SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

16. Segmented, Significant Customer Information and Economic Dependency.

The Company operates in two segments:

(a) Energy and water conservation products (as shown under the column heading “EWCP” below), which consists of a (i) liquid swimming pool blankets which saves energy and water by inhibiting evaporation from the pool surface, and (ii) food-safe powdered form of the active ingredient within the liquid blankets and which are designed to be used in still or slow moving drinking water sources.

(b) Biodegradable polymers (“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.

Three months ended March 31, 2022:
	EWCP			TPA			Total
Revenue	$	47,253		$	10,736,027		$	10,783,280
Interest expense		-			57,618			57,618
Depreciation and amortization		9,244			223,244			232,488
Income tax expense		-			712,446			712,446
Segment profit (loss)		(124,175	)		1,657,234			1,533,059
Segment assets		1,879,593			43,237,198			45,116,791
Expenditures for segment assets		-			(176,684	)		(176,684	)

Three months ended March 31, 2021:
	EWCP			TPA			Total
Revenue	$	71,351		$	7,553,346		$	7,624,697
Interest expense		-			62,274			62,274
Depreciation and amortization		9,977			222,988			232,965
Income tax expense		-			485,456			485,456
Segment profit (loss)		(219,256	)		1,669,827			1,450,571
Segment assets		2,360,199			34,299,895			36,660,094
Expenditures for segment assets		-			(96,136	)		(96,136	)

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

	Three months ended March 31, 2022		Three months ended March 31, 2021
Canada	$	177,899	$	107,253
United States and abroad		10,605,381		7,517,444
Total	$	10,783,280	$	7,624,697

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

	March 31, 2022		December 31, 2021
Canada	$	185,036	$	191,752
United States		10,042,568		10,105,202
Total	$	10,227,604	$	10,296,954

Three primary customers accounted for $6,235,661 (58%) of sales during the three-month period ended March 31, 2022 (2021 - $3,120,819 or 41%).