SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

3 Months Ended

Mar. 31, 2023

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 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 third product line is nitrogen conservation products used for the agriculture industry. These products decrease the loss of nitrogen fertilizer after initial application and allows less fertilizer to be used. These products are made and sold by the Company’s TPA division.

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 March 31, 2023:
	EWCP			BCPA			Total
Revenue	$	80,660		$	9,776,857		$	9,847,517
Interest expense		-			134,870			134,870
Depreciation and amortization		4,279			360,905			365,184
Income tax expense		915			289,822			299,777
Segment profit (loss)		(151,728	)		1,116,222			964,494
Segment assets		2,858,968			50,079,080			52,938,048
Expenditures for segment assets		-			(213,060	)		(213,060	)

Three months ended March 31, 2022:
	EWCP			BCPA			Total
Revenue	$	47,253		$	10,736,027		$	10,783,280
Interest expense		-			57,618			57,618
Depreciation and amortization		9,244			223,244			232,488
Income tax expense		-			712,446			712,446
Segment profit (loss)		(124,175	)		1,791,711			1,667,536
Segment assets		1,879,593			43,237,198			45,116,791
Expenditures for segment assets		-			(176,684	)		(176,684	)

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

	Three months ended March 31, 2023		Three months ended March 31, 2022
Canada	$	116,680	$	177,899
United States and abroad		9,730,837		10,605,381
Total	$	9,847,517	$	10,783,280

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:

	March 31, 2023		December 31, 2022
Canada	$	147,205	$	150,890
United States		14,561,055		14,699,896
Total	$	14,708,260	$	14,850,786

Three primary customers accounted for $4,366,106 (44%) of sales during the three-month period ended March 31, 2023 (2022 - $6,235,661 or 58%).