Segmented, Significant Customer Information

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

Segmented, Significant Customer Information

13. Segmented, Significant Customer Information and Economic Dependency.

The Company operates in two segments:

(a) Development and marketing of two lines of energy and water conservation products (as shown under the column heading “EWCP” below), which consists of a (i) liquid swimming pool blanket which saves energy and water by inhibiting evaporation from the pool surface, and (ii) food-safe powdered form of the active ingredient within the liquid blanket and which is designed to be used in still or slow moving drinking water sources.

(b) Manufacture of biodegradable polymers (“BCPA’s”) used by the petroleum, chemical, utility and mining industries to prevent corrosion and scaling in water piping. This product can also be used in detergents to increase biodegradability and in agriculture to increase crop yields by enhancing fertilizer uptake.

The accounting policies of the segments are the same as those described in Note 2, Significant Accounting Policies. The Company evaluates performance based on profit or loss from operations before income taxes, not including nonrecurring gains and losses and foreign exchange gains and losses.

The Company’s reportable segments are strategic business units that offer different, but synergistic products and services. They are managed separately because each business requires different technology and marketing strategies.

Six months ended June 30, 2011:

	EWCP			BPCA		Total
Revenue	$	686,567		$	7,600,975	$	8,287,542
Interest revenue		—			—		—
Interest expense		36,500			3,589		40,089
Depreciation and amortization		21,812			141,533		163,345
Segment profit (loss)		(868,823	)		1,401,664		532,841
Segment assets		6,204,106			2,303,278		8,507,384
Expenditures for segment assets		592,229			27,024		619,253

Six months ended June 30, 2010:

	EWCP			BPCA		Total
Revenue	$	652,467		$	5,565,931	$	6,218,398
Interest revenue		—			—		—
Interest expense		35,829			1,265		37,094
Depreciation and amortization		22,686			151,872		174,558
Segment profit (loss)		(776,937	)		1,159,019		382,082
Segment assets		5,005,246			2,462,930		7,468,176
Expenditures for segment assets		151,315			19,053		170,368

The sales generated in the United States and Canada are as follows:

	2011		2010
Canada	$	388,500	$	271,961
United States and abroad		7,899,042		5,946,437
Total	$	8,287,542	$	6,218,398

The Company’s property, equipment, leasehold and patents are located in Canada and the United States as follows:

	2011		2010
Canada	$	6,430,809	$	5,675,065
United States		2,302,425		2,417,787
Total	$	8,733,234	$	8,092,852

Three customers accounted for $4,583,941 (55%) of sales made in the period (2010 - $3,472,850 or 56%).