Segmented, Significant Customer Information and Economic Dependency

6 Months Ended

Jun. 30, 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 June 30, 2020:

	EWCP			TPA			Total
Revenue	$	120,233		$	7,589,374		$	7,709,607
Interest expense		-			54,650			54,650
Depreciation and amortization		10,286			131,157			141,443
Segment profit (loss)		(10,217	)		1,143,084			1,132,867
Segment assets		439,136			9,977,727			10,416,863
Expenditures for segment assets		-			(464,856	)		(464,856	)

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	)

Six months ended June 30, 2020:

	EWCP			TPA			Total
Revenue	$	210,161		$	15,928,932		$	16,139,093
Interest expense		-			156,075			156,075
Depreciation and amortization		20,762			268,739			289,501
Segment profit (loss)		(70,472	)		2,468,014			2,397,542
Segment assets		439,136			9,977,727			10,416,863
Expenditures for segment assets		-			(561,136	)		(561,136	)

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	)

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

	Six months ended June 30, 2020		Six months ended June 30, 2019
Canada	$	260,055	$	214,618
United States and abroad		15,879,038		15,027,298
Total	$	16,139,093	$	15,241,916

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

	June 30, 2020		December 31, 2019
Canada	$	439,136	$	480,243
United States		9,977,727		9,847,489
Total	$	10,416,863	$	10,327,732

Three customers accounted for $7,185,434 (45%) of sales during the six month period ended June 30, 2020 (2019 - $6,563,676 or 43%).