SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

18. 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 save 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 (as shown under the column heading “BCPA” below), 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, 2022:

	EWCP			BCPA		Consolidated
Sales	$	528,462		$	45,312,007	$	45,840,469
Interest expense		-			292,949		292,949
Depreciation		33,876			1,243,555		1,277,431
Current and deferred income tax expense		18,898			126,958		145,856
Segment profit		(334,525	)		8,047,754		7,713,229
Segment assets		2,810,091			48,777,101		51,587,192
Expenditures for segment assets		-			1,981,307		1,981,307

Year ended December 31, 2021:

	EWCP			BCPA		Consolidated
Sales	$	420,811		$	33,995,524	$	34,416,335
Interest expense		-			199,930		199,930
Depreciation		40,247			925,688		965,935
Current and deferred income tax expense		24,384			2,332,115		2,356,499
Segment profit		(368,994	)		4,663,251		4,294,257
Segment assets		1,929,537			37,621,733		39,551,270
Expenditures for segment assets		-			782,219		782,219

Sales by territory are shown below:

	2022		2021
Canada	$	552,123	$	525,900
United States and abroad		45,288,346		33,890,435
Total	$	45,840,469	$	34,416,335

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:

	2022		2021
Canada	$	150,890	$	191,752
United States		14,699,896		10,105,202
Total	$	14,850,786	$	10,296,954

Three customers accounted for $27,775,617 (61%) of sales made in 2022 (2021 - $16,917,947 or 49%).