Segmented, Significant Customer Information and Economic Dependency

6 Months Ended

Jun. 30, 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 can also be used 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.

Six months ended June 30, 2018:
	EWCP			BPCA			Total
Revenue	$	198,392		$	8,140,333		$	8,338,725
Interest expense		-			14,487			14,487
Depreciation and amortization		25,682			94,808			120,490
Segment profit		1,570,996			1,268,574			2,839,570
Segment property, equipment, leaseholds, and patents		546,161			1,352,369			1,898,530
Expenditures for segment assets		(15,162	)		(9,518	)		(24,680	)

Six months ended June 30, 2017:
	EWCP			BPCA			Total
Revenue	$	475,018		$	8,911,056		$	9,386,074
Interest expense		53			24,243			24,296
Depreciation and amortization		38,730			96,807			135,537
Segment profit		2,335,153			1,191,137			3,526,290
Segment property, equipment, leaseholds, and patents		349,454			1,433,869			1,783,323
Expenditures for segment assets		(48,900	)		(7,406	)		(56,306	)

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

	Six Months Ended June 30, 2018		Six Months Ended June 30, 2017
Canada	$	147,810	$	218,915
United States and abroad		8,190,915		9,167,159
Total	$	8,338,725	$	9,386,074

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

	June 30, 2018		December 31, 2017
Canada	$	546,161	$	580,304
United States		1,352,369		1,437,657
Total	$	1,898,530	$	2,017,961

Three customers accounted for $3,703,287 (44%) of sales during the six months ended June 30, 2018 (2017 - $5,527,772 or 59%). Three customers accounted for $1,125,148 of accounts receivable (47%) at June 30, 2018 (December 31, 2017 – $1,247,374 or 65%).