SEGMENTED DISCLOSURE, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

3 Months Ended

Mar. 31, 2026

Segment Reporting [Abstract]

SEGMENTED DISCLOSURE, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

13. SEGMENTED DISCLOSURE, 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 Company also manufactures food grade products that are made and sold by the TPA division.

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. The economic factors that impact the nature, amount, timing, and uncertainty of revenue and cash flows vary among the Company’s operating segments and the geographical regions in which they operate. This operating segment structure is used by the Chief Operating Decision Maker (“CODM”), who has been determined to be the Chief Executive Officer, to make key operating decisions and assess performance of the Company. The CODM evaluates segment operating performance, and makes resource allocation and performance evaluation decisions, based on gross profit and net operating income.

Three months ended March 31, 2026:

	EWCP			BCPA			Other (1)			Consolidated
Product Sales	$	104,573		$	8,192,424		$	-		$	8,296,997
Cost of sales		66,478			6,341,213			-			6,407,691
Gross profit		38,095			1,851,211			-			1,889,306
Wages, administrative salaries and benefits		32,968			994,118			-			1,027,086
Selling, general, and administrative		18,147			679,676			64,534			762,357
Other segment items (2)		0			213,947			(28,119	)		185,828
Operating loss		(13,020	)		(36,530	)		(36,415	)		(85,965	)
Interest expense		-			134,069			-			134,069
Depreciation and amortization (included in COGS)		2,928			506,567			-			509,495
Capital expenditures		-			2,233,765			-			2,233,765
Assets at March 31, 2026 (3)		1,570,655			61,075,433			1,285,475			63,931,563

Three months ended March 31, 2025:

	EWCP			BCPA		Other (1)			Consolidated
Sales	$	40,185		$	7,433,507	$	-		$	7,473,692
Cost of sales		49,797			5,472,331		-			5,522,128
Gross profit (loss)		(9,612	)		1,961,176		-			1,951,564
Wages, administrative salaries and benefits		17,593			877,644		-			895,237
Selling, general, and administrative		27,265			685,859		42,926			756,050
Other segment items (2)		6,000			235,033		128,401			369,434
Operating income (loss)		(60,470	)		162,640		(171,327	)		(69,157	)
Interest expense		-			198,019		-			198,019
Depreciation and amortization (included in COGS)		3,206			461,992		-			465,198
Capital expenditures		-			354,121		-			354,121
Assets at December 31, 2025 (3)		2,097,454			58,533,323		1,201,602			61,832,379

(1)	Other is not considered an operating segment and includes expenses and income not identifiable to an operating segment and is not included in operating segment results
(2)	Other segment items for each reportable segment includes items such as professional fees and research and development.
(3)	Segment assets include cash, term deposits, accounts receivable, inventory, prepaid expenses, property held for sale, property, equipment and leaseholds, right of use assets, intangible assets, long-term deposits, investments and goodwill.

Sales by territory are shown below:

	Three months ended March 31, 2026		Three months ended March 31, 2025
Canada	$	88,292	$	288,094
United States and abroad		8,208,705		7,185,598
Total	$	8,296,997	$	7,473,692

The Company’s long-lived assets (property, equipment and leaseholds, right of use assets, intangibles, and goodwill) by territory as follows:

	March 31, 2026		December 31, 2025
Canada	$	103,729	$	108,423
United States and abroad		25,935,459		24,318,631
Total	$	26,039,188	$	24,427,054

Three primary customers accounted for $4,639,124 (56%) of sales during the three-month period ended March 31, 2026 (2025 - $3,665,235 or 49%).