10-K/A

United States

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K/A

Amendment No. 1

(Mark One)

(X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended December 31, 2018

OR

(  ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File No. 001-31540

FLEXIBLE SOLUTIONS INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)

Alberta	71 163 0889
(State or other jurisdiction	(Tax ID Number)
of incorporation or organization)

6001 54 Ave.
Taber, Alberta, Canada	T1G 1X4
(Address of Principal Executive Office)	Zip Code

Registrant’s telephone number, including Area Code: (403) 223-2995

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common Stock, $0.001 par value	NYSE American

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes [  ] No [X]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. [  ]

Yes [  ] No [X]

Indicate by check mark whether the registrant (1) has filed all reports to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [  ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company  or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [  ]	Accelerated filer [  ]
Non-accelerated filer [  ]	Smaller reporting company [X]
(Do not check if a smaller reporting company)	Emerging growth company [  ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act): [  ] Yes [X] No

As of June 30, 2018 the aggregate market value of the Company’s common stock held by non-affiliates was $11,946,764 based on the closing price for shares of the Company’s common stock on the NYSE American for that date.

As of March 30, 2019, the Company had 11,711,657 issued and outstanding shares of common stock.

Documents incorporated by reference: None

EXPLANATORY NOTE

The sole purpose of this Amendment No. 1 to the Annual Report on Form 10-K for the year ended December 31, 2018 of Flexible Solutions International, Inc. (the “Company”) filed with the Securities and Exchange Commission on April 1, 2019 (the “Form 10-K”) is to furnish Exhibits 101 to the Form 10-K in accordance with Rule 405 of Regulation S-T.

No other changes have been made to the Form 10-K. This Amendment No. 1 to the Form 10-K speaks as of the original filing date of the Form 10-K, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-K.

Item 15. Exhibits, Financial Statement Schedules.

Number	Description
3.1	Articles of Incorporation of the Registrant. (1)
3.2	Bylaws of the Registrant. (1)
21.1	Subsidiaries. (2)
23.1	Consent of Independent Accountants.
31.1	Certification of Principal Executive Officer Pursuant to §302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial Officer Pursuant to §302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Principal Executive and Financial Officer Pursuant to 18 U.S.C. §1350 and §906 of the Sarbanes-Oxley Act of 2002.

(1) Previously filed as an exhibit to our Registration Statement on Form 10-SB filed with the Commission on February 22, 2000, and incorporated herein by reference.

(2) Previously filed as an exhibit to our Registration Statement on Form SB-2 filed with the Commission on January 22, 2003, and incorporated herein by reference.

SIGNATURES

In accordance with the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

April 2, 2019	Flexible Solutions International, Inc.
	By:	/s/ Daniel B. O’Brien
	Name:	Daniel B. O’Brien
	Title:	President and Chief Executive Officer

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:

Signature	Title	Date
/s/ Daniel B. O’Brien	President, Principal Executive Officer, Principal Financial and Accounting Officer and a Director	April 2, 2019
Daniel B. O’Brien
/s/ John H. Bientjes	Director	April 2, 2019
John H. Bientjes
/s/ Robert T. Helina	Director	April 2, 2019
Robert T. Helina
/s/ Thomas Fyles	Director	April 2, 2019
Thomas Fyles
/s/ Ben Seaman	Director	April 2, 2019
Ben Seaman
/s/ David Fynn	Director	April 2, 2019
David Fynn

EX-23.1

Exhibit 23.1

 

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We have issued our Auditors’ report, dated March 31, 2019, accompanying the audited consolidated financial statements for the years ended December 31, 2018 and 2017 of Flexible Solutions International, Inc. We hereby consent to the incorporation by reference of such report in the Company’s registration statements on Form S-8 (File No’s.333-139815 and 333-176556).

Vancouver, Canada	Chartered Professional Accountants
March 31, 2019

 

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Daniel B. O’Brien, certify that:

1. I have reviewed this annual report on Form 10-K/A of Flexible Solutions International, Inc.;

2. Based on my knowledge, this report, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by the report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 2, 2019	/s/ Daniel B. O’Brien
	Daniel B. O’Brien
	Principal Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, Daniel B. O’Brien, certify that:

1. I have reviewed this annual report on Form 10-K/A of Flexible Solutions International, Inc.;

2. Based on my knowledge, this report, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by the report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 2, 2019	/s/ Daniel B. O’Brien
	Daniel B. O’Brien
	Principal Financial Officer

EX-32.1

EXHIBIT 32.1

CertificatION of Principal Executive Officer
Pursuant to 18 U.S.C. Section 1350,
as Adopted Pursuant to Section 906 of

the Sarbanes-Oxley Act of 2002

Solely for the purposes of complying with 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, the undersigned Principal Executive and Financial Officer of Flexible Solutions International, Inc. (the “Company”), hereby certify that, to the best of my knowledge, the Annual Report on Form 10-K of the Company for the year ended December 31, 2018 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: April 2, 2019	/s/ Daniel B. O’Brien
	Daniel B. O’Brien
	Principal Executive and Principal Financial Officer

XML

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Mar. 30, 2019	Jun. 30, 2018
Document And Entity Information
Entity Registrant Name	FLEXIBLE SOLUTIONS INTERNATIONAL INC
Entity Central Index Key	0001069394
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Public Float			$ 11,946,764
Entity Common Stock, Shares Outstanding		11,711,657
Trading Symbol	FSI
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2018

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Consolidated Balance Sheets - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Current
Cash and cash equivalents	$ 7,857,936	$ 6,912,138
Accounts receivable (see Note 4)	4,422,745	2,105,471
Inventories (see Note 5)	8,727,709	4,686,852
Prepaid expenses	200,306	255,080
Total current assets	21,208,696	13,959,541
Property, equipment and leaseholds, net (see Note 6)	2,563,261	1,938,509
Patents (see Note 7)	63,014	79,452
Intangible assets (Note 8)	3,128,000
Long term deposits (see Note 9)	30,777	18,531
Investments (Note 10)	776,357	13,414
Goodwill (Note 8)	2,534,275
Deferred tax asset (Note 14)	891,735	1,763,923
Total Assets	31,196,115	17,773,370
Current
Accounts payable and accrued liabilities	1,050,673	939,116
Deferred revenue	127,168	208,608
Income taxes payable	1,357,299	1,101,596
Short term line of credit (Note 11)	2,798,131	250,000
Current portion of long term debt (Note 12)	771,359	201,193
Total current liabilities	6,104,630	2,700,513
Convertible note payable (Note 13)	1,000,000
Deferred income tax liability (Note 14)	989,569
Long term debt (Note 12)	3,580,384	150,896
Total liabilities	11,674,583	2,851,409
Stockholders' Equity
Capital stock (see Note 17) Authorized 50,000,000 common shares with a par value of $0.001 each 1,000,000 preferred shares with a par value of $0.01 each Issued and outstanding: 11,699,657 (2017: 11,597,991) common shares	11,700	11,598
Capital in excess of par value	15,328,285	15,114,835
Other comprehensive loss	(1,222,573)	(656,093)
Accumulated earnings	2,941,889	451,621
Total stockholders' equity - controlling interest	17,059,301	14,921,961
Non controlling interests (Note 18)	2,462,231
Total Stockholders' Equity	19,521,532	14,921,961
Total Liabilities and Stockholders' Equity	31,196,115	17,773,370
Commitments and Subsequent events (See Notes 20 and 21)

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, shares authorized	50,000,000	50,000,000
Common stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	11,699,657	11,597,991
Common stock, shares outstanding	11,699,657	11,597,991

XML

Consolidated Statements of Income and Comprehensive Income - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Sales	$ 17,829,518	$ 15,494,325
Cost of sales	12,192,684	9,508,827
Gross profit	5,636,834	5,985,498
Operating Expenses
Wages	1,729,467	1,647,780
Administrative salaries and benefits	1,082,991	1,007,850
Advertising and promotion	68,492	18,257
Investor relations and transfer agent fee	132,694	152,362
Office and miscellaneous	247,424	238,195
Insurance	312,275	285,418
Interest expense	93,653	44,125
Rent	249,051	241,286
Consulting	186,847	133,949
Professional fees	282,654	222,743
Travel	137,902	137,392
Telecommunications	32,315	26,071
Shipping	19,790	19,624
Research	135,930	98,928
Commissions	46,993	112,678
Bad debt expense		1,191
Currency exchange	(445,443)	64,870
Utilities	16,775	21,339
Total operating expenses	4,329,810	4,474,058
Operating income	1,307,024	1,511,440
Gain on involuntary disposition (net of tax) (Note 6)	1,714,261	2,043,614
Write down of inventory		(51,346)
Loss on investment	(3,281)	(84,066)
Interest income	36,843	913
Income before income tax	3,054,847	3,420,555
Income taxes (Note 14)
Deferred income tax expense	100,000	(985,495)
Income tax expense	(533,130)	(680,319)
Net income for the year including non-controlling interests	2,421,717	1,754,741
Less: Net (loss) income attributable to non-controlling interests	(68,551)
Net income attributable to controlling interest	2,490,268	1,754,741
Other comprehensive income (loss)	(566,480)	431,115
Comprehensive income	$ 2,023,788	$ 2,185,856
Income per share (basic and diluted) (Note 15)	$ 0.21	$ 0.15
Weighted average number of common shares (basic)	11,630,136	11,485,580
Weighted average number of common shares (diluted)	11,816,054	11,725,482

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Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Operating activities
Net income	$ 2,490,268	$ 1,754,741
Adjustments to reconcile net income to net cash:
Stock based compensation	111,192	116,092
Depreciation and amortization	342,561	286,616
Loss on investment	3,281	84,066
Decrease in deferred tax asset	100,000	985,495
Write down of inventory		(51,346)
Gain on involuntary disposition	(1,714,261)	(2,043,614)
Changes in non-cash working capital items:
(Increase) Decrease in accounts receivable	(1,048,290)	912,056
(Increase) Decrease in inventories	(2,185,462)	(887,339)
(Increase) Decrease in prepaid expenses	53,275	(23,758)
Increase (Decrease) in accounts payable and accrued liabilities	(351,508)	(407,555)
Increase (Decrease) in taxes payable	243,276	207,729
Increase (Decrease) deferred revenue	(205,936)	109,242
Cash (used in) provided by operating activities	(2,161,604)	1,042,425
Investing activities
Long term deposits	(1,246)	7,980
Investment	(700,000)
Proceeds of equity investment distributions	27,813	25,000
Proceed from insurance	2,407,325	3,366,889
Acquisition of EnP Investments LLC	(4,110,560)
Net purchase of property, equipment and leaseholds	(180,830)	(426,480)
Cash (used in) provided by investing activities	(2,557,498)	2,973,389
Financing activities
Draw from short term line of credit	2,462,346
Loans	3,792,734	(201,193)
Partnership distribution	(299,135)
Proceeds of issuance of common stock	102,360	156,020
Cash proved by (used in) financing activities	(6,128,305)	(45,173)
Effect of exchange rate changes on cash	(463,405)	471,430
Inflow (outflow) of cash	945,798	4,442,072
Cash and cash equivalents, beginning	6,912,138	2,470,066
Cash and cash equivalents, ending	7,857,936	6,912,138
Supplemental disclosure of cash flow information:
Income taxes paid	288,653	833,766
Interest paid	$ 94,775	$ 43,003

XML

Consolidated Statements of Stockholders' Equity - USD ($)	Common Stock [Member]	Capital in Excess of Par Value [Member]	Accumulated Earnings (Deficiency) [Member]	Other Comprehensive Income (Loss) [Member]	Total	Non-Controlling Interest [Member]	Total Stockholders' Equity [Member]
Beginning Balance at Dec. 31, 2016	$ 11,458	$ 4,842,863	$ (1,303,120)	$ (1,087,208)	$ 12,463,993		$ 12,463,993
Beginning Balance, shares at Dec. 31, 2016	11,457,991
Translation adjustment				431,115	431,115		431,115
Net income (loss)			1,754,741		1,754,741		1,754,741
Comprehensive income					2,185,856		2,185,856
Common stock issued	$ 140	155,880			156,020		156,020
Common Stock Issued, shares	140,000
Stock-based compensation		116,092			116,092		116,092
Ending Balance at Dec. 31, 2017	$ 11,598	15,114,835	451,621	(656,093)	14,921,961		14,921,961
Ending Balance, shares at Dec. 31, 2017	11,597,991
Translation adjustment				(566,480)	(566,480)		(566,480)
Net income (loss)			2,490,268		2,490,268	(68,551)	2,421,717
Common stock issued	$ 102	102,258			102,360		102,360
Common Stock Issued, shares	101,666
Stock-based compensation		111,192			111,192		111,192
Acquisition of EnP Investments LLC						2,759,917	2,759,817
Distribution to noncontrolling interests						(229,135)	(229,135)
Ending Balance at Dec. 31, 2018	$ 11,700	$ 15,328,285	$ 2,941,889	$ (1,222,573)	$ 17,059,301	$ 2,462,231	$ 19,521,532
Ending Balance, shares at Dec. 31, 2018	11,699,657

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Basis of Presentation

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

1. Basis of Presentation.

These consolidated financial statements include the accounts of Flexible Solutions International, Inc. (the “Company”), its wholly-owned subsidiaries Flexible Fermentation Ltd. (“Flexible Ltd.”), NanoChem Solutions Inc. (“NanoChem”), Flexible Solutions Ltd., Flexible Biomass LP, FS Biomass Inc., NCS Deferred Corp., Conserve H2O Ltd. and Natural Chem SEZC Ltd, and its 65% interest in EnP Investments, LLC (“ENP Investments”). All inter-company balances and transactions have been eliminated. The Company was incorporated May 12, 1998 in the State of Nevada and had no operations until June 30, 1998.

In 2018, NanoChem, a wholly-owned subsidiary of the Company, completed the purchase of 65% of the units of ownership interest in EnP Investments for an aggregate purchase price of $5,110,560. An unrelated party owns the remaining 35% of the units of ownership interest in EnP Investments, and EnP Investments is consolidated into the financial statements. The outside investor’s units of ownership interests in EnP Investments were included in noncontrolling interests in these consolidated financial statements from the acquisition date onward.

Flexible Solutions International, Inc. and its subsidiaries develop, manufacture and market specialty chemicals which slow the evaporation of water. One product, HEATSAVR®, is marketed for use in swimming pools and spas where its use, by slowing the evaporation of water, allows the water to retain a higher temperature for a longer period of time and thereby reduces the energy required to maintain the desired temperature of the water in the pool. Another product, WATERSAVR®, is marketed for water conservation in irrigation canals, aquaculture, and reservoirs where its use slows water loss due to evaporation. In addition to the water conservation products, the Company also manufactures and markets water-soluble chemicals utilizing thermal polyaspartate biopolymers (hereinafter referred to as “TPAs”), which are beta-proteins manufactured from the common biological amino acid, L-aspartic. TPAs can be formulated to prevent corrosion and scaling in water piping within the petroleum, chemical, utility and mining industries. TPAs are also used as proteins to enhance fertilizers in improving crop yields and can be used as additives for household laundry detergents, consumer care products and pesticides.

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Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Significant Accounting Policies

2. Significant Accounting Policies.

These consolidated financial statements have been prepared on a historical cost basis, except where otherwise noted, in accordance with accounting principles generally accepted in the United States applicable to a going concern and reflect the policies outlined below.

(a) Cash and Cash Equivalents.

The Company considers all highly liquid investments purchased with an original or remaining maturity of less than three months at the date of purchase to be cash equivalents. Cash and cash equivalents are maintained with several financial institutions.

(b) Inventories and Cost of Sales

The Company has three major classes of inventory: completed goods, work in progress and raw materials and supplies. In all classes, inventories are stated at the lower of cost and net realizable value. Cost is determined on a first-in, first-out basis. Cost of sales includes all expenditures incurred in bringing the goods to the point of sale. Inventory costs and costs of sales include direct costs of the raw material, inbound freight charges, warehousing costs, handling costs (receiving and purchasing) and utilities and overhead expenses related to the Company’s manufacturing and processing facilities.

(c) Allowance for Doubtful Accounts

The Company provides an allowance for doubtful accounts when management estimates collectability to be uncertain. Accounts receivable are continually reviewed to determine which, if any, accounts are doubtful of collection. In making the determination of the appropriate allowance amount, the Company considers current economic and industry conditions, relationships with each significant customer, overall customer credit-worthiness and historical experience.

(d) Property, Equipment, Leaseholds and Intangible Assets

.

The following assets are recorded at cost and depreciated using the methods and annual rates shown below:

Computer hardware	30% Declining balance
Furniture and fixtures	20% Declining balance
Manufacturing equipment	20% Declining balance
Office equipment	20% Declining balance
Boat	20% Declining balance
Building and improvements	10% Declining balance
Trailer	30% Declining balance
Patents	Straight-line over 17 years
Technology	Straight-line over 10 years
Leasehold improvements	Straight-line over lease term

Property and equipment are written down to net realizable value when management determines there has been a change in circumstances which indicates their carrying amounts may not be recoverable. No write-downs have been necessary to date.

(e) Impairment of Long-Lived Assets.

In accordance with FASB Codification Topic 360, “Property, Plant and Equipment (ASC 360), the Company reviews long-lived assets, including, but not limited to, property, equipment and leaseholds, patents and other assets, for impairment annually or whenever events or changes in circumstances indicate the carrying amounts of assets may not be recoverable. The carrying value of long-lived assets is assessed for impairment by evaluating operating performance and future undiscounted cash flows of the underlying assets. If the expected future cash flows of an asset is less than its carrying value, an impairment measurement is indicated. Impairment charges are recorded to the extent that an asset’s carrying value exceeds its fair value. Accordingly, actual results could vary significantly from such estimates. There were no impairment charges during the periods presented.

(f) Foreign Currency.

The functional currency of the Company is the U.S. Dollar. The functional currency of three of the Company’s subsidiaries is the Canadian Dollar. The translation of the Canadian Dollar to the reporting currency of the Company, the U.S. Dollar, is performed for assets and liabilities using exchange rates in effect at the balance sheet date. Revenue and expense transactions are translated using average exchange rates prevailing during the year. Translation adjustments arising on conversion of the Company’s financial statements from the subsidiary’s functional currency, Canadian Dollars, into the reporting currency, U.S. Dollars, are excluded from the determination of income (loss) and are disclosed as other comprehensive income in the consolidated statements of income and comprehensive income.

Foreign exchange gains and losses relating to transactions not denominated in the applicable local currency are included in operating income (loss) if realized during the year and in comprehensive income (loss) if they remain unrealized at the end of the year.

(g) Revenue Recognition.

We follow a five-step model for revenue recognition. The five steps are: (1) identification of the contract(s) with the customer, (2) identification of the performance obligation(s) in the contract(s), (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligation, and (5) recognition of revenue when (or as) the performance obligation is satisfied. We have fulfilled our performance obligations when control transfers to the customer, which is generally at the time the product is shipped since risk of loss is transferred to the purchaser upon delivery to the carrier. For shipments which are F.O.B. shipping point, the Company has elected to account for shipping and handling activities as a fulfillment cost rather than as an additional promised service and performance obligation.

The Company recognizes revenue when there are no significant remaining performance obligations. When significant post-delivery obligations exist, revenue is deferred until such obligations are fulfilled. To date, there have been no such significant post-delivery obligations.

Since the Company’s inception, product returns have been insignificant; therefore, no provision has been established for estimated product returns.

Deferred revenues consist of products sold to distributors with payment terms greater than the Company’s customary business terms due to lack of credit history or operating in a new market in which the Company has no prior experience. The Company defers the recognition of revenue until the criteria for revenue recognition has been met, and payments become due or cash is received from these distributors.

(h) Stock Issued in Exchange for Services.

The Company’s common stock issued in exchange for services is valued at estimated fair market value based upon trading prices of the Company’s common stock on the dates of the stock transactions. The corresponding expense of the services rendered is recognized over the period that the services are performed.

(i) Stock-based Compensation.

The Company recognizes compensation expense for all share-based payments in accordance with FASB Codification Topic 718, Compensation — Stock Compensation, (ASC 718). Under the fair value recognition provisions of ASC 718, the Company recognizes share-based compensation expense, net of an estimated forfeiture rate, over the requisite service period of the award.

The fair value at grant date of stock options is estimated using the Black-Scholes option-pricing model. Compensation expense is recognized on a straight-line basis over the stock option vesting period based on the estimated number of stock options that are expected to vest. Shares are issued from treasury upon exercise of stock options.

(j) Comprehensive Income.

Other comprehensive income refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income, but are excluded from net income as these amounts are recorded directly as an adjustment to stockholders’ equity. The Company’s other comprehensive income is primarily comprised of unrealized foreign exchange gains and losses.

(k) Income Per Share.

Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding in the period. Diluted earnings per share are calculated giving effect to the potential dilution of the exercise of options and warrants. Common equivalent shares, composed of incremental common shares issuable upon the exercise of stock options and warrants are included in diluted net income per share to the extent that these shares are dilutive. Common equivalent shares that have an anti-dilutive effect on net income per share have been excluded from the calculation of diluted weighted average shares outstanding for the years ended December 31, 2018 and 2017.

(l) Use of Estimates.

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and would impact the results of operations and cash flows.

Estimates and underlying assumptions are reviewed at each period end. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

Significant areas requiring the use of management estimates include assumptions and estimates relating to the valuation of goodwill and intangible assets, asset impairment analysis, share-based payments and warrants, valuation allowances for deferred income tax assets, determination of useful lives of property, equipment and leaseholds, and the valuation of inventory.

(m) Financial Instruments.

The fair market value of the Company’s financial instruments comprising cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and short term line of credit were estimated to approximate their carrying values due to immediate or short-term maturity of these financial instruments.

(n) Fair Value of Financial Instruments

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs described below, of which the first two are considered observable and the last unobservable, that may be used to measure fair value.

● Level 1 – Quoted prices in active markets for identical assets or liabilities

● Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

● Level 3 — Unobservable inputs that are supported by little or no market activity which is significant to the fair value of the assets or liabilities.

The fair values of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities and the short term line of credit for all periods presented approximate their respective carrying amounts due to the short term nature of these financial instruments.

(o) Contingencies

Certain conditions may exist as of the date the financial statements are issued which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Legal fees associated with loss contingencies are expensed as incurred.

(p) Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance so that the assets are recognized only to the extent that when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will be realized.

Per FASB ASC 740 “Income taxes” under the liability method, it is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At December 31, 2018, the Company believes it has appropriately accounted for any unrecognized tax benefits. To the extent the Company prevails in matters for which a liability for an unrecognized benefit is established or is required to pay amounts in excess of the liability, the Company’s effective tax rate in a given financial statement period may be affected. Interest and penalties associated with the Company’s tax positions are recorded as interest expense in the consolidated statements of income and comprehensive income.

(q) Risk Management.

The Company’s credit risk is primarily attributable to its accounts receivable. The amounts presented in the accompanying consolidated balance sheets are net of allowances for doubtful accounts, estimated by the Company’s management based on prior experience and the current economic environment. The Company is exposed to credit-related losses in the event of non-payment by customers. Credit exposure is minimized by dealing with only credit worthy counterparties. Accounts receivable for the Company’s three primary customers totaled $1,280,406 (31%) at December 31, 2018 (December 31, 2017 - $1,247,374 or 59%).

The credit risk on cash and cash equivalents is limited because the Company limits its exposure to credit loss by placing its cash and cash equivalents with major financial institutions. The Company maintains cash balances at financial institutions which at times exceed federally insured amounts. The Company has not experienced any material losses in such accounts.

The Company is exposed to foreign exchange and interest rate risk to the extent that market value rate fluctuations materially differ from financial assets and liabilities, subject to fixed long-term rates.

In order to manage its exposure to foreign exchange risks, the Company is closely monitoring the fluctuations in the foreign currency exchange rates and the impact on the value of cash and cash equivalents, accounts receivable, and accounts payable and accrued liabilities. The Company has not hedged its exposure to currency fluctuations.

(r) Equity Method Investment

The Company accounts for investments using the equity method of accounting if the investment provides the Company the ability to exercise significant influence, but not control, over the investee. Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between 20% and 50%, although other factors, such as representation on the investee’s board of directors, are considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the investment is recorded at cost in the consolidated balance sheets under other assets and adjusted for dividends received and the Company’s share of the investee’s earnings or losses together with other-than-temporary impairments which are recorded through interest and other loss, net in the consolidated statements of income and comprehensive income.

(s) Goodwill and intangible assets

Goodwill represents the excess of the purchase price of an acquired entity over the amounts assigned to the assets acquired and liabilities assumed. Goodwill is not amortized, but is reviewed for impairment annually or more frequently if certain impairment conditions arise. The Company performs an annual goodwill impairment review in the fourth quarter of each year at the reporting unit level. The evaluation can begin with a qualitative assessment of the factors that could impact the significant inputs used to estimate fair value. If after performing the qualitative assessment, it is determined that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, then no further analysis is necessary. However, if the results of the qualitative test are unclear, the Company performs a quantitative test, which involves comparing the fair value of a reporting unit with its carrying amount, including goodwill. The Company uses an income-based valuation method, determining the present value of future cash flows, to estimate the fair value of a reporting unit. If the fair value of a reporting unit exceeds its positive carrying amount, goodwill of the reporting unit is considered not impaired, and no further analysis is necessary. If the fair value of the reporting unit is less than its carrying amount, goodwill impairment would be recognized equal to the amount of the carrying value in excess of the reporting unit’s fair value, limited to the total amount of goodwill allocated to the reporting unit.

Intangible assets primarily include trademarks and trade secrets with indefinite lives and customer-relationships with finite lives. Intangible assets with indefinite lives are not amortized but are tested for impairment on an annual basis, or more frequently if indicators of impairment are present. Indefinite lived intangible assets are assessed using either a qualitative or a quantitative approach. The qualitative assessment evaluates factors including macro-economic conditions, industry and company-specific factors, legal and regulatory environments, and historical company performance are evaluated in assessing fair value. If it is determined that it is more likely than not that the fair value of the reporting unit is less than its carrying value, a quantitative test is then performed. Otherwise, no further testing is required. When using a quantitative approach, the Company compares the fair value of the reporting unit to its carrying amount, including goodwill. If the estimated fair value of the reporting unit is less than the carrying amount of the reporting unit, impairment is indicated, requiring recognition of an impairment charge for the differential.

Qualitative assessments of goodwill and indefinite-lived intangible assets were performed in 2018 and 2017. Based on the results of assessment, it was determined that it is more likely than not the reporting unit, customer lists and trademarks had a fair value in excess of carrying value. Accordingly, no further impairment testing was completed and no impairment charges related to goodwill or indefinite-lived intangibles were recognized during the fiscal period ended December 31, 2018.

Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company reviews for impairment indicators of finite-lived intangibles and other long-lived assets as described in the “Property and Equipment” significant accounting policy.

(t) Adoption of new accounting principles

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which has been updated through several revisions and clarifications since its original issuance and supersedes the revenue recognition requirements in Accounting Standards Codification (ASC) Topic 605, Revenue Recognition. The standard requires revenue recognized to represent the transfer of promised goods or services to customers at an amount that reflects the consideration which a company expects to receive in exchange for those goods or services. The standard also requires new, expanded disclosures regarding revenue recognition. The standard was adopted for the current year and had no material effect on the consolidated financial statements.

On January 1, 2018, the Company adopted ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities, which changes the income statement impact of equity investments held by an entity. The amendments require the unrealized gains or unrealized losses of equity instruments measured at fair value to be recognized in net income. Our adoption of this ASU had no material effect on the consolidated financial statements.

(u) Accounting Pronouncements Not Yet Adopted

In February 2016, the FASB issued ASU 2016-02, Leases. The standard will require lessees to recognize most leases on their balance sheet and makes selected changes to lessor accounting. The standard is effective for annual and interim reporting periods beginning after December 15, 2018. A modified retrospective transition approach is required, with certain practical expedients available. We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements.

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Acquisition

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Acquisition

3. Acquisition

Effective October 1, 2018, the Company, through its NanoChem Solutions Inc. subsidiary, entered into an agreement to purchase 65% of EnP Investments LLC.

Total consideration paid of $5,110,560 was paid through a combination of $10,560 cash on hand, $4,100,000 in debt financing provided by Harris Bank (see Note 12b) and a $1,000,000 convertible note payable. The convertible note is due on or before September 30, 2023 with 5% interest due per year. At the option of the holder, the Note may be converted to 400,000 shares of the Company’s common stock. The Company has the option to extend the note to no later than September 30, 2028.

The following table summarizes the final purchase price allocation of the consideration paid to the respective fair values of the assets acquired and liabilities assumed in EnP Investments LLC as of the effective date. The Company finalized its estimates after it was able to determine that is had obtained all necessary information that existed as of the acquisition date related to these matters.

Cash paid	$	4,110,560
Convertible note		1,000,000
Total consideration	$	5,110,560
Assets acquired:
Accounts receivable	$	1,071,078
Note receivable		60,000
Prepaid expenses		105,473
Inventory		1,867,137
Investments		84,943
Equipment		740,000
Intangible assets		3,168,000
Liabilities assumed:
Account payable		520,164
Loans payable		292,706
Deferred income taxes		989,569
Total identifiable net assets		5,294,192
Non-controlling interest		2,759,917
Goodwill	$	2,534,275

In connection with the 65% purchase of EnP Investments LLC, the Company incurred bank appraisal fees of $7,038 which was recorded as general expenses during the year ended December 31, 2018. Goodwill of $2,534,275 is the excess of total consideration less identifiable assets at fair value less debt assumed at fair value. Goodwill is attributable to EnP Investments LLC management, assembled workforce, operating model and completive presence in its respective market.

The operating results of EnP Investments LLC have been included in the consolidated financial statements beginning October 1, 2018.

Unaudited pro forma financial information

The following unaudited pro forma combined financial information presents combined results of the Company and EnP Investments as if the Business Combination had occurred on January 1, 2017.

	2018		2017
Net sales	$	23,152,539	$	23,119,226
Gross profit		8,428,317		12,466,963
Net income	$	4,422,745	$	3,253,679

The pro forma financial information is not intended to represent or be indicative of the actual results of operations of the combined entity that would have been reported had the Business Combination been completed on January 1, 2016, nor is it representative of future operating results of the Company.

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Accounts Receivable

12 Months Ended

Dec. 31, 2018

Receivables [Abstract]

Accounts Receivable

4. Accounts Receivable

	2018			2017
Accounts receivable	$	4,459,834		$	2,145,803
Allowances for doubtful accounts		(37,088	)		(40,332	)
	$	4,422,745		$	2,105,471

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Inventories

12 Months Ended

Dec. 31, 2018

Inventory Disclosure [Abstract]

Inventories

5. Inventories

	2018		2017
Completed goods	$	3,770,071	$	2,530,914
Work in progress		150,333		183,944
Raw materials and supplies		4,807,305		1,971,994
	$	8,727,709	$	4,686,852

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Property, Equipment and Leaseholds

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Property, Equipment and Leaseholds

6. Property, Equipment and Leaseholds

	2018		Accumulated		2018
	Cost		Depreciation		Net
Buildings and improvements	$	3,516,710	$	2,523,148	$	993,562
Automobiles		193,397		74,753		118,644
Computer hardware		43,414		40,226		3,188
Furniture and fixtures		105,494		93,087		12,407
Office equipment		1,740		438		1,302
Manufacturing equipment		3,859,653		2,838,344		1,021,309
Trailer		8,793		3,561		5,232
Boat		34,400		18,548		15,852
Leasehold improvements		88,872		49,937		38,935
Technology		100,136		100,136		—
Land		352,830		—		352,830
	$	8,305,439	$	5,742,178	$	2,563,261

	2017		Accumulated		2017
	Cost		Depreciation		Net
Buildings and improvements	$	3,400,792	$	2,409,179	$	991,613
Computer hardware		40,904		39,398		1,506
Furniture and fixtures		17,673		11,156		6,517
Office equipment		1,480		148		1,332
Manufacturing equipment		2,590,158		2,104,137		486,021
Trailer		9,562		1,434		8,128
Boat		34,400		14,586		19,814
Leasehold improvements		85,432		32,506		52,926
Technology		101,748		101,748		—
Land		370,652		—		370,652
	$	6,652,801	$	4,714,292	$	1,938,509

Amount of depreciation expense for 2018: $326,123 (2017: $270,178) and is included in cost of sales in the consolidated statements of income and comprehensive income.

In February of 2017, the Company lost a net carrying value total of $2,196,722CAD ($1,659,404 USD) in building and manufacturing equipment in a fire at the Taber, AB location. Insurance was in place. During the year ended December 31, 2018 the Company received the final insurance proceeds of $3,132,666 CAD ($2,349,498 USD). During the year ended 2017, the Company received interim insurance proceeds of $5,570,000 CAD ($4,207,578 USD).

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Patents

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Patents

7. Patents

	2018 Cost		Accumulated Amortization		2018 Net
Patents	$	194,320	$	131,306	$	63,014

	2017 Cost		Accumulated Amortization		2017 Net
Patents	$	212,426	$	132,974	$	79,452

Decrease in 2018 cost was due to currency conversion. 2018 cost in Canadian dollars - $265,102 (2017 - $265,102 in Canadian dollars).

Amount of amortization for 2018: $16,438 (2017: $16,438) and is included in cost of sales in the consolidated statements of income and comprehensive income.

Estimated amortization expense over the next four years is as follows:

2019	$	16,438
2020		16,438
2021		16,438
2022		13,700

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Goodwill and Indefinite Lived Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill And Indefinite Lived Intangible Assets

Goodwill and Indefinite Lived Intangible Assets

8. Goodwill and Indefinite Lived Intangible Assets

Goodwill
Balance as of December 31, 2017	-
Additions	2,534,275
Impairment	-
Balance as of December 31, 2018	2,534,275

Indefinite Lived Intangible Assets
Balance as of December 31, 2017	-
Additions	770,000
Impairment	-
Balance as of December 31, 2018	770,000

Indefinite lived intangible assets consist of trade secrets and trademarks related to the acquisition of EnP Investments LLC (note 3).

Definite Life Intangible Assets
Balance as of December 31, 2017	-
Additions	2,398,000
Amortization	(40,000	)
Balance as of December 31, 2018	2,358,000

Definite life intangible assets consists of customer relationships related to the acquisition of EnP Investments LLC (note 3). Customer relationships are amortized over their estimated useful life of 15 years.

Estimated amortization expense over the next five years is as follows:

2019	$	160,000
2020		160,000
2021		160,000
2022		160,000
2023		160,000

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Long Term Deposits

12 Months Ended

Dec. 31, 2018

Long Term Deposits

Long Term Deposits

9. Long Term Deposits

The Company has security deposits that are long term in nature which consist of damage deposits held by landlords and security deposits held by various vendors.

	2018		2017
Long term deposits	$	30,777	$	18,531

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Investments

12 Months Ended

Dec. 31, 2018

Equity Method Investments and Joint Ventures [Abstract]

Investments

10. Investments

(a) The Company has a 50% ownership interest in ENP Peru Investments LLC (“ENP Peru”), which was acquired in fiscal 2016. ENP Peru is located in Illinois and leases warehouse space. The Company accounts for this investment using the equity method of accounting. A summary of the Company’s investment follows:

Balance, January 1, 2017	$	122,480
Return of equity		(25,000	)
Loss in equity method investment		(84,066	)
Balance, December 31, 2017	$	13,414
Acquisition of additional units		25,000
Loss in equity method investment		(26,306	)
Balance, December 31, 2018	$	12,108

(b) The Company has a 24% ownership interest in ENP Realty LLC (“ENP Realty”), which was acquired in fiscal 2018. ENP Realty is located in Illinois and leases warehouse space. The Company accounts for this investment using the equity method of accounting. A summary of the Company’s investment follows:

Balance, January 1, 2018	$	-
Acquisition		56,590
Gain in equity method investment		7,659
Balance, December 31, 2018	$	64,249

(c) In December 2018 the Company invested $200,000 in Applied Holding Corp. (“Applied”). Applied is a captive insurance company and the Company received a promissory note for its investment which becomes due in 2021 but may be extended with notice for a maximum of two years.

(d) In December 2018 the Company invested $500,000 in Trio Opportunity Corp. (“Trio”), a privately held entity. Trio is a real estate investment vehicle and the Company received 50,000 non-voting Class B shares at $10.00/share. In accordance with ASC 321-10-35, the Company has elected to accounts for this investment at cost. A summary of the Company’s investment follows:

Balance, January 1, 2018	$	-
Acquisition		500,000
Impairment		-
Balance, December 31, 2018	$	500,000

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Short-Term Line of Credit

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Short-Term Line of Credit

11. Short-Term Line of Credit

(a) In September 2018, the Company signed a new agreement with Harris Bank (“Harris”) to renew the expiring credit line. The revolving line of credit is for an aggregate amount of up to the lesser of (i) $2,500,000, or (ii) 80% of eligible domestic accounts receivable and certain foreign accounts receivable plus 60% of inventory. The loan has an annual interest rate of 5.75%.

The revolving line of credit contains customary affirmative and negative covenants, including the following: compliance with laws, provision of financial statements and periodic reports, payment of taxes, maintenance of inventory and insurance, maintenance of operating accounts at Harris, Harris’ access to collateral, formation or acquisition of subsidiaries, incurrence of indebtedness, dispositions of assets, granting liens, changes in business, ownership or business locations, engaging in mergers and acquisitions, making investments or distributions and affiliate transactions. The covenants also require that the Company maintain a minimum ratio of qualifying financial assets to the sum of qualifying financial obligations. As of December 31, 2018, Company was in compliance with all loan covenants.

To secure the repayment of any amounts borrowed under the revolving line of credit, the Company granted Harris a security interest in substantially all of the assets of NanoChem Solutions Inc., exclusive of intellectual property assets.

Short-term borrowings outstanding under the revolving line as of December 31, 2018 were $1,700,000 (December 31, 2017 - $250,000).

(b) In February, 2018, EnP Investments, LLC signed a new agreement with Midland States Bank (“Midland”) to renew the expiring credit line. The revolving line of credit is for an aggregate amount of up to $2,500,000. The interest rate of this loan is subject to change from time to time based on changes in an independent index which is the 1 month LIBOR as published in the Wall Street Journal (the “Index”). Interest on the unpaid principal balance of this loan will be calculated using a rate of 4.060 percentage points over the Index. Under no circumstances will the interest rate of this loan be less than 4.000% per annum or more than the maximum rate allowed by applicable law. The interest rate at December 31, 2018 is 6.5296% (December 31, 2017 – 5.5550%).

The revolving line of credit contains customary affirmative and negative covenants, including the following: compliance with laws, provisions of financial statements and periodic reports, payment of taxes, maintenance of inventory and insurance, maintenance of operating accounts at Midland, Midland’s access to collateral, formation of acquisition of subsidiaries, incurrence of indebtedness, dispositions of assets, granting liens, changes in business, ownership or business locations, engaging in mergers and acquisitions, making investments or distributions and affiliate transactions. Advanced Turf Solutions, Inc., a 35% owner of EnP Investments, LLC, is a Guarantor of said loan. As of December 31, 2018, EnP Investments , LLC was in compliance with all loan covenants.

To secure the repayment of any amounts borrowed under the revolving line of Credit, EnP Investments, LLC granted Midland a security interest in all inventory, equipment and fixtures and acknowledges a separate commercial security agreement from guarantor to Midland dated February 15, 2011.

Short-term borrowings outstanding under the revolving line as of December 31, 2018 were $1,098,131 (December 31, 2017 – 1,246,647).

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Long Term Debt

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Long Term Debt

12. Long Term Debt

(a) In September 2014, NanoChem Solutions Inc. signed a $1,005,967 promissory note with Harris Bank with a rate of prime plus 0.5% (December 31, 2018 – 5.75%; December 31, 2017 – 5%) to be repaid over 5 years with equal monthly installments plus interest. This money was used to retire the previously issued and outstanding debt obligations. The balance owing at December 31, 2018 was $150,895 (December 31, 2017 - $352,089). Interest expense for the year ended December 31, 2018 was $13,123 (December 31, 2017 - $44,125). The final payment will be made in September 2019.

The Company has committed to the following repayments:

2019 $ 150,895

(b) In October 2018, NanoChem Solutions Inc. signed a $4,100,000 term loan with Harris Bank with a rate of prime (December 31, 2018 – 5.5%; December 31, 2017 - nil) to be repaid over 7 years with equal monthly installments plus interest along two payments consisting of 25% prior year cash flow recapture, capped at $300,000, due May 31, 2019 and 2020. The money was used to purchase a 65% interest in EnP Investments LLC. The balance owing at December 31, 2018 was $4,002,381.

The Company has committed to the following repayments:

2019	$	585,714
2020	$	585,714
2021	$	585,714
2022	$	585,714
2023	$	585,714

(c) In January, 2018, EnP Investments, LLC signed a $200,000 promissory note with Midland States Bank with a rate of 5.250% to be repaid over 7 years with equal monthly installments plus interest. This money was used to purchase production equipment. Interest expense for the year ended December 31, 2018 was $2,415 (December 31, 2017 - $nil). The principal balance owing at December 31, 2018 is $177,794.

The Company has committed to the following repayments:

2019	$	25,562
2020	$	25,562
2021	$	25,562
2022	$	25,562
2023	$	25,562

(d) In March, 2016, EnP Investments, LLC signed a $45,941 promissory note with Ford Motor Credit Company with a rate of 0.00% interest to be repaid over 5 years with equal monthly installments. The balance owing at December 31, 2018 is $20,673 (December 31, 2017 - $29,861).

The Company has committed to the following repayments:

2019	$	9,188
2020	$	9,188
2021	$	2,297

As of December 31, 2018, Company was in compliance with all loan covenants.

Continuity	2018			2017
Balance, January 1	$	352,089			553,282
Plus: Proceeds from loans		4,100,000			-
Plus: Acquisition of ENP (see Note 3)		206,921
Less: Payments on loan		(307,267	)		(201,193	)
Balance, December 31	$	4,351,743		$	352,089

Outstanding balance at December 31,	2018			2017
a) Long term debt – Harris Bank	$	150,895		$	352,089
b) Long term debt – Harris Bank		4,002,381			-
c) Long term debt – Midland States Bank		177,794			-
d) Long term debt – Ford Credit		20,673			-
Long-term Debt	$	4,351,743		$	352,089
Less: current portion		(771,359	)		(201,194	)
	$	3,580,384		$	150,895

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Convertible Note Payable

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Convertible Note Payable

13. Convertible Note Payable

In October 2018, the Company issued a convertible note payable in the amount of $1,000,000 to EnP Investments LLC in connection with the acquisition of EnP Investments LLC (note 3). The note is carried at fair value, considering the fair value of the equity conversion feature and the fair value of the debt component. The convertible note is due on or before September 30, 2023 with 5% interest due per year. At the option of the holder, the Note may be converted to 400,000 shares in Flexible Solutions International Inc. The Company has the option to extend the note to no later than September 30, 2028.

Carrying amount of equity component	$	277,600
Principal amount of liability component		722,400
Balance, December 31, 2018	$	1,000,000

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Income Tax

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Tax

14. Income Tax

The provision for income tax expense (benefit) is comprised of the following:

	2018			2017
Current tax, federal	$	547,486		$	547,486
Current tax, state		132,833			132,833
Current tax, foreign		-			-
Current tax, total		680,319			680,319
Deferred income tax, federal		(11,069	)		(11,069	)
Deferred income tax, state		(2,686	)		(2,686	)
Deferred income tax, foreign		385,639			385,639
Deferred income tax, total		371,884			371,884
Total	$	1,052,203		$	1,052,203

The following table reconciles the income tax benefit at the U.S. Federal statutory rate to income tax benefit at the Company's effective tax rates.

	2018			2017
Income (loss) before tax, net of tax from gain on involuntary disposition		3,054,847			3,420,556
Tax from gain on involuntary disposition		693,063			(613,611	)
Income (loss) before taxes		3,747,910			2,806,945
US statutory tax rates		28.51	%		39.69	%
Expected income tax (recovery)		1,068,342			1,114,147
Non-deductible items		627,995			520,665
Change in estimates		61,361			(91,632	)
Change in enacted tax rate		-			189,626
Option expired during the year		5,191			21,640
Foreign tax rate difference		(396,514	)		(662,381	)
Change in valuation allowance		(36,119	)		(39,863	)
Total income taxes (recovery)		1,061,609			1,052,203
Current income tax expenses (recovery)		533,130			680,318
Deferred tax expenses (recovery)		797,126			371,884
Total income taxes (recovery)		1,061,609			1,052,203

Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes. Deferred tax assets (liabilities) at December 31, 2018 and 2017 are comprised of the following:

	2018			2017
Canada
Non capital loss carryforwards		556,462			1,378,242
Patents		63,998			69,597
Fixed assets		(350	)		-
Financial instruments		-			-
		620,110			1,447,839
Valuation Allowance		-			-
Net Deferred tax asset (liability)		620,110			1,447,839

	2018		2017
USA
Fixed Assets	247,665		351,746
Intangible assets	(989,569	)	-
Stock-Based Compensation	173,739		154,023
	(568,165	)	505,768
Deferred tax asset not recognized	153,565		189,684
Net Deferred tax asset	(721,730	)	316,084

The Company has non-operating loss carryforwards of approximately $2,060,971 (2017 - $5,097,682) which may be carried forward to apply against future year income tax for Canadian income tax purposes, subject to the final determination by taxation authorities, expiring in the following years:

Expiry	Loss
2032		401,480
2037		1,659,491
Total		2,060,971

As at December 31, 2018, the Company has no net operating losses carryforward available for US tax purposes.

Accounting for Uncertainty for Income Tax

Effective January 1, 2009, the Company adopted the interpretation for accounting for uncertainty in income taxes which was an interpretation of the accounting standard accounting for income taxes. This interpretation created a single model to address accounting for uncertainty in tax positions. This interpretation clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements.

As at December 31, 2018 and 2017, the Company’s consolidated balance sheets did not reflect a liability for uncertain tax positions, nor any accrued penalties or interest associated with income tax uncertainties. The Company has no income tax examinations in progress.

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Income Per Share

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Income Per Share

15. INCOME PER SHARE

We present both basic and diluted income per share on the face of our consolidated statements of operations. Basic and diluted income per share are calculated as follows:

	2018		2017
Net income (loss)	$	2,490,268	$	1,754,741
Weighted average common shares outstanding:
Basic		11,630,136		11,485,580
Diluted		11,816,054		11,725,482
Net income (loss) per common share:
Basic and diluted	$	0.21	$	0.15

Certain stock options whose terms and conditions are described in Note 16, “Stock Options” could potentially dilute basic EPS in the future, but were not included in the computation of diluted EPS because to do so would have been anti-dilutive. Those anti-dilutive options are as follows.

	2018		2017
Anti-dilutive options		261,000		nil

There were no preferred shares issued and outstanding during the years ended December 31, 2018 or 2017.

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Stock Options

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Options

16. STOCK OPTIONS.

The Company adopted a stock option plan (“Plan”). The purpose of this Plan is to provide additional incentives to key employees, officers, directors and consultants of the Company and its subsidiaries in order to help attract and retain the best available personnel for positions of responsibility and otherwise promote the success of the Company’s business. It is intended that options issued under this Plan constitute non-qualified stock options. The general terms of awards under the option plan are that 100% of the options granted will vest the year following the grant. The maximum term of options granted is 5 years.

The Company may issue stock options and stock bonuses for shares of its common stock to provide incentives to directors, key employees and other persons who contribute to the success of the Company. The exercise price of all incentive options are issued for not less than fair market value at the date of grant.

The following table summarizes the Company’s stock option activity for the years ended December 31, 2018 and 2017:

	Number of shares			Exercise price per share		Weighted average exercise price
Balance, December 31, 2016		813,000		$	0.75 - $2.22	$	1.19
Granted		154,000		$	1.70	$	1.70
Cancelled or expired		(114,000	)	$	1.00 – 2.22	$	1.75
Exercised		(140,000	)	$	0.75 – 1.21	$	1.11
Balance, December 31, 2017		713,000		$	0.75 – 1.70	$	1.21
Granted		110,000		$	1.48 – 1.75	$	1.74
Cancelled or expired		(61,334	)	$	1.00 – 1.70	$	1.09
Exercised		(101,666	)	$	0.75 – 1.42	$	1.01
Balance, December 31, 2018		660,000		$	0.75 – 1.75	$	1.35
Exercisable, December 31, 2018		555,000		$	0.75 – 1.70	$	1.27

The weighted-average remaining contractual life of outstanding options is 3.04 years.

The fair value of each option grant is calculated using the following weighted average assumptions:

	2018			2017
Expected life – years		3.0			3.0
Interest rate		2.8 – 2.96	%		2.23	%
Volatility		47.77 – 51.85	%		73.09	%
Dividend yield		—	%		—	%
Weighted average fair value of options granted	$	0.4759 – 0.6313		$	0.8344

During the year ended December 31, 2018, the Company granted 100,000 (2017 – 40,000) stock options to consultants and has applied ASC 718 using the Black-Scholes option-pricing model, which resulted in additional expenses of $5,747 (2017 - $6,675). Options granted in other years resulted in additional expenses of $26,701 (2017 – $22,634). During the year ended December 31, 2018, employees were granted 10,000 (2017 – 114,000) stock options, which resulted in additional expenses of $5,150 (2017 – $19,024). Options granted in other years resulted in additional expenses in the amount of $73,594 for employees during the year ended December 31, 2018 (2017 - $67,759). There were 60,000 employee and 41,666 consultant stock options exercised during the year ended December 31, 2018 (2017 – 110,000 employee; 30,000 consultant).

As of December 31, 2018, there was approximately $57,383 of compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted average period of 4.75 years.

The aggregate intrinsic value of vested options outstanding at December 31, 2018 is $43,190 (2017 – $413,410).

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Capital Stock

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Capital Stock

17. CAPITAL STOCK.

During the year ended December 31, 2018, the Company issued 60,000 shares upon the exercise of employee stock options and 41,666 shares upon the exercise of consultant stock options.

During the year ended December 31, 2017, the Company issued 110,000 shares upon the exercise of employee stock options and 30,000 shares upon the exercise of consultant stock options.

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Non-Controlling Interests

12 Months Ended

Dec. 31, 2018

Non-controlling Interests

Non-Controlling Interests

18. Non-Controlling Interests

EnP Investments is a limited liability corporation (LLC) that manufactures and distributes golf, turf and ornamental agriculture products in Mendota, IL. The Company owns 65% of the units of ownership interest EnP Investments through its wholly-owned subsidiary NanoChem. An unrelated party owns the remaining 35% of the units of ownership interest in EnP Investments. For financial reporting purposes, the assets, liabilities and earnings of the LLC are consolidated into these financial statements. The unrelated third party’s units of ownership interest in the LLC are recorded in noncontrolling interests in these consolidated financial statements. The noncontrolling interest represents the noncontrolling unitholder’s interest in the earnings and equity of EnP Investments. Effective October 1, 2018, the Company paid $4,110,560 in cash and issued a $1,000,000 convertible note (see Note 3) to acquire EnP Investments. EnP Investments is allocated to the BCPA segment.

EnP Investments makes cash distributions to the unitholders based on formulas defined within its Ownership Interest Purchase Agreement dated October 1, 2018. Distributions are defined in the Ownership Interest Purchase Agreement as cash on hand to the extent it exceeds current and anticipated long-term and short-term needs, including, without limitation, needs for operating expenses, debt service, acquisitions, reserves, and mandatory distributions, if any.

From the effective date of acquisition onward, the minimum distributions requirements under the Ownership Interest Purchase Agreement were satisfied. The total distribution from the effective date of acquisition onward was $229,135.

Balance, January 1, 2018	$	-
Acquisition		2,759,917
Distribution		(229,135	)
Noncontrolling interest share of loss		(68,551	)
Balance, December 31, 2018	$	2,462,231

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Segmented, Significant Customer Information and Economic Dependency

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segmented, Significant Customer Information and Economic Dependency

19. 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 (“BCPA’s”), also known as TPA’s, 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 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.

Year ended December 31, 2018:

	EWCP		BCPA		Consolidated
Sales	$	314,544	$	17,514,974	$	17,829,518
Interest expense		-		93,653		93,653
Depreciation		50,920		251,641		302,561
Income tax expense		-		533,130		533,130
Segment profit		1,579,464		910,804		2,490,268
Segment assets		505,124		2,121,151		2,626,275
Expenditures for segment assets		15,032		165,798		180,830

Year ended December 31, 2017:

	EWCP		BCPA			Consolidated
Sales	$	641,675	$	14,852,650		$	15,494,325
Interest expense		54		44,071			44,125
Depreciation		62,376		224,240			286,616
Income tax expense		-		680,319			680,319
Segment profit		2,021,289		(266,548	)		1,754,741
Segment assets		580,304		1,437,657			2,017,961
Expenditures for segment assets		287,853		138,628			426,480

Sales by territory are shown below:

	2018		2017
Canada	$	364,847	$	362,362
United States and abroad		17,464,671		15,131,963
Total	$	17,829,518	$	15,494,325

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

	2018		2017
Canada	$	505,124	$	580,304
United States		7,783,426		1,437,657
Total	$	8,288,550	$	2,017,961

Three customers accounted for $6,880,598 (39%) of sales made in 2018 (2017 - $9,157,538 or 59%).

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Commitments

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments

20. COMMITMENTS.

The Company is committed to minimum rental payments for property and premises aggregating approximately $1,121,595 over the term of five leases, the last expiring on September 30, 2023.

Commitments for rent in the next five years are as follows:

2019	$	425,995
2020	$	399,900
2021	$	276,980
2022	$	10,620
2023	$	8,100

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Subsequent Events

12 Months Ended

Dec. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

21. SUBSEQUENT EVENTS.

In January 2019, the Company issued 5,000 shares on the exercise of employee stock options. In February 2019, the Company issued 5,000 shares on the exercise of consultant stock options.

In January 2019, the Company purchased membership in a profitable limited liability company engaged in international sales of fertilizer additives. This purchase will be accounted for as an investment. The price paid was an initial US$ 1 million with two further payments of US$1 million and US$ 1.5 million contingent on the investment reaching EBITDA hurdles in 2019 and 2020 respectively. The purchase was made using cash.

In February 2019, the Company announced the payment of a special dividend to the existing stockholders of the Company as of March 6, 2019 in the amount of five cents per share.

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Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Cash and Cash Equivalents

(a) Cash and Cash Equivalents.

The Company considers all highly liquid investments purchased with an original or remaining maturity of less than three months at the date of purchase to be cash equivalents. Cash and cash equivalents are maintained with several financial institutions.

Inventories and Cost of Sales

(b) Inventories and Cost of Sales

The Company has three major classes of inventory: completed goods, work in progress and raw materials and supplies. In all classes, inventories are stated at the lower of cost and net realizable value. Cost is determined on a first-in, first-out basis. Cost of sales includes all expenditures incurred in bringing the goods to the point of sale. Inventory costs and costs of sales include direct costs of the raw material, inbound freight charges, warehousing costs, handling costs (receiving and purchasing) and utilities and overhead expenses related to the Company’s manufacturing and processing facilities.

Allowance for Doubtful Accounts

(c) Allowance for Doubtful Accounts

The Company provides an allowance for doubtful accounts when management estimates collectability to be uncertain. Accounts receivable are continually reviewed to determine which, if any, accounts are doubtful of collection. In making the determination of the appropriate allowance amount, the Company considers current economic and industry conditions, relationships with each significant customer, overall customer credit-worthiness and historical experience.

Property, Equipment, Leaseholds and Intangible Assets

(d) Property, Equipment, Leaseholds and Intangible Assets

.

The following assets are recorded at cost and depreciated using the methods and annual rates shown below:

Computer hardware	30% Declining balance
Furniture and fixtures	20% Declining balance
Manufacturing equipment	20% Declining balance
Office equipment	20% Declining balance
Boat	20% Declining balance
Building and improvements	10% Declining balance
Trailer	30% Declining balance
Patents	Straight-line over 17 years
Technology	Straight-line over 10 years
Leasehold improvements	Straight-line over lease term

Property and equipment are written down to net realizable value when management determines there has been a change in circumstances which indicates their carrying amounts may not be recoverable. No write-downs have been necessary to date.

Impairment of Long-lived Assets

(e) Impairment of Long-Lived Assets.

In accordance with FASB Codification Topic 360, “Property, Plant and Equipment (ASC 360), the Company reviews long-lived assets, including, but not limited to, property, equipment and leaseholds, patents and other assets, for impairment annually or whenever events or changes in circumstances indicate the carrying amounts of assets may not be recoverable. The carrying value of long-lived assets is assessed for impairment by evaluating operating performance and future undiscounted cash flows of the underlying assets. If the expected future cash flows of an asset is less than its carrying value, an impairment measurement is indicated. Impairment charges are recorded to the extent that an asset’s carrying value exceeds its fair value. Accordingly, actual results could vary significantly from such estimates. There were no impairment charges during the periods presented.

Foreign Currency

(f) Foreign Currency.

The functional currency of the Company is the U.S. Dollar. The functional currency of three of the Company’s subsidiaries is the Canadian Dollar. The translation of the Canadian Dollar to the reporting currency of the Company, the U.S. Dollar, is performed for assets and liabilities using exchange rates in effect at the balance sheet date. Revenue and expense transactions are translated using average exchange rates prevailing during the year. Translation adjustments arising on conversion of the Company’s financial statements from the subsidiary’s functional currency, Canadian Dollars, into the reporting currency, U.S. Dollars, are excluded from the determination of income (loss) and are disclosed as other comprehensive income in the consolidated statements of income and comprehensive income.

Foreign exchange gains and losses relating to transactions not denominated in the applicable local currency are included in operating income (loss) if realized during the year and in comprehensive income (loss) if they remain unrealized at the end of the year.

Revenue Recognition

(g) Revenue Recognition.

We follow a five-step model for revenue recognition. The five steps are: (1) identification of the contract(s) with the customer, (2) identification of the performance obligation(s) in the contract(s), (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligation, and (5) recognition of revenue when (or as) the performance obligation is satisfied. We have fulfilled our performance obligations when control transfers to the customer, which is generally at the time the product is shipped since risk of loss is transferred to the purchaser upon delivery to the carrier. For shipments which are F.O.B. shipping point, the Company has elected to account for shipping and handling activities as a fulfillment cost rather than as an additional promised service and performance obligation.

The Company recognizes revenue when there are no significant remaining performance obligations. When significant post-delivery obligations exist, revenue is deferred until such obligations are fulfilled. To date, there have been no such significant post-delivery obligations.

Since the Company’s inception, product returns have been insignificant; therefore, no provision has been established for estimated product returns.

Deferred revenues consist of products sold to distributors with payment terms greater than the Company’s customary business terms due to lack of credit history or operating in a new market in which the Company has no prior experience. The Company defers the recognition of revenue until the criteria for revenue recognition has been met, and payments become due or cash is received from these distributors.

Stock Issued in Exchange for Services

(h) Stock Issued in Exchange for Services.

The Company’s common stock issued in exchange for services is valued at estimated fair market value based upon trading prices of the Company’s common stock on the dates of the stock transactions. The corresponding expense of the services rendered is recognized over the period that the services are performed.

Stock-based Compensation

(i) Stock-based Compensation.

The Company recognizes compensation expense for all share-based payments in accordance with FASB Codification Topic 718, Compensation — Stock Compensation, (ASC 718). Under the fair value recognition provisions of ASC 718, the Company recognizes share-based compensation expense, net of an estimated forfeiture rate, over the requisite service period of the award.

The fair value at grant date of stock options is estimated using the Black-Scholes option-pricing model. Compensation expense is recognized on a straight-line basis over the stock option vesting period based on the estimated number of stock options that are expected to vest. Shares are issued from treasury upon exercise of stock options.

Comprehensive Income

(j) Comprehensive Income.

Other comprehensive income refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income, but are excluded from net income as these amounts are recorded directly as an adjustment to stockholders’ equity. The Company’s other comprehensive income is primarily comprised of unrealized foreign exchange gains and losses.

Income Per Share

(k) Income Per Share.

Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding in the period. Diluted earnings per share are calculated giving effect to the potential dilution of the exercise of options and warrants. Common equivalent shares, composed of incremental common shares issuable upon the exercise of stock options and warrants are included in diluted net income per share to the extent that these shares are dilutive. Common equivalent shares that have an anti-dilutive effect on net income per share have been excluded from the calculation of diluted weighted average shares outstanding for the years ended December 31, 2018 and 2017.

Use of Estimates

(l) Use of Estimates.

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and would impact the results of operations and cash flows.

Estimates and underlying assumptions are reviewed at each period end. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

Significant areas requiring the use of management estimates include assumptions and estimates relating to the valuation of goodwill and intangible assets, asset impairment analysis, share-based payments and warrants, valuation allowances for deferred income tax assets, determination of useful lives of property, equipment and leaseholds, and the valuation of inventory.

Financial Instruments

(m) Financial Instruments.

The fair market value of the Company’s financial instruments comprising cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and short term line of credit were estimated to approximate their carrying values due to immediate or short-term maturity of these financial instruments.

Fair Value of Financial Instruments

(n) Fair Value of Financial Instruments

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs described below, of which the first two are considered observable and the last unobservable, that may be used to measure fair value.

● Level 1 – Quoted prices in active markets for identical assets or liabilities

● Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

● Level 3 — Unobservable inputs that are supported by little or no market activity which is significant to the fair value of the assets or liabilities.

The fair values of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities and the short term line of credit for all periods presented approximate their respective carrying amounts due to the short term nature of these financial instruments.

Contingencies

(o) Contingencies

Certain conditions may exist as of the date the financial statements are issued which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Legal fees associated with loss contingencies are expensed as incurred.

Income Taxes

(p) Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance so that the assets are recognized only to the extent that when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will be realized.

Per FASB ASC 740 “Income taxes” under the liability method, it is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At December 31, 2018, the Company believes it has appropriately accounted for any unrecognized tax benefits. To the extent the Company prevails in matters for which a liability for an unrecognized benefit is established or is required to pay amounts in excess of the liability, the Company’s effective tax rate in a given financial statement period may be affected. Interest and penalties associated with the Company’s tax positions are recorded as interest expense in the consolidated statements of income and comprehensive income.

Risk Management

(q) Risk Management.

The Company’s credit risk is primarily attributable to its accounts receivable. The amounts presented in the accompanying consolidated balance sheets are net of allowances for doubtful accounts, estimated by the Company’s management based on prior experience and the current economic environment. The Company is exposed to credit-related losses in the event of non-payment by customers. Credit exposure is minimized by dealing with only credit worthy counterparties. Accounts receivable for the Company’s three primary customers totaled $1,280,406 (31%) at December 31, 2018 (December 31, 2017 - $1,247,374 or 59%).

The credit risk on cash and cash equivalents is limited because the Company limits its exposure to credit loss by placing its cash and cash equivalents with major financial institutions. The Company maintains cash balances at financial institutions which at times exceed federally insured amounts. The Company has not experienced any material losses in such accounts.

The Company is exposed to foreign exchange and interest rate risk to the extent that market value rate fluctuations materially differ from financial assets and liabilities, subject to fixed long-term rates.

In order to manage its exposure to foreign exchange risks, the Company is closely monitoring the fluctuations in the foreign currency exchange rates and the impact on the value of cash and cash equivalents, accounts receivable, and accounts payable and accrued liabilities. The Company has not hedged its exposure to currency fluctuations.

Equity Method Investment

(r) Equity Method Investment

The Company accounts for investments using the equity method of accounting if the investment provides the Company the ability to exercise significant influence, but not control, over the investee. Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between 20% and 50%, although other factors, such as representation on the investee’s board of directors, are considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the investment is recorded at cost in the consolidated balance sheets under other assets and adjusted for dividends received and the Company’s share of the investee’s earnings or losses together with other-than-temporary impairments which are recorded through interest and other loss, net in the consolidated statements of income and comprehensive income.

Goodwill and Intangible Assets

(s) Goodwill and intangible assets

Goodwill represents the excess of the purchase price of an acquired entity over the amounts assigned to the assets acquired and liabilities assumed. Goodwill is not amortized, but is reviewed for impairment annually or more frequently if certain impairment conditions arise. The Company performs an annual goodwill impairment review in the fourth quarter of each year at the reporting unit level. The evaluation can begin with a qualitative assessment of the factors that could impact the significant inputs used to estimate fair value. If after performing the qualitative assessment, it is determined that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, then no further analysis is necessary. However, if the results of the qualitative test are unclear, the Company performs a quantitative test, which involves comparing the fair value of a reporting unit with its carrying amount, including goodwill. The Company uses an income-based valuation method, determining the present value of future cash flows, to estimate the fair value of a reporting unit. If the fair value of a reporting unit exceeds its positive carrying amount, goodwill of the reporting unit is considered not impaired, and no further analysis is necessary. If the fair value of the reporting unit is less than its carrying amount, goodwill impairment would be recognized equal to the amount of the carrying value in excess of the reporting unit’s fair value, limited to the total amount of goodwill allocated to the reporting unit.

Intangible assets primarily include trademarks and trade secrets with indefinite lives and customer-relationships with finite lives. Intangible assets with indefinite lives are not amortized but are tested for impairment on an annual basis, or more frequently if indicators of impairment are present. Indefinite lived intangible assets are assessed using either a qualitative or a quantitative approach. The qualitative assessment evaluates factors including macro-economic conditions, industry and company-specific factors, legal and regulatory environments, and historical company performance are evaluated in assessing fair value. If it is determined that it is more likely than not that the fair value of the reporting unit is less than its carrying value, a quantitative test is then performed. Otherwise, no further testing is required. When using a quantitative approach, the Company compares the fair value of the reporting unit to its carrying amount, including goodwill. If the estimated fair value of the reporting unit is less than the carrying amount of the reporting unit, impairment is indicated, requiring recognition of an impairment charge for the differential.

Qualitative assessments of goodwill and indefinite-lived intangible assets were performed in 2018 and 2017. Based on the results of assessment, it was determined that it is more likely than not the reporting unit, customer lists and trademarks had a fair value in excess of carrying value. Accordingly, no further impairment testing was completed and no impairment charges related to goodwill or indefinite-lived intangibles were recognized during the fiscal period ended December 31, 2018.

Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company reviews for impairment indicators of finite-lived intangibles and other long-lived assets as described in the “Property and Equipment” significant accounting policy.

Adoption of New Accounting Principles

(t) Adoption of new accounting principles

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which has been updated through several revisions and clarifications since its original issuance and supersedes the revenue recognition requirements in Accounting Standards Codification (ASC) Topic 605, Revenue Recognition. The standard requires revenue recognized to represent the transfer of promised goods or services to customers at an amount that reflects the consideration which a company expects to receive in exchange for those goods or services. The standard also requires new, expanded disclosures regarding revenue recognition. The standard was adopted for the current year and had no material effect on the consolidated financial statements.

On January 1, 2018, the Company adopted ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities, which changes the income statement impact of equity investments held by an entity. The amendments require the unrealized gains or unrealized losses of equity instruments measured at fair value to be recognized in net income. Our adoption of this ASU had no material effect on the consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

(u) Accounting Pronouncements Not Yet Adopted

In February 2016, the FASB issued ASU 2016-02, Leases. The standard will require lessees to recognize most leases on their balance sheet and makes selected changes to lessor accounting. The standard is effective for annual and interim reporting periods beginning after December 15, 2018. A modified retrospective transition approach is required, with certain practical expedients available. We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements.

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Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Schedule of Method of Depreciation

The following assets are recorded at cost and depreciated using the methods and annual rates shown below:

Computer hardware	30% Declining balance
Furniture and fixtures	20% Declining balance
Manufacturing equipment	20% Declining balance
Office equipment	20% Declining balance
Boat	20% Declining balance
Building and improvements	10% Declining balance
Trailer	30% Declining balance
Patents	Straight-line over 17 years
Technology	Straight-line over 10 years
Leasehold improvements	Straight-line over lease term

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Acquisition (Tables)

12 Months Ended

Dec. 31, 2018

Acquisition Table 0Abstract

Schedule of Business Acquisition

Cash paid	$	4,110,560
Convertible note		1,000,000
Total consideration	$	5,110,560
Assets acquired:
Accounts receivable	$	1,071,078
Note receivable		60,000
Prepaid expenses		105,473
Inventory		1,867,137
Investments		84,943
Equipment		740,000
Intangible assets		3,168,000
Liabilities assumed:
Account payable		520,164
Loans payable		292,706
Deferred income taxes		989,569
Total identifiable net assets		5,294,192
Non-controlling interest		2,759,917
Goodwill	$	2,534,275

Schedule of Pro Forma Information

The following unaudited pro forma combined financial information presents combined results of the Company and EnP Investments as if the Business Combination had occurred on January 1, 2017.

	2018		2017
Net sales	$	23,152,539	$	23,119,226
Gross profit		8,428,317		12,466,963
Net income	$	4,422,745	$	3,253,679

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Accounts Receivable (Tables)

12 Months Ended

Dec. 31, 2018

Receivables [Abstract]

Schedule of Accounts Receivable

	2018			2017
Accounts receivable	$	4,459,834		$	2,145,803
Allowances for doubtful accounts		(37,088	)		(40,332	)
	$	4,422,745		$	2,105,471

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Inventories (Tables)

12 Months Ended

Dec. 31, 2018

Inventory Disclosure [Abstract]

Schedule of Inventories

	2018		2017
Completed goods	$	3,770,071	$	2,530,914
Work in progress		150,333		183,944
Raw materials and supplies		4,807,305		1,971,994
	$	8,727,709	$	4,686,852

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Property, Equipment and Leaseholds (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Schedule of Property, Equipment and Leaseholds

	2018		Accumulated		2018
	Cost		Depreciation		Net
Buildings and improvements	$	3,516,710	$	2,523,148	$	993,562
Automobiles		193,397		74,753		118,644
Computer hardware		43,414		40,226		3,188
Furniture and fixtures		105,494		93,087		12,407
Office equipment		1,740		438		1,302
Manufacturing equipment		3,859,653		2,838,344		1,021,309
Trailer		8,793		3,561		5,232
Boat		34,400		18,548		15,852
Leasehold improvements		88,872		49,937		38,935
Technology		100,136		100,136		—
Land		352,830		—		352,830
	$	8,305,439	$	5,742,178	$	2,563,261

	2017		Accumulated		2017
	Cost		Depreciation		Net
Buildings and improvements	$	3,400,792	$	2,409,179	$	991,613
Computer hardware		40,904		39,398		1,506
Furniture and fixtures		17,673		11,156		6,517
Office equipment		1,480		148		1,332
Manufacturing equipment		2,590,158		2,104,137		486,021
Trailer		9,562		1,434		8,128
Boat		34,400		14,586		19,814
Leasehold improvements		85,432		32,506		52,926
Technology		101,748		101,748		—
Land		370,652		—		370,652
	$	6,652,801	$	4,714,292	$	1,938,509

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Patents (Tables)

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Patents

	2018 Cost		Accumulated Amortization		2018 Net
Patents	$	194,320	$	131,306	$	63,014

	2017 Cost		Accumulated Amortization		2017 Net
Patents	$	212,426	$	132,974	$	79,452

Schedule of Estimated Amortization Expense

Estimated amortization expense over the next four years is as follows:

2019	$	16,438
2020		16,438
2021		16,438
2022		13,700

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Goodwill and Indefinite Lived Intangible Assets (Table)

12 Months Ended

Dec. 31, 2018

Goodwill And Indefinite Lived Intangible Assets Table Abstract

Schedule of Goodwill and Indefinite Lived Intangible Assets

Goodwill
Balance as of December 31, 2017	-
Additions	2,534,275
Impairment	-
Balance as of December 31, 2018	2,534,275

Indefinite Lived Intangible Assets
Balance as of December 31, 2017	-
Additions	770,000
Impairment	-
Balance as of December 31, 2018	770,000

Indefinite lived intangible assets consist of trade secrets and trademarks related to the acquisition of EnP Investments LLC (note 3).

Definite Life Intangible Assets
Balance as of December 31, 2017	-
Additions	2,398,000
Amortization	(40,000	)
Balance as of December 31, 2018	2,358,000

Schedule of Estimated Future Amortization Expense

Estimated amortization expense over the next five years is as follows:

2019	$	160,000
2020		160,000
2021		160,000
2022		160,000
2023		160,000

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Long Term Deposits (Tables)

12 Months Ended

Dec. 31, 2018

Long Term Deposits

Schedule of Long Term Deposits

The Company has security deposits that are long term in nature which consist of damage deposits held by landlords and security deposits held by various vendors.

	2018		2017
Long term deposits	$	30,777	$	18,531

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Investments (Tables)

12 Months Ended

Dec. 31, 2018

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Equity Method Investment

A summary of the Company’s investment follows:

Balance, January 1, 2017	$	122,480
Return of equity		(25,000	)
Loss in equity method investment		(84,066	)
Balance, December 31, 2017	$	13,414
Acquisition of additional units		25,000
Loss in equity method investment		(26,306	)
Balance, December 31, 2018	$	12,108

Balance, January 1, 2018	$	-
Acquisition		56,590
Gain in equity method investment		7,659
Balance, December 31, 2018	$	64,249

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Long Term Debt (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Schedule of Interest Loan Repayment

The Company has committed to the following repayments:

2019 $ 150,895

The Company has committed to the following repayments:

2019	$	585,714
2020	$	585,714
2021	$	585,714
2022	$	585,714
2023	$	585,714

The Company has committed to the following repayments:

2019	$	25,562
2020	$	25,562
2021	$	25,562
2022	$	25,562
2023	$	25,562

The Company has committed to the following repayments:

2019	$	9,188
2020	$	9,188
2021	$	2,297

Schedule of Loan Covenants

Continuity	2018			2017
Balance, January 1	$	352,089			553,282
Plus: Proceeds from loans		4,100,000			-
Plus: Acquisition of ENP (see Note 3)		206,921
Less: Payments on loan		(307,267	)		(201,193	)
Balance, December 31	$	4,351,743		$	352,089

Schedule of Outstanding Balance Loan

Outstanding balance at December 31,	2018			2017
a) Long term debt – Harris Bank	$	150,895		$	352,089
b) Long term debt – Harris Bank		4,002,381			-
c) Long term debt – Midland States Bank		177,794			-
d) Long term debt – Ford Credit		20,673			-
Long-term Debt	$	4,351,743		$	352,089
Less: current portion		(771,359	)		(201,194	)
	$	3,580,384		$	150,895

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Convertible Note Payable (Tables)

12 Months Ended

Dec. 31, 2018

Convertible Note Payable Abstract

Schedule of Convertible Notes Payable

Carrying amount of equity component	$	277,600
Principal amount of liability component		722,400
Balance, December 31, 2018	$	1,000,000

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Income Tax (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (benefit)

The provision for income tax expense (benefit) is comprised of the following:

	2018			2017
Current tax, federal	$	547,486		$	547,486
Current tax, state		132,833			132,833
Current tax, foreign		-			-
Current tax, total		680,319			680,319
Deferred income tax, federal		(11,069	)		(11,069	)
Deferred income tax, state		(2,686	)		(2,686	)
Deferred income tax, foreign		385,639			385,639
Deferred income tax, total		371,884			371,884
Total	$	1,052,203		$	1,052,203

Schedule of Reconciliation of Income Taxes

The following table reconciles the income tax benefit at the U.S. Federal statutory rate to income tax benefit at the Company's effective tax rates.

	2018			2017
Income (loss) before tax, net of tax from gain on involuntary disposition		3,054,847			3,420,556
Tax from gain on involuntary disposition		693,063			(613,611	)
Income (loss) before taxes		3,747,910			2,806,945
US statutory tax rates		28.51	%		39.69	%
Expected income tax (recovery)		1,068,342			1,114,147
Non-deductible items		627,995			520,665
Change in estimates		61,361			(91,632	)
Change in enacted tax rate		-			189,626
Option expired during the year		5,191			21,640
Foreign tax rate difference		(396,514	)		(662,381	)
Change in valuation allowance		(36,119	)		(39,863	)
Total income taxes (recovery)		1,061,609			1,052,203
Current income tax expenses (recovery)		533,130			680,318
Deferred tax expenses (recovery)		797,126			371,884
Total income taxes (recovery)		1,061,609			1,052,203

Schedule of Deferred Tax Assets (Liabilities)

Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes. Deferred tax assets (liabilities) at December 31, 2018 and 2017 are comprised of the following:

	2018			2017
Canada
Non capital loss carryforwards		556,462			1,378,242
Patents		63,998			69,597
Fixed assets		(350	)		-
Financial instruments		-			-
		620,110			1,447,839
Valuation Allowance		-			-
Net Deferred tax asset (liability)		620,110			1,447,839

	2018		2017
USA
Fixed Assets	247,665		351,746
Intangible assets	(989,569	)	-
Stock-Based Compensation	173,739		154,023
	(568,165	)	505,768
Deferred tax asset not recognized	153,565		189,684
Net Deferred tax asset	(721,730	)	316,084

Schedule of Non Operating Loss Carryforwards

Expiry	Loss
2032		401,480
2037		1,659,491
Total		2,060,971

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Income Per Share (Tables)

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Loss Per Share

We present both basic and diluted income per share on the face of our consolidated statements of operations. Basic and diluted income per share are calculated as follows:

	2018		2017
Net income (loss)	$	2,490,268	$	1,754,741
Weighted average common shares outstanding:
Basic		11,630,136		11,485,580
Diluted		11,816,054		11,725,482
Net income (loss) per common share:
Basic and diluted	$	0.21	$	0.15

Schedule of Anti-dilutive Options

Those anti-dilutive options are as follows.

	2018		2017
Anti-dilutive options		261,000		nil

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Stock Options (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Stock Option Activity

The following table summarizes the Company’s stock option activity for the years ended December 31, 2018 and 2017:

	Number of shares			Exercise price per share		Weighted average exercise price
Balance, December 31, 2016		813,000		$	0.75 - $2.22	$	1.19
Granted		154,000		$	1.70	$	1.70
Cancelled or expired		(114,000	)	$	1.00 – 2.22	$	1.75
Exercised		(140,000	)	$	0.75 – 1.21	$	1.11
Balance, December 31, 2017		713,000		$	0.75 – 1.70	$	1.21
Granted		110,000		$	1.48 – 1.75	$	1.74
Cancelled or expired		(61,334	)	$	1.00 – 1.70	$	1.09
Exercised		(101,666	)	$	0.75 – 1.42	$	1.01
Balance, December 31, 2018		660,000		$	0.75 – 1.75	$	1.35
Exercisable, December 31, 2018		555,000		$	0.75 – 1.70	$	1.27

Schedule of Stock Option Fair Value Assumptions

The fair value of each option grant is calculated using the following weighted average assumptions:

	2018			2017
Expected life – years		3.0			3.0
Interest rate		2.8 – 2.96	%		2.23	%
Volatility		47.77 – 51.85	%		73.09	%
Dividend yield		—	%		—	%
Weighted average fair value of options granted	$	0.4759 – 0.6313		$	0.8344

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Non-Controlling Interests (Tables)

12 Months Ended

Dec. 31, 2018

Non-controlling Interests

Schedule of Distributions

Balance, January 1, 2018	$	-
Acquisition		2,759,917
Distribution		(229,135	)
Noncontrolling interest share of loss		(68,551	)
Balance, December 31, 2018	$	2,462,231

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Segmented, Significant Customer Information and Economic Dependency (Tables)

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Schedule of Reportable Segments

Year ended December 31, 2018:

	EWCP		BCPA		Consolidated
Sales	$	314,544	$	17,514,974	$	17,829,518
Interest expense		-		93,653		93,653
Depreciation		50,920		251,641		302,561
Income tax expense		-		533,130		533,130
Segment profit		1,579,464		910,804		2,490,268
Segment assets		505,124		2,121,151		2,626,275
Expenditures for segment assets		15,032		165,798		180,830

Year ended December 31, 2017:

	EWCP		BCPA			Consolidated
Sales	$	641,675	$	14,852,650		$	15,494,325
Interest expense		54		44,071			44,125
Depreciation		62,376		224,240			286,616
Income tax expense		-		680,319			680,319
Segment profit		2,021,289		(266,548	)		1,754,741
Segment assets		580,304		1,437,657			2,017,961
Expenditures for segment assets		287,853		138,628			426,480

Schedule of Revenue Generated in United States and Canada

Sales by territory are shown below:

	2018		2017
Canada	$	364,847	$	362,362
United States and abroad		17,464,671		15,131,963
Total	$	17,829,518	$	15,494,325

Schedule of Long-lived Assets are Located in Canada and United States

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

	2018		2017
Canada	$	505,124	$	580,304
United States		7,783,426		1,437,657
Total	$	8,288,550	$	2,017,961

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Commitments (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments

Commitments for rent in the next five years are as follows:

2019	$	425,995
2020	$	399,900
2021	$	276,980
2022	$	10,620
2023	$	8,100

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Basis of Presentation (Details Narrative) - USD ($)		12 Months Ended
	Oct. 01, 2018	Dec. 31, 2018
Unrelated Party [Member]
Ownership interest		35.00%
EnP Peru Investments LLC [Member]
Ownership interest	65.00%	65.00%
Purchase price	$ 5,110,560	$ 5,110,560

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Significant Accounting Policies (Details Narrative) - Three Primary Customers [Member] - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Accounts receivable	$ 1,280,406	$ 1,247,374
Concentration risk, percentage	31.00%	59.00%

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Significant Accounting Policies - Schedule of Method of Depreciation (Details)	12 Months Ended
	Dec. 31, 2018
Computer Hardware [Member]
Depreciation method used and annual rate	30% Declining balance
Furniture and Fixtures [Member]
Depreciation method used and annual rate	20% Declining balance
Manufacturing Equipment [Member]
Depreciation method used and annual rate	20% Declining balance
Office Equipment [Member]
Depreciation method used and annual rate	20% Declining balance
Boat [Member]
Depreciation method used and annual rate	20% Declining balance
Building and Improvements [Member]
Depreciation method used and annual rate	10% Declining balance
Trailer [Member]
Depreciation method used and annual rate	30% Declining balance
Patents [Member]
Depreciation method used and annual rate	Straight-line over 17 years
Technology [Member]
Depreciation method used and annual rate	Straight-line over 10 years
Leasehold Improvements [Member]
Depreciation method used and annual rate	Straight-line over lease term

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Acquisition (Details Narrative) - USD ($)		12 Months Ended
	Oct. 01, 2018	Dec. 31, 2018	Oct. 31, 2018	Dec. 31, 2017
Goodwill		$ 2,534,275
EnP Peru Investments LLC [Member]
Ownership interest	65.00%	65.00%
Consideration paid	$ 5,110,560	$ 5,110,560
Cash on hand	10,560	4,110,560
Convertible note payable	$ 1,000,000	1,000,000
Debt instrument maturity date	Sep. 30, 2023
Debt interest rate	5.00%		65.00%
Debt instrument converted shares.	400,000
Debt instrument, description	The Company has the option to extend the note to no later than September 30, 2028.
Bank appraisal fees		7,038
Goodwill	$ 2,534,275	$ 2,534,275
EnP Peru Investments LLC [Member] | Harris Bank [Member]
Debt financing	$ 4,100,000

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Acquisition - Schedule of Business Acquisition (Details) - USD ($)	Dec. 31, 2018	Oct. 01, 2018	Dec. 31, 2017
Goodwill	$ 2,534,275
EnP Peru Investments LLC [Member]
Cash paid	4,110,560	$ 10,560
Convertible note	1,000,000	1,000,000
Total consideration	5,110,560
Accounts receivable	1,071,078
Note receivable	60,000
Prepaid expenses	105,473
Inventory	1,867,137
Investments	84,943
Equipment	740,000
Intangible assets	3,168,000
Account payable	520,164
Loans payable	292,706
Deferred income taxes	989,569
Total identifiable net assets	5,294,192
Non-controlling interest	2,759,917
Goodwill	$ 2,534,275	$ 2,534,275

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Acquisition - Schedule of Pro Forma Information (Details) - EnP Peru Investments LLC [Member] - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Net sales	$ 23,152,539	$ 23,119,226
Gross profit	8,428,317	12,466,963
Net income	$ 4,422,745	$ 3,253,679

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Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Receivables [Abstract]
Accounts receivable	$ 4,459,834	$ 2,145,803
Allowances for doubtful accounts	(37,088)	(40,332)
Accounts receivable net	$ 4,422,745	$ 2,105,471

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Inventories - Schedule of Inventories (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Completed goods	$ 3,770,071	$ 2,530,914
Works in progress	150,333	183,944
Raw materials and supplies	4,807,305	1,971,994
Total inventory	$ 8,727,709	$ 4,686,852

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Property, Equipment and Leaseholds (Details Narrative)	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CAD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CAD ($)	Feb. 28, 2017 USD ($)	Feb. 28, 2017 CAD ($)
Depreciation expense	$ 326,123		$ 270,178
Building and equipment net	2,563,261		1,938,509
Building and Manufacturing Equipment [Member]
Building and equipment net					$ 1,659,404
Proceeds from insurance	$ 2,349,498		$ 4,207,578
Building and Manufacturing Equipment [Member] | CAD [Member]
Building and equipment net						$ 2,196,722
Proceeds from insurance		$ 3,132,666		$ 5,570,000

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Property, Equipment and Leaseholds - Schedule of Property, Equipment and Leaseholds (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Cost	$ 8,305,439	$ 6,652,801
Accumulated Depreciation	5,742,178	4,714,292
Net	2,563,261	1,938,509
Building and Improvements [Member]
Cost	3,516,710	3,400,792
Accumulated Depreciation	2,523,148	2,409,179
Net	993,562	991,613
Automobiles [Member]
Cost	193,397
Accumulated Depreciation	74,753
Net	118,644
Computer Hardware [Member]
Cost	43,414	40,904
Accumulated Depreciation	40,226	39,398
Net	3,188	1,506
Furniture and Fixtures [Member]
Cost	105,494	17,673
Accumulated Depreciation	93,087	11,156
Net	12,407	6,517
Office Equipment [Member]
Cost	1,740	1,480
Accumulated Depreciation	438	148
Net	1,302	1,332
Manufacturing Equipment [Member]
Cost	43,859,653	2,590,158
Accumulated Depreciation	2,838,344	2,104,137
Net	1,021,309	486,021
Trailer [Member]
Cost	8,793	9,562
Accumulated Depreciation	3,561	1,434
Net	5,232	8,128
Boat [Member]
Cost	34,400	34,400
Accumulated Depreciation	18,548	14,586
Net	15,852	19,814
Leasehold Improvements [Member]
Cost	88,872	85,432
Accumulated Depreciation	49,937	32,506
Net	38,935	52,926
Technology [Member]
Cost	100,136	101,748
Accumulated Depreciation	100,136	101,748
Net
Land [Member]
Cost	352,830	370,652
Accumulated Depreciation
Net	$ 352,830	$ 370,652

XML

Patents (Details Narrative)	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2018 CAD ($)	Dec. 31, 2017 CAD ($)
Amortization	$ 16,438	$ 16,438
CAD [Member]
Currency conversion cost			$ 265,102	$ 265,102

XML

Patents - Schedule of Patents (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Patents, Cost	$ 194,320	$ 212,426
Accumulated Amortization	131,306	132,974
Patents, net	$ 63,014	$ 79,452

XML

Patents - Schedule of Estimated Amortization Expense (Details)	Dec. 31, 2018 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2019	$ 16,438
2020	16,438
2021	16,438
2022	$ 13,700

XML

Goodwill and Indefinite Lived Intangible Assets (Details Narrative)	12 Months Ended
	Dec. 31, 2018
EnP Peru Investments LLC [Member]
Estimated useful life	15 years

XML

Goodwill and Indefinite Lived Intangible Assets - Schedule of Goodwill and Indefinite Lived Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2018 USD ($)
Begining balance
Additions	2,534,275
Impairment
Ending balance	2,534,275
Begining balance
Additions	770,000
Impairment
Ending balance	770,000
Begining balance	79,452
Additions	2,398,000
Impairment	(40,000)
Ending balance	63,014
EWCP [Member]
Begining balance
Additions
Impairment
Ending balance
Begining balance
Additions
Impairment
Ending balance
Begining balance
Additions
Impairment
Ending balance
BPCA [Member]
Begining balance
Additions	2,534,275
Impairment
Ending balance	2,534,275
Begining balance
Additions	770,000
Impairment
Ending balance	770,000
Begining balance
Additions	2,398,000
Impairment	(40,000)
Ending balance	$ 2,358,000

XML

Goodwill and Indefinite Lived Intangible Assets - Schedule of Estimated Future Amortization Expense (Details)	Dec. 31, 2018 USD ($)
2019	$ 16,438
2020	16,438
2021	16,438
2022	13,700
Finite-Lived Intangible Assets [Member]
2019	160,000
2020	160,000
2021	160,000
2022	160,000
2023	$ 160,000

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Long Term Deposits - Schedule of Long Term Deposits (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Long Term Deposits
Long term deposits	$ 30,777	$ 18,531

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Investments (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2016
EnP Peru Investments LLC [Member]
Ownership interest		50.00%
ENP Realty LLC [Member]
Ownership interest	24.00%
Applied Holding Corp [Member]
Investment	$ 200,000
Debt conversion due date	2021
Debt term	2 years
Trio Opportunity Corp [Member]
Investment	$ 500,000
Trio Opportunity Corp [Member] | Common Class B [Member]
Non voting shares	50,000
Share price	$ 10

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Investments - Schedule of Equity Method Investment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Balance, Beginning	$ 13,414	$ 122,480
Return of equity		(25,000)
Loss in equity method investment	(26,306)	(84,066)
Acquisition of additional units	25,000
Balance, Ending	12,108	13,414
ENP Realty LLC [Member]
Balance, Beginning
Acquisition	56,590
Gain in equity method investment	7,659
Balance, Ending	64,249
Trio Opportunity Corp [Member]
Balance, Beginning
Acquisition	500,000
Impairment
Balance, Ending	$ 500,000

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Short-Term Line of Credit (Details Narrative) - USD ($)	1 Months Ended
	Sep. 30, 2018	Feb. 28, 2018	Dec. 31, 2018	Dec. 31, 2017
Line of credit			$ 2,798,131	$ 250,000
New Agreement [Member] | Midland States Bank [Member]
Aggregate amount of revolving line of credit		$ 2,500,000
Annual interest rate of loan			6.5296%	5.555%
Line of credit			$ 1,098,131	$ 1,246,647
Debt effective rate		4.06%
New Agreement [Member] | Midland States Bank [Member] | Maximum [Member]
Annual interest rate of loan		4.00%
New Agreement [Member] | Harris Bank [Member]
Aggregate amount of revolving line of credit	$ 2,500,000
Eligible percentage of domestic accounts receivable	80.00%
Percentage of foreign accounts receivable of inventory	60.00%
Annual interest rate of loan	5.75%
Line of credit			$ 1,700,000	$ 250,000

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Long Term Debt (Details Narrative) - USD ($)		1 Months Ended				12 Months Ended
	Oct. 01, 2018	Oct. 31, 2018	Jan. 31, 2018	Mar. 31, 2016	Sep. 30, 2014	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Long term debt						$ 4,351,743	$ 352,089	$ 553,282
Harris Bank [Member]
Long term debt						150,895	352,089
Midland States Bank [Member]
Long term debt						177,794
Ford Motor Credit Company [Member]
Long term debt						$ 20,673
NanoChem Solutions Inc [Member] | Harris Bank [Member]
Promissory note		$ 4,100,000			$ 1,005,967
Debt instrument, interest rate, stated percentage						5.75%	5.00%
Debt instrument, term		7 years			5 years
Long term debt						$ 150,895	$ 352,089
Interest expense						$ 13,123	$ 44,125
Debt maturity description		Due May 31, 2019 and 2020			The final payment will be made in September 2019.
Payment of monthly installments interest rate		25.00%
Payment of monthly installment		$ 300,000
NanoChem Solutions Inc [Member] | Harris Bank [Member] | Prime Rate [Member]
Debt instrument, interest rate, stated percentage					0.50%
NanoChem Solutions Inc [Member] | Harris Bank [Member]
Debt instrument, interest rate, stated percentage						5.50%
Debt balance owing						$ 4,002,381
EnP Peru Investments LLC [Member]
Debt instrument, interest rate, stated percentage	5.00%	65.00%
Debt maturity description	The Company has the option to extend the note to no later than September 30, 2028.
EnP Peru Investments LLC [Member] | Harris Bank [Member]
Promissory note	$ 4,100,000
EnP Peru Investments LLC [Member] | Midland States Bank [Member]
Promissory note			$ 200,000
Debt instrument, interest rate, stated percentage			5.25%
Debt instrument, term			7 years
Interest expense						2,415
Debt balance owing						177,794
EnP Peru Investments LLC [Member] | Ford Motor Credit Company [Member]
Promissory note				$ 45,941
Debt instrument, interest rate, stated percentage				0.00%
Debt instrument, term				5 years
Debt balance owing						$ 20,673	$ 29,861

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Long Term Debt - Schedule of Interest Loan Repayment (Details) - USD ($)	Oct. 30, 2018	Jan. 31, 2018	Mar. 31, 2016	Sep. 30, 2014
Debt Disclosure [Abstract]
2019	$ 585,714	$ 25,562	$ 9,188	$ 150,895
2020	585,714	25,562	9,188
2021	585,714	25,562	$ 2,297
2022	585,714	25,562
2023	$ 585,714	$ 25,562

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Long Term Debt - Schedule of Loan Covenants (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Balance, beginning of year	$ 352,089	$ 553,282
Plus: Proceeds from loans	4,100,000
Plus: Acquisition of ENP (see Note 3)	206,921
Less: Payments on loan	(307,267)	(201,193)
Balance, end of year	$ 4,351,743	$ 352,089

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Long Term Debt - Schedule of Outstanding Balance Loan (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Long-term Debt	$ 4,351,743	$ 352,089	$ 553,282
Less: current portion	(771,359)	(201,193)
Long term balance	3,580,384	150,896
Harris Bank [Member]
Long-term Debt	150,895	352,089
Harris Bank [Member]
Long-term Debt	4,002,381
Midland States Bank [Member]
Long-term Debt	177,794
Ford Motor Credit Company [Member]
Long-term Debt	$ 20,673

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Convertible Note Payable (Details Narrative) - USD ($)		12 Months Ended
	Oct. 01, 2018	Dec. 31, 2018
EnP Peru Investments LLC [Member]
Issued a convertible note payable		$ 1,000,000
Debt convertible due date		Sep. 30, 2023
Debt conversion ratio		5.00%
Debt converted to shares	400,000
Flexible Solutions International Inc [Member]
Debt converted to shares		400,000
Debt option to extend period		Sep. 30, 2028

XML

Convertible Note Payable - Schedule of Convertible Notes Payable (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Carrying amount of equity component	$ 277,600
Principal amount of liability component	722,400
Balance, December 31, 2018	$ 1,000,000

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Income Tax (Details Narrative) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Operating loss carryforwards	$ 2,060,971	$ 5,097,682

XML

Income Tax - Schedule of Components of Income Tax Expense (benefit) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Current tax, federal	$ 547,486	$ 547,486
Current tax, state	132,833	132,833
Current tax, foreign
Current tax, total	680,319	680,319
Deferred income tax, federal	(11,069)	(11,069)
Deferred income tax, state	(2,686)	(2,686)
Deferred income tax, foreign	385,639	385,639
Deferred income tax, total	(100,000)	985,495
Total	$ 1,052,203	$ 1,052,203

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Income Tax - Schedule of Reconciliation of Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income (loss) before tax, net of tax from gain on involuntary disposition	$ 3,054,847	$ 3,420,555
Tax from gain on involuntary disposition	693,063	(613,611)
Income (loss) before taxes	$ 3,747,910	$ 2,806,945
US statutory tax rates	28.51%	39.69%
Expected income tax (recovery)	$ 1,068,342	$ 1,114,147
Non-deductible items	627,995	520,665
Change in estimates	61,361	(91,632)
Change in enacted tax rate		189,626
Option expired during the year	5,191	21,640
Foreign tax rate difference	(396,514)	(662,381)
Change in valuation allowance	(36,119)	(39,863)
Total income taxes (recovery)	1,061,609	1,052,203
Current income tax expenses (recovery)	680,319	680,319
Deferred tax expenses (recovery)	797,126	371,884
Total income taxes (recovery)	$ 1,061,609	$ 1,052,203

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Income Tax - Schedule of Deferred Tax Assets (Liabilities) (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Canada [Member]
Non capital loss carryforwards	$ 556,462	$ 1,378,242
Patents	63,998	69,597
Fixed Assets	(350)
Financial instruments
Deferred tax asset (liability)	620,110	1,447,839
Valuation Allowance
Net Deferred tax asset (liability)	620,110	1,447,839
USA [Member]
Fixed Assets	247,665	351,746
Intangible assets	(989,569)
Stock-Based Compensation	173,739	154,023
Deferred tax asset	(568,165)	505,768
Deferred tax asset not recognized	153,565	189,684
Net Deferred tax asset	$ (721,730)	$ 316,084

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Income Tax - Schedule of Non Operating Loss Carryforwards (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
2032	$ 401,480
2037	1,659,491
Total	$ 2,060,971	$ 5,097,682

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Income Per Share (Details Narrative) - shares	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
Preferred stock, shares issued
Preferred stock, shares outstanding

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Income Per Share - Schedule of Basic and Diluted Loss Per Share (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
Net income (loss)	$ 2,490,268	$ 1,754,741
Weighted average common shares outstanding: Basic	11,630,136	11,485,580
Weighted average common shares outstanding: Diluted	11,816,054	11,725,482
Net income (loss) per common share: Basic and diluted	$ 0.21	$ 0.15

XML

Income Per Share - Schedule of Anti-dilutive Options (Details) - shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
Anti-dilutive options	261,000

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Stock Options (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Options granted percentage	100.00%
Options maximum granted term	5 years
Weighted-average remaining contractual life of outstanding options	3 years 15 days
Stock options granted	110,000	154,000
Stock options exercised	101,666	140,000
Compensation expense related to non-vested awards	$ 57,383
Compensation expense related to non-vested awards, weighted average period	4 years 9 months
Intrinsic value of vested options outstanding	$ 43,190	$ 413,410
Consultants [Member]
Stock options granted	100,000	40,000
Additional expenses due to options granted	$ 5,747	$ 6,675
Options granted resulted in additional expenses	$ 26,701	$ 22,634
Stock options exercised	41,666	30,000
Employees [Member]
Stock options granted	10,000	114,000
Additional expenses due to options granted	$ 5,150	$ 19,024
Options granted resulted in additional expenses	$ 73,594	$ 67,759
Stock options exercised	60,000	110,000

XML

Stock Options - Schedule of Stock Option Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Number of shares, Beginning Balance	713,000	813,000
Number of shares, Granted	110,000	154,000
Number of shares, Cancelled or expired	(61,334)	(114,000)
Number of shares, Exercised	(101,666)	(140,000)
Number of shares, Ending Balance	660,000	713,000
Number of shares Exercisable, Ending Balance	555,000
Exercise price per share, Granted		$ 1.70
Weighted average exercise price, Beginning Balance	$ 1.21	1.19
Weighted average exercise price, Granted	1.74	1.70
Weighted average exercise price, Cancelled or expired	1.09	1.75
Weighted average exercise price, Exercised	1.01	1.11
Weighted average exercise price, Ending Balance	1.35	1.21
Weighted average exercise price Exercisable, Ending Balance	1.27
Minimum [Member]
Exercise price per share, Beginning Balance	0.75	0.75
Exercise price per share, Granted	1.48
Exercise price per share, Cancelled or expired	1.00	1.00
Exercise price per share, Exercised	0.75	0.75
Exercise price per share, Ending Balance	0.75	0.75
Exercise price per share Exercisable, Ending Balance	0.75
Maximum [Member]
Exercise price per share, Beginning Balance	1.70	2.22
Exercise price per share, Granted	1.75
Exercise price per share, Cancelled or expired	1.70	2.22
Exercise price per share, Exercised	1.42	1.21
Exercise price per share, Ending Balance	1.75	$ 1.70
Exercise price per share Exercisable, Ending Balance	$ 1.70

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Stock Options - Schedule of Stock Option Fair Value Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Expected life - years	3 years	3 years
Interest rate		2.23%
Volatility		73.09%
Dividend yield	0.00%	0.00%
Weighted average fair value of options granted		$ 0.8344
Minimum [Member]
Interest rate	2.80%
Volatility	47.77%
Weighted average fair value of options granted	$ 0.4759
Maximum [Member]
Interest rate	2.96%
Volatility	51.85%
Weighted average fair value of options granted	$ 0.6313

XML

Capital Stock (Details Narrative) - shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Stock options exercised	101,666	140,000
Employees [Member]
Stock options exercised	60,000	110,000
Consultants [Member]
Stock options exercised	41,666	30,000

XML

Non-Controlling Interests (Details Narrative) - USD ($)	Dec. 31, 2018	Oct. 02, 2018
Unrelated Party [Member]
Related party owner ship percentage	35.00%
EnP Investments Limited Liability Corporation (LLC) [Member]
Owner ship percentage	65.00%
Cash paid		$ 4,110,560
Convertible note payable		$ 1,000,000
Distributions	$ 229,135

XML

Non-Controlling Interests - Schedule of Distributions (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Distribution to noncontrolling interests
Noncontrolling interest share of loss	(68,551)
Distribution to noncontrolling interests	2,462,231
EnP Investments Limited Liability Corporation (LLC) [Member]
Distribution to noncontrolling interests
Acquisition	2,759,917
Distribution	(229,135)
Noncontrolling interest share of loss	(68,551)
Distribution to noncontrolling interests	$ 2,462,231

XML

Segmented, Significant Customer Information and Economic Dependency (Details Narrative)	12 Months Ended
	Dec. 31, 2018 USD ($) Segments	Dec. 31, 2017 USD ($)
Number of operating segment | Segments	2
Accounts Receivable [Member] | Three Customers [Member]
Accounts receivable | $	$ 6,880,598	$ 9,157,538
Concentration risk percentage	39.00%	59.00%

XML

Segmented, Significant Customer Information and Economic Dependency - Schedule of Reportable Segments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Sales	$ 17,829,518	$ 15,494,325
Interest expense	93,653	44,125
Depreciation	342,561	286,616
Income tax expense	533,130	680,319
Net income (loss)	2,490,268	1,754,741
Segment assets	2,626,275	2,017,961
Expenditures for segment assets	180,830	426,480
EWCP [Member]
Sales	314,544	641,675
Interest expense		54
Depreciation	50,920	62,376
Income tax expense
Net income (loss)	1,579,464	2,021,289
Segment assets	505,124	580,304
Expenditures for segment assets	15,032	287,853
BPCA [Member]
Sales	17,514,974	14,852,650
Interest expense	93,653	44,071
Depreciation	251,641	224,240
Income tax expense	533,130	680,319
Net income (loss)	910,804	(266,548)
Segment assets	2,121,151	1,437,657
Expenditures for segment assets	$ 165,798	$ 138,628

XML

Segmented, Significant Customer Information and Economic Dependency - Schedule of Revenue Generated in United States and Canada (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Sales	$ 17,829,518	$ 15,494,325
Canada [Member]
Sales	364,847	362,362
United States and Abroad [Member]
Sales	$ 17,464,671	$ 15,131,963

XML

Segmented, Significant Customer Information and Economic Dependency - Schedule of Long-lived Assets are Located in Canada and United States (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Long-lived assets	$ 8,288,550	$ 2,017,961
Canada [Member]
Long-lived assets	505,124	580,304
United States [Member]
Long-lived assets	$ 7,783,426	$ 1,437,657

XML

Commitments (Details Narrative)	12 Months Ended
	Dec. 31, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Minimum rental payments	$ 1,121,595
Lease term	5 years
Lease expiry date	Sep. 30, 2023

XML

Commitments - Schedule of Future Minimum Rental Payments (Details)	Dec. 31, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019	$ 425,995
2020	399,900
2021	276,980
2022	10,620
2023	$ 8,100

XML

Subsequent Events (Details Narrative) - USD ($)	1 Months Ended		12 Months Ended
	Feb. 28, 2019	Jan. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock options exercised			101,666	140,000
Consultants [Member]
Stock options exercised			41,666	30,000
Subsequent Event [Member]
Payment of contingent on investment		$ 1,000,000
Special dividend description	The Company announced the payment of a special dividend to the existing stockholders of the Company as of March 6, 2019 in the amount of five cents per share
Subsequent Event [Member] | 2019 [Member]
Payment of contingent on investment		1,000,000
Subsequent Event [Member] | 2020 [Member]
Payment of contingent on investment		$ 1,500,000
Subsequent Event [Member] | Consultants [Member]
Stock options exercised		5,000
Subsequent Event [Member] | Employee [Member]
Stock options exercised	5,000