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13. SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

6 Months Ended

Jun. 30, 2016

13. SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

13. Segmented, Significant Customer Information and Economic Dependency.

The Company operates in two segments:

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

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

The accounting policies of the segments are the same as those described in Note 2, Significant Accounting Policies. The Company evaluates performance based on profit or loss from operations before income taxes, not including nonrecurring gains and losses and foreign exchange gains and losses.

The Company’s reportable segments are strategic business units that offer different, but synergistic products and services. They are managed separately because each business requires different technology and marketing strategies.

Six months ended June 30, 2016:

	EWCP			BPCA			Total
Revenue	$	618,806		$	8,427,012		$	9,045,818
Interest expense		58			22,500			22,558
Depreciation and amortization		162,083			106,612			268,695
Segment profit (loss)		(356,091	)		1,659,122			1,303,031
Segment property, equipment, leaseholds, and patents		2,203,389			1,652,939			3,856,328
Expenditures for segment assets		-			(79,750	)		(79,750	)

Six months ended June 30, 2015:

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

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

	Six Months Ended June 30, 2016		Six Months Ended June 30, 2015
Canada	$	236,288	$	270,775
United States and abroad		8,809,530		8,594,034
Total	$	9,045,818	$	8,864,809

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

	June 30, 2016		December 31, 2015
Canada	$	2,202,806	$	2,211,348
United States		1,653,522		1,680,384
Total	$	3,856,328	$	3,891,732

Three customers accounted for $5,208,367 (58%) of sales during the six months ended June 30, 2016 (2015 - $5,373,518 or 61%). Three customers accounted for $1,159,668 of accounts receivable (58%) at June 30, 2016 (December 31, 2015 – $1,298,821 or 66%).