12. SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

6 Months Ended

Jun. 30, 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 (“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, 2013:

	EWCP			BPCA		Total
Revenue	$	503,703		$	8,885,461	$	9,389,164
Interest revenue		0			0		0
Interest expense		24,938			30,942		55,880
Depreciation and amortization		546,806			109,680		656,486
Segment profit (loss)		(1,492,301	)		1,627,630		135,329
Segment assets		4,657,366			1,851,596		6,508,962
Expenditures for segment assets		55,487			-		55,487

Six months ended June 30, 2012:

	EWCP			BPCA		Total
Revenue	$	548,333		$	8,407,467	$	8,955,800
Interest revenue		352			9		361
Interest expense		30,647			30,767		61,414
Depreciation and amortization		484,831			126,955		611,786
Segment profit (loss)		(1,362,229	)		1,118,890		(243,339	)
Segment assets		5,798,357			2,087,331		7,885,710
Expenditures for segment assets		70,028			15,504		85,532

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

	Six Months Ended June 30, 2013		Six Months Ended June 30, 2012
Canada	$	513,294	$	635,030
United States and abroad		8,875,870		8,320,770
Total	$	9,389,164	$	8,955,800

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

	June 30, 2013		December 31, 2012
Canada	$	4,657,366	$	5,424,966
United States		1,851,596		1,961,276
Total	$	6,508,962	$	7,386,242

 Three customers accounted for $5,642,839 (60%) of sales made during the six months ended June 30, 2012 (2012 - $4,865,542 or 54%).