SEGMENTED DISCLOSURE, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

SEGMENTED DISCLOSURE, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

12. 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, 2025:

	EWCP			BPCA		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		(9,612	)		1,961,176		-			1,951,564
Wages and administrative salaries		17,593			877,644		-			895,237
Office & miscellaneous		13,551			127,895		673			142,119
Other segment items (2)		19,713			826,371		137,281			983,365
Net operating income (loss)		(60,469	)		129,266		(137,954	)		(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 March 31, 2025 (3)		2,380,335			57,913,692		1,395,231			61,689,258

Three months ended March 31, 2024:

	EWCP			BPCA		Other (1)			Consolidated
Sales	$	41,608		$	9,183,264	$	-		$	9,224,872
Cost of sales		39,008			6,365,497		-			6,404,505
Gross profit		2,600			2,817,767		-			2,820,367
Wages and administrative salaries		28,406			1,040,611		-			1,069,017
Office & miscellaneous		9,504			148,075		44			157,623
Other segment items (2)		19,873			727,434		80,589			827,896
Net operating income (loss)		(55,183	)		901,647		(80,633	)		765,831
Interest expense		-			175,266		-			175,266
Depreciation and amortization (included in COGS)		3,883			418,786		-			422,669
Capital expenditures		-			478,123		-			478,123
Assets at December 31, 2024 (3)		2,588,731			56,415,104		964,744			59,968,579

⁽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 insurance, consulting, research, professional fees, and travel.

⁽³⁾ Segment assets include cash, term deposits, accounts receivable, inventory, prepaid expenses, property and equipment, security deposits, intangible assets, and goodwill.

Sales by territory are shown below:

	Three months ended March 31, 2025		Three months ended March 31, 2024
Canada	$	288,094	$	88,478
United States and abroad		7,185,598		9,136,394
Total	$	7,473,692	$	9,224,872

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

	March 31, 2025		December 31, 2024
Canada	$	113,397	$	116,496
United States		21,575,985		21,683,963
Total	$	21,689,382	$	21,800,459

Three primary customers accounted for $3,665,235 (49%) of sales during the three-month period ended March 31, 2025 (2024 - $5,106,905 or 55%).