12. SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

6 Months Ended

Jun. 30, 2014

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, 2014:

	EWCP			BPCA		Total
Revenue	$	358,703		$	7,741,009	$	8,099,712
Interest revenue		0			0		0
Interest expense		22,010			30,762		52,772
Depreciation and amortization		231,328			94,558		325,886
Segment profit (loss)		(930,663	)		1,174,838		244,175
Segment assets		4,012,578			1,657,349		5,669,927
Expenditures for segment assets		6,199			9,991		16,190

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

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

	Six Months Ended June 30, 2014		Six Months Ended June 30, 2013
Canada	$	332,248	$	513,294
United States and abroad		7,767,464		8,875,870
Total	$	8,099,712	$	9,389,164

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

	June 30, 2014		December 31, 2013
Canada	$	4,012,578	$	4,258,075
United States		1,657,349		1,741,916
Total	$	5,669,927	$	5,999,991

Three customers accounted for $5,032,361 (62%) of sales made during the six months ended June 30, 2014 (2013 - $5,642,839 or 60%).