12. SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

9 Months Ended

Sep. 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.

Nine months ended September 30, 2013:

	EWCP			BPCA		Total
Revenue	$	592,081		$	11,778,082	$	12,370,163
Interest revenue		1			1,999		2,000
Interest expense		37,594			45,155		82,749
Depreciation and     amortization		813,573			164,520		978,093
Segment profit (loss)		(2,273,828	)		1,727.257		(546.571	)
Segment assets		4,512,436			1,796,756		6,309,192
Expenditures for     segment assets		82,097			-		82,097

Nine months ended September 30, 2012:

	EWCP			BPCA		Total
Revenue	$	616,050		$	11,937,782	$	12,553,832
Interest revenue		750			9		759
Interest expense		45,447			40,190		85,637
Depreciation and     amortization		729,708			189,820		919,528
Segment profit (loss)		(2,017,779	)		1,316,358		(701,421	)
Segment assets		5,760,309			2,025,466		7,785,775
Expenditures for     segment assets		76,503			16,504		93,007

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

	Nine Months Ended September 30, 2013		Nine Months Ended September 30,  2012
Canada	$	540,554	$	682,159
United States and abroad		11,829,609		11,871,673
Total	$	12,370,163	$	12,553,832

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

	September 30, 2013		December 31, 2012
Canada	$	4,512,436	$	5,424,966
United States		1,796,756		1,961,276
Total	$	6,309,192	$	7,386,242

Three customers accounted for $7,402,615 (60%) of sales made during the nine months ended September 30, 2013 (2012 - $7,103,617 or 57%).