Segmented, Significant Customer Information and Economic Dependency

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segmented, Significant Customer Information and Economic Dependency

20. 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, 2019:

	EWCP			BCPA		Consolidated
Sales	$	388,385		$	27,051,725	$	27,440,110
Interest expense		904			427,467		428,371
Depreciation		46,492			573,772		620,264
Income tax expense		-			619,857		619,857
Segment profit		(657,078	)		2,569,470		1,912,392
Segment assets		480,243			9,847,489		10,327,732
Expenditures for segment assets		-			1,831,519		1,831,519

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		291,641		342,561
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

Sales by territory are shown below:

	2019		2018
Canada	$	1,125,566	$	364,847
United States and abroad		26,314,544		17,464,671
Total	$	27,440,110	$	17,829,518

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:

	2019		2018
Canada	$	480,243	$	505,124
United States		9,847,489		7,783,426
Total	$	10,327,732	$	8,288,550

Three customers accounted for $12,814,506 (47%) of sales made in 2019 (2018 - $6,880,598 or 39%).