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12. SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

9 Months Ended

Sep. 30, 2016

12. SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

The Company operates in two segments:

(a) Development and marketing of two lines of 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) Manufacture of biodegradable polymers (“BCPA’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.

Nine months ended September 30, 2016:

	EWCP			BPCA			Total

Revenue	$	750,415		$	11,412,437		$	12,162,852
Interest revenue		1			2,160			2,161
Interest expense		59			33,817			33,876
Depreciation and amortization		244,644			160,542			405,186
Segment profit (loss)		(492,829	)		1,881,824			1,388,995
Segment assets		2,097,841			1,614,891			3,712,732
Expenditures for segment assets		(6,130	)		(95,632	)		(101,762	)

Nine months ended September 30, 2015:

	EWCP			BPCA			Total

Revenue	$	639,166		$	11,528,859		$	12,168,025
Interest revenue		1			2,962			2,963
Interest expense		2			44,042			44,044
Depreciation and amortization		292,898			137,449			430,347
Segment profit (loss)		(815,193	)		1,875,332			1,060,139
Segment assets		2,386,007			1,638,942			4,024,949
Expenditures for segment assets		247,982			(206,550	)		41,432

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

	Nine Months Ended September 30, 2016		Nine Months Ended September 30, 2015
Canada	$	361,683	$	261,057
United States and abroad		11,801,169		11,906,968
Total	$	12,162,852	$	12,168,025

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

	September 30, 2016		December 31, 2015
Canada	$	2,097,841	$	2,211,348
United States		1,614,891		1,680,384
Total	$	3,712,732	$	3,891,732

Three customers accounted for $7,154,393 (59%) of sales during the nine months ended September 30, 2016 (2015 $7,586,641 or 62%). Three customers accounted for $1,416,688 of accounts receivable (64%) at September 30, 2016 (December 31, 2015 – $1,298,821 or 66%).