SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

9 Months Ended

Sep. 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 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, 2021:
	EWCP			TPA			Total
Revenue	$	97,307		$	9,117,160		$	9,214,467
Interest expense		-			41,749			41,749
Depreciation and amortization		10,052			220,681			230,733
Income tax expense		-			758,924			758,924
Segment profit (loss)		(273,239	)		1,541,449			1,268,210
Segment assets		1,880,310			37,491,689			39,371,999
Expenditures for segment assets		-			(158,231	)		(158,231	)

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
Income tax expense		-			370,203			370,203
Segment profit (loss)		(64,945	)		647,314			582,369
Segment assets		838,177			33,543,805			34,381,982
Expenditures for segment assets		-			(265,379	)		(265,379	)

Nine months ended September 30, 2021:
		EWCP			TPA			Total
Revenue	$	336,152		$	25,038,463		$	25,374,615
Interest expense		-			155,078			155,078
Depreciation and amortization		30,238			680,345			710,583
Income tax expense		-			1,723,107			1,723,107
Segment profit (loss)		(443,375	)		4,233,331			3,789,956
Segment assets		1,880,310			37,491,689			39,371,999
Expenditures for segment assets		-			(610,959	)		(610,959	)

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
Income tax expense		19,170			1,045,681			1,064,851
Segment profit (loss)		(135,417	)		3,115,328			2,979,911
Segment assets		838,177			33,543,805			34,381,982
Expenditures for segment assets		-			(826,515	)		(826,515	)

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

	Nine months ended September 30, 2021		Nine months ended September 30, 2020
Canada	$	350,004	$	373,863
United States and abroad		25,024,611		23,878,160
Total	$	25,374,615	$	24,252,023

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:

	September 30, 2021		December 31, 2020
Canada	$	419,049	$	445,663
United States		10,216,847		10,519,903
Total	$	10,635,896	$	10,965,566

Three primary customers accounted for $11,236,707 (44%) of sales during nine months ended September 30, 2021 (2020 - $10,925,243 or 45%).