12. SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

Note 12. 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 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, 2013:

	EWCP			BPCA		Total
Revenue	$	288,939		$	4,215,597	$	4,504,536
Interest revenue		-			-		-
Interest expense		(4,599	)		13,995		9,396
Depreciation and amortization		274,359			54,840		329,199
Segment profit (loss)		(705,198	)		770,359		65,161
Segment assets		5,045,160			1,906,436		6,951,596
Expenditures for segment assets		4,741			-		4,741

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

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

	Three months ended March 31, 2013		Three months ended March 31, 2012
Canada	$	207,680	$	419,073
United States and abroad		4,296,856		4,774,998
Total	$	4,504,536	$	5,194,071

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

	March 31, 2013		December 31, 2012
Canada	$	5,045,160	$	5,424,966
United States		1,906,436		1,961,276
Total	$	6,951,596	$	7,386,242

 Three customers accounted for $2,694,248 (60%) of sales made in the period (2012 - $2,987,686 or 58%).