SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Note 12 - SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC

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 and chemical additives used within the petroleum, chemical, utility and mining industries to prevent corrosion and scaling in water piping (as shown under the column heading “BPCA” below). These chemical additives are also manufactured for use in laundry and dish detergents, as well as in products to reduce levels of insecticides, herbicides and fungicides.

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.

Three months ended March 31, 2012:
	EWCP			BPCA		Total
Revenue	$	274,822		$	4,919,249	$	5,194,071
Interest revenue		352			9		361
Interest expense		15,673			19,126		34,799
Depreciation and amortization		243,458			63,090		306,548
Segment profit (loss)		(710,161	)		932,821		222,660
Segment assets		6,099,484			2,135,692		8,235,176
Expenditures for segment assets		7,412			-		7,412

Three months ended March 31, 2011:
	EWCP			BPCA		Total
Revenue	$	411,317		$	3,946,150	$	4,357,467
Interest revenue		-			-		-
Interest expense		19,281			-		19,281
Depreciation and amortization		10,807			70,346		81,153
Segment profit (loss)		(470,252	)		828,359		358,107
Segment assets		5,857,849			2,364,810		8,222,659
Expenditures for segment assets		270,329			17,369		287,698

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

	Three months ended March 31, 2012		Three months ended March 31, 2011
Canada	$	419,073	$	205,766
United States and abroad		4,774,998		4,151,701
Total	$	5,194,071	$	4,357,467

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

	March 31, 2012		December 31, 2011
Canada	$	6,151,496	$	6,214,939
United States		2,083,680		2,198,781
Total	$	8,235,176	$	8,413,720

Three customers accounted for $2,987,686 (58%) of sales made in the period (2011 - $2,506,107 or 64%).