Segmented, Significant Customer Information and Economic Dependency

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Segmented, Significant Customer Information and Economic Dependency

13. 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 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 “TPA” 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, 2018:
	EWCP			TPA			Total
Revenue	$	75,820		$	4,125,360		$	4,201,180
Interest expense		-			7,400			7,400
Depreciation and amortization		12,640			47,060			59,700
Segment profit (loss)		(97,834	)		801,498			703,664
Segment assets		555,710			1,396,676			1,952,386
Expenditures for segment assets		(1,419	)		(6,078	)		(7,497	)

Three months ended March 31, 2017:
	EWCP			TPA			Total
Revenue	$	247,726		$	4,415,982		$	4,663,708
Interest expense		55			11,512			11,567
Depreciation and amortization		31,971			48,404			80,375
Segment profit (loss)		2,384,013			868,654			3,252,667
Segment assets		323,228			1,482,276			1,805,504
Expenditures for segment assets		(22,497	)		(7,406	)		(29,903	)

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

	Three months ended March 31, 2018		Three months ended March 31, 2017
Canada	$	100,189	$	74,835
United States and abroad		4,100,991		4,588,873
Total	$	4,201,180	$	4,663,708

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

	March 31, 2018		December 31, 2017
Canada	$	555,710	$	580,304
United States		1,396,676		1,437,657
Total	$	1,952,386	$	2,017,961

Three customers accounted for $1,999,638 (47%) of sales during the three-month period ended March 31, 2018 (2017 - $2,642,973 or 57%).