Segmented, Significant Customer Information and Economic Dependency

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segmented, Significant Customer Information and Economic Dependency

19. 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 blankets 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 blankets and which are 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, 2020:

	EWCP			BCPA		Consolidated
Sales	$	334,423		$	31,073,031	$	31,407,454
Interest expense		54			260,603		260,657
Depreciation		41,969			809,703		851,672
Current and deferred income tax expense		121,164			1,486,277		1,607,441
Segment profit		(536,220	)		3,513,270		2,997,050
Segment assets		445,664			10,519,903		10,965,566
Expenditures for segment assets		-			1,071,108		1,071,108

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

Sales by territory are shown below:

	2020		2019
Canada	$	562,626	$	1,125,566
United States and abroad		30,844,828		26,314,544
Total	$	31,407,454	$	27,440,110

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:

	2020		2019
Canada	$	445,663	$	480,243
United States		10,519,903		9,847,489
Total	$	10,965,566	$	10,327,732

Three customers accounted for $14,713,127 (47%) of sales made in 2020 (2019 - $12,814,506 or 47%).