VS”), a Panama sociedad anonima, is an importer and installer of the Company’s products in Panama. Family members of the Company’s CEO and COO and other related parties own 100% of the equity in VS. The Company’s sales to VS for the year ended December 31, 2018, 2017 and 2016 were, $2,938, $3,670 and $8,269, respectively.

Payments to other related parties during the periods indicated are comprised of the following:

	Year ended December 31,
	2018		2017		2016
Charitable contributions		1,263		2,787		1,340
Sales commissions		1,419		691		392

Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 15.

Commitments and Contingencies

Commitments

As of December 31, 2018, the Company has an outstanding obligation to purchase an aggregate of at least $31,264 of certain raw materials from a specific supplier before May 2026.

Additionally, in connection with the joint venture agreement the Company entered into with Saint-Gobain on January 11, 2019, further described in Note 21. Subsequent Events, the Company acquired a contingent obligation to purchase minimum volumes of float glass once the new plant located close to the Company’s actual manufacturing facilities commences operations, which are expected to initiate in 2022.

Guarantees

As of December 31, 2018, the Company does not have guarantees on behalf of other parties.

General Legal Matters

From time to time, the Company is involved in legal matters arising in the regular course of business. Some disputes are derived directly from our construction projects, related to supply and installation, and even though deemed ordinary, they may involve significant monetary damages. We are also subject to other type of litigations arising from employment practices, worker’s compensation, automobile claims and general liability. It is very difficult to predict precisely what the outcome of these litigations might be. However, with the information at out disposition as this time, there are no indications that such claims will result in a material adverse effect on the business, financial condition or results of operations of the Company.

Shareholders' Equity

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Shareholders' Equity

Note 16.

Shareholders’ Equity

Preferred Shares

Tecnoglass is authorized to issue 1,000,000 preferred shares with a par value of $0.0001 per share with such designation, rights and preferences as may be determined from time to time by the Company’s board of directors.

As of December 31, 2018, there are no preferred shares issued or outstanding.

Ordinary Shares

The Company is authorized to issue 100,000,000 ordinary shares with a par value of $0.0001 per share. As of December 31, 2018, a total of 38,092,996 Ordinary shares were issued and outstanding.

Legal Reserve

Colombian regulation requires that companies retain 10% of net income until it accumulates at least 50% of subscribed and paid in capital. The amount recorded meets this standard.

Earnings per Share

The following table sets forth the computation of the basic and diluted earnings per share for the years ended December 31, 2018, 2017 and 2016:

	December 31,
	2018		2017		2016
Numerator for basic and diluted earnings per shares
Net Income (Loss)	$	8,486	$	5,725	$	23,180

Denominator
Denominator for basic earnings per ordinary share - weighted average shares outstanding		37,511,851		36,836,075		32,864,628
Effect of dilutive securities and stock dividend		550,784		550,784		550,784
Denominator for diluted earnings per ordinary share - weighted average shares outstanding		38,062,635		37,386,858		33,415,412

Basic earnings per ordinary share	$	0.23	$	0.16	$	0.71
Diluted earnings per ordinary share	$	0.22	$	0.15	$	0.69

As per ASC 260 – Earnings Per Share, 2,626,727 and 3,125,807 ordinary shares issued in connection with the share dividend paid since December 31, 2017 and 2016 are considered in the denominator for basic and diluted earnings per ordinary share, respectively.

The effect of dilutive securities includes 550,784 shares as of December 31, 2018, for shares potentially issued in relation to the dividend declared.

Long Term Incentive Compensation Plan

On December 20, 2013, our shareholders approved our 2013 Long-Term Equity Incentive Plan (“2013 Plan”). Under the 2013 Plan, 1,593,917 ordinary shares are reserved for issuance in accordance with the plan’s terms to eligible employees, officers, directors and consultants. As of December 31, 2018, no awards had been made under the 2013 Plan.

Dividend

Prior to April 2015, we had not paid any cash dividends on our ordinary shares. On April 14, 2015, our Board of Directors authorized the payment of regular quarterly dividends to holders of our ordinary shares at a quarterly rate of $0.125 per share (or $0.50 per share on an annual basis). Our Board of Directors subsequently authorized an increase in the dividends to $0.14 per share (or $0.56 per share on an annual basis) beginning on the third quarter of 2017 going forward. The dividends are paid in cash or ordinary shares, at the option of holders of ordinary shares during an election period. The value of the ordinary shares used to calculate the number of shares issued with respect to that portion of the dividend payable in ordinary shares was the average of the closing price of our ordinary shares on the NASDAQ Capital Market during a set period. If no choice was made during the election periods, the dividend was paid in ordinary shares.

We intend to continue to pay dividends on our ordinary shares, subject to our compliance with applicable law, and depending on, among other things, our results of operations, financial condition, level of indebtedness, capital requirements, contractual restrictions, restrictions in our debt agreements and in any preferred stock, business prospects and other factors that our Board of Directors may deem relevant. Our bond indenture currently restricts the type of dividend we can make while the bonds are outstanding. See “Description of Indebtedness” below for further information. The payment of any dividends is ultimately within the discretion of our Board of Directors. The payment of dividends in the future, if any, will be contingent upon our revenues and earnings, if any, capital requirements and our general financial condition and limitations imposed by our outstanding indebtedness.

Dividend declarations and the establishment of future record and payment dates are subject to the Board of Directors’ continuing determination that the dividend policy is in the best interests of the Company and its shareholders. The dividend policy may be changed or cancelled at the discretion of the Board of Directors at any time.

Segment and Geographic Information

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segment and Geographic Information

Note 17.

Segment and Geographic Information

The Company has one operating segment, Architectural Glass and Windows, which is also its reporting segment, comprising the design, manufacturing, distribution, marketing and installation of high-specification architectural glass and windows products sold to the construction industry.

In reviewing the Company’s segmentation, the Company followed guidance under ASC 280-10-50-1 which states that “an operating segment is a component of a public entity that has all of the following characteristics: (i) it engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same public entity), (ii) its operating results are regularly reviewed by the public entity’s chief operating decision maker (CODM) to make decisions about resources to be allocated to the segment and assess its performance, and (iii) its discrete financial information is available. Based on the Company’s review discussed below, the Company believes that its identification of a single operating and reportable segment - Architectural Glass and Windows - is consistent with the objectives and basic principles of Segment Reporting, which are to “help financial statement readers better understand the public entity’s performance, better assess its prospects for future net cash flows and make more informed judgments about the public entity as a whole.”

The Company analyzed the Company’s segmentation after the acquisition of GM&P and concluded that the operations of GM&P fall within our single operating segment, Architectural Glass and Windows. The CODM reviews financial information of the Company on a consolidated basis including GM&P on a comparative basis including an analysis with the consolidated budget and forecast. This acquisition has not changed the products and services offered in prior years and as such the company believes that there is no need of an additional segment due to the aforementioned above. Furthermore, a large part of the strategy behind the acquisition of GM&P was to use this entity as a platform to sell the Company´s products into the U.S, serving our clients by providing a full “end to end” portfolio of products and services integrated into one.

The following tables present geographical information about external customers. Geographical information is based on the location where there the customer is located.

	Year ended December 31,
	2018		2017		2016
Colombia	$	62,445	$	63,539	$	98,758
United States		296,534		238,529		189,985
Panama		4,248		4,259		9,444
Other		7,757		8,129		6,829
Total Revenues	$	370,984	$	314,456	$	305,016

The following table presents revenues from external customer by product groups.

	December 31,
	2018		2017		2016
Glass and framing components	$	104,032	$	67,311	$	89,850
Windows and architectural systems		266,952		247,144		215,166
Total Revenues	$	370,984	$	314,456	$	305,016

During the year ended December 31, 2018 and 2017, no single customer accounted for more than 10% of our revenues. Only GM&P before being acquired by the Company in 2017 accounted for more than 10% or more of our net sales, amounting to $80.0 million, or 26% of total sales during the years ended December 31, 2016.

The Company’s long-lived assets are distributed geographically as follows:

	December 31,
	2018		2017		2016
Colombia	$	146,544	$	166,380	$	172,478
United States		38,075		39,037		5,631
Total long lived assets	$	184,619	$	205,417	$	178,109

Operating Expenses

12 Months Ended

Dec. 31, 2018

Other Income and Expenses [Abstract]

Operating Expenses

Note 18.

Operating Expenses

Selling expenses for the years ended December 31, 2018, 2017 and 2016 were comprised of the following:

	December 31,
	2018		2017		2016
Shipping and Handling	$	18,583	$	13,068	$	15,568
Personnel		6,707		6,219		5,679
Sales commissions		5,382		4,527		4,346
Services		2,502		2,024		1,723
Packaging		1,283		1,306		950
Accounts Receivable provision		369		3,128		4686
Other Selling Expenses		4,564		3,512		4,001
Total Selling Expense	$	39,390	$	33,784	$	36,953

General and administrative expenses for the years ended December 31, 2018, 2017 and 2016 were comprised of the following:

	December 31,
	2018		2017		2016
Personnel	$	12,281	$	10,631	$	7,938
Professional fees		4,705		4,207		5,395
Taxes		845		895		1,302
Services		2,918		2,850		2,302
Depreciation and Amortization		4,887		4,404		1,788
Bank charges and tax on financial transactions		1,075		1,647		2,881
Insurance		1,601		1,487		893
Rent expense		854		552		209
Charitable contributions		1,385		1,537		1,504
Other expenses		3,081		2,824		4,736
Total General and administrative expenses	$	33,632	$	31,034	$	27,846

Non-Operating Income and Expenses

12 Months Ended

Dec. 31, 2018

Other Income and Expenses [Abstract]

Non-Operating Income and Expenses

Note 19.

Non-Operating Income and Expenses

Non-operating income and expenses, net on our consolidated statement of operations amounted to $2,915, $3,190 and $4,155 for the years ended December 31, 2018, 2017 and 2016, respectively. These amounts are primarily comprised of income from interests on receivables and short-term investments, rent income and recoveries on scrap materials.

Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data (Unaudited)

Note 20.

Selected Quarterly Financial Data (unaudited)

The following tables contain (unaudited) quarterly financial statement information for the years ended December 31, 2018 and 2017.

	2018 Quarters Ended
	March 31,		June 30,			September 30,		December 31,

Operating revenue	$	87,160	$	88,969		$	96,992	$	97,863
Gross profit		26,748		24,642			34,693		34,134
Net income (loss)		10,619		(3,870	)		5,152		(4,415	)
Net income (loss) attributable to parent		10,691		(3,658	)		6,297		(22,361	)
Basic income (loss) per share*		0.29		(0.10	)		0.13		(0.12	)
Diluted income (loss) per share*	$	0.28	$	(0.10	)	$	0.13	$	(0.12	)

	2017 Quarters Ended
	March 31,		June 30,			September 30,		December 31,

Operating revenue	$	65,817	$	80,976		$	83,384	$	84,279
Gross profit		22,252		22,544			27,184		27,202
Net income (loss)		1,031		(3,500	)		7,025		1,169
Net income (loss) attributable to parent		1,019		(3,560	)		6,924		1,066
Basic income (loss) per share*		0.03		(0.10	)		0.19		0.03
Diluted income (loss) per share*	$	0.03	$	(0.10	)	$	0.19	$	0.03

*Per share amounts have been retroactively adjusted to include the dilutive effect of shares issued in relation to a share dividend payment.

Subsequent Events

12 Months Ended

Dec. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

Note 21.

Subsequent Events

On January 9, 2019, we declared a regular quarterly dividend of $0.14 per share for the fourth quarter of 2018. The dividend will be payable on February 28, 2019 to shareholders of record as of the close of business on January 31, 2019. The dividend will be paid in cash or ordinary shares, to be chosen at the option of holders of ordinary shares during an election period beginning February 1, 2019 and lasting until 5:00 P.M. Eastern Time on February 15, 2019. The value of the ordinary shares to be used to calculate the number of shares to be issued with respect to that portion of the dividend payable in ordinary shares shall be the average of the closing price of the Company’s ordinary shares on NASDAQ during the period from February 1, 2019 through February 15, 2019. If no choice is made during this election period, the dividend for this election period will be paid in ordinary shares of the Company.

On January 11, 2019, we entered into a joint venture agreement with Saint-Gobain, a world leader in the production of float glass, a key component of our manufacturing process, whereby we will acquire an approximate 25% minority ownership interest in Vidrio Andino Holdings S.A.S, a Colombia-based subsidiary of Saint-Gobain. The purchase price for our interest in this entity is $34.1 million in cash and land worth $10.9 million near our facility in Barranquilla, which will be contributed on our behalf by our Chief Executive Officer and Chief Operating Officer, José M. Daes and Christian T. Daes with a third party valuation to be conducted. Vidrio Andino’s float glass plant located in the outskirts of Bogota, Colombia, had been one of our main suppliers of raw glass. We beleive this transaction will solidify our vertical integration strategy by acquiring an interest in the first stage of our production chain, while securing ample glass supply for our expected production needs.

Additionally, the joint venture agreement includes plans to build a new plant in Galapa, Colombia that will be located approximately 20 miles from our primary manufacturing facility, in which we will also have a 25% interest. The new plant will be funded with proceeds the original cash contribution made by the Company, operating cashflows from the Bogota plant, debt incurred at the joint venture level that will not consolidate into the Company and an additional contribution by us of approximately $12.5 million to be paid between 2020 and 2021. Under the joint venture agreement, Saint Gobain will retain a majority ownership position and will have control over the operations of both plants and as such, the transaction will be accounted for under the equity method. The acquisition will be consummated on or before May 2019, once the original cash and land contributions have been completed and the shares of Vidrio Andino have been contributed.

Basis of Presentation and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Basis of Presentation and Management's Estimates

Basis of Presentation and Management’s Estimates

Principles of Consolidation

Principles of Consolidation

Non-Controlling Interest

Non-controlling interest

Foreign Currency Translation and Transactions

Foreign Currency Translation and Transactions

Cash and Cash Equivalents

Cash and Cash Equivalents

Investments

Investments

The Company’s investments are comprised of marketable securities, short term deposits and income producing real estate.

Trade Accounts Receivable

Trade Accounts Receivable

Concentration of Risks and Uncertainties

Concentration of Risks and Uncertainties

Related Party Transactions

Related party transactions

Inventories

Inventories

Property, Plant and Equipment

Property, Plant and Equipment

Buildings		20 years
Machinery and equipment		10 years
Furniture and fixtures		10 years
Office equipment and software		5 years
Vehicles		5 years

Long Lived Assets

Long Lived Assets

Goodwill

Goodwill

Intangible Assets

Intangible Assets

Common Stock Purchase Warrants

Common Stock Purchase Warrants

Financial Liabilities

Financial Liabilities

Stock-Based Compensation

Stock-Based Compensation

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The standard describes three level of inputs that may be used to measure fair value:

Level 1: Quoted prices in active markets for identical assets or liabilities.

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

See Note 13 - Fair Value Measurements.

Revenue Recognition

Revenue Recognition