SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

6 Months Ended

Jun. 30, 2021

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 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.

Three months ended June 30, 2021:
	EWCP			TPA			Total
Revenue	$	134,502		$	8,400,949		$	8,535,451
Interest expense		-			51,055			51,055
Depreciation and amortization		10,209			236,676			246,885
Income tax expense		84,266			394,461			478,727
Segment profit (loss)		(135,392	)		1,312,153			1,176,761
Segment assets		1,843,384			35,188,391			37,031,775
Expenditures for segment assets		-			(355,592	)		(355,592	)

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
Income tax expense		21,960			237,700			259,660
Segment profit (loss)		(10,217	)		1,143,084			1,132,867
Segment assets		2,439,940			31,135,650			33,575,590
Expenditures for segment assets		-			(464,856	)		(464,856	)

Six months ended June 30, 2021:
	EWCP			TPA			Total
Revenue	$	205,853		$	15,954,295		$	16,160,148
Interest expense		-			113,329			113,329
Depreciation and amortization		20,186			459,664			479,850
Income tax expense		86,090			878,093			964,183
Segment profit (loss)		(199,877	)		2,827,209			2,627,332
Segment assets		1,843,384			35,188,391			37,031,775
Expenditures for segment assets		-			(451,728	)		(451,728	)

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
Income tax expense		72,176			622,472			694,648
Segment profit (loss)		(70,472	)		2,468,014			2,397,542
Segment assets		2,439,940			31,135,650			33,575,590
Expenditures for segment assets		-			(561,136	)		(561,136	)

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

	Six months ended June 30, 2021		Six months ended June 30, 2020
Canada	$	294,718	$	260,055
United States and abroad		15,865,430		15,879,038
Total	$	16,160,148	$	16,139,093

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:

	June 30, 2021		December 31, 2020
Canada	$	440,352	$	445,663
United States		10,345,542		10,519,903
Total	$	10,785,894	$	10,965,566

Three primary customers accounted for $6,871,156 (43%) of sales during the six month period ended June 30, 2021 (2020 - $7,185,434 or 45%).