Segmented, Significant Customer Information and Economic Dependency

3 Months Ended

Mar. 31, 2020

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 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, 2020:
	EWCP			TPA			Total
Revenue	$	89,928		$	8,339,558		$	8,429,486
Interest expense		-			101,425			101,425
Depreciation and amortization		10,476			137,582			148,058
Segment profit (loss)		(60,255	)		1,324,930			1,264,675
Segment assets		545,187			9,722,640			10,176,827
Expenditures for segment assets		-			(96,280	)		(96,280	)

Three months ended March 31, 2019:
	EWCP			TPA			Total
Revenue	$	123,139		$	8,348,337		$	8,471,476
Interest expense		-			129,007			129,007
Depreciation and amortization		11,608			136,671			148,279
Segment profit (loss)		(143,808	)		1,154,958			1,011,150
Segment assets		502,783			9,658,406			10,161,189
Expenditures for segment assets		-			(1,275,835	)		(1,275,835	)

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

	Three months ended March 31, 2020		Three months ended March 31, 2019
Canada	$	146,000	$	75,952
United States and abroad		8,283,486		8,395,524
Total	$	8,429,486	$	8,471,476

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

	March 31, 2020		December 31, 2019
Canada	$	454,187	$	480,243
United States		9,722,640		9,847,489
Total	$	10,176,827	$	10,327,732

Three customers accounted for $3,650,830 (48%) of sales during the three-month period ended March 31, 2020 (2019 - $3,790,213 or 45%).