Segmented, Significant Customer Information and Economic Dependency

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segmented, Significant Customer Information and Economic Dependency

19. 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”), also known as TPA’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, 2018:

	EWCP		BCPA		Consolidated
Sales	$	314,544	$	17,514,974	$	17,829,518
Interest expense		-		93,653		93,653
Depreciation		50,920		251,641		302,561
Income tax expense		-		533,130		533,130
Segment profit		1,579,464		910,804		2,490,268
Segment assets		505,124		7,783,426		8,288,550
Expenditures for segment assets		15,032		165,798		180,830

Year ended December 31, 2017:

	EWCP		BCPA			Consolidated
Sales	$	641,675	$	14,852,650		$	15,494,325
Interest expense		54		44,071			44,125
Depreciation		62,376		224,240			286,616
Income tax expense		-		680,319			680,319
Segment profit		2,021,289		(266,548	)		1,754,741
Segment assets		580,304		1,437,657			2,017,961
Expenditures for segment assets		287,853		138,628			426,480

Sales by territory are shown below:

	2018		2017
Canada	$	364,847	$	362,362
United States and abroad		17,464,671		15,131,963
Total	$	17,829,518	$	15,494,325

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

	2018		2017
Canada	$	505,124	$	580,304
United States		7,783,426		1,437,657
Total	$	8,288,550	$	2,017,961

Three customers accounted for $6,880,598 (39%) of sales made in 2018 (2017 - $9,157,538 or 59%).