Segmented, Significant Customer Information and Economic Dependency

9 Months Ended

Sep. 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.

Nine months ended September 30, 2018:	EWCP			TPA			Total
Revenue	$	291,789		$	11,863,562		$	12,155,351
Interest revenue		16,969			490			17,459
Interest expense		-			22,222			22,222
Depreciation and amortization		38,348			142,212			180,560
Segment profit (loss)		1,349,007			1,345,093			2,694,100
Segment assets		541,681			1,312,580			1,854,261
Expenditures for segment assets		(15,125	)		(17,134	)		(32,259	)

Nine months ended September 30, 2017:	EWCP			TPA			Total
Revenue	$	606,476		$	12,048,984		$	12,655,460
Interest revenue		183			140			323
Interest expense		54			35,644			35,698
Depreciation and amortization		44,302			145,211			189,513
Segment profit (loss)		1,980,968			1,266,398			3,247,366
Segment assets		354,851			1,385,465			1,740,316
Expenditures for segment assets		(50,470	)		(7,406	)		(57,876	)

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

	Nine Months Ended September 30, 2018		Nine Months Ended September 30, 2017
Canada	$	230,055	$	265,175
United States and abroad		11,925,296		12,390,285
Total	$	12,155,351	$	12,655,460

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

	September 30, 2018		December 31, 2017
Canada	$	541,681	$	580,304
United States		1,312,580		1,437,657
Total	$	1,854,261	$	2,017,961

Three customers accounted for $5,730,269 (47%) of sales during the nine months ended September 30, 2018 (2017 - $7,527,184 or 59%). Three customers accounted for $1,617,995 of accounts receivable (59%) at September 30, 2018 (December 31, 2017 – $1,247,374 or 65%).