3. Business combination (continued) The fair values of assets and liabilities acquired as at July 21, 2000 are as follows: The results of operations of Belize Water Ltd. are included in the consolidated statements of operations from the date of acquisition. Unaudited proforma combined results of operations of Consolidated Water Co. Ltd. and Belize Water Ltd. would be as follows: Cash and cash equivalents 4,751 Accounts receivable 202,058 Spares inventory 50,989 Prepayments 2,240 Property, plant and equipment 1,657,017 Bank overdrafts ( 18,787) Fair value of net assets acquired $1,898,268 Intangible asset - contract 2,073,462 Total purchase consideration $3,971,730 Less: cash and cash equivalents of the subsidiary acquired ( 4,751) Cash outflow on acquisition $3,966,979 December 31, 2000 1999 Intangible asset - contract 2,073,462 - Amortisation charge for the period ( 64,979) - Net book value $2,008,483 - (Unaudited) Year Ended December 31, 2000 1999 Revenue $10,139,450 $ 8,814,971 Income before accounting change $ 2,516,041 $ 1,927,522 Cumulative effect of a change in accounting principle - $( 117,576) Net income $ 2,516,041 $ 1,809,946 Basic earnings per ordinary share of common stock: Income before accounting change 0.71 0.67 Accounting change - ( 0.04) Net income $ 0.71 $ 0.63 CONSOLIDATED WATER CO. LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in United States dollars)