14. SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

14. SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

14.           Segmented, Significant Customer Information and Economic Dependency.

The Company operates in two segments:

(a)   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)    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.

Year ended December 31, 2015:

	EWCP			BCPA		Consolidated
Sales	$	687,828		$	15,210,719	$	15,898,547
Interest expense		1			55,769		55,770
Depreciation		384,909			193,429		578,338
Income tax expense (recovery)		-			765,328		765,328
Segment profit (loss)		(1,054,344	)		2,559,040		1,504,696
Segment assets		2,211,931			1,679,801		3,891,732
Expenditures for segment assets		(244,358	)		303,388		59,030

Year ended December 31, 2014:

	EWCP			BCPA		Consolidated
Sales	$	872,766		$	15,035,083	$	15,907,849
Interest expense		30,053			64,837		94,890
Depreciation		599,279			190,454		789,733
Income tax expense (recovery)		-			422,044		422,044
Segment profit (loss)		(1,499,350	)		1,902,695		403,345
Segment assets		3,332,463			1,569,841		4,902,304
Expenditures for segment assets		6,156			18,379		24,535

Sales by territory are shown below:

	2015		2014
Canada	$	404,880	$	404,483
United States and abroad		15,493,667		15,503,366
Total	$	15,898,547	$	15,907,849

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

	2015		2014
Canada	$	2,211,348	$	3,331,879
United States		1,680,384		1,570,424
Total	$	3,891,732	$	4,902,304

Three customers accounted for $10,421,165 (66%) of sales made in 2015 (2014 - $10,216,470 or 64%).