| 2. SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
| Sep. 30, 2015 |
| Significant Accounting Policies Policies | |
| 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 | The Company has three
major classes of inventory: finished goods, work in progress, and raw materials. In all classes, inventory
is valued at the lower of cost or market. 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 cost 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 Companys manufacturing and processing facilities. |
| 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 and Leaseholds | 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 Property and equipment
are written down to net realizable value when management determines there has been a change in circumstances which indicates its
carrying amount may not be recoverable. No write-downs have been necessary to date. |
| 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 and equipment, 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 sum of 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 assets 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 | The functional currency
of three of the Companys 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 Companys financial statements from the subsidiarys 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 (loss) in the Statement of Operations and Comprehensive Income (Loss). 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 | Revenue from product
sales is recognized at the time the product is shipped since title and risk of loss is transferred to the purchaser upon delivery
to the carrier. Shipments are made F.O.B. shipping point. The Company recognizes revenue when there is persuasive
evidence of an arrangement, delivery to the carrier has occurred, the fee is fixed or determinable, collectability is reasonably
assured and 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 Companys
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 Companys 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 have been met, and payments become due or cash is received from these distributors. |
| Stock Issued in Exchange for Services | The Companys
common stock issued in exchange for services is valued at an estimated fair market value based upon trading prices of the Companys
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 | The Company recognizes
compensation expense for all share-based payments in accordance with FASB Codification Topic 718, Compensation
Stock Compensation The fair value at
grant date of stock options is estimated using the Black-Scholes-Merton 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 | 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
Companys other comprehensive income is primarily comprised of unrealized foreign exchange gains and losses. |
| Income (loss) Per Share | Basic earnings (loss)
per share is computed by dividing income (loss) available to common stockholders by the weighted average number of common shares
outstanding in the period. Diluted earnings (loss) per share is calculated giving effect to the potential dilution of
the exercise of options and warrants. Common equivalent shares, composed of 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 three and nine months ended September 30, 2015 and 2014. |
| 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 asset impairment analysis, share-based
payments and warrants, valuation allowances for deferred income tax assets, determination of useful lives of property, plant and
equipment, and the valuation of inventory. |
| Financial Instruments | The fair market value of the Companys
financial instruments , , , 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. |
| Fair Value of Financial Instruments | In August 2009, an
update was made to Fair Value Measurements and Disclosures Measuring Liabilities at Fair Value. Fair Value Measurements and Disclosures 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 and that are 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 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 | 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 | 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 carry-forwards. 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 Companys policy to provide for uncertain tax
positions and the related interest and penalties based upon managements assessment of whether a tax benefit is more
likely than not to be sustained upon examination by tax authorities. At September 30, 2015, 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 Companys effective tax rate in a given financial statement period may be affected. Interest and penalties
associated with the Companys tax positions are recorded as Interest Expense. |
| Risk Management | The Companys
credit risk is primarily attributable to its account receivables. The amounts presented in the accompanying consolidated
balance sheets are net of allowances for doubtful accounts, estimated by the Companys management based on prior experience
and the current economic environment. The Company is exposed to credit-related losses in the event of non-performance
by counterparties to the financial instruments. Credit exposure is minimized by dealing with only credit worthy counterparties.
Accounts receivable for the Companys three primary customers totaled $1,482,103 (72%) at September 30, 2015 (December 31,
2014 - $1,769,114 or 76%). 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 is not
exposed to significant interest rate risk to the extent that the long term debt maintained from the foreign government agencies
is subject to a fixed rate of interest. 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. |
| Recently Adopted Accounting Pronouncements | In April 2014, the
FASB issued new guidance on the definition of a discontinued operation that requires entities to provide additional disclosures
about disposal transactions that do not meet the discontinued operations criteria. The new guidance narrows the focus
of discontinued operations to those components that are disposed of or classified as held-for-sale and that represent a strategic
shift that has or will have a major impact on the entitys operations or financial results. The guidance is effective
prospectively for all disposals or components initially classified as held-for-sale in periods beginning on or after December 15,
2014. Early adoption is permitted. Upon adoption, this guidance did not have a material impact on the Companys
consolidated results of operations or financial position. |
| New Accounting Pronouncements Not Yet Adopted | On May 28, 2014, the
Financial Accounting Standards Board (the FASB) and the International Accounting Standards Board (the IASB)
issued substantially converged final standards on revenue recognition. The FASB's Accounting Standards Update (ASU)
No. 2014-09, Revenue from Contracts with Customers (Topic 606), was issued in three parts: (a) Section A, Summary and Amendments
That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs-Contracts with Customers (Subtopic
340-40), (b) Section B, Conforming Amendments to Other Topics and Subtopics in the Codification and Status Tables
and (c) Section C, Background Information and Basis for Conclusions. The standard outlines a single comprehensive
model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition
guidance, including industry-specific guidance. The new revenue recognition guidance becomes effective for the Company
on January 1, 2017, and early adoption is not permitted. Entities have the option of using either a full retrospective
or a modified approach to adopt the guidance in the ASU. The Company has not yet selected a transition method and is
currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In August 2014, the
FASB issued new guidance on determining when and how to disclose going -concern uncertainties in the financial statements. The
new guidance requires management to perform interim and annual assessments of an entitys ability to continue as a going
concern within one year of the date the financial statements are issued. An entity must provide certain disclosures
if conditions or events raise substantial doubt about its ability to continue as a going concern. The guidance is effective
for annual periods ending after December 15, 2016 and interim periods thereafter. Early adoption is permitted. Upon
adoption, the Company does not believe this guidance will have a material impact on its consolidated results of operations or financial
position. In February 2015,
the FASB issued ASU No. 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis" ("ASU 2015-02"). ASU
2015-02 makes several modifications to the consolidation guidance for variable interest entities ("VIEs") and general
partners' investments in limited partnerships, as well as modifications to the evaluation of whether limited partnerships are VIEs
or voting interest entities. It is effective for annual and interim periods beginning after December 15, 2015. Early
adoption is permitted. The Company is evaluating the impact of the amended guidance on its consolidated financial statements. |
