Segment, Significant Customer Information

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Segment, Significant Customer Information

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.

Nine months ended September 30, 2011:

	EWCP			BPCA		Total
Revenue	$	855,060		$	11,293,677	$	12,148,737
Interest revenue		53			—		53
Interest expense		53,109			15,548		68,657
Depreciation and amortization		32,674			215,402		248,076
Segment profit (loss)		(1,299,359	)		1,739,904		440,545
Segment assets		5,984,588			2,267,888		8,252,476
Expenditures for segment assets		675,313			65,503		740,816

Nine months ended September 30, 2010:

	EWCP			BPCA		Total
Revenue	$	814,613		$	8,080,706	$	8,895,319
Interest revenue		—			—		—
Interest expense		53,142			1,265		54,407
Depreciation and amortization		34,631			234,578		269,209
Segment profit (loss)		(1,208,559	)		1,435,225		226,666
Segment assets		5,315,657			2,493,131		7,808,788
Expenditures for segment assets		296,639			131,959		428,598

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

	September 30,		December 31,
	2011		2010
Canada	$	443,064	$	292,226
United States and abroad		11,705,673		8,603,093
Total	$	12,148,737	$	8,895,319

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

	September 30,		December 31,
	2011		2010
Canada	$	5,984,587	$	5,675,065
United States		2,267,888		2,417,787
Total	$	8,252,475	$	8,092,852

Three customers accounted for $7,150,435 (59%) of sales made in the period (2010 - $5,358,184 or 60%).