v3.26.1
SEGMENTED DISCLOSURE, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
SEGMENTED DISCLOSURE, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

13. SEGMENTED DISCLOSURE, 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 save 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, also known as TPA’s (as shown under the column heading “BCPA” below), 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 third product line is nitrogen conservation products used for the agriculture industry. These products decrease the loss of nitrogen fertilizer after initial application and allows less fertilizer to be used. These products are made and sold by the Company’s TPA division.

 

The Company also manufactures food grade products that are made and sold by the TPA division.

 

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. The economic factors that impact the nature, amount, timing, and uncertainty of revenue and cash flows vary among the Company’s operating segments and the geographical regions in which they operate. This operating segment structure is used by the Chief Operating Decision Maker (“CODM”), who has been determined to be the Chief Executive Officer, to make key operating decisions and assess performance of the Company. The CODM evaluates segment operating performance, and makes resource allocation and performance evaluation decisions, based on gross profit and net operating income.

 

Three months ended March 31, 2026:

 

   EWCP   BCPA   Other (1)   Consolidated 
Product Sales  $104,573   $8,192,424   $-   $8,296,997 
Cost of sales   66,478    6,341,213    -    6,407,691 
Gross profit   38,095    1,851,211    -    1,889,306 
Wages, administrative salaries and benefits   32,968    994,118    -    1,027,086 
Selling, general, and administrative   18,147    679,676    64,534    762,357 
Other segment items (2)   0    213,947    (28,119)   185,828 
Operating loss   (13,020)   (36,530)   (36,415)   (85,965)
Interest expense   -    134,069    -    134,069 
Depreciation and amortization (included in COGS)   2,928    506,567    -    509,495 
Capital expenditures   -    2,233,765    -    2,233,765 
Assets at March 31, 2026 (3)   1,570,655    61,075,433    1,285,475    63,931,563 

 

 

Three months ended March 31, 2025:

 

   EWCP   BCPA   Other (1)   Consolidated 
Sales  $40,185   $7,433,507   $-   $7,473,692 
Cost of sales   49,797    5,472,331    -    5,522,128 
Gross profit (loss)   (9,612)   1,961,176    -    1,951,564 
Wages, administrative salaries and benefits   17,593    877,644    -    895,237 
Selling, general, and administrative   27,265    685,859    42,926    756,050 
Other segment items (2)   6,000    235,033    128,401    369,434 
Operating income (loss)   (60,470)   162,640    (171,327)   (69,157)
Interest expense   -    198,019    -    198,019 
Depreciation and amortization (included in COGS)   3,206    461,992    -    465,198 
Capital expenditures   -    354,121    -    354,121 
Assets at December 31, 2025 (3)   2,097,454    58,533,323    1,201,602    61,832,379 

 

(1)   Other is not considered an operating segment and includes expenses and income not identifiable to an operating segment and is not included in operating segment results
     
(2)   Other segment items for each reportable segment includes items such as professional fees and research and development.
     
(3)   Segment assets include cash, term deposits, accounts receivable, inventory, prepaid expenses, property held for sale, property, equipment and leaseholds, right of use assets, intangible assets, long-term deposits, investments and goodwill.

 

Sales by territory are shown below:

    

   Three months ended
March 31, 2026		   Three months ended
March 31, 2025		 
         
Canada  $88,292   $288,094 
United States and abroad   8,208,705    7,185,598 
Total  $8,296,997   $7,473,692 

 

The Company’s long-lived assets (property, equipment and leaseholds, right of use assets, intangibles, and goodwill) by territory as follows:

    

  

March 31, 2026

  

December 31, 2025

 
         
Canada  $103,729   $108,423 
United States and abroad   25,935,459    24,318,631 
Total  $26,039,188   $24,427,054 

 

Three primary customers accounted for $4,639,124 (56%) of sales during the three-month period ended March 31, 2026 (2025 - $3,665,235 or 49%).