SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

6 Months Ended

Jun. 30, 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 June 30, 2023:

	EWCP			TPA			Total
Revenue	$	220,602		$	10,100,689		$	10,331,291
Interest expense		-			115,498			115,498
Depreciation and amortization		4,440			381,951			386,390
Income tax expense		11,657			342,715			354,372
Segment profit (loss)		(41,262	)		851,127			809,865
Segment assets		3,257,019			49,544,894			52,801,913
Expenditures for segment assets		-			(3,571,133	)		(3,571,133	)

Three months ended June 30, 2022:

	EWCP			TPA			Total
Revenue	$	189,569		$	10,975,574		$	11,165,143
Interest expense		-			52,139			52,139
Depreciation and amortization		9,202			230,588			239,790
Income tax expense		11,306			531,496			542,802
Segment profit (loss)		(84,564	)		1,747,019			1,662,455
Segment assets		2,386,338			45,168,719			47,555,057
Expenditures for segment assets		-			(245,383	)		(245,383	)

Six months ended June 30, 2023:

	EWCP			TPA			Total
Revenue	$	301,262		$	19,877,546		$	20,178,808
Interest expense		-			250,368			250,368
Depreciation and amortization		8,719			742,855			751,574
Income tax expense		12,571			641,578			654,149
Segment profit (loss)		(192,990	)		1,887,224			1,694,234
Segment assets		3,257,019			49,544,894			52,801,913
Expenditures for segment assets		-			(3,784,193	)		(3,784,193	)

Six months ended June 30, 2022:

	EWCP			TPA			Total
Revenue	$	236,822		$	21,711,601		$	21,948,423
Interest expense		-			109,757			109,757
Depreciation and amortization		18,446			453,832			472,278
Income tax expense		11,306			1,243,942			1,255,248
Segment profit (loss)		(208,737	)		3,404,251			3,195,514
Segment assets		2,386,338			45,168,719			47,555,057
Expenditures for segment assets		-			(422,067	)		(422,067	)

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

	Six months ended June 30, 2023		Six months ended June 30, 2022
Canada	$	313,058	$	279,517
United States and abroad		19,865,750		21,668,906
Total	$	20,178,808	$	21,948,423

The Company’s long-lived assets (property, equipment, leaseholds, intangibles, goodwill and right of use assets) are located in Canada and the United States as follows:

	June 30, 2023		December 31, 2022
Canada	$	151,300	$	150,890
United States		17,706,417		14,699,896
Total	$	17,857,717	$	14,850,786

Three primary customers accounted for $10,681,892 (53%) of sales during the six month period ended June 30, 2023 (2022 - $11,597,726 or 53%).