Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 14, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | FLEXIBLE SOLUTIONS INTERNATIONAL INC | |
Entity Central Index Key | 0001069394 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2021 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,315,746 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 |
Condensed Interim Consolidated
Condensed Interim Consolidated Balance Sheets - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Current | ||
Cash and cash equivalents | $ 1,853,567 | $ 3,472,776 |
Term deposits | 1,000,000 | 1,000,000 |
Accounts receivable (Note 4) | 7,539,314 | 5,889,813 |
Inventories (Note 5) | 9,989,338 | 8,372,476 |
Prepaid expenses | 243,243 | 302,447 |
Total current assets | 20,625,462 | 19,037,512 |
Property, equipment and leaseholds, net (Note 6) | 5,053,321 | 5,142,041 |
Patents (Note 7) | 26,028 | 30,137 |
Right of use assets (Note 3) | 408,230 | 483,113 |
Intangible assets (Note 8) | 2,732,000 | 2,776,000 |
Long term deposits (Note 9) | 8,540 | 8,540 |
Investments (Note 10) | 4,972,635 | 4,776,167 |
Goodwill (Note 8) | 2,534,275 | 2,534,275 |
Deferred tax asset | 299,603 | 299,603 |
Total Assets | 36,660,094 | 35,087,388 |
Current | ||
Accounts payable | 515,518 | 558,105 |
Accrued liabilities | 395,569 | 1,225,804 |
Deferred revenue | 278,417 | 314,277 |
Income taxes payable | 3,053,671 | 2,540,348 |
Short term line of credit (Note 11) | 3,228,434 | 2,116,073 |
Current portion of lease liability (Note 3) | 223,535 | 287,900 |
Current portion of long term debt (Note 12) | 837,724 | 848,794 |
Total current liabilities | 8,532,868 | 7,891,301 |
Lease liability (Note 3) | 184,695 | 195,213 |
Deferred income tax liability | 233,751 | 233,751 |
Long term debt (Note 12) | 2,263,097 | 2,998,844 |
Total Liabilities | 11,214,411 | 11,319,109 |
Stockholders' Equity | ||
Capital stock (Note 15) Authorized: 50,000,000 common shares with a par value of $0.001 each; 1,000,000 preferred shares with a par value of $0.01 each Issued and outstanding: 12,315,746 (December 31, 2020: 12,260,545) common shares | 12,316 | 12,261 |
Capital in excess of par value | 16,749,084 | 16,633,190 |
Other comprehensive loss | (789,769) | (872,121) |
Accumulated earnings | 6,883,769 | 5,433,198 |
Total stockholders' equity - controlling interest | 22,855,400 | 21,206,528 |
Non-controlling interests (Note 16) | 2,590,283 | 2,561,751 |
Total Stockholders' Equity | 25,455,683 | 23,768,279 |
Total Liabilities and Stockholders' Equity | $ 36,660,094 | $ 35,087,388 |
Condensed Interim Consolidate_2
Condensed Interim Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 12,315,746 | 12,260,545 |
Common stock, shares outstanding | 12,315,746 | 12,260,545 |
Condensed Interim Consolidate_3
Condensed Interim Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Sales | $ 7,624,697 | $ 8,429,486 |
Cost of sales | 4,916,776 | 5,479,947 |
Gross profit | 2,707,921 | 2,949,539 |
Operating Expenses | ||
Wages | 579,355 | 535,433 |
Administrative salaries and benefits | 222,490 | 204,543 |
Insurance | 124,458 | 131,569 |
Consulting | 72,961 | 67,311 |
Lease expense | 66,028 | 118,468 |
Interest expense | 62,274 | 101,425 |
Professional fees | 53,689 | 51,053 |
Office and miscellaneous | 42,119 | 39,392 |
Advertising and promotion | 34,770 | 65,621 |
Investor relations and transfer agent fee | 25,087 | 18,624 |
Research | 18,275 | 28,578 |
Travel | 10,994 | 55,362 |
Telecommunications | 9,991 | 11,876 |
Currency exchange | 8,300 | (57,727) |
Commissions | 4,768 | 2,358 |
Shipping | 4,355 | 4,613 |
Utilities | 2,722 | 4,305 |
Total operating expenses | 1,342,636 | 1,382,804 |
Operating income | 1,365,285 | 1,566,735 |
PPP loan forgiveness | 537,960 | |
Gain on investments | 208,968 | 199,529 |
Interest income | 10,298 | 414 |
Income before income tax | 2,122,511 | 1,766,678 |
Income taxes | ||
Deferred income tax recovery | ||
Income tax expense | (485,456) | (434,988) |
Net income for the period including non-controlling interests | 1,637,055 | 1,331,690 |
Less: Net income attributable to non-controlling interests | (186,484) | (67,015) |
Net income attributable to controlling interest | $ 1,450,571 | $ 1,264,675 |
Income per share (basic and diluted) | $ .12 | $ .10 |
Weighted average number of common shares (basic) | 12,292,452 | 12,237,798 |
Weighted average number of common shares (diluted) | 12,518,331 | 12,300,896 |
Other comprehensive income (loss): | ||
Net income | $ 1,637,055 | $ 1,331,690 |
Unrealized gain (loss) on foreign currency translations | 82,352 | (98,928) |
Total comprehensive income | 1,719,407 | 1,232,762 |
Comprehensive income - non-controlling interest | (186,484) | (67,015) |
Comprehensive income attributable to Flexible Solutions International Inc. | $ 1,532,923 | $ 1,165,747 |
Condensed Interim Consolidate_4
Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities | ||
Net income for the period including non-controlling interests | $ 1,637,055 | $ 1,331,690 |
Adjustments to reconcile net income to net cash: | ||
Stock based compensation | 39,589 | 29,582 |
Depreciation and amortization | 232,965 | 148,058 |
Lease right of use financing | 8,187 | 17,532 |
Lease right of use amortization | 74,884 | 83,547 |
Gain on investments | (208,968) | (199,529) |
PPP loan forgiveness | (537,960) | |
Changes in non-cash working capital items: | ||
(Increase) Decrease in accounts receivable | (1,649,501) | (3,192,845) |
(Increase) Decrease in inventories | (1,616,862) | 235,397 |
(Increase) Decrease in prepaid expenses | 59,204 | (85,116) |
Increase (Decrease) in accounts payable and accrued liabilities | (872,823) | 444,898 |
Increase (Decrease) in taxes payable | 513,323 | (29,038) |
Increase (Decrease) deferred revenue | (35,860) | 2,560 |
Cash used in operating activities | (2,356,767) | (1,153,917) |
Investing activities | ||
Long term deposit | 22,084 | |
Purchase of investments | (1,000,000) | |
Proceeds of equity investment distributions | 12,500 | 256,563 |
Net purchase of property, equipment and leaseholds | (96,136) | (96,280) |
Cash used in investing activities | (83,636) | (817,633) |
Financing activities | ||
Draw from short term line of credit | 1,112,361 | 1,165,850 |
Repayment of long term debt | (208,857) | (201,027) |
Lease financing costs | (83,070) | (101,079) |
Partnership distributions | (157,952) | (143,002) |
Proceeds from issuance of common stock | 76,360 | 24,750 |
Cash provided by financing activities | 738,842 | 745,492 |
Effect of exchange rate changes on cash | 82,352 | 3,653 |
Outflow of cash | (1,619,209) | (1,222,405) |
Cash, cash equivalents and restricted cash, beginning | 4,472,776 | 4,634,670 |
Cash, cash equivalents and restricted cash, ending | 2,853,567 | 3,412,265 |
Cash, cash equivalents and restricted cash are comprised of: | ||
Cash and cash equivalents | 1,853,567 | 3,412,265 |
Term deposits | 1,000,000 | |
Cash, cash equivalents and restricted cash, ending | 2,853,567 | 3,412,265 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid | 464,026 | |
Interest paid | $ 62,274 | $ 101,245 |
Condensed Interim Consolidate_5
Condensed Interim Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Capital in Excess of Par Value [Member] | Accumulated Earnings (Deficiency) [Member] | Other Comprehensive Income (Loss) [Member] | Total | Non-Controlling Interests [Member] | Total Stockholders' Equity [Member] |
Beginning balance at Dec. 31, 2019 | $ 12,216 | $ 16,437,473 | $ 2,456,148 | $ (994,610) | $ 17,911,227 | $ 2,550,149 | $ 20,461,376 |
Beginning balance, Shares at Dec. 31, 2019 | 12,215,545 | ||||||
Translation adjustment | (98,928) | (98,928) | (98,928) | ||||
Net income | 1,264,675 | 1,264,675 | 67,015 | 1,331,690 | |||
Common stock issued | $ 25 | 24,725 | 24,750 | 24,750 | |||
Common stock issued, Shares | 25,000 | ||||||
Distributions to noncontrolling interests | (143,002) | (143,002) | |||||
Stock-based compensation | 29,582 | 29,582 | 29,582 | ||||
Ending balance at Mar. 31, 2020 | $ 12,241 | 16,491,780 | 3,720,823 | (1,093,538) | 19,130,306 | 2,474,162 | 21,605,468 |
Ending balance, Shares at Mar. 31, 2020 | 12,240,545 | ||||||
Beginning balance at Dec. 31, 2019 | $ 12,216 | 16,437,473 | 2,456,148 | (994,610) | 17,911,227 | 2,550,149 | 20,461,376 |
Beginning balance, Shares at Dec. 31, 2019 | 12,215,545 | ||||||
Ending balance at Dec. 31, 2020 | $ 12,261 | 16,633,190 | 5,433,198 | (872,121) | 21,206,528 | 2,561,751 | 23,768,279 |
Ending balance, Shares at Dec. 31, 2020 | 12,260,545 | ||||||
Translation adjustment | 82,352 | 82,352 | 82,352 | ||||
Net income | 1,450,571 | 1,450,571 | 186,484 | 1,637,055 | |||
Common stock issued | $ 55 | 76,305 | 76,360 | 76,360 | |||
Common stock issued, Shares | 55,201 | ||||||
Distributions to noncontrolling interests | (157,952) | (157,952) | |||||
Stock-based compensation | 39,589 | 39,589 | 39,589 | ||||
Ending balance at Mar. 31, 2021 | $ 12,316 | $ 16,749,084 | $ 6,883,769 | $ (789,769) | $ 22,855,400 | $ 2,590,238 | $ 25,445,683 |
Ending balance, Shares at Mar. 31, 2021 | 12,315,746 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation . These consolidated financial statements include the accounts of Flexible Solutions International, Inc. (the “Company”), its wholly-owned subsidiaries Flexible Fermentation Ltd. , NanoChem Solutions Inc. (“NanoChem”), Flexible Solutions Ltd., Flexible Biomass LP, FS Biomass Inc., NCS Deferred Corp., Natural Chem SEZC Ltd., and InnFlex Holdings Inc. and its 65% interest in ENP Investments, LLC (“ENP Investments”) and ENP Realty, LLC (“ENP Realty”). All inter-company balances and transactions have been eliminated upon consolidation. The Company was incorporated on May 12, 1998 in the State of Nevada and had no operations until June 30, 1998. In 2019, the Company redomiciled into Alberta, Canada. In 2018, NanoChem, a wholly-owned subsidiary of the Company, completed the purchase of a 65% interest in ENP Investments for an aggregate purchase price of $5,110,560. An unrelated party owns the remaining 35% interest in ENP Investments, and ENP Investments is consolidated into the financial statements. The outside investor’s ownership interest in ENP Investments is included in noncontrolling interests in these consolidated financial statements from the acquisition date onward. In 2020, ENP Investments increased its investment in ENP Realty from 24% to 100%, making ENP Realty a wholly-owned subsidiary of ENP Investments. ENP Realty is consolidated into the financial statements. The Company and its subsidiaries develop, manufacture and market specialty chemicals which slow the evaporation of water. One product, HEATSAVR®, is marketed for use in swimming pools and spas where its use, by slowing the evaporation of water, allows the water to retain a higher temperature for a longer period of time and thereby reduces the energy required to maintain the desired temperature of the water in the pool. Another product, WATERSAVR®, is marketed for water conservation in irrigation canals, aquaculture, and reservoirs where its use slows water loss due to evaporation. In addition to the water conservation products, the Company also manufactures and markets water-soluble chemicals utilizing thermal polyaspartate biopolymers (hereinafter referred to as “TPAs”), which are beta-proteins manufactured from the common biological amino acid, L-aspartic. TPAs can be formulated to prevent corrosion and scaling in water piping within the petroleum, chemical, utility and mining industries. TPAs are also used as proteins to enhance fertilizers in improving crop yields and can be used as additives for household laundry detergents, consumer care products and pesticides. The TPA division also manufactures two nitrogen conservation products for agriculture that slows nitrogen loss from fields. The outbreak of the novel strain of coronavirus, specifically identified as “COVID-19”, has resulted in a widespread health crisis that has affected economies and financial markets around the world resulting in an economic downturn. This outbreak may also cause staff shortages, reduced customer demand, increased government regulations or interventions, all of which may negatively impact the business, financial condition or results of options of the Company. The duration and impact of the COVID-19 outbreak is unknown at this time and it is not possible to reliably estimate the length and severity of these developments. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies. These consolidated financial statements have been prepared on a historical cost basis, except where otherwise noted, in accordance with accounting principles generally accepted in the United States applicable to a going concern and reflect the policies outlined below. (a) 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. (b) Inventories and Cost of Sales The Company has three major classes of inventory: completed goods, work in progress and raw materials and supplies. In all classes, inventories are stated at the lower of cost and net realizable value. The Company applies the first-in, first-out or weighted average cost formulae to inventories in different subsidiaries. Cost of sales includes all expenditures incurred in bringing the goods to the point of sale. Inventory costs and costs 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 Company’s manufacturing and processing facilities. Shipping and handling charges billed to customers are included in revenue (2021 - $131,348; 2020 – $162,905). Shipping and handling costs incurred are included in cost of goods sold (2021 - $263,089; 2020 – $290,748). (c) 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. (d) Property, Equipment, Leaseholds and Intangible Assets. 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 Trailer 30% Declining balance Automobile Straight-line over 5 years Patents Straight-line over 17 years Technology Straight-line over 10 years Right of Use Asset Straight-line over lease term Leasehold improvements Straight-line over lease term Customer Relationships – ENP Investments Straight line over 15 years Software – ENP Investments Straight line over 3 years (e) Impairment of Long-Lived Assets In accordance with FASB Codification Topic 360, Property, Plant and Equipment (f) Foreign Currency The functional currency of the Company is the U.S. dollar. The functional currency of three of the Company’s 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 Company’s financial statements from the subsidiary’s 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 in the consolidated statements of income and comprehensive income. 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. (g) Revenue Recognition The Company generates revenue primarily from energy and water conservation products and biodegradable polymer, as further discussed in Note 17. The Company follows a five-step model for revenue recognition. The five steps are: (1) identification of the contract(s) with the customer, (2) identification of the performance obligation(s) in the contract(s), (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligation, and (5) recognition of revenue when (or as) the performance obligation is satisfied. The Company has fulfilled its performance obligations when control transfers to the customer, which is generally at the time the product is shipped since risk of loss is transferred to the purchaser upon delivery to the carrier. For shipments which are F.O.B. shipping point, the Company has elected to account for shipping and handling activities as a fulfillment cost rather than as an additional promised service and performance obligation. The Company recognizes revenue when 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 Company’s 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 Company’s 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 has been met, and payments become due or cash is received from these distributors. (h) Stock Issued in Exchange for Services The Company’s common stock issued in exchange for services is valued at estimated fair market value based upon trading prices of the Company’s 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. (i) 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 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. (j) Other 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 Company’s other comprehensive income is comprised only of unrealized foreign exchange gains and losses. (k) Income Per Share Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding in the period. Diluted earnings per share is calculated giving effect to the potential dilution of the exercise of options and warrants. Common equivalent shares, composed of incremental 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 months ended March 31, 2021 and 2020. (l) 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 valuation of goodwill and intangible assets, asset impairment analysis, share-based payments and warrants, valuation allowances for deferred income tax assets, determination of useful lives of property, equipment and leaseholds and intangible assets, recoverability of accounts receivable, recoverability of investments, discount rates for right of use assets and the valuation of inventory. (m) Fair Value of Financial Instruments 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 which is significant to the fair value of the assets or liabilities. The fair values of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and the short term line of credit for all periods presented approximate their respective carrying amounts due to the short term nature of these financial instruments. The fair value of the long term debt for all periods presented approximate their respective carrying amounts due to these financial instruments being at market rates. (n) Contingencies Certain conditions may exist as of the date the consolidated 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 consolidated 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. (o) 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 carryforwards. 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 Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At March 31, 2021, 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 Company’s effective tax rate in a given financial statement period may be affected. Interest and penalties associated with the Company’s tax positions are recorded as interest expense in the consolidated statements of income and comprehensive income. (p) Risk Management. The Company’s credit risk is primarily attributable to its accounts receivable. The amounts presented in the accompanying consolidated balance sheets are net of allowances for doubtful accounts, estimated by the Company’s management based on prior experience and the current economic environment. The Company is exposed to credit-related losses in the event of non-payment by customers. Credit exposure is minimized by dealing with only credit worthy counterparties. Revenue for the Company’s three primary customers totaled $3,120,819 (41%) for the three months ended March 31, 2021 (2020 - $3,744,455 or 44%). Accounts receivable for the Company’s three primary customers totaled $4,134,780 (55%) at March 31, 2021 (December 31, 2020 - $3,986,284 or 68%). 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 maintains cash balances at financial institutions which at times exceed federally insured amounts. The Company has not experienced any losses in such accounts. The Company is exposed to foreign exchange risk to the extent that market value rate fluctuations materially differ from financial assets and liabilities, subject to fixed long-term rates. 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 and accrued liabilities. The Company has not hedged its exposure to currency fluctuations. The Company is exposed to interest rate risk to the extent that the fair value or future cash flows for financial liabilities will fluctuate as a result of changes in market interest rates. The Company is exposed to interest rate risk on its long-term debt. In order to manage its exposure to interest rate risk, the Company is closely monitoring fluctuations in market interest risks and will refinance its long-term debt where possible to obtain more favourable rates. (q) Equity Method Investment The Company accounts for investments using the equity method of accounting if the investment provides the Company the ability to exercise significant influence, but not control, over the investee. Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between 20% and 50%, although other factors, such as representation on the investee’s board of directors, are considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the investment is recorded at cost in the consolidated balance sheets under other assets and adjusted for dividends received and the Company’s share of the investee’s earnings or losses together with other-than-temporary impairments which are recorded through other income (loss), net in the consolidated statements of income and comprehensive income. (r) Goodwill and intangible assets Goodwill represents the excess of the purchase price of an acquired entity over the amounts assigned to the assets acquired and liabilities assumed. Goodwill is not amortized, but is reviewed for impairment annually or more frequently if certain impairment conditions arise. The Company performs an annual goodwill impairment review in the fourth quarter of each year at the reporting unit level. The evaluation begins with a qualitative assessment of the factors that could impact the significant inputs used to estimate fair value. If after performing the qualitative assessment, it is determined that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, including goodwill, then no further analysis is necessary. However, if the results of the qualitative test are unclear, the Company performs a quantitative test, which involves comparing the fair value of a reporting unit with its carrying amount, including goodwill. The Company uses an income-based valuation method, determining the present value of future cash flows, to estimate the fair value of a reporting unit. If the fair value of a reporting unit exceeds its positive carrying amount, goodwill of the reporting unit is considered not impaired, and no further analysis is necessary. If the fair value of the reporting unit is less than its carrying amount, goodwill impairment would be recognized equal to the amount of the carrying value in excess of the reporting unit’s fair value, limited to the total amount of goodwill allocated to the reporting unit. Intangible assets primarily include trademarks and trade secrets with indefinite lives and customer-relationships with finite lives. Intangible assets with indefinite lives are not amortized but are tested for impairment on an annual basis, or more frequently if indicators of impairment are present. Indefinite lived intangible assets are assessed using either a qualitative or a quantitative approach. The qualitative assessment evaluates factors including macro-economic conditions, industry and company-specific factors, legal and regulatory environments, and historical company performance in assessing fair value. If it is determined that it is more likely than not that the fair value of the intangible asset is less than its carrying value, a quantitative test is then performed. Otherwise, no further testing is required. When using a quantitative approach, the Company compares the fair value of the intangible asset to its carrying amount, including goodwill. If the estimated fair value of the intangible asset is less than the carrying amount of the intangible asset, impairment is indicated, requiring recognition of an impairment charge for the differential. Qualitative assessments of goodwill and indefinite-lived intangible assets were performed in 2020 and 2019. Based on the results of assessment, it was determined that it is more likely than not the reporting unit, customer lists and trademarks had a fair value in excess of their carrying value. Accordingly, no further impairment testing was completed and no impairment charges related to goodwill or indefinite-lived intangibles were recognized during the three months ended March 31, 2021. Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company reviews for impairment indicators of finite-lived intangibles and other long-lived assets as described in the “Impairment of Long Lived Assets” significant accounting policy. (s) Recent Accounting Pronouncements The Company has implemented all applicable new accounting pronouncements that are in effect. Those pronouncements did not have any material impact on the consolidated financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | 3. Leases Accounting and reporting guidance for leases requires that leases be evaluated and classified as either operating or finance leases by the lessee and as either operating, sales-type or direct financing leases by the lessor. For leases with terms greater than 12 months, the Company records the related right-of-use (“ROU”) asset and lease obligation at the present value of lease payments over the term. Leases may include fixed rental escalation clauses, renewal options and / or termination options that are factored into the determination of lease payments when appropriate. The Company’s operating leases are included in ROU assets, lease liabilities-current portion and lease liability-less current portion in the accompanying consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. The Company’s leases do not usually provide a readily determinable implicit rate; therefore, an estimate of the Company’s incremental borrowing rate is used to discount the lease payments based on information available at the lease commencement date. The discount rate used was 5.5%. The table below summarizes the right-of-use asset and lease liability for the period ended March 31, 2021: March 31, 2021 Right of Use Assets Balance at December 31, 2020 $ 483,113 Depreciation (74,883 ) Balance at March 31, 2021 $ 408,230 Lease Liability Balance at December 31, 2020 $ 483,113 Lease interest expense 8,187 Payments (83,070 ) Balance at March 31, 2021 $ 408,230 Short-term portion $ 223,535 Long-term portion 184,695 Total $ 408,230 Undiscounted rent payments for the next five years are as follows: 2021 $ 204,830 2022 67,320 2023 66,180 2024 59,520 2025 61,020 Total $ 458,870 Impact of discounting 50,640 Lease liability, March 31, 2021 $ 408,230 |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Accounts Receivable | 4. Accounts Receivable March 31, 2021 December 31, 2020 Accounts receivable $ 7,810,978 $ 6,161,249 Allowances for doubtful accounts (271,664 ) (271,436 ) $ 7,539,314 $ 5,889,813 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. Inventories March 31, 2021 December 31, 2020 Completed goods $ 4,337,962 $ 3,393,794 Work in progress 177,201 152,595 Raw materials and supplies 5,474,175 4,826,087 |
Property, Plant & Equipment
Property, Plant & Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant & Equipment | 6. Property, Plant & equipment March 31, 2021 Accumulated March 31, 2021 Cost Depreciation Net Buildings and improvements $ 4,799,742 $ 2,873,647 $ 1,926,095 Automobiles 180,956 69,450 111,506 Computer hardware 43,609 42,090 1,519 Furniture and fixtures 111,167 102,043 9,124 Office equipment 1,875 1,022 853 Manufacturing equipment 6,252,435 3,715,223 2,537,212 Trailer 9,476 6,920 2,556 Boat 34,400 24,762 9,638 Leasehold improvements 88,872 87,705 1,167 Technology 107,909 107,909 — Land 453,651 — 453,651 $ 12,084,092 $ 7,030,771 $ 5,053,321 December 31, 2020 Accumulated December 31, 2020 Cost Depreciation Net Buildings and improvements $ 4,798,370 $ 2,836,142 $ 1,962,228 Automobiles 180,956 61,266 119,690 Computer hardware 43,593 41,957 1,636 Furniture and fixtures 111,145 101,186 9,959 Office equipment 1,864 971 893 Manufacturing equipment 6,154,425 3,573,748 2,580,677 Trailer 9,422 6,675 2,747 Boat 34,400 24,255 10,145 Leasehold improvements 88,872 87,205 1,667 Technology 107,295 107,295 — Land 452,399 — 452,399 $ 11,982,741 $ 6,840,700 $ 5,142,041 Amount of depreciation expense for the three months ended March 31, 2021: $184,855 (2020: $99,948) and is included in cost of sales in the unaudited interim condensed consolidated statements of income and comprehensive income. |
Patents
Patents | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Patents | 7. Patents In fiscal 2005, the Company started the patent process for additional WATER$AVR® products. Patents associated with these costs were granted in 2006 and they have been amortized over their legal life of 17 years. March 31, 2021 Cost Accumulated March 31, 2021 Net Patents $ 209,404 $ 183,376 $ 26,028 December 31, 2020 Accumulated December 31, 2020 Patents $ 208,211 $ 178,074 $ 30,137 The increase in the carrying amount of patents is primarily due to foreign currency translation effects. The 2021 cost in Canadian dollars - $265,102 (December 31, 2020 - $265,102 in Canadian dollars). Amount of amortization for 2021 - $4,110 (2020 - $4,110) and is included in cost of sales in the consolidated statements of income and comprehensive income. Estimated amortization expense over the next two years is as follows: 2021 16,438 2022 13,699 |
Goodwill and Indefinite Lived I
Goodwill and Indefinite Lived Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Indefinite Lived Intangible Assets | 8. Goodwill and Indefinite Lived Intangible Assets Goodwill Balance as of December 31, 2019 $ 2,534,275 Additions - Impairment - Balance as of December 31, 2020 and March 31, 2021 $ 2,534,275 Indefinite Lived Intangible Assets Balance as of December 31, 2019 $ 770,000 Additions - Impairment - Balance as of December 31, 2020 and March 31, 2021 $ 770,000 Goodwill relates to the acquisition of ENP Investments. Indefinite lived intangible assets consist of trade secrets and trademarks related to the acquisition of ENP Investments. Definite Life Intangible Assets Balance as of December 31, 2019 $ 2,182,000 Amortization (176,000 ) Balance as of December 31, 2020 2,006,000 Amortization (44,000 ) Balance as of March 31, 2021 $ 1,962,000 Definite life intangible assets consist of customer relationships and software related to the acquisition of ENP Investments. Customer relationships and software are amortized over their estimated useful life of 15 years and 3 years, respectively. Estimated amortization expense over the next five years is as follows: 2021 $ 176,000 2022 160,000 2023 160,000 2024 160,000 2025 160,000 |
Long Term Deposits
Long Term Deposits | 3 Months Ended |
Mar. 31, 2021 | |
Long Term Deposits | |
Long Term Deposits | 9. Long Term Deposits The Company has reclassified certain security deposits to better reflect their long term nature. Long term deposits consist of damage deposits held by landlords and security deposits held by various vendors. March 31, 2020 December 31, 2020 Long term deposits $ 8,540 $ 8,540 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | 10. Investments ( a ) Balance, December 31, 2019 $ 11,387 Return of equity (9,063 ) Gain in equity method investment 1,498 Balance, December 31, 2020 3,822 Return of equity (3,822 ) Gain in equity method investment - Balance, March 31, 2021 $ - Summarized profit and loss information related to the equity accounted investment is as follows for the full year: 2020 Net sales $ 295,800 Net income $ 2,996 During the three months ended March 31, 2021, the Company received $8,678 from ENP Peru. At the time of receipt of the payment, the investment balance was $nil and the payment was not recorded against the investment balance but was included in gains on investments. ( b ) It was determined that ENP Realty did not meet the definition of a business in accordance with FASB Codification Topic 805, Business Combinations (ASC 805) , Investment eliminated upon consolidation $ 63,165 Assets acquired: Cash 13,419 Building 630,000 Land 85,000 Liabilities assumed: Accounts payable (15,797 ) Long term debt (450,000 ) Deferred income tax liability (66,116 ) Total identifiable net assets: 196,506 Gain on acquisition of ENP Realty $ 133,341 The income tax expense arising from the deferred income tax liability was net against gain on acquisition of ENP Realty in the consolidated statements of income and comprehensive income for the full year ended December 31, 2020. A summary of the Company’s investment follows: Balance, December 31, 2019 $ 63,165 Investment eliminated upon consolidation (63,165 ) Balance, December 31, 2020 and March 31, 2021 $ - Summarized profit and loss information related to the equity accounted investment is as follows for the full year: 2019 Net sales $ 75,870 Net income $ 34,200 (c ) Investments – Equity Method and Joint Ventures ( d ) ( e ) A summary of the Company’s investment follows: Balance, December 31, 2019 $ 1,141,033 Additional payments 2,518,684 Gain in equity method investment 809,342 Return of equity (896,714 ) Balance, December 31, 2020 3,572,345 Gain in equity method investment 200,290 Return of equity - Balance, March 31, 2021 $ 3,772,635 Further to the original investment amount, the Company had placed $1,000,000 in trust, which was released upon the Florida based LLC reaching a milestone related to earnings before interest, taxes and depreciation (“EBITDA”) targets. This amount was accounted for as restricted cash on the balance sheet as at December 31, 2019. During the year ended December 31, 2020, this amount was released. The additional payments of $2,518,684 made during the year ended December 31, 2020 related to contingent consideration which was dependent on the Florida based LLC meeting certain performance millstones during the year. Summarized profit and loss information related to the equity accounted investment is as follows: Three months ended March 31, 2021 Three months ended March 31, 2020 Net sales $ 2,332,304 $ 2,791,754 Gross profit 860,676 945,395 Net income 400,580 280,364 f) T Balance, January 1, 2020 $ - Acquisition 500,000 Balance, December 31, 2020 and March 31, 2021 $ 500,000 |
Short-Term Line of Credit
Short-Term Line of Credit | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Short-Term Line of Credit | 11. Short-Term Line of Credit ( a ) (b) The revolving line of credit contains customary affirmative and negative covenants, including the following: compliance with laws, provisions of financial statements and periodic reports, payment of taxes, maintenance of inventory and insurance, maintenance of operating accounts at Midland, Midland’s access to collateral, formation or acquisition of subsidiaries, incurrence of indebtedness, dispositions of assets, granting liens, changes in business, ownership or business locations, engaging in mergers and acquisitions, making investments or distributions and affiliate transactions. NanoChem is a guarantor of 65% of all the principal and other loan costs not to exceed $1,625,000. March 31, 2021, ENP Investments was in compliance with all loan covenants. To secure the repayment of any amounts borrowed under the revolving line of credit, ENP Investments granted Midland a security interest in all inventory, equipment and fixtures and acknowledges a separate commercial security agreement from guarantor to Midland dated February 15, 2011. Short-term borrowings outstanding under the revolving line as of March 31, 2021 were $1,739,280 (December 31, 2020 - $541,456). (c) The revolving line of credit contains customary affirmative and negative covenants, including the following: compliance with laws, provision of financial statements and periodic reports, payment of taxes, maintenance of inventory and insurance, maintenance of operating accounts at Midland, Midland’s access to collateral, formation or acquisition of subsidiaries, incurrence of indebtedness, dispositions of assets, granting liens, changes in business, ownership or business locations, engaging in mergers and acquisitions, making investments or distributions and affiliate transactions. The covenants also require that the Company maintain a minimum ratio of qualifying financial assets to the sum of qualifying financial obligations. As of March 31, 2021, Company was in compliance with all loan covenants. To secure the repayment of any amounts borrowed under the revolving line of credit, the Company granted Midland a security interest in substantially all of the assets of NanoChem, exclusive of intellectual property assets. Short-term borrowings outstanding under the revolving line as of March 31, 2021 were $1,489,154 (December 31, 2020 - $1,574,617). |
Long Term Debt
Long Term Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long Term Debt | 12. Long Term Debt ( a ) ( b ) ( c ) The Company has committed to the following repayments: 2021 $ 28,410 2022 $ 29,900 2023 $ 31,508 2024 $ 33,202 2025 $ 2,523 ( d ) ( e ) (f) (g) The Company has committed to the following repayments: 2021 $ 368,332 2022 $ 382,705 2023 $ 397,414 2024 $ 413,516 2025 $ 359,009 (h) 2021 $ 441,260 2022 $ 381,120 (i) As of March 31, 2021, Company was in compliance with all loan covenants. Continuity March 31, 2021 December 31, 2020 Balance, January 1 $ 3,847,638 $ 4,380,393 Plus: Proceeds from loans - 3,413,160 Plus: Loan acquired with acquisition of ENP Realty - 450,000 Less: Forgiveness on PPP loans (537,960 ) - Less: Payments on loan (208,857 ) (4,395,915 ) Balance, end of period $ 3,100,821 $ 3,847,638 Outstanding balance at December 31, March 31, 2021 December 31, 2020 a) Long term debt – Harris Bank $ - $ - b) Long term debt – Harris Bank - - c) Long term debt – Midland States Bank 118,481 125,543 d) Long term debt – Ford Credit - - e) Long term debt – PPP - 322,000 f) Long term debt - PPP - 215,960 g) Long term debt – Midland States Bank 1,830,392 1,920,976 h) Long term debt – Midland States Bank 713,735 822,380 i) Long term debt – Stock Yards Bank & Trust 438,213 440,779 Long-term Debt 3,100,821 3,847,638 Less: current portion (837,724 ) (848,794 ) $ 2,263,097 $ 2,998,844 |
Convertible Note Payable
Convertible Note Payable | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Convertible Note Payable | 13. Convertible Note Payable In October 2018, the Company issued a convertible note payable in the amount of $1,000,000 in connection with the acquisition of EnP Investments LLC. The convertible note is due on or before September 30, 2023 with 5% interest due per year. At the option of the holder, the Note may be converted into 400,000 shares in the Company’s common stock. In June 2019, the holder opted to convert $500,000 of the convertible note payable into 200,000 shares of the Company’s common stock. In April 2020, the Company repaid the remaining principal balance of $500,000 and accrued interest of $13,046. |
Stock Options
Stock Options | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Options | 14. Stock Options The Company has a stock option plan (“Plan”). The purpose of this Plan is to provide additional incentives to key employees, officers, directors and consultants of the Company and its subsidiaries in order to help attract and retain the best available personnel for positions of responsibility and otherwise promote the success of the Company’s business. It is intended that options issued under this Plan constitute non-qualified stock options. The general terms of awards under the option plan are that 100% of the options granted will vest the year following the grant. The maximum term of options granted is 5 years and the exercise price for all options are issued for not less than fair market value at the date of the grant. The following table summarizes the Company’s stock option activities for the year ended December 31, 2020 and the three-month period ended March 31, 2021: Number of shares Exercise price Weighted average exercise price Balance, December 31, 2019 635,000 $ 0.75 – 1.75 $ 1.35 Granted 172,000 $ 2.44 $ 2.44 Cancelled or expired (13,000 ) $ 2.44 – 3.46 $ 2.75 Exercised (45,000 ) $ 0.75 – 1.05 $ 0.88 Balance, December 31, 2020 749,000 $ 0.75 – 4.13 $ 2.42 Cancelled or expired (27,799 ) $ 1.42 – 3.46 $ 2.45 Exercised (55,201 ) $ 0.75 – 3.46 $ 1.55 Balance, March 31, 2021 666,000 $ 1.42 – 4.13 $ 2.66 Exercisable, March 31, 2021 423,000 $ 1.42 – 4.13 $ 2.44 The weighted average remaining contractual life of options outstanding is 3.6 years. The fair value of each option grant is calculated using the following weighted average assumptions: 2020 Expected life – years 3.0 Interest rate 0.37 % Volatility 70.14 % Weighted average fair value of options granted $ 1.12 The Company did not grant any options during the three months ended March 31, 2021 or 2020. Options granted in previous quarters resulted in expenses in the amount of $13,065 for consultants (2020 - $11,272) and $26,524 for employees (2020 - $18,310) during the quarter ended March 31, 2021. There were 32,000 employee and 23,201 consultant stock options exercised during the three months ended March 31, 2021 (2020 – 15,000 employee and 10,000 consultant stock options). As of March 31, 2021, there was approximately $129,991 of compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted average period of 1 year. The aggregate intrinsic value of vested options outstanding at March 31, 2021 is $578,660 (2020 – $nil). |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Capital Stock | 15. Capital Stock . During the three months ended March 31, 2021, 32,000 shares were issued upon the exercise of employee stock options (2020 – 15,000) and 23,201 shares were issued upon the exercise of consultant stock options (2020 – 10,000). On March 19, 2020, the Company suspended the annual dividend until further notice due to the uncertainty surrounding the COVID-19 virus. |
Non-Controlling Interests
Non-Controlling Interests | 3 Months Ended |
Mar. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Non-Controlling Interests | 16. Non-Controlling Interests ENP Investments is a limited liability corporation (LLC) that manufactures and distributes golf, turf and ornamental agriculture products in Mendota, Illinois. ENP Investments makes cash distributions to its equity owners based on formulas defined within its Ownership Interest Purchase Agreement dated October 1, 2018. Distributions are defined in the Ownership Interest Purchase Agreement as cash on hand to the extent it exceeds current and anticipated long-term and short-term needs, including, without limitation, needs for operating expenses, debt service, acquisitions, reserves, and mandatory distributions, if any. From the effective date of acquisition onward, the minimum distributions requirements under the Ownership Interest Purchase Agreement were satisfied. The total distribution from the effective date of acquisition onward was $1,278,944. Balance, December 31, 2019 $ 2,550,149 Distribution (594,882 ) Non-controlling interest share of income 606,484 Balance, December 31, 2020 2,561,751 Distribution (157,952 ) Non-controlling interest share of income 186,484 Balance, March 31, 2021 $ 2,590,283 |
Segmented, Significant Customer
Segmented, Significant Customer Information and Economic Dependency | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segmented, Significant Customer Information and Economic Dependency | 17. 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’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, 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 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 ) Three months ended March 31, 2020: EWCP TPA Total Revenue $ 89,928 $ 8,339,558 $ 8,429,486 Interest expense - 101,425 101,425 Depreciation and amortization 10,476 137,582 148,058 Segment profit (loss) (60,255 ) 1,324,930 1,264,675 Segment assets 1,963,075 32,856,519 34,819,594 Expenditures for segment assets - (96,280 ) (96,280 ) The sales generated in the United States and Canada are as follows: Three months ended Three months ended Canada $ 107,253 $ 146,000 United States and abroad 7,517,444 8,283,486 Total $ 7,624,697 $ 8,429,486 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, 2021 December 31, 2020 Canada $ 438,107 $ 445,663 United States 10,315,747 10,519,903 Total $ 10,753,854 $ 10,965,566 Three primary customers accounted for $3,120,819 (41%) of sales during the three-month period ended March 31, 2021 (2020 - $3,744,456 or 44%). |
Comparative Figures
Comparative Figures | 3 Months Ended |
Mar. 31, 2020 | |
Comparative Figures | |
Comparative Figures | 18. Comparative Figures . Certain of the comparative figures have been reclassified to conform with the current period’s presentation. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 19. Subsequent Events None |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | (a) 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 | (b) Inventories and Cost of Sales The Company has three major classes of inventory: completed goods, work in progress and raw materials and supplies. In all classes, inventories are stated at the lower of cost and net realizable value. The Company applies the first-in, first-out or weighted average cost formulae to inventories in different subsidiaries. Cost of sales includes all expenditures incurred in bringing the goods to the point of sale. Inventory costs and costs 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 Company’s manufacturing and processing facilities. Shipping and handling charges billed to customers are included in revenue (2021 - $131,348; 2020 – $162,905). Shipping and handling costs incurred are included in cost of goods sold (2021 - $263,089; 2020 – $290,748). |
Allowance for Doubtful Accounts | (c) 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, Leaseholds and Intangible Assets | (d) Property, Equipment, Leaseholds and Intangible Assets. 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 Trailer 30% Declining balance Automobile Straight-line over 5 years Patents Straight-line over 17 years Technology Straight-line over 10 years Right of Use Asset Straight-line over lease term Leasehold improvements Straight-line over lease term Customer Relationships – ENP Investments Straight line over 15 years Software – ENP Investments Straight line over 3 years |
Impairment of Long-Lived Assets | (e) Impairment of Long-Lived Assets In accordance with FASB Codification Topic 360, Property, Plant and Equipment |
Foreign Currency | (f) Foreign Currency The functional currency of the Company is the U.S. dollar. The functional currency of three of the Company’s 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 Company’s financial statements from the subsidiary’s 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 in the consolidated statements of income and comprehensive income. 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 | (g) Revenue Recognition The Company generates revenue primarily from energy and water conservation products and biodegradable polymer, as further discussed in Note 17. The Company follows a five-step model for revenue recognition. The five steps are: (1) identification of the contract(s) with the customer, (2) identification of the performance obligation(s) in the contract(s), (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligation, and (5) recognition of revenue when (or as) the performance obligation is satisfied. The Company has fulfilled its performance obligations when control transfers to the customer, which is generally at the time the product is shipped since risk of loss is transferred to the purchaser upon delivery to the carrier. For shipments which are F.O.B. shipping point, the Company has elected to account for shipping and handling activities as a fulfillment cost rather than as an additional promised service and performance obligation. The Company recognizes revenue when 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 Company’s 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 Company’s 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 has been met, and payments become due or cash is received from these distributors. |
Stock Issued in Exchange for Services | (h) Stock Issued in Exchange for Services The Company’s common stock issued in exchange for services is valued at estimated fair market value based upon trading prices of the Company’s 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 | (i) 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 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. |
Other Comprehensive Income | (j) Other 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 Company’s other comprehensive income is comprised only of unrealized foreign exchange gains and losses. |
Income Per Share | (k) Income Per Share Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding in the period. Diluted earnings per share is calculated giving effect to the potential dilution of the exercise of options and warrants. Common equivalent shares, composed of incremental 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 months ended March 31, 2021 and 2020. |
Use of Estimates | (l) 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 valuation of goodwill and intangible assets, asset impairment analysis, share-based payments and warrants, valuation allowances for deferred income tax assets, determination of useful lives of property, equipment and leaseholds and intangible assets, recoverability of accounts receivable, recoverability of investments, discount rates for right of use assets and the valuation of inventory. |
Fair Value of Financial Instruments | (m) Fair Value of Financial Instruments 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 which is significant to the fair value of the assets or liabilities. The fair values of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and the short term line of credit for all periods presented approximate their respective carrying amounts due to the short term nature of these financial instruments. The fair value of the long term debt for all periods presented approximate their respective carrying amounts due to these financial instruments being at market rates. |
Contingencies | (n) Contingencies Certain conditions may exist as of the date the consolidated 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 consolidated 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 | (o) 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 carryforwards. 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 Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At March 31, 2021, 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 Company’s effective tax rate in a given financial statement period may be affected. Interest and penalties associated with the Company’s tax positions are recorded as interest expense in the consolidated statements of income and comprehensive income. |
Risk Management | (p) Risk Management. The Company’s credit risk is primarily attributable to its accounts receivable. The amounts presented in the accompanying consolidated balance sheets are net of allowances for doubtful accounts, estimated by the Company’s management based on prior experience and the current economic environment. The Company is exposed to credit-related losses in the event of non-payment by customers. Credit exposure is minimized by dealing with only credit worthy counterparties. Revenue for the Company’s three primary customers totaled $3,120,819 (41%) for the three months ended March 31, 2021 (2020 - $3,744,455 or 44%). Accounts receivable for the Company’s three primary customers totaled $4,134,780 (55%) at March 31, 2021 (December 31, 2020 - $3,986,284 or 68%). 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 maintains cash balances at financial institutions which at times exceed federally insured amounts. The Company has not experienced any losses in such accounts. The Company is exposed to foreign exchange risk to the extent that market value rate fluctuations materially differ from financial assets and liabilities, subject to fixed long-term rates. 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 and accrued liabilities. The Company has not hedged its exposure to currency fluctuations. The Company is exposed to interest rate risk to the extent that the fair value or future cash flows for financial liabilities will fluctuate as a result of changes in market interest rates. The Company is exposed to interest rate risk on its long-term debt. In order to manage its exposure to interest rate risk, the Company is closely monitoring fluctuations in market interest risks and will refinance its long-term debt where possible to obtain more favourable rates. |
Equity Method Investment | (q) Equity Method Investment The Company accounts for investments using the equity method of accounting if the investment provides the Company the ability to exercise significant influence, but not control, over the investee. Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between 20% and 50%, although other factors, such as representation on the investee’s board of directors, are considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the investment is recorded at cost in the consolidated balance sheets under other assets and adjusted for dividends received and the Company’s share of the investee’s earnings or losses together with other-than-temporary impairments which are recorded through other income (loss), net in the consolidated statements of income and comprehensive income. |
Goodwill and Intangible Assets | (r) Goodwill and intangible assets Goodwill represents the excess of the purchase price of an acquired entity over the amounts assigned to the assets acquired and liabilities assumed. Goodwill is not amortized, but is reviewed for impairment annually or more frequently if certain impairment conditions arise. The Company performs an annual goodwill impairment review in the fourth quarter of each year at the reporting unit level. The evaluation begins with a qualitative assessment of the factors that could impact the significant inputs used to estimate fair value. If after performing the qualitative assessment, it is determined that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, including goodwill, then no further analysis is necessary. However, if the results of the qualitative test are unclear, the Company performs a quantitative test, which involves comparing the fair value of a reporting unit with its carrying amount, including goodwill. The Company uses an income-based valuation method, determining the present value of future cash flows, to estimate the fair value of a reporting unit. If the fair value of a reporting unit exceeds its positive carrying amount, goodwill of the reporting unit is considered not impaired, and no further analysis is necessary. If the fair value of the reporting unit is less than its carrying amount, goodwill impairment would be recognized equal to the amount of the carrying value in excess of the reporting unit’s fair value, limited to the total amount of goodwill allocated to the reporting unit. Intangible assets primarily include trademarks and trade secrets with indefinite lives and customer-relationships with finite lives. Intangible assets with indefinite lives are not amortized but are tested for impairment on an annual basis, or more frequently if indicators of impairment are present. Indefinite lived intangible assets are assessed using either a qualitative or a quantitative approach. The qualitative assessment evaluates factors including macro-economic conditions, industry and company-specific factors, legal and regulatory environments, and historical company performance in assessing fair value. If it is determined that it is more likely than not that the fair value of the intangible asset is less than its carrying value, a quantitative test is then performed. Otherwise, no further testing is required. When using a quantitative approach, the Company compares the fair value of the intangible asset to its carrying amount, including goodwill. If the estimated fair value of the intangible asset is less than the carrying amount of the intangible asset, impairment is indicated, requiring recognition of an impairment charge for the differential. Qualitative assessments of goodwill and indefinite-lived intangible assets were performed in 2020 and 2019. Based on the results of assessment, it was determined that it is more likely than not the reporting unit, customer lists and trademarks had a fair value in excess of their carrying value. Accordingly, no further impairment testing was completed and no impairment charges related to goodwill or indefinite-lived intangibles were recognized during the three months ended March 31, 2021. Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company reviews for impairment indicators of finite-lived intangibles and other long-lived assets as described in the “Impairment of Long Lived Assets” significant accounting policy. |
Recent Accounting Pronouncements | (s) Recent Accounting Pronouncements The Company has implemented all applicable new accounting pronouncements that are in effect. Those pronouncements did not have any material impact on the consolidated financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Method of Depreciation | 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 Trailer 30% Declining balance Automobile Straight-line over 5 years Patents Straight-line over 17 years Technology Straight-line over 10 years Right of Use Asset Straight-line over lease term Leasehold improvements Straight-line over lease term Customer Relationships – ENP Investments Straight line over 15 years Software – ENP Investments Straight line over 3 years |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Summary of Right-of-use Asset and Lease Liability | The table below summarizes the right-of-use asset and lease liability for the period ended March 31, 2021: March 31, 2021 Right of Use Assets Balance at December 31, 2020 $ 483,113 Depreciation (74,883 ) Balance at March 31, 2021 $ 408,230 Lease Liability Balance at December 31, 2020 $ 483,113 Lease interest expense 8,187 Payments (83,070 ) Balance at March 31, 2021 $ 408,230 Short-term portion $ 223,535 Long-term portion 184,695 Total $ 408,230 |
Schedule of Undiscounted Rent Payments | Undiscounted rent payments for the next five years are as follows: 2021 $ 204,830 2022 67,320 2023 66,180 2024 59,520 2025 61,020 Total $ 458,870 Impact of discounting 50,640 Lease liability, March 31, 2021 $ 408,230 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | March 31, 2021 December 31, 2020 Accounts receivable $ 7,810,978 $ 6,161,249 Allowances for doubtful accounts (271,664 ) (271,436 ) $ 7,539,314 $ 5,889,813 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | March 31, 2021 December 31, 2020 Completed goods $ 4,337,962 $ 3,393,794 Work in progress 177,201 152,595 Raw materials and supplies 5,474,175 4,826,087 $ 9,989,338 $ 8,372,476 |
Property, Plant & Equipment (Ta
Property, Plant & Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Equipment and Leaseholds | March 31, 2021 Accumulated March 31, 2021 Cost Depreciation Net Buildings and improvements $ 4,799,742 $ 2,873,647 $ 1,926,095 Automobiles 180,956 69,450 111,506 Computer hardware 43,609 42,090 1,519 Furniture and fixtures 111,167 102,043 9,124 Office equipment 1,875 1,022 853 Manufacturing equipment 6,252,435 3,715,223 2,537,212 Trailer 9,476 6,920 2,556 Boat 34,400 24,762 9,638 Leasehold improvements 88,872 87,705 1,167 Technology 107,909 107,909 — Land 453,651 — 453,651 $ 12,084,092 $ 7,030,771 $ 5,053,321 December 31, 2020 Accumulated December 31, 2020 Cost Depreciation Net Buildings and improvements $ 4,798,370 $ 2,836,142 $ 1,962,228 Automobiles 180,956 61,266 119,690 Computer hardware 43,593 41,957 1,636 Furniture and fixtures 111,145 101,186 9,959 Office equipment 1,864 971 893 Manufacturing equipment 6,154,425 3,573,748 2,580,677 Trailer 9,422 6,675 2,747 Boat 34,400 24,255 10,145 Leasehold improvements 88,872 87,205 1,667 Technology 107,295 107,295 — Land 452,399 — 452,399 $ 11,982,741 $ 6,840,700 $ 5,142,041 |
Patents (Tables)
Patents (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Patents | Patents associated with these costs were granted in 2006 and they have been amortized over their legal life of 17 years. March 31, 2021 Cost Accumulated March 31, 2021 Net Patents $ 209,404 $ 183,376 $ 26,028 December 31, 2020 Accumulated December 31, 2020 Patents $ 208,211 $ 178,074 $ 30,137 |
Schedule of Estimated Amortization Expense | Estimated amortization expense over the next two years is as follows: 2021 16,438 2022 13,699 |
Goodwill and Indefinite Lived_2
Goodwill and Indefinite Lived Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Indefinite Lived Intangible Assets | Goodwill Balance as of December 31, 2019 $ 2,534,275 Additions - Impairment - Balance as of December 31, 2020 and March 31, 2021 $ 2,534,275 Indefinite Lived Intangible Assets Balance as of December 31, 2019 $ 770,000 Additions - Impairment - Balance as of December 31, 2020 and March 31, 2021 $ 770,000 Goodwill relates to the acquisition of ENP Investments. Indefinite lived intangible assets consist of trade secrets and trademarks related to the acquisition of ENP Investments. Definite Life Intangible Assets Balance as of December 31, 2019 $ 2,182,000 Amortization (176,000 ) Balance as of December 31, 2020 2,006,000 Amortization (44,000 ) Balance as of March 31, 2021 $ 1,962,000 |
Schedule of Estimated Future Amortization Expense | Estimated amortization expense over the next five years is as follows: 2021 $ 176,000 2022 160,000 2023 160,000 2024 160,000 2025 160,000 |
Long Term Deposits (Tables)
Long Term Deposits (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Long Term Deposits | |
Schedule of Long Term Deposits | Long term deposits consist of damage deposits held by landlords and security deposits held by various vendors. March 31, 2020 December 31, 2020 Long term deposits $ 8,540 $ 8,540 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
ENP Peru Investments LLC [Member] | |
Schedule of Equity Method Investment | A summary of the Company’s investment follows: Balance, December 31, 2019 $ 11,387 Return of equity (9,063 ) Gain in equity method investment 1,498 Balance, December 31, 2020 3,822 Return of equity (3,822 ) Gain in equity method investment - Balance, March 31, 2021 $ 0 |
Summary of Profit and Loss Information Related to Equity Accounted Investment | Summarized profit and loss information related to the equity accounted investment is as follows for the full year: 2020 Net sales $ 295,800 Net income $ 2,996 |
ENP Realty LLC [Member] | |
Schedule of Equity Method Investment | A summary of the Company’s investment follows: Balance, December 31, 2019 $ 63,165 Investment eliminated upon consolidation (63,165 ) Balance, December 31, 2020 and March 31, 2021 $ - |
Summary of Profit and Loss Information Related to Equity Accounted Investment | Summarized profit and loss information related to the equity accounted investment is as follows for the full year: 2019 Net sales $ 75,870 Net income $ 34,200 |
Schedule of Fair Values of Assets Acquired and Liabilities Assumption | The following table summarizes the final purchase price allocation of the consideration paid to the respective fair values of the assets acquired and liabilities assumed in ENP Realty as of the acquisition date. Investment eliminated upon consolidation $ 63,165 Assets acquired: Cash 13,419 Building 630,000 Land 85,000 Liabilities assumed: Accounts payable (15,797 ) Long term debt (450,000 ) Deferred income tax liability (66,116 ) Total identifiable net assets: 196,506 Gain on acquisition of ENP Realty $ 133,341 |
Florida based LLC [Member] | |
Schedule of Equity Method Investment | Summarized profit and loss information related to the equity accounted investment is as follows: Three months ended March 31, 2021 Three months ended March 31, 2020 Net sales $ 2,332,304 $ 2,791,754 Gross profit 860,676 945,395 Net income 400,580 280,364 |
Summary of Profit and Loss Information Related to Equity Accounted Investment | Summarized profit and loss information related to the equity accounted investment is as follows: Three months ended March 31, 2021 Three months ended March 31, 2020 Net sales $ 2,332,304 $ 2,791,754 Gross profit 860,676 945,395 Net income 400,580 280,364 |
Lygos Inc [Member] | |
Schedule of Equity Method Investment | A summary of the Company’s investment follows: Balance, January 1, 2020 $ - Acquisition 500,000 Balance, December 31, 2020 and March 31, 2021 $ 500,000 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Schedule of Loan Covenants | As of March 31, 2021, Company was in compliance with all loan covenants. Continuity March 31, 2021 December 31, 2020 Balance, January 1 $ 3,847,638 $ 4,380,393 Plus: Proceeds from loans - 3,413,160 Plus: Loan acquired with acquisition of ENP Realty - 450,000 Less: Forgiveness on PPP loans (537,960 ) - Less: Payments on loan (208,857 ) (4,395,915 ) Balance, end of period $ 3,100,821 $ 3,847,638 |
Schedule of Outstanding Balance Loan | Outstanding balance at December 31, March 31, 2021 December 31, 2020 a) Long term debt – Harris Bank $ - $ - b) Long term debt – Harris Bank - - c) Long term debt – Midland States Bank 118,481 125,543 d) Long term debt – Ford Credit - - e) Long term debt – PPP - 322,000 f) Long term debt - PPP - 215,960 g) Long term debt – Midland States Bank 1,830,392 1,920,976 h) Long term debt – Midland States Bank 713,735 822,380 i) Long term debt – Stock Yards Bank & Trust 438,213 440,779 Long-term Debt 3,100,821 3,847,638 Less: current portion (837,724 ) (848,794 ) $ 2,263,097 $ 2,998,844 |
Promissory Note With Midland Bank [Member] | |
Schedule of Interest Loan Repayment | The Company has committed to the following repayments: 2021 $ 28,410 2022 $ 29,900 2023 $ 31,508 2024 $ 33,202 2025 $ 2,523 |
Promissory Note One With Midland Bank [Member] | |
Schedule of Interest Loan Repayment | The Company has committed to the following repayments: 2021 $ 368,332 2022 $ 382,705 2023 $ 397,414 2024 $ 413,516 2025 $ 359,009 |
Promissory Note Two With Midland Bank [Member] | |
Schedule of Interest Loan Repayment | 2021 $ 441,260 2022 $ 381,120 |
Stock Options (Tables)
Stock Options (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activities | The following table summarizes the Company’s stock option activities for the year ended December 31, 2020 and the three-month period ended March 31, 2021: Number of shares Exercise price Weighted average exercise price Balance, December 31, 2019 635,000 $ 0.75 – 1.75 $ 1.35 Granted 172,000 $ 2.44 $ 2.44 Cancelled or expired (13,000 ) $ 2.44 – 3.46 $ 2.75 Exercised (45,000 ) $ 0.75 – 1.05 $ 0.88 Balance, December 31, 2020 749,000 $ 0.75 – 4.13 $ 2.42 Cancelled or expired (27,799 ) $ 1.42 – 3.46 $ 2.45 Exercised (55,201 ) $ 0.75 – 3.46 $ 1.55 Balance, March 31, 2021 666,000 $ 1.42 – 4.13 $ 2.66 Exercisable, March 31, 2021 423,000 $ 1.42 – 4.13 $ 2.44 |
Schedule of Stock Option Fair Value Assumptions | The fair value of each option grant is calculated using the following weighted average assumptions: 2020 Expected life – years 3.0 Interest rate 0.37 % Volatility 70.14 % Weighted average fair value of options granted $ 1.12 |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Schedule of Distributions | The total distribution from the effective date of acquisition onward was $1,278,944. Balance, December 31, 2019 2,550,149 Distribution (594,882 ) Non-controlling interest share of income 606,484 Balance, December 31, 2020 $ 2,561,751 Distribution (157,952 ) Non-controlling interest share of income 186,484 Balance, March 31, 2021 $ 2,590,283 |
Segmented, Significant Custom_2
Segmented, Significant Customer Information and Economic Dependency (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segments | They are managed separately because each business requires different technology and marketing strategies. 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 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 ) Three months ended March 31, 2020: EWCP TPA Total Revenue $ 89,928 $ 8,339,558 $ 8,429,486 Interest expense - 101,425 101,425 Depreciation and amortization 10,476 137,582 148,058 Segment profit (loss) (60,255 ) 1,324,930 1,264,675 Segment assets 1,963,075 32,856,519 34,819,594 Expenditures for segment assets - (96,280 ) (96,280 ) |
Schedule of Revenue Generated in United States and Canada | The sales generated in the United States and Canada are as follows: Three months ended Three months ended Canada $ 107,253 $ 146,000 United States and abroad 7,517,444 8,283,486 Total $ 7,624,697 $ 8,429,486 |
Schedule of Long-lived Assets are Located in Canada and United States | 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, 2021 December 31, 2020 Canada $ 438,107 $ 445,663 United States 10,315,747 10,519,903 Total $ 10,753,854 $ 10,965,566 |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
ENP Peru Investments LLC [Member] | ||||
Purchase price | $ 5,110,560 | |||
ENP Investments LLC and ENP Realty, LLC [Member] | ||||
Subsidiary company ownership interest rate | 65.00% | |||
ENP Investments LLC [Member] | ||||
Subsidiary company ownership interest rate | 65.00% | 65.00% | ||
ENP Investments, LLC [Member] | Unrelated Party [Member] | ||||
Subsidiary company ownership interest rate | 35.00% | |||
ENP Realty LLC [Member] | Minimum [Member] | ||||
Subsidiary company ownership interest rate | 24.00% | |||
ENP Realty LLC [Member] | Maximum [Member] | ||||
Subsidiary company ownership interest rate | 100.00% |
Significant Accounting Polici_4
Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue | $ 7,624,697 | $ 8,429,486 |
Cost of goods sold | $ 4,916,776 | 5,479,947 |
Equity method investment, description | Significant influence is generally deemed to exist if the Company's ownership interest in the voting stock of the investee ranges between 20% and 50%, although other factors, such as representation on the investee's board of directors, are considered in determining whether the equity method of accounting is appropriate. | |
Three Primary Customers [Member] | ||
Revenue | $ 3,120,819 | 3,744,455 |
Accounts receivable | $ 4,134,780 | $ 3,986,284 |
Three Primary Customers [Member] | Revenue [Member] | ||
Concentration risk, percentage | 41.00% | 44.00% |
Three Primary Customers [Member] | Accounts Receivable [Member] | ||
Concentration risk, percentage | 55.00% | 68.00% |
Shipping and Handling [Member] | ||
Revenue | $ 131,348 | $ 162,905 |
Cost of goods sold | $ 263,089 | $ 290,748 |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Method of Depreciation (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Computer Hardware [Member] | |
Depreciation method used and annual rate | 30% Declining balance |
Furniture and Fixtures [Member] | |
Depreciation method used and annual rate | 20% Declining balance |
Manufacturing Equipment [Member] | |
Depreciation method used and annual rate | 20% Declining balance |
Office Equipment [Member] | |
Depreciation method used and annual rate | 20% Declining balance |
Boat [Member] | |
Depreciation method used and annual rate | 20% Declining balance |
Building and Improvements [Member] | |
Depreciation method used and annual rate | 10% Declining balance |
Trailer [Member] | |
Depreciation method used and annual rate | 30% Declining balance |
Automobiles [Member] | |
Depreciation method used and annual rate | Straight-line over 5 years |
Patents [Member] | |
Depreciation method used and annual rate | Straight-line over 17 years |
Technology [Member] | |
Depreciation method used and annual rate | Straight-line over 10 years |
Right of Use Asset [Member] | |
Depreciation method used and annual rate | Straight-line over lease term |
Leasehold Improvements [Member] | |
Depreciation method used and annual rate | Straight-line over lease term |
Customer Relationships - ENP Investments [Member] | |
Depreciation method used and annual rate | Straight line over 15 years |
Software - ENP Investments [Member] | |
Depreciation method used and annual rate | Straight line over 3 years |
Leases (Detail Narrative)
Leases (Detail Narrative) | Mar. 31, 2021 |
Leases [Abstract] | |
Operating leases discount rate | 5.50% |
Leases - Summary of Right-of-us
Leases - Summary of Right-of-use Asset and Lease Liability (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Right of Use Assets Beginning Balance | $ 483,113 | ||
Depreciation | (74,883) | ||
Right of Use Assets Ending Balance | 408,230 | ||
Lease Liability Beginning Balance | 483,113 | ||
Lease interest expense | 8,187 | ||
Payments | (83,070) | ||
Lease Liability Ending Balance | 408,230 | ||
Short-term portion | $ 223,535 | $ 287,900 | |
Long-term portion | 184,695 | 195,213 | |
Total | $ 408,230 | $ 408,230 | $ 483,113 |
Leases - Schedule of Undiscount
Leases - Schedule of Undiscounted Rent Payments (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 | $ 204,830 | |
2022 | 67,320 | |
2023 | 66,180 | |
2024 | 59,520 | |
2025 | 61,020 | |
Total | 458,870 | |
Impact of discounting | 50,640 | |
Lease liability, March 31, 2021 | $ 408,230 | $ 483,113 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Accounts receivable | $ 7,810,978 | $ 6,161,249 |
Allowances for doubtful accounts | (271,664) | (271,436) |
Accounts receivable net | $ 7,539,314 | $ 5,889,813 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Completed goods | $ 4,337,962 | $ 3,393,794 |
Work in progress | 177,201 | 152,595 |
Raw materials and supplies | 5,474,175 | 4,826,087 |
Total inventory | $ 9,989,338 | $ 8,372,476 |
Property, Plant & Equipment (De
Property, Plant & Equipment (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 184,855 | $ 99,948 |
Property, Plant & Equipment - S
Property, Plant & Equipment - Schedule of Property, Equipment and Leaseholds (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Cost | $ 12,084,092 | $ 11,982,741 |
Accumulated Depreciation | 7,030,771 | 6,840,700 |
Net | 5,053,321 | 5,142,041 |
Building and Improvements [Member] | ||
Cost | 4,799,742 | 4,798,370 |
Accumulated Depreciation | 2,873,647 | 2,836,142 |
Net | 1,926,095 | 1,962,228 |
Automobiles [Member] | ||
Cost | 180,956 | 180,956 |
Accumulated Depreciation | 69,450 | 61,266 |
Net | 111,506 | 119,690 |
Computer Hardware [Member] | ||
Cost | 43,609 | 43,593 |
Accumulated Depreciation | 42,090 | 41,957 |
Net | 1,519 | 1,636 |
Furniture and Fixtures [Member] | ||
Cost | 111,167 | 111,145 |
Accumulated Depreciation | 102,043 | 101,186 |
Net | 9,124 | 9,959 |
Office Equipment [Member] | ||
Cost | 1,875 | 1,864 |
Accumulated Depreciation | 1,022 | 971 |
Net | 853 | 893 |
Manufacturing Equipment [Member] | ||
Cost | 6,252,435 | 6,154,425 |
Accumulated Depreciation | 3,715,223 | 3,573,748 |
Net | 2,537,212 | 2,580,677 |
Trailer [Member] | ||
Cost | 9,476 | 9,422 |
Accumulated Depreciation | 6,920 | 6,675 |
Net | 2,556 | 2,747 |
Boat [Member] | ||
Cost | 34,400 | 34,400 |
Accumulated Depreciation | 24,762 | 24,255 |
Net | 9,638 | 10,145 |
Leasehold Improvements [Member] | ||
Cost | 88,872 | 88,872 |
Accumulated Depreciation | 87,705 | 87,205 |
Net | 1,167 | 1,667 |
Technology [Member] | ||
Cost | 107,909 | 107,295 |
Accumulated Depreciation | 107,909 | 107,295 |
Net | ||
Land [Member] | ||
Cost | 453,651 | 452,399 |
Accumulated Depreciation | ||
Net | $ 453,651 | $ 452,399 |
Patents (Details Narrative)
Patents (Details Narrative) | 3 Months Ended | ||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | |
Amortization | $ 4,110 | $ 4,110 | |
CAD [Member] | |||
Increase in currency conversion | $ 265,102 | $ 265,102 |
Patents - Schedule of Patents (
Patents - Schedule of Patents (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Patents, Cost | $ 209,404 | $ 208,211 |
Accumulated Amortization | 183,376 | 178,074 |
Patents, Net | $ 26,028 | $ 30,137 |
Patents - Schedule of Estimated
Patents - Schedule of Estimated Amortization Expense (Details) | Mar. 31, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 16,438 |
2022 | $ 13,699 |
Goodwill and Indefinite Lived_3
Goodwill and Indefinite Lived Intangible Assets (Details Narrative) - ENP Investments LLC [Member] | 3 Months Ended |
Mar. 31, 2021 | |
Customer Relationships [Member] | |
Estimated useful life | 15 years |
Software [Member] | |
Estimated useful life | 3 years |
Goodwill and Indefinite Lived_4
Goodwill and Indefinite Lived Intangible Assets - Schedule of Goodwill and Indefinite Lived Intangible Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Goodwill, Beginning balance | $ 2,534,275 | ||
Goodwill, Ending balance | 2,534,275 | $ 2,534,275 | |
Beginning balance | 30,137 | ||
Amortization | 4,110 | $ 4,110 | |
Ending balance | 26,028 | 30,137 | |
EnP Investments Limited Liability Corporation (LLC) [Member] | |||
Goodwill, Beginning balance | 2,534,275 | 2,534,275 | 2,534,275 |
Additions | |||
Impairment | |||
Goodwill, Ending balance | 2,534,275 | 2,534,275 | |
Indefinite Lived Intangible Assets, Beginning balance | 770,000 | 770,000 | 770,000 |
Additions | |||
Impairment | |||
Indefinite Lived Intangible Assets, Ending balance | 770,000 | 770,000 | |
Beginning balance | 2,006,000 | $ 2,182,000 | 2,182,000 |
Amortization | (44,000) | (176,000) | |
Ending balance | $ 1,962,000 | $ 2,006,000 |
Goodwill and Indefinite Lived_5
Goodwill and Indefinite Lived Intangible Assets - Schedule of Estimated Future Amortization Expense (Details) | Mar. 31, 2021USD ($) |
2021 | $ 16,438 |
2022 | 13,699 |
Finite-Lived Intangible Assets [Member] | |
2021 | 176,000 |
2022 | 160,000 |
2023 | 160,000 |
2024 | 160,000 |
2025 | $ 160,000 |
Long Term Deposits - Schedule o
Long Term Deposits - Schedule of Long Term Deposits (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Long Term Deposits | ||
Long term deposits | $ 8,540 | $ 8,540 |
Investments (Details Narrative)
Investments (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Dec. 31, 2020 | Jan. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2021 | Dec. 31, 2016 | |
ENP Realty LLC [Member] | |||||
Non-controlling interests | 35.00% | ||||
ENP Peru Investments LLC [Member] | |||||
Ownership interest | 50.00% | ||||
Proceeds from investment | $ 8,678 | ||||
ENP Realty LLC [Member] | |||||
Ownership interest | 24.00% | ||||
Applied Holding Corp [Member] | |||||
Investment | $ 200,000 | ||||
Debt conversion due date | 2021 | ||||
Applied Holding Corp [Member] | Maximum [Member] | |||||
Debt term | 2 years | ||||
Trio Opportunity Corp [Member] | |||||
Investment | $ 500,000 | ||||
Trio Opportunity Corp [Member] | Common Class B [Member] | |||||
Non-voting shares | 50,000 | ||||
Share price | $ 10 | ||||
Florida based LLC [Member] | |||||
Ownership interest | 50.00% | ||||
Investment | $ 1,001,000 | ||||
Restricted cash, released upon reaching milestone | $ 2,518,684 | $ 1,000,000 | |||
Lygos Inc [Member] | |||||
Investment | $ 500,000 |
Investments - Schedule of Equit
Investments - Schedule of Equity Method Investment (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Balance, Beginning | $ 4,776,167 | |
Investment eliminated upon consolidation | 63,165 | |
Balance, Ending | 4,972,635 | $ 4,776,167 |
ENP Peru Investments LLC [Member] | ||
Balance, Beginning | 3,822 | 11,387 |
Return of equity | (3,822) | (9,063) |
Gain (loss) in equity method investment | 1,498 | |
Balance, Ending | 0 | 3,822 |
ENP Realty LLC [Member] | ||
Balance, Beginning | 63,165 | |
Investment eliminated upon consolidation | (63,165) | |
Balance, Ending | ||
Florida based LLC [Member] | ||
Balance, Beginning | 3,572,345 | 1,141,033 |
Return of equity | (896,714) | |
Gain (loss) in equity method investment | 200,290 | 809,342 |
Additional payment | 2,518,684 | |
Balance, Ending | 3,772,635 | 3,572,345 |
Lygos Inc [Member] | ||
Balance, Beginning | 500,000 | |
Acquisition | 500,000 | |
Balance, Ending | $ 500,000 | $ 500,000 |
Investments - Summary of Profit
Investments - Summary of Profit and Loss Information Related to Equity Accounted Investment (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
ENP Peru Investments LLC [Member] | ||||
Net sales | $ 295,800 | |||
Net income | $ 2,996 | |||
ENP Realty LLC [Member] | ||||
Net sales | $ 75,870 | |||
Net income | $ 34,200 | |||
Florida based LLC [Member] | ||||
Net sales | $ 2,332,304 | $ 2,791,754 | ||
Gross profit | 860,676 | 945,395 | ||
Net income | $ 400,580 | $ 280,364 |
Investments - Schedule of Fair
Investments - Schedule of Fair Values of Assets Acquired and Liabilities Assumption (Details) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment eliminated upon consolidation | $ 63,165 |
Assets acquired: Cash | 13,419 |
Assets acquired:Building | 630,000 |
Assets acquired: Land | 85,000 |
Liabilities assumed: Accounts payable | (15,797) |
Liabilities assumed: Long term debt | (450,000) |
Liabilities assumed: Deferred income tax liability | (66,116) |
Total identifiable net assets: | 196,506 |
Gain on acquisition of ENP Realty | $ 133,341 |
Short-Term Line of Credit (Deta
Short-Term Line of Credit (Details Narrative) - USD ($) | 1 Months Ended | |||||
Oct. 31, 2020 | Apr. 30, 2020 | Sep. 30, 2018 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Line of credit | $ 3,228,434 | $ 2,116,073 | ||||
New Agreement [Member] | Midland States Bank [Member] | ||||||
Aggregate amount of revolving line of credit | $ 3,000,000 | |||||
Annual interest rate of loan | 4.50% | 4.50% | ||||
Debt effective rate | 4.05% | |||||
Short-term borrowings | $ 1,739,280 | $ 541,456 | ||||
New Agreement [Member] | Midland States Bank [Member] | Maximum [Member] | ||||||
Annual interest rate of loan | 4.50% | |||||
New Agreement [Member] | Harris Bank [Member] | ||||||
Annual interest rate of loan | 3.25% | |||||
Line of credit | $ 1,641,085 | |||||
New Agreement [Member] | NanoChem Solutions Inc. [Member] | ||||||
Line of credit | $ 1,625,000 | |||||
Loan guaranteed rate | 65.00% | |||||
New Agreement [Member] | Harris Bank [Member] | ||||||
Aggregate amount of revolving line of credit | $ 2,500,000 | |||||
Eligible percentage of domestic accounts receivable | 80.00% | |||||
Percentage of foreign accounts receivable of inventory | 60.00% | |||||
New Agreement [Member] | Harris Bank [Member] | Midland States Bank [Member] | ||||||
Aggregate amount of revolving line of credit | $ 2,500,000 | |||||
Eligible percentage of domestic accounts receivable | 80.00% | |||||
Percentage of foreign accounts receivable of inventory | 50.00% | |||||
Annual interest rate of loan | 3.75% | 3.75% | ||||
Loan guaranteed rate | 148915400.00% | 157461700.00% | ||||
New Agreement [Member] | Harris Bank [Member] | Midland States Bank [Member] | Prime Rate [Member] | ||||||
Percentage of foreign accounts receivable of inventory | 0.50% |
Long Term Debt (Details Narrati
Long Term Debt (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Oct. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2018 | Jan. 31, 2018 | Mar. 31, 2016 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | |
Long term debt | $ 3,100,821 | $ 3,847,638 | $ 4,380,393 | ||||||||||
Harris Bank [Member] | |||||||||||||
Long term debt | |||||||||||||
Ford Motor Credit Company [Member] | |||||||||||||
Long term debt | |||||||||||||
Paycheck Protection Program [Member] | |||||||||||||
Long term debt | 322,000 | ||||||||||||
Stock Yards Bank & Trust [Member] | |||||||||||||
Long term debt | 438,213 | 440,779 | |||||||||||
NanoChem Solutions Inc. [Member] | Harris Bank [Member] | |||||||||||||
Promissory note | $ 322,000 | ||||||||||||
NanoChem Solutions Inc. [Member] | Harris Bank [Member] | Prime Rate [Member] | |||||||||||||
Debt instrument, interest rate, stated percentage | 1.00% | ||||||||||||
NanoChem Solutions Inc. [Member] | Harris Bank [Member] | Term Loan [Member] | |||||||||||||
Promissory note | $ 4,100,000 | ||||||||||||
Debt instrument, term | 7 years | ||||||||||||
Payment of monthly installments interest rate | 25.00% | ||||||||||||
Payment of monthly installment | $ 300,000 | ||||||||||||
Debt maturity description | Due May 31, 2019 and 2020 | ||||||||||||
NanoChem Solutions Inc. [Member] | Midland Bank [Member] | |||||||||||||
Promissory note | $ 894,253 | ||||||||||||
Debt instrument, term | 2 years | ||||||||||||
Interest expense | 7,739 | ||||||||||||
Debt balance owing | 713,735 | 822,380 | |||||||||||
NanoChem Solutions Inc. [Member] | Midland Bank [Member] | Prime Rate [Member] | |||||||||||||
Debt instrument, interest rate, stated percentage | 3.85% | ||||||||||||
NanoChem Solutions Inc. [Member] | Midland Bank [Member] | Term Loan [Member] | |||||||||||||
Promissory note | $ 1,980,947 | ||||||||||||
Debt instrument, term | 5 years | ||||||||||||
Interest expense | 18,606 | ||||||||||||
Debt balance owing | $ 1,830,392 | $ 1,920,976 | |||||||||||
NanoChem Solutions Inc. [Member] | Midland Bank [Member] | Term Loan [Member] | Prime Rate [Member] | |||||||||||||
Debt instrument, interest rate, stated percentage | 3.85% | ||||||||||||
NanoChem Solutions Inc. [Member] | Paycheck Protection Program [Member] | |||||||||||||
Debt instrument, term | 2 years | ||||||||||||
NanoChem Solutions Inc. [Member] | Harris Bank [Member] | |||||||||||||
Promissory note | $ 1,100,000 | ||||||||||||
Debt maturity description | The Company paid interest monthly until February 2020, when equal monthly installments of the principal and interest were due until January 2024. | ||||||||||||
Interest expense | $ 36,272 | 36,333 | |||||||||||
Long term debt | $ 1,100,000 | ||||||||||||
NanoChem Solutions Inc. [Member] | Harris Bank [Member] | Prime Rate [Member] | |||||||||||||
Debt instrument, interest rate, stated percentage | 5.25% | 0.50% | |||||||||||
NanoChem Solutions Inc. [Member] | Harris Bank [Member] | Term Loan [Member] | |||||||||||||
Debt instrument, interest rate, stated percentage | 3.25% | ||||||||||||
Interest expense | $ 34,458 | ||||||||||||
Debt balance owing | 2,970,238 | ||||||||||||
ENP Investments, LLC [Member] | Term Loan [Member] | |||||||||||||
Ownership interest percentage | 65.00% | 65.00% | |||||||||||
ENP Investments, LLC [Member] | Harris Bank [Member] | Prime Rate [Member] | |||||||||||||
Debt instrument, interest rate, stated percentage | 1.00% | ||||||||||||
ENP Peru Investments LLC [Member] | |||||||||||||
Ownership interest percentage | 50.00% | ||||||||||||
ENP Peru Investments LLC [Member] | Midland Bank [Member] | |||||||||||||
Promissory note | $ 200,000 | ||||||||||||
Debt instrument, interest rate, stated percentage | 5.25% | ||||||||||||
Debt instrument, term | 7 years | ||||||||||||
Interest expense | 1,510 | 2,104 | |||||||||||
Debt balance owing | 118,481 | 125,543 | |||||||||||
ENP Peru Investments LLC [Member] | Ford Motor Credit Company [Member] | |||||||||||||
Promissory note | $ 215,960 | $ 45,941 | |||||||||||
Debt instrument, interest rate, stated percentage | 0.00% | ||||||||||||
Debt instrument, term | 2 years | 5 years | |||||||||||
ENP Realty LLC [Member] | |||||||||||||
Ownership interest percentage | 24.00% | ||||||||||||
ENP Realty LLC [Member] | Stock Yards Bank & Trust [Member] | |||||||||||||
Promissory note | $ 450,000 | ||||||||||||
Debt instrument, term | 10 years | ||||||||||||
Interest expense | 4,766 | $ 3,260 | |||||||||||
Debt balance owing | $ 438,213 | $ 440,779 | |||||||||||
ENP Realty LLC [Member] | Stock Yards Bank & Trust [Member] | Cincinnati Federal Home Bank Loan [Member] | |||||||||||||
Debt instrument, term | 5 years | ||||||||||||
ENP Realty LLC [Member] | Stock Yards Bank & Trust [Member] | Prime Rate [Member] | |||||||||||||
Debt instrument, interest rate, stated percentage | 4.35% | ||||||||||||
ENP Realty LLC [Member] | Stock Yards Bank & Trust [Member] | Prime Rate [Member] | Cincinnati Federal Home Bank Loan [Member] | |||||||||||||
Debt instrument, interest rate, stated percentage | 2.50% |
Long Term Debt - Schedule of In
Long Term Debt - Schedule of Interest Loan Repayment (Details) - USD ($) | Oct. 31, 2020 | Jan. 31, 2018 |
Promissory Note With Midland States Bank [Member] | ||
2021 | $ 28,410 | |
2022 | 29,900 | |
2023 | 31,508 | |
2024 | 33,202 | |
2025 | $ 2,523 | |
Promissory Note One With Midland Bank [Member] | ||
2021 | $ 368,332 | |
2022 | 382,705 | |
2023 | 397,414 | |
2024 | 413,516 | |
2025 | 359,009 | |
Promissory Note Two With Midland Bank [Member] | ||
2021 | 441,260 | |
2022 | $ 381,120 |
Long Term Debt - Schedule of Lo
Long Term Debt - Schedule of Loan Covenants (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Balance, beginning | $ 3,847,638 | $ 4,380,393 |
Plus: Proceeds from loans | 3,413,160 | |
Plus: Loan acquired with acquisition of ENP Realty | 450,000 | |
Less: Forgiveness on PPP loans | (537,960) | |
Less: Payments on loan | (208,857) | (4,395,915) |
Balance, end of period | $ 3,100,821 | $ 3,847,638 |
Long Term Debt - Schedule of Ou
Long Term Debt - Schedule of Outstanding Balance Loan (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Long-term Debt | $ 3,100,821 | $ 3,847,638 | $ 4,380,393 |
Less: current portion | (837,724) | (848,794) | |
Long term balance | 2,263,097 | 2,998,844 | |
Harris Bank [Member] | |||
Long-term Debt | |||
Harris Bank One [Member] | |||
Long-term Debt | |||
Midland States Bank [Member] | |||
Long-term Debt | 118,481 | 125,543 | |
Ford Motor Credit Company [Member] | |||
Long-term Debt | |||
Paycheck Protection Program [Member] | |||
Long-term Debt | 322,000 | ||
Paycheck Protection Program One [Member] | |||
Long-term Debt | 215,960 | ||
Midland States Bank One [Member] | |||
Long-term Debt | 1,830,392 | 1,920,976 | |
Midland States Bank Two [Member] | |||
Long-term Debt | 713,735 | 822,380 | |
Stock Yards Bank & Trust [Member] | |||
Long-term Debt | $ 438,213 | $ 440,779 |
Convertible Note Payable (Detai
Convertible Note Payable (Details Narrative) - USD ($) | 1 Months Ended | |||
Apr. 30, 2020 | Jun. 30, 2019 | Oct. 31, 2018 | Oct. 31, 2018 | |
Parent Company [Member] | ||||
Debt converted to shares | 200,000 | 400,000 | ||
Debt converted to shares, amount | $ 500,000 | $ 500,000 | ||
Accrued interest | $ 13,046 | |||
ENP Investments LLC [Member] | ||||
Convertible note payable | $ 1,000,000 | $ 1,000,000 | ||
Debt convertible due date | Sep. 30, 2023 | |||
Debt conversion ratio | 5.00% |
Stock Options (Details Narrativ
Stock Options (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Options granted percentage | 100.00% | ||
Options maximum granted term | 5 years | ||
Weighted-average remaining contractual life | 3 years 7 months 6 days | ||
Stock options granted | 172,000 | ||
Stock options exercised | 55,201 | 45,000 | |
Compensation expense related to non-vested awards | $ 129,991 | ||
Compensation expense related to non-vested awards, weighted average period | 1 year | ||
Aggregate intrinsic value of vested options | $ 578,660 | ||
Consultants [Member] | |||
Stock option expense | $ 13,065 | $ 11,272 | |
Stock options exercised | 23,201 | 10,000 | |
Employees [Member] | |||
Stock option expense | $ 26,254 | $ 18,310 | |
Stock options exercised | 32,000 | 15,000 |
Stock Options - Schedule of Sto
Stock Options - Schedule of Stock Option Activities (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Number of shares, Beginning Balance | 749,000 | 635,000 | 635,000 |
Number of shares, Granted | 172,000 | ||
Number of shares, Cancelled or expired | (27,799) | (13,000) | |
Number of shares, Exercised | (55,201) | (45,000) | |
Number of shares, Ending Balance | 666,000 | 749,000 | |
Number of shares Exercisable, Ending Balance | 423,000 | ||
Exercise price per share, Granted | $ 2.44 | ||
Weighted average exercise price, Beginning Balance | $ 2.42 | $ 1.35 | 1.35 |
Weighted average exercise price, Granted | 2.44 | ||
Weighted average exercise price, Cancelled or expired | 2.45 | 2.75 | |
Weighted average exercise price, Exercised | 1.55 | 0.88 | |
Weighted average exercise price, Ending Balance | 2.66 | 2.42 | |
Weighted average exercise price Exercisable, Ending Balance | 2.44 | ||
Minimum [Member] | |||
Exercise price per share, Beginning Balance | 0.75 | 0.75 | 0.75 |
Exercise price per share, Cancelled or expired | 1.42 | 2.44 | |
Exercise price per share, Exercised | 0.75 | 0.75 | |
Exercise price per share, Ending Balance | 1.42 | 0.75 | |
Exercise price per share Exercisable, Ending Balance | 1.42 | ||
Maximum [Member] | |||
Exercise price per share, Beginning Balance | 4.13 | $ 1.75 | 1.75 |
Exercise price per share, Cancelled or expired | 3.46 | 3.46 | |
Exercise price per share, Exercised | 3.46 | 1.05 | |
Exercise price per share, Ending Balance | 4.13 | $ 4.13 | |
Exercise price per share Exercisable, Ending Balance | $ 4.13 |
Stock Options - Schedule of S_2
Stock Options - Schedule of Stock Option Fair Value Assumptions (Details) | 3 Months Ended |
Mar. 31, 2021$ / shares | |
Share-based Payment Arrangement [Abstract] | |
Expected life - years | 3 years |
Interest rate | 0.37% |
Volatility | 70.14% |
Weighted average fair value of options granted | $ 1.12 |
Capital Stock (Details Narrativ
Capital Stock (Details Narrative) - shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Stock options exercised | 55,201 | 45,000 | |
Employees Stock Option [Member] | |||
Stock options exercised | 32,000 | 15,000 | |
Consultants Stock Options [Member] | |||
Stock options exercised | 23,201 | 10,000 |
Non-Controlling Interests (Deta
Non-Controlling Interests (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | |
Partnership distribution to non-controlling interest | $ 157,952 | $ 143,002 | |
ENP Investments LLC [Member] | |||
Subsidiary company ownership interest rate | 65.00% | 65.00% | |
Related party owner ship percentage | 35.00% | ||
Partnership distribution to non-controlling interest | $ 1,278,944 |
Non-Controlling Interests - Sch
Non-Controlling Interests - Schedule of Distributions (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Distribution to noncontrolling interests | $ 2,561,751 | ||
Distribution | |||
Non-controlling interest share of income (loss) | 186,484 | 67,015 | |
Distribution to noncontrolling interests | 2,590,283 | $ 2,561,751 | |
ENP Investments LLC [Member] | Ownership Interest Purchase Agreement [Member] | |||
Distribution to noncontrolling interests | 2,561,751 | $ 2,550,149 | 2,550,149 |
Distribution | (157,952) | (594,882) | |
Non-controlling interest share of income (loss) | 186,484 | 606,484 | |
Distribution to noncontrolling interests | $ 2,590,283 | $ 2,561,751 |
Segmented, Significant Custom_3
Segmented, Significant Customer Information and Economic Dependency (Details Narrative) | 3 Months Ended | |
Mar. 31, 2021USD ($)Segments | Mar. 31, 2020USD ($) | |
Number of operating segment | Segments | 2 | |
Revenue | $ 7,624,697 | $ 8,429,486 |
Three Primary Customers [Member] | ||
Revenue | $ 3,120,819 | $ 3,744,455 |
Three Primary Customers [Member] | Revenue [Member] | ||
Concentration risk percentage | 41.00% | 44.00% |
Segmented, Significant Custom_4
Segmented, Significant Customer Information and Economic Dependency - Schedule of Reportable Segments (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue | $ 7,624,697 | $ 8,429,486 |
Depreciation and amortization | 232,965 | 148,058 |
Segment profit (loss) | 1,637,055 | 1,331,690 |
Expenditures for segment assets | (96,136) | (96,280) |
Segments [Member] | ||
Revenue | 7,624,697 | 8,429,486 |
Interest expense | 62,274 | 101,425 |
Depreciation and amortization | 232,965 | 148,058 |
Segment profit (loss) | 1,450,571 | 1,264,675 |
Segment assets | 36,660,094 | 34,819,594 |
Expenditures for segment assets | (96,136) | (96,280) |
EWCP [Member] | Segments [Member] | ||
Revenue | 71,351 | 89,928 |
Interest expense | ||
Depreciation and amortization | 9,977 | 10,476 |
Segment profit (loss) | (219,256) | (60,255) |
Segment assets | 2,360,199 | 1,963,075 |
Expenditures for segment assets | ||
BCPA [Member] | Segments [Member] | ||
Revenue | 7,553,346 | 8,339,558 |
Interest expense | 62,274 | 101,425 |
Depreciation and amortization | 222,988 | 137,582 |
Segment profit (loss) | 1,669,827 | 1,324,930 |
Segment assets | 34,299,895 | 32,856,519 |
Expenditures for segment assets | $ (96,136) | $ (96,280) |
Segmented, Significant Custom_5
Segmented, Significant Customer Information and Economic Dependency - Schedule of Revenue Generated in United States and Canada (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Sales | $ 7,624,697 | $ 8,429,486 |
Canada [Member] | ||
Sales | 107,253 | 146,000 |
United States and Abroad [Member] | ||
Sales | $ 7,517,444 | $ 8,283,486 |
Segmented, Significant Custom_6
Segmented, Significant Customer Information and Economic Dependency - Schedule of Long-lived Assets are Located in Canada and United States (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Long-lived assets | $ 10,753,854 | $ 10,965,566 |
Canada [Member] | ||
Long-lived assets | 438,107 | 445,663 |
United States [Member] | ||
Long-lived assets | $ 10,315,747 | $ 10,519,903 |