SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

9 Months Ended

Sep. 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 September 30, 2023:

	EWCP			BCPA			Total
Revenue	$	144,794		$	8,575,827		$	8,720,621
Interest expense		-			119,599			119,599
Depreciation and amortization		4,380			459,217			463,597
Income tax expense		12,770			206,942			219,712
Segment profit (loss)		(22,105	)		(696,056	)		(718,161	)
Segment assets		3,697,284			49,397,348			53,094,632
Expenditures for segment assets		-			(542,014	)		(542,014	)

Three months ended September 30, 2022:

	EWCP		BCPA			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	)

Nine months ended September 30, 2023:

	EWCP			BCPA			Total
Revenue	$	446,056		$	28,453,373		$	28,899,429
Interest expense		-			369,967			369,967
Depreciation and amortization		13,099			1,202,072			1,215,171
Income tax expense		25,341			848,520			873,861
Segment profit (loss)		(215,095	)		1,191,168			976,073
Segment assets		3,697,284			49,397,348			53,094,632
Expenditures for segment assets		-			(4,326,208	)		(4,326,208	)

Nine months ended September 30, 2022:

	EWCP			BCPA			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	)

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

	Nine months ended September 30, 2023		Nine months ended September 30, 2022
Canada	$	413,265	$	449,106
United States and abroad		28,486,164		33,184,424
Total	$	28,899,429	$	33,633,530

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:

	September 30, 2023		December 31, 2022
Canada	$	143,811	$	150,890
United States		17,779,273		14,699,896
Total	$	17,923,084	$	14,850,786

Three primary customers accounted for $14,020,837 (49%) of sales during nine months ended September 30, 2023 (2022 - $19,050,848 or 57%).