12. SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

6 Months Ended

Jun. 30, 2015

Notes to Financial Statements

12. SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

12.           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 blanket which saves energy and water by inhibiting evaporation from the pool surface, and (ii) food-safe powdered form of the active ingredient within the liquid blanket and which is designed to be used in still or slow moving drinking water sources.

(b)   Biodegradable polymers and chemical additives used within the petroleum, chemical, utility and mining industries to prevent corrosion and scaling in water piping (as shown under the column heading “BPCA” below).  These chemical additives can also be used in laundry and dish detergents, as well as in products to reduce levels of insecticides, herbicides and fungicides.

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.

Six months ended June 30, 2015:

	EWCP			BPCA			Total
Revenue	$	446,002		$	8,418,807		$	8,864,809
Interest revenue		1			2,962			2,963
Interest expense		1			32,176			32,177
Depreciation and amortization		193,819			91,358			285,177
Segment profit (loss)		(589,560	)		1,412,496			822,936
Segment assets		2,653,187			1,679,533			4,332,720
Expenditures for segment assets		252,951			(201,050	)		51,901

Six months ended June 30, 2014:

	EWCP			BPCA		Total
Revenue	$	358,703		$	7,741,009	$	8,099,712
Interest revenue		0			0		0
Interest expense		22,010			30,762		52,772
Depreciation and amortization		231,328			94,558		325,886
Segment profit (loss)		(930,663	)		1,174,838		244,175
Segment assets		4,012,578			1,657,349		5,669,927
Expenditures for segment assets		6,199			9,991		16,190

The sales generated in the United States and Canada are as follows:

	Six Months Ended June 30, 2015		Six Months Ended June 30, 2014
Canada	$	270,775	$	332,248
United States and abroad		8,594,034		7,767,464
Total	$	8,864,809	$	8,099,712

The Company’s property, equipment, leasehold and patents are located in Canada and the United States as follows:

	June 30, 2015		December 31, 2014
Canada	$	2,652,604	$	3,331,879
United States		1,680,116		1,570,424
Total	$	4,332,720	$	4,902,304

 Three customers accounted for $5,373,518 (61%) of sales during the six months ended June 30, 2015 (2014 - $5,032,361 or 62%).  Three customers accounted for $1,355,377 of accounts receivable (62%) at June 30, 2015 (December 31, 2014 – $1,796,114 or 76%).