SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

15. 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, 2024:

	EWCP		BCPA			Consolidated
Sales	$	41,608	$	9,183,264		$	9,224,872
Interest expense		-		175,266			175,266
Depreciation		3,883		418,786			422,669
Income tax expense		34,940		229,238			264,178
Segment profit		18,540		438,685			457,225
Segment assets		3,664,387		53,897,000			57,561,387
Expenditures for segment assets		-		(477,350	)		(477,350	)

Three months ended March 31, 2023:

	EWCP			BCPA			Consolidated
Sales	$	80,660		$	9,776,857		$	9,847,517
Interest expense		-			134,870			134,870
Depreciation		4,279			360,905			365,184
Income tax expense		915			298,862			299,777
Segment profit		(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	)

Sales by territory are shown below:

	Three months ended March 31, 2024		Three months ended March 31, 2023
Canada	$	88,478	$	116,680
United States and abroad		9,136,394		9,730,837
Total	$	9,224,872	$	9,847,517

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

	March 31, 2024		December 31, 2023
Canada	$	135,299	$	142,577
United States		17,906,216		17,958,778
Total	$	18,041,515	$	18,101,355

Three primary customers accounted for $5,106,905 (55%) of sales during the three-month period ended March 31, 2024 (2023 - $4,366,106 or 44%).