Segmented, Significant Customer Information and Economic Dependency

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segmented, Significant Customer Information and Economic Dependency

16. 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 September 30, 2020:

	EWCP			TPA			Total
Revenue	$	101,215		$	8,011,715		$	8,112,930
Interest expense		-			43,872			43,872
Depreciation and amortization		10,531			145,555			156,086
Segment profit (loss)		(64,945	)		647,314			582,369
Segment assets		437,298			10,021,179			10,458,477
Expenditures for segment assets		-			(265,379	)		(265,379	)

Three months ended September 30, 2019:

	EWCP			TPA			Total
Revenue	$	91,945		$	7,311,547		$	7,403,492
Interest expense		-			94,319			94,319
Depreciation and amortization		11,660			144,823			156,483
Segment profit (loss)		(123,629	)		535,677			412,048
Segment assets		483,543			9,623,560			10,107,103
Expenditures for segment assets		-			(79,603	)		(79,603	)

Nine months ended September 30, 2020:

	EWCP			TPA			Total
Revenue	$	311,376		$	23,940,647		$	24,252,023
Interest expense		-			199,947			199,947
Depreciation and amortization		31,294			414,294			445,588
Segment profit (loss)		(135,417	)		3,115,328			2,979,911
Segment assets		437,298			10,021,179			10,458,477
Expenditures for segment assets		-			(826,515	)		(826,515	)

Nine months ended September 30, 2019:

	EWCP			TPA			Total
Revenue	$	375,380		$	22,270,028		$	22,645,408
Interest expense		569			341,222			341,791
Depreciation and amortization		34,830			427,618			462,448
Segment profit (loss)		(473,404	)		1,868,869			1,395,465
Segment assets		483,543			9,623,560			10,107,103
Expenditures for segment assets		-			(1,397,796	)		(1,397,196	)

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

	Nine months ended September 30, 2020		Nine months ended September 30, 2019
Canada	$	373,863	$	302,702
United States and abroad		23,878,160		22,342,706
Total	$	24,252,023	$	22,645,408

The Company’s property, equipment, leasehold and patents, intangible assets and goodwill are located in Canada and the United States as follows:

	September 30, 2020		December 31, 2019
Canada	$	437,298	$	480,243
United States		10,021,179		9,847,489
Total	$	10,458,477	$	10,327,732

Three customers accounted for $10,925,243 (45%) of sales during the nine months ended September 30, 2020 (2019 - $10,162,926 or 45%).