SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

9 Months Ended

Sep. 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 September 30, 2024:

	EWCP		TPA			Total
Revenue	$	291,830	$	9,023,107		$	9,314,937
Interest expense		309		132,432			132,741
Depreciation and amortization		3,840		484,291			488,131
Income tax expense		57,549		310,066			367,615
Segment profit (loss)		89,106		522,752			611,858
Segment assets		3,359,017		54,279,169			57,638,186
Expenditures for segment assets		-		(1,212,422	)		(1,212,422	)

Three months ended September 30, 2023:

	EWCP			TPA			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			54,279,169			53,094,632
Expenditures for segment assets		-			(542,014	)		(542,014	)

Nine months ended September 30, 2024:

	EWCP			TPA			Total
Revenue	$	500,934		$	28,567,614		$	29,068,548
Interest expense		309			464,829			465,138
Depreciation and amortization		11,551			1,416,104			1,427,655
Income tax expense		69,449			1,120,595			1,190,044
Segment profit (loss)		(91,290	)		2,450,170			2,358,880
Segment assets		3,359,017			54,279,169			57,638,186
Expenditures for segment assets		-			(2,876,119	)		(2,876,119	)

Nine months ended September 30, 2023:

	EWCP			TPA			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	)

Sales by territory are shown below:

	Nine months ended September 30, 2024		Nine months ended September 30, 2023
Canada	$	229,956	$	413,265
United States and abroad		28,838,592		28,486,164
Total	$	29,068,548	$	28,899,429

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:

	September 30, 2024		December 31, 2023
Canada	$	128,053	$	142,577
United States		19,307,247		17,958,778
Total	$	19,435,300	$	18,101,355

Three primary customers accounted for $15,245,382 (52%) of sales during the nine-month period ended September 30, 2024 (2023 - $14,020,837 or 49%).