SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

6 Months Ended

Jun. 30, 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 June 30, 2024:

	EWCP			TPA			Total
Revenue	$	167,496		$	10,361,243		$	10,528,739
Interest expense		-			157,131			157,131
Depreciation and amortization		3,828			513,027			516,855
Income tax expense		(23,040	)		581,291			558,251
Segment profit (loss)		(198,936	)		1,488,732			1,289,796
Segment assets		3,366,670			52,978,226			56,344,896
Expenditures for segment assets		-			(1,186,346	)		(1,186,346	)

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	)

Six months ended June 30, 2024:

	EWCP			TPA			Total
Revenue	$	209,104		$	19,544,507		$	19,753,611
Interest expense		-			332,397			332,397
Depreciation and amortization		7,711			931,813			939,524
Income tax expense		11,900			810,529			822,429
Segment profit (loss)		(180,396	)		1,927,417			1,747,021
Segment assets		3,366,670			52,978,226			56,344,896
Expenditures for segment assets		-			(1,663,696	)		(1,663,696	)

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	)

Sales by territory are shown below:

	Six months ended June 30, 2024		Six months ended June 30, 2023
Canada	$	223,083	$	313,058
United States and abroad		19,530,528		19,865,750
Total	$	19,753,611	$	20,178,808

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:

	June 30, 2024		December 31, 2023
Canada	$	130,116	$	142,577
United States		18,580,892		17,958,778
Total	$	18,711,008	$	18,101,355

Three primary customers accounted for $9,843,563 (50%) of sales during the six-month period ended June 30, 2024 (2023 - $9,276,058 or 46%).