SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

9 Months Ended

Sep. 30, 2022

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 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, 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 September 30, 2022:
		EWCP		TPA			Total
Revenue	$	179,007	$	11,506,100		$	11,685,107
Interest expense		-		80,609			80,609
Depreciation and amortization		9,091		330,508			339,599
Income tax expense		24,035		325,146			349,181
Segment profit (loss)		69,376		1,038,755			1,108,131
Segment assets		2,345,580		46,462,283			48,807,863
Expenditures for segment assets		-		(233,862	)		(233,862	)

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		-			864,510			864,510
Segment profit (loss)		(273,239	)		1,435,863			1,162,624
Segment assets		1,880,310			37,670,960			39,551,270
Expenditures for segment assets		-			(158,231	)		(158,231	)

Nine months ended September 30, 2022:
		EWCP			TPA			Total
Revenue	$	415,830		$	33,217,700		$	33,633,530
Interest expense		-			190,366			190,366
Depreciation and amortization		27,537			784,340			811,877
Income tax expense		35,341			1,569,088			1,604,429
Segment profit (loss)		(139,362	)		4,443,007			4,303,645
Segment assets		2,345,580			46,462,283			48,807,863
Expenditures for segment assets		-			(647,232	)		(647,232	)

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		-			1,828,693			1,828,693
Segment profit (loss)		(443,375	)		4,233,331			3,789,956
Segment assets		1,880,310			37,670,960			39,551,270
Expenditures for segment assets		-			(610,957	)		(610,957	)

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

	Nine months ended September 30, 2022		Nine months ended September 30, 2021
Canada	$	449,106	$	350,004
United States and abroad		33,184,424		25,024,611
Total	$	33,633,530	$	25,374,615

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, 2022		December 31, 2021
Canada	$	151,831	$	191,752
United States		13,842,730		10,105,202
Total	$	13,944,561	$	10,296,954

Three primary customers accounted for $19,050,848 (57%) of sales during nine months ended September 30, 2022 (2021 - $11,236,707 or 44%).