Segmented, Significant Customer Information and Economic Dependency

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Segmented, Significant Customer Information and Economic Dependency

17. 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.

Three months ended June 30, 2019:

	EWCP			TPA			Total
Revenue	$	160,296		$	6,610,144		$	6,770,440
Interest expense		569			117,896			118,465
Depreciation and amortization		11,562			146,124			157,686
Segment profit (loss)		(205,967	)		178,234			(27,733)
Segment assets		500,429			9,767,690			10,268,119
Expenditures for segment assets		-			(41,758	)		(41,758	)

Three months ended June 30, 2018:

	EWCP		TPA			Total
Revenue	$	122,572	$	4,014,973		$	4,137,545
Interest expense		-		7,087			7,087
Depreciation and amortization		13,042		47,748			60,790
Segment profit (loss)		1,668,830		467,076			2,135,906
Segment assets		546,161		1,352,369			1,898,530
Expenditures for segment assets		(13,743)		(3,440	)		(17,183	)

Six months ended June 30, 2019:

	EWCP			TPA			Total
Revenue	$	283,435		$	14,958,481		$	15,241,916
Interest expense		569			246,903			247,472
Depreciation and amortization		23,170			282,795			305,965
Segment profit (loss)		(349,775	)		1,333,192			983,417
Segment assets		500,429			9,767,690			10,268,119
Expenditures for segment assets		-			(1,317,593	)		(1,317,593	)

Six months ended June 30, 2018:

	EWCP			TPA			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 (loss)		1,570,996			1,268,574			2,839,570
Segment assets		546,161			1,352,369			1,898,530
Expenditures for segment assets		(15,162	)		(9,518	)		(24,680	)

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

	Six months ended June 30, 2019		Six months ended June 30, 2018
Canada	$	214,618	$	147,810
United States and abroad		15,027,298		8,190,915
Total	$	15,241,916	$	8,338,725

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

	June 30, 2019		December 31, 2018
Canada	$	500,429	$	505,124
United States		9,767,590		7,783,426
Total	$	10,268,119	$	8,288,550

Three customers accounted for $6,563,676 (43%) of sales during the six month period ended June 30, 2019 (2018 - $3,703,287 or 44%).