Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 29, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 001-31540 | ||
Entity Registrant Name | FLEXIBLE SOLUTIONS INTERNATIONAL, INC. | ||
Entity Central Index Key | 0001069394 | ||
Entity Tax Identification Number | 71-1630889 | ||
Entity Incorporation, State or Country Code | A0 | ||
Entity Address, Address Line One | 6001 54 Ave. | ||
Entity Address, City or Town | Taber | ||
Entity Address, Country | CA | ||
Entity Address, Postal Zip Code | T1G 1X4 | ||
City Area Code | (403) | ||
Local Phone Number | 223-2995 | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | FSI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 30,491,533 | ||
Entity Common Stock, Shares Outstanding | 12,375,746 | ||
ICFR Auditor Attestation Flag | false | ||
Auditor Name | Smythe LLP | ||
Auditor Firm ID | 995 | ||
Auditor Location | Vancouver, Canada |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current | ||
Cash | $ 5,710,227 | $ 3,472,776 |
Term deposits | 1,025,347 | 1,000,000 |
Accounts receivable (Note 4) | 7,129,329 | 5,889,813 |
Inventories (Note 5) | 9,502,005 | 8,372,476 |
Prepaid expenses | 442,161 | 302,447 |
Total current assets | 23,809,069 | 19,037,512 |
Property, equipment and leaseholds, net (Note 6) | 4,931,713 | 5,142,041 |
Patents (Note 7) | 13,699 | 30,137 |
Right of use assets (Note 3) | 217,267 | 483,113 |
Intangible assets (Note 8) | 2,600,000 | 2,776,000 |
Long term deposits (Note 9) | 8,540 | 8,540 |
Investments (Note 10) | 5,424,010 | 4,776,167 |
Goodwill (Note 8) | 2,534,275 | 2,534,275 |
Deferred tax asset (Note 14) | 12,697 | 299,603 |
Total Assets | 39,551,270 | 35,087,388 |
Current | ||
Accounts payable | 1,283,486 | 558,105 |
Accrued liabilities | 457,062 | 1,225,804 |
Deferred revenue | 349,004 | 314,277 |
Income taxes payable | 4,561,396 | 2,540,348 |
Short term line of credit (Note 11) | 2,300,819 | 2,116,073 |
Current portion of lease liability (Note 3) | 77,715 | 287,900 |
Current portion of long term debt (Note 12) | 793,574 | 848,794 |
Total current liabilities | 9,823,056 | 7,891,301 |
Lease liability (Note 3) | 139,552 | 195,213 |
Deferred income tax liability (Note 14) | 310,162 | 233,751 |
Long term debt (Note 12) | 1,573,024 | 2,998,844 |
Total Liabilities | 11,845,794 | 11,319,109 |
Stockholders’ Equity | ||
Capital stock (Note 17) 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: 12,355,246 (2020: 12,260,545) common shares | 12,355 | 12,261 |
Capital in excess of par value | 16,983,648 | 16,633,190 |
Other comprehensive loss | (775,730) | (872,121) |
Accumulated earnings | 8,882,360 | 5,433,198 |
Total stockholders’ equity – controlling interest | 25,102,633 | 21,206,528 |
Non-controlling interests (Note 18) | 2,602,843 | 2,561,751 |
Total Stockholders’ Equity | 27,705,476 | 23,768,279 |
Total Liabilities and Stockholders’ Equity | $ 39,551,270 | $ 35,087,388 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 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 | 12,355,246 | 12,260,545 |
Common stock, shares outstanding | 12,355,246 | 12,260,545 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Sales | $ 34,416,335 | $ 31,407,454 |
Cost of sales (Note 6, 7 & 8) | 23,019,824 | 21,641,035 |
Gross profit | 11,396,511 | 9,766,419 |
Operating Expenses | ||
Wages | 2,321,285 | 2,169,825 |
Administrative salaries and benefits | 883,460 | 804,272 |
Insurance | 581,187 | 479,218 |
Lease expense | 382,663 | 453,639 |
Consulting | 320,759 | 277,277 |
Professional fees | 285,424 | 283,842 |
Office and miscellaneous | 269,459 | 250,330 |
Interest expense | 199,930 | 260,657 |
Advertising and promotion | 172,185 | 197,196 |
Research | 116,411 | 81,422 |
Travel | 107,894 | 95,053 |
Investor relations and transfer agent fee | 94,256 | 78,930 |
Commissions | 62,632 | 148,922 |
Telecommunications | 45,482 | 43,535 |
Currency exchange | 25,091 | (6,890) |
Utilities | 21,523 | 17,651 |
Shipping | 16,567 | 12,839 |
Bad debt expense | 6,979 | 1,016 |
Total operating expenses | 5,913,187 | 5,648,734 |
Operating income | 5,483,324 | 4,117,685 |
Gain on sale of equipment (Note 6) | 9,490 | |
Gain on sale of land (Note 6) | 44,330 | |
PPP loan forgiveness (Note 12) | 537,960 | |
Gain on investments (Note 10) | 507,143 | 877,358 |
Gain on acquisition of ENP Realty (Note 10) | 133,341 | |
Interest income | 77,999 | 53,101 |
Income before income tax | 6,650,756 | 5,190,975 |
Income taxes (Note 14) | ||
Deferred income tax expense | (363,317) | (409,553) |
Current income tax expense | (1,993,182) | (1,197,888) |
Net income | 4,294,257 | 3,583,534 |
Net income attributable to non-controlling interests | (845,095) | (606,484) |
Net income attributable to controlling interest | $ 3,449,162 | $ 2,977,050 |
Income per share (basic and diluted) (Note 15) | $ 0.28 | $ 0.24 |
Weighted average number of common shares (basic) | 12,316,254 | 12,240,641 |
Weighted average number of common shares (diluted) | 12,505,522 | 12,302,552 |
Other comprehensive income: | ||
Unrealized gain on foreign currency transactions | $ 96,391 | $ 122,489 |
Total comprehensive income | 4,390,648 | 3,706,023 |
Comprehensive income – non-controlling interest | (845,095) | (606,484) |
Comprehensive income attributable to controlling interests | $ 3,545,553 | $ 3,099,539 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | ||
Net income for the year | $ 4,294,257 | $ 3,583,534 |
Adjustments to reconcile net income to net cash: | ||
Stock based compensation | 210,112 | 156,012 |
Depreciation and amortization | 965,935 | 851,672 |
Lease right of use financing | 22,057 | 53,768 |
Lease right of use amortization | 265,846 | 331,773 |
Gain on investments | (507,143) | (877,358) |
Bad debt expense | 6,979 | 1,016 |
Deferred income tax expense (recovery) | 363,317 | 409,553 |
Gain on sale of equipment | (9,490) | |
Gain on sale of land | (44,330) | |
PPP loan forgiveness | (537,960) | |
Changes in non-cash working capital items: | ||
Increase in accounts receivable | (1,246,495) | (1,420,614) |
(Increase) decrease in inventories | (1,275,746) | 1,284,607 |
Increase in prepaid expenses | (139,714) | (83,809) |
Increase in accounts payable and accrued liabilities | 102,856 | 553,478 |
Increase in taxes payable | 2,021,048 | 770,243 |
Increase in deferred revenue | 34,727 | 101,056 |
Cash provided by operating activities | 4,535,746 | 5,705,441 |
Investing activities | ||
Return of long term deposits | 22,090 | |
Purchase of investments | (500,000) | (3,152,025) |
Proceeds of equity investment distributions | 359,300 | 972,295 |
Acquisition of ENP Realty LLC | 13,419 | |
Sale of property and equipment | 263,380 | 9,490 |
Purchase of property and equipment | (782,219) | (1,080,598) |
Cash used in investing activities | (659,539) | (3,215,329) |
Financing activities | ||
Advance (repayment) of short term line of credit | 184,746 | (273,909) |
Repayment of long term debt | (943,080) | (4,395,915) |
Proceeds of long term debt | 3,413,160 | |
Lease payments | (287,903) | (385,541) |
Repayment of convertible note | (500,000) | |
Distribution to non-controlling interest | (804,003) | (594,882) |
Sale of common stock | 140,440 | 39,750 |
Cash used in financing activities | (1,709,800) | (2,697,337) |
Effect of exchange rate changes on cash | 96,391 | 45,331 |
Inflow (outflow) of cash | 2,262,798 | (161,894) |
Cash resources, beginning | 4,472,776 | 4,634,670 |
Cash resources, ending | 6,735,574 | 4,472,776 |
Cash resources are comprised of: | ||
Cash and cash equivalents | 5,710,227 | 3,472,776 |
Term deposits | 1,025,347 | 1,000,000 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid | 464,026 | |
Interest paid | 179,029 | 260,657 |
Inventory additions in accounts payable and accrued liabilities | $ 250,923 | $ 397,140 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Capital In Excess Of Par Value [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 12,216 | $ 16,437,473 | $ 2,456,148 | $ (994,610) | $ 17,911,227 | $ 2,550,149 | $ 20,461,376 |
Ending balance, shares at Dec. 31, 2019 | 12,215,545 | ||||||
Translation adjustment | 122,489 | 122,489 | 122,489 | ||||
Net income | 2,977,050 | 2,977,050 | 606,484 | 3,583,534 | |||
Common stock issued | $ 45 | 39,705 | 39,750 | 39,750 | |||
Common stock issued, shares | 45,000 | ||||||
Distributions to noncontrolling interests | (594,882) | (594,882) | |||||
Stock-based compensation | 156,012 | 156,012 | 156,012 | ||||
Ending balance, value 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 | 96,391 | 96,391 | 96,391 | ||||
Net income | 3,449,162 | 3,449,162 | 845,095 | 4,294,257 | |||
Common stock issued | $ 94 | 140,346 | 140,440 | 140,440 | |||
Common stock issued, shares | 94,701 | ||||||
Distributions to noncontrolling interests | (804,003) | (804,003) | |||||
Stock-based compensation | 210,112 | 210,112 | 210,112 | ||||
Ending balance, value at Dec. 31, 2021 | $ 12,355 | $ 16,983,648 | $ 8,882,360 | $ (775,730) | $ 25,102,633 | $ 2,602,843 | $ 27,705,476 |
Ending balance, shares at Dec. 31, 2021 | 12,355,246 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | 1. Basis of Presentation . 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 In 2018, NanoChem completed the purchase of a 65 5,110,560 35 24 100 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 operations 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 | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. Significant Accounting Policies 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 - $ 465,493 427,920 1,058,674 1,051,588 (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: SCHEDULE OF METHOD OF DEPRECIATION 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 Automobiles Straight-line over 5 years Patents Straight-line over 17 years Technology Straight-line over 10 years 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 polymers, as further discussed in Note 19. 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. 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 are 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 years ended December 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, 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, term deposits, 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 approximates 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. In accordance with FASB ASC 740 “ Income taxes (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 $ 16,917,947 49 14,713,127 47 4,940,995 69 3,986,284 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 and interest rate risk to the extent that market value rate fluctuations materially differ from financial assets and liabilities, subject to fixed long-term rates. 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. (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 2021 and 2020. Based on the results of the 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 year ended December 31, 2021 or 2020. 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 | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
LEASES | 3. Leases 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 year ended December 31, 2021: SUMMARY OF RIGHT-OF-USE ASSET AND LEASE LIABILITY Right of Use Assets Balance at December 31, 2019 $ 789,205 Addition 260,661 Termination (234,980 ) Depreciation (331,773 ) Balance at December 31, 2020 $ 483,113 Depreciation (265,846 ) Balance at December 31, 2021 $ 217,267 Lease Liability Balance at December 31, 2019 $ 789,205 Addition 260,661 Termination (234,980 ) Lease interest expense 53,768 Payments (385,541 ) Balance at December 31, 2020 $ 483,113 Lease interest expense 22,057 Payments (287,903 ) Balance at December 31, 2021 $ 217,267 Short-term portion $ 77,715 Long-term portion 139,552 Total $ 217,267 Undiscounted rent payments are as follows: SCHEDULE OF UNDISCOUNTED RENT PAYMENTS 2022 78,240 2022 78,240 2023 77,100 2024 70,440 2025 71,940 Total $ 297,720 Impact of discounting (80,453 ) Lease liability, December 31, 2021 $ 217,267 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | 4. Accounts Receivable ACCOUNTS RECEIVABLE SCHEDULE OF ACCOUNTS RECEIVABLE 2021 2020 Accounts receivable $ 7,403,308 $ 6,161,249 Allowances for doubtful accounts (273,979 ) (271,436 ) Total accounts receivable $ 7,129,329 $ 5,889,813 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 5. Inventories INVENTORIES SCHEDULE OF INVENTORIES 2021 2020 Completed goods $ 3,417,829 $ 3,393,794 Work in progress - 152,595 Raw materials and supplies 6,084,176 4,826,087 Total inventory $ 9,502,005 $ 8,372,476 |
PROPERTY, EQUIPMENT AND LEASEHO
PROPERTY, EQUIPMENT AND LEASEHOLDS | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, EQUIPMENT AND LEASEHOLDS | 6. Property, Equipment and Leaseholds PROPERTY, EQUIPMENT AND LEASEHOLDS SCHEDULE OF PROPERTY, EQUIPMENT AND LEASEHOLDS 2021 Accumulated 2021 Cost Depreciation Net Buildings and improvements $ 4,823,708 $ 2,983,589 $ 1,840,119 Automobiles 196,255 71,258 124,997 Computer hardware 43,605 42,456 1,149 Furniture and fixtures 130,658 106,101 24,557 Office equipment 1,872 1,155 717 Manufacturing equipment 6,867,799 4,171,699 2,696,100 Trailer 9,463 7,532 1,931 Boat 34,400 26,284 8,116 Leasehold improvements 88,872 88,872 — Technology 107,759 107,759 — Land 234,027 — 234,027 $ 12,538,418 $ 7,606,705 $ 4,931,713 2020 Accumulated 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 2021: $ 773,497 659,233 During the year ended December 31, 2021, 3.3 263,380 333,899 219,318 278,040 44,330 55,859 79,517 64,218 24,789 9,490 |
PATENTS
PATENTS | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
PATENTS | 7. Patents PATENTS SCHEDULE OF PATENTS 2021 Cost Accumulated 2021 Net Patents $ 208,079 $ 194,380 $ 13,699 2020 Cost Accumulated 2020 Net Patents $ 208,211 $ 178,074 $ 30,137 Decrease in 2021 cost was due to currency conversion. 2021 cost in Canadian dollars - $ 265,102 265,102 Amount of amortization for 2021: $ 16,438 16,438 Estimated amortization expense over the next five years is as follows: SCHEDULE OF ESTIMATED AMORTIZATION EXPENSE 2022 $ 13,699 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 8. Goodwill and Intangible Assets GOODWILL AND INTANGIBLE ASSETS SCHEDULE OF GOODWILL AND INDEFINITE LIVED INTANGIBLE ASSETS Goodwill Balance as of December 31, 2020 and 2021 $ 2,534,275 Indefinite Lived Intangible Assets Balance as of December 31, 2020 and 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 (176,000 ) Balances as of December 31, 2021 $ 1,830,000 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 3 Estimated amortization expense over the next five years is as follows: SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE 2022 $ 160,000 2023 160,000 2024 160,000 2025 160,000 2026 160,000 |
LONG TERM DEPOSITS
LONG TERM DEPOSITS | 12 Months Ended |
Dec. 31, 2021 | |
Long Term Deposits | |
LONG TERM DEPOSITS | 9. Long Term Deposits LONG TERM DEPOSITS The Company has security deposits that are long term in nature which consist of damage deposits held by landlords and security deposits held by various vendors. SCHEDULE OF LONG TERM DEPOSITS 2021 2020 Long term deposits $ 8,540 $ 8,540 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS | 10. Investments INVESTMENTS ( a ) The Company has a 50 SCHEDULE OF EQUITY METHOD INVESTMENT 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 22,642 Balance, December 31, 2021 $ 22,642 During the year ended December 31, 2021, the Company received an additional $ 30,478 Summarized profit and loss information for ENP Peru is as follows: SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT 2021 2020 Net sales $ 322,079 $ 295,800 Net income $ 45,285 $ 2,996 ( b ) During the year ended December 31, 2018, ENP Investments acquired a 24 35 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) , SCHEDULE OF FAIR VALUES OF ASSETS ACQUIRED AND LIABILITIES ASSUMPTION 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 is net against gain on acquisition of ENP Realty in the consolidated statements of income and comprehensive income. A summary of the Company’s investment follows: SCHEDULE OF EQUITY METHOD INVESTMENT Balance, December 31, 2019 $ 63,165 Investment eliminated upon consolidation (63,165 ) Balance, December 31, 2020 and 2021 $ - ( c ) In December 2018 the Company invested $ 200,000 2021 two years Investments – Debt Securities ( d ) In December 2018 the Company invested $ 500,000 50,000 10.00 Investments – Equity Securities ( (e ) 1,001,000 50 A summary of the Company’s investment follows: SCHEDULE OF EQUITY METHOD INVESTMENT 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 454,023 Return of equity (325,000 ) Balance, December 31, 2021 $ 3,701,368 Further to the original investment amount, the Company had placed $ 1,000,000 2,518,684 SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT 2021 2020 Net sales $ 11,543,277 $ 12,138,511 Gross profit 3,517,387 4,688,654 Net income $ 908,045 $ 1,618,685 During the year ended December 31, 2021, the Company had sales of $ 7,982,281 7,476,047 2,202,345 1,593,272 (f) 500,000 intend to work together in pursuit of sustainable aspartic acid through synthetic biology . T SCHEDULE OF EQUITY METHOD INVESTMENT Balance, December 31, 2019 $ - Acquisition 500,000 Balance, December 31, 2020 500,000 Additional payment 500,000 Balance, December 31, 2021 $ 1,000,000 |
SHORT-TERM LINE OF CREDIT
SHORT-TERM LINE OF CREDIT | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
SHORT-TERM LINE OF CREDIT | 11. Short-Term Line of Credit SHORT-TERM LINE OF CREDIT ( a ) In September 2018, the Company signed a new agreement with Harris Bank (“Harris”) to renew the expiring credit line. The revolving line of credit is for an aggregate amount of up to the lesser of (i) $ 2,500,000 80 60 (b) 3,000,000 1.000 4.250 4.25 4.5 4,000,000 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 1,950,000 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 December 31, 2021 were $ 811,665 541,456 (c) 3,500,000 80 50 0.500 4.50 4.50 3.75 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 December 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 December 31, 2021 were $ 1,489,154 1,574,617 |
LONG TERM DEBT
LONG TERM DEBT | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
LONG TERM DEBT | 12. Long Term Debt LONG TERM DEBT ( a ) In October 2018, NanoChem signed a $ 4,100,000 7 25 300,000 65 75,874 ( b ) In April 2019, NanoChem signed a loan for $ 1,100,000 0.5 36,272 ( c ) In January 2018, ENP Investments signed a $ 200,000 5.250 7 2,788 7,588 nil 125,543 ( d ) In March 2016, ENP Investments signed a $ 45,941 0.00 5 ( e ) In April 2020, NanoChem received a two year 322,000 1 (f) two year 215,960 1 (g) 1,980,947 3.85 5 65 69,831 13,389 1,554,044 1,920,976 The Company has committed to the following repayments: SCHEDULE OF INTEREST LOAN REPAYMENT 2022 $ 382,705 2023 $ 397,414 2024 $ 413,516 2025 $ 360,409 (h) 894,253 3.85 24,827 6,218 381,674 822,380 (i) 450,000 10 4.35 5 2.5 17,107 18,049 430,880 440,779 The Company has committed to the following repayments: SCHEDULE OF INTEREST LOAN REPAYMENT 2022 $ 29,749 2023 $ 29,749 2024 $ 29,749 2025 $ 29,749 As of December 31, 2021, Company was in compliance with all loan covenants. SCHEDULE OF LOAN COVENANTS Continuity December 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 (943,080 ) (4,395,915 ) Balance, December 31 $ 2,366,598 $ 3,847,638 SCHEDULE OF OUTSTANDING BALANCE LOAN Outstanding balance December 31, 2021 December 31, 2020 a) Long term debt – Harris Bank $ - $ - b) Long term debt – Harris Bank - - c) Long term debt – Midland States Bank - 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 1,554,044 1,920,976 h) Long term debt – Midland States Bank 381,674 822,380 i) Long term debt – Stock Yards Bank & Trust 430,880 440,779 Long-term Debt 2,366,598 3,847,638 Less: current portion (793,574 ) (848,794 ) $ 1,573,024 $ 2,998,844 |
CONVERTIBLE NOTE PAYABLE
CONVERTIBLE NOTE PAYABLE | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTE PAYABLE | 13. Convertible Note Payable CONVERTIBLE NOTE PAYABLE In October 2018, the Company issued a convertible note payable in the amount of $ 1,000,000 September 30, 2023 5 400,000 In June 2019, the holder opted to convert $ 500,000 200,000 In April 2020, the Company repaid the remaining principal balance of $ 500,000 13,046 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 14. Income Taxes INCOME TAXES The provision for income tax expense (benefit) is comprised of the following: SCHEDULE OF PROVISION FOR INCOME TAX EXPENSE (BENEFIT) 2021 2020 Current tax, federal $ 1,309,503 $ 739,113 Current tax, state 592,394 334,361 Current tax, foreign 91,285 124,414 Current tax, total 1,993,182 1,197,888 Deferred income tax, federal 250,153 158,308 Deferred income tax, state 113,164 71,616 Deferred income tax, foreign - 179,629 Deferred income tax, total 363,317 409,553 Total $ 2,356,499 $ 1,607,441 The following table reconciles the income tax expense at the U.S. Federal statutory rate to income tax expense at the Company’s effective tax rates. SCHEDULE OF RECONCILIATION OF INCOME TAXES 2021 2020 Income before tax $ 6,650,756 $ 5,190,975 US statutory tax rates 30.50 % 30.50 % Expected income tax 2,028,481 1,583,247 Non-deductible items (29,508 ) (60,470 ) Change in estimates and other (65,027 ) 603,422 Change in enacted tax rate 337,961 - Foreign tax rate difference (86,696 ) (120,372 ) Change in valuation allowance 171,288 (398,386 ) Total income taxes 2,356,499 1,607,441 Current income tax expense 1,993,182 1,197,888 Deferred tax expense (recovery) 363,317 409,553 Total income tax expense $ 2,356,499 $ 1,607,441 Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes. Deferred tax assets (liabilities) at December 31, 2021 and 2020 are comprised of the following: SCHEDULE OF DEFERRED TAX ASSETS (LIABILITIES) 2021 2020 Canada Non capital loss carryforwards $ 1,443,371 $ 1,638,357 Intangible assets 19,849 18,863 Property, equipment and leaseholds 587,408 624,016 Financial instruments - 26,690 2,050,628 2,307,926 Valuation allowance (2,050,628 ) (2,307,926 ) Net deferred tax asset $ - $ - US 2021 2020 Net operating loss carryforwards $ - $ - Intangible assets - - Investments (241,880 ) (167,635 ) Property, equipment and leaseholds (68,282 ) (66,116 ) Property, equipment and leaseholds 12,697 201,393 Financial instruments - 98,210 Deferred tax asset not recognized - - Net deferred tax asset (liability) $ (297,465 ) $ 65,852 The Company has non-capital loss carryforwards of approximately $ 6,275,526 6,068,054 SCHEDULE OF NON OPERATING LOSS CARRYFORWARDS ` Loss 2029 891,014 2030 1,081,844 2031 1,245,577 2037 2,238,533 2038 372,149 2039 72,378 2040 166,494 2041 207,537 Total 6,275,526 As at December 31, 2021, the Company has no net operating loss carryforwards available for US tax purposes. Accounting for Uncertainty for Income Tax As at December 31, 2021 and 2020, the Company’s consolidated balance sheets did not reflect a liability for uncertain tax positions, nor any accrued penalties or interest associated with income tax uncertainties. The Company has no income tax examinations in progress. |
INCOME PER SHARE
INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
INCOME PER SHARE | 15. Income Per Share INCOME PER SHARE The Company presents both basic and diluted income per share on the face of its consolidated statements of income. Basic and diluted income per share are calculated as follows: SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE 2021 2020 Net income attributable to controlling interest $ 3,449,162 $ 2,977,050 Weighted average common shares outstanding: Basic 12,316,254 12,240,641 Diluted 12,505,522 12,302,552 Net income per common share attributable to controlling interest: Basic and diluted $ 0.28 $ 0.24 Certain stock options whose terms and conditions are described in Note 16, “Stock Options” could potentially dilute basic EPS in the future, but were not included in the computation of diluted EPS because to do so would have been anti-dilutive. Those anti-dilutive options are as follows. SCHEDULE OF ANTI-DILUTIVE OPTIONS 2021 2020 Anti-dilutive options 21,000 507,000 There were no |
STOCK OPTIONS
STOCK OPTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK OPTIONS | 16. Stock Options . 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 5 The following table summarizes the Company’s stock option activities for the years ended December 31, 2021 and 2020: SCHEDULE OF STOCK OPTION ACTIVITIES Number of shares Exercise Weighted 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 Granted 170,000 $ 3.61 $ 3.61 Cancelled or expired (34,799 ) $ 1.42 3.46 $ 2.30 Exercised (94,701 ) $ 0.75 3.46 $ 1.58 Balance, December 31, 2021 789,500 $ 1.42 4.13 $ 2.78 Exercisable, December 31, 2021 564,500 $ 1.42 4.13 $ 2.63 The weighted-average remaining contractual life of outstanding options is 3.20 The fair value of each option grant is calculated using the following weighted average assumptions: SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTIONS 2021 2020 Expected life – years 3.0 3.0 Interest rate 1.23 % 0.37 % Volatility 63.28 % 70.14 % Weighted average fair value of options granted $ 1.23 $ 1.12 During the year ended December 31, 2021, the Company granted 45,000 45,000 13,860 10,080 51,210 43,905 125,000 127,000 38,500 28,316 106,542 73,711 61,500 33,201 35,000 10,000 As of December 31, 2021, there was approximately $ 229,918 1.0 The aggregate intrinsic value of vested options outstanding at December 31, 2021 is $ 712,945 nil 203,701 56,230 |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
CAPITAL STOCK | 17. Capital Stock . CAPITAL STOCK During the year ended December 31, 2021, 61,500 35,000 33,201 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 | 12 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTERESTS | 18. Non-Controlling Interests NON-CONTROLLING INTERESTS ENP Investments is a limited liability corporation (LLC) that manufactures and distributes golf, turf and ornamental agriculture products in Mendota, Illinois. 65 35 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 $ 1,924,995 SCHEDULE OF DISTRIBUTIONS 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 (804,003 ) Non-controlling interest share of income 845,095 Balance, December 31, 2021 $ 2,602,843 During the year ended December 31, 2021, the Company had sales of $ 4,877,690 4,094,622 35 2,215,119 2,056,631 |
SEGMENTED, SIGNIFICANT CUSTOMER
SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY | 19. Segmented, Significant Customer Information and Economic Dependency . 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. Year ended December 31, 2021: SCHEDULE OF REPORTABLE SEGMENTS EWCP BCPA Consolidated Sales $ 420,811 $ 33,995,524 $ 34,416,335 Interest expense - 199,930 199,930 Depreciation 40,247 925,688 965,935 Current and deferred income tax expense 24,384 2,361,298 2,385,682 Segment profit (368,994 ) 3,818,156 3,449,162 Segment assets 1,929,537 37,621,733 39,551,270 Expenditures for segment assets - 782,219 782,219 Year ended December 31, 2020: EWCP BCPA Consolidated Sales $ 334,423 $ 31,073,031 $ 31,407,454 Interest expense 54 260,603 260,657 Depreciation 41,969 809,703 851,672 Current and deferred income tax expense 121,164 1,486,277 1,607,441 Segment profit (536,220 ) 3,513,270 2,977,050 Segment assets 2,111,501 32,975,887 35,087,388 Expenditures for segment assets - 1,071,108 1,071,108 Sales by territory are shown below: SCHEDULE OF REVENUE GENERATED IN UNITED STATES AND CANADA 2021 2020 Canada $ 525,900 $ 562,626 United States and abroad 33,890,435 30,844,828 Total $ 34,416,335 $ 31,407,454 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: SCHEDULE OF LONG-LIVED ASSETS ARE LOCATED IN CANADA AND UNITED STATES 2021 2020 Canada $ 191,752 $ 445,663 United States 10,105,202 10,519,903 Total $ 10,296,954 $ 10,965,566 Three customers accounted for $ 16,917,948 49 14,713,127 47 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 20. Subsequent Events. SUBSEQUENT EVENTS The Company granted 5,000 20,500 shares to employees upon the exercise of stock options in the three months ended March 29, 2022. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 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 - $ 465,493 427,920 1,058,674 1,051,588 |
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: SCHEDULE OF METHOD OF DEPRECIATION 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 Automobiles Straight-line over 5 years Patents Straight-line over 17 years Technology Straight-line over 10 years 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 polymers, as further discussed in Note 19. 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. 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 are 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 years ended December 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, 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, term deposits, 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 approximates 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. In accordance with FASB ASC 740 “ Income taxes |
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 $ 16,917,947 49 14,713,127 47 4,940,995 69 3,986,284 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 and interest rate risk to the extent that market value rate fluctuations materially differ from financial assets and liabilities, subject to fixed long-term rates. 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. |
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 2021 and 2020. Based on the results of the 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 year ended December 31, 2021 or 2020. 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) | 12 Months Ended |
Dec. 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: SCHEDULE OF METHOD OF DEPRECIATION 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 Automobiles Straight-line over 5 years Patents Straight-line over 17 years Technology Straight-line over 10 years 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) | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
SUMMARY OF RIGHT-OF-USE ASSET AND LEASE LIABILITY | The table below summarizes the right-of-use asset and lease liability for the year ended December 31, 2021: SUMMARY OF RIGHT-OF-USE ASSET AND LEASE LIABILITY Right of Use Assets Balance at December 31, 2019 $ 789,205 Addition 260,661 Termination (234,980 ) Depreciation (331,773 ) Balance at December 31, 2020 $ 483,113 Depreciation (265,846 ) Balance at December 31, 2021 $ 217,267 Lease Liability Balance at December 31, 2019 $ 789,205 Addition 260,661 Termination (234,980 ) Lease interest expense 53,768 Payments (385,541 ) Balance at December 31, 2020 $ 483,113 Lease interest expense 22,057 Payments (287,903 ) Balance at December 31, 2021 $ 217,267 Short-term portion $ 77,715 Long-term portion 139,552 Total $ 217,267 |
SCHEDULE OF UNDISCOUNTED RENT PAYMENTS | Undiscounted rent payments are as follows: SCHEDULE OF UNDISCOUNTED RENT PAYMENTS 2022 78,240 2022 78,240 2023 77,100 2024 70,440 2025 71,940 Total $ 297,720 Impact of discounting (80,453 ) Lease liability, December 31, 2021 $ 217,267 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | SCHEDULE OF ACCOUNTS RECEIVABLE 2021 2020 Accounts receivable $ 7,403,308 $ 6,161,249 Allowances for doubtful accounts (273,979 ) (271,436 ) Total accounts receivable $ 7,129,329 $ 5,889,813 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES | SCHEDULE OF INVENTORIES 2021 2020 Completed goods $ 3,417,829 $ 3,393,794 Work in progress - 152,595 Raw materials and supplies 6,084,176 4,826,087 Total inventory $ 9,502,005 $ 8,372,476 |
PROPERTY, EQUIPMENT AND LEASE_2
PROPERTY, EQUIPMENT AND LEASEHOLDS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY, EQUIPMENT AND LEASEHOLDS | SCHEDULE OF PROPERTY, EQUIPMENT AND LEASEHOLDS 2021 Accumulated 2021 Cost Depreciation Net Buildings and improvements $ 4,823,708 $ 2,983,589 $ 1,840,119 Automobiles 196,255 71,258 124,997 Computer hardware 43,605 42,456 1,149 Furniture and fixtures 130,658 106,101 24,557 Office equipment 1,872 1,155 717 Manufacturing equipment 6,867,799 4,171,699 2,696,100 Trailer 9,463 7,532 1,931 Boat 34,400 26,284 8,116 Leasehold improvements 88,872 88,872 — Technology 107,759 107,759 — Land 234,027 — 234,027 $ 12,538,418 $ 7,606,705 $ 4,931,713 2020 Accumulated 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) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF PATENTS | SCHEDULE OF PATENTS 2021 Cost Accumulated 2021 Net Patents $ 208,079 $ 194,380 $ 13,699 2020 Cost Accumulated 2020 Net Patents $ 208,211 $ 178,074 $ 30,137 |
SCHEDULE OF ESTIMATED AMORTIZATION EXPENSE | Estimated amortization expense over the next five years is as follows: SCHEDULE OF ESTIMATED AMORTIZATION EXPENSE 2022 $ 13,699 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF GOODWILL AND INDEFINITE LIVED INTANGIBLE ASSETS | SCHEDULE OF GOODWILL AND INDEFINITE LIVED INTANGIBLE ASSETS Goodwill Balance as of December 31, 2020 and 2021 $ 2,534,275 Indefinite Lived Intangible Assets Balance as of December 31, 2020 and 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 (176,000 ) Balances as of December 31, 2021 $ 1,830,000 |
SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE | Estimated amortization expense over the next five years is as follows: SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE 2022 $ 160,000 2023 160,000 2024 160,000 2025 160,000 2026 160,000 |
LONG TERM DEPOSITS (Tables)
LONG TERM DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Long Term Deposits | |
SCHEDULE OF LONG TERM DEPOSITS | The Company has security deposits that are long term in nature which consist of damage deposits held by landlords and security deposits held by various vendors. SCHEDULE OF LONG TERM DEPOSITS 2021 2020 Long term deposits $ 8,540 $ 8,540 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Enp Peru Investments Llc [Member] | |
SCHEDULE OF EQUITY METHOD INVESTMENT | SCHEDULE OF EQUITY METHOD INVESTMENT 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 22,642 Balance, December 31, 2021 $ 22,642 |
SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT | Summarized profit and loss information for ENP Peru is as follows: SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT 2021 2020 Net sales $ 322,079 $ 295,800 Net income $ 45,285 $ 2,996 |
Enp Realty LLC [Member] | |
SCHEDULE OF EQUITY METHOD INVESTMENT | A summary of the Company’s investment follows: SCHEDULE OF EQUITY METHOD INVESTMENT Balance, December 31, 2019 $ 63,165 Investment eliminated upon consolidation (63,165 ) Balance, December 31, 2020 and 2021 $ - |
SCHEDULE OF FAIR VALUES OF ASSETS ACQUIRED AND LIABILITIES ASSUMPTION | SCHEDULE OF FAIR VALUES OF ASSETS ACQUIRED AND LIABILITIES ASSUMPTION 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 | SCHEDULE OF EQUITY METHOD INVESTMENT 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 454,023 Return of equity (325,000 ) Balance, December 31, 2021 $ 3,701,368 |
SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT | SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT 2021 2020 Net sales $ 11,543,277 $ 12,138,511 Gross profit 3,517,387 4,688,654 Net income $ 908,045 $ 1,618,685 |
Lygos Inc [Member] | |
SCHEDULE OF EQUITY METHOD INVESTMENT | SCHEDULE OF EQUITY METHOD INVESTMENT Balance, December 31, 2019 $ - Acquisition 500,000 Balance, December 31, 2020 500,000 Additional payment 500,000 Balance, December 31, 2021 $ 1,000,000 |
LONG TERM DEBT (Tables)
LONG TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Short-term Debt [Line Items] | |
SCHEDULE OF LOAN COVENANTS | As of December 31, 2021, Company was in compliance with all loan covenants. SCHEDULE OF LOAN COVENANTS Continuity December 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 (943,080 ) (4,395,915 ) Balance, December 31 $ 2,366,598 $ 3,847,638 |
SCHEDULE OF OUTSTANDING BALANCE LOAN | SCHEDULE OF OUTSTANDING BALANCE LOAN Outstanding balance December 31, 2021 December 31, 2020 a) Long term debt – Harris Bank $ - $ - b) Long term debt – Harris Bank - - c) Long term debt – Midland States Bank - 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 1,554,044 1,920,976 h) Long term debt – Midland States Bank 381,674 822,380 i) Long term debt – Stock Yards Bank & Trust 430,880 440,779 Long-term Debt 2,366,598 3,847,638 Less: current portion (793,574 ) (848,794 ) $ 1,573,024 $ 2,998,844 |
Promissory Note One With Midland Bank [Member] | |
Short-term Debt [Line Items] | |
SCHEDULE OF INTEREST LOAN REPAYMENT | The Company has committed to the following repayments: SCHEDULE OF INTEREST LOAN REPAYMENT 2022 $ 382,705 2023 $ 397,414 2024 $ 413,516 2025 $ 360,409 |
Promissory Note With Midland Bank [Member] | |
Short-term Debt [Line Items] | |
SCHEDULE OF INTEREST LOAN REPAYMENT | The Company has committed to the following repayments: SCHEDULE OF INTEREST LOAN REPAYMENT 2022 $ 29,749 2023 $ 29,749 2024 $ 29,749 2025 $ 29,749 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF PROVISION FOR INCOME TAX EXPENSE (BENEFIT) | The provision for income tax expense (benefit) is comprised of the following: SCHEDULE OF PROVISION FOR INCOME TAX EXPENSE (BENEFIT) 2021 2020 Current tax, federal $ 1,309,503 $ 739,113 Current tax, state 592,394 334,361 Current tax, foreign 91,285 124,414 Current tax, total 1,993,182 1,197,888 Deferred income tax, federal 250,153 158,308 Deferred income tax, state 113,164 71,616 Deferred income tax, foreign - 179,629 Deferred income tax, total 363,317 409,553 Total $ 2,356,499 $ 1,607,441 |
SCHEDULE OF RECONCILIATION OF INCOME TAXES | The following table reconciles the income tax expense at the U.S. Federal statutory rate to income tax expense at the Company’s effective tax rates. SCHEDULE OF RECONCILIATION OF INCOME TAXES 2021 2020 Income before tax $ 6,650,756 $ 5,190,975 US statutory tax rates 30.50 % 30.50 % Expected income tax 2,028,481 1,583,247 Non-deductible items (29,508 ) (60,470 ) Change in estimates and other (65,027 ) 603,422 Change in enacted tax rate 337,961 - Foreign tax rate difference (86,696 ) (120,372 ) Change in valuation allowance 171,288 (398,386 ) Total income taxes 2,356,499 1,607,441 Current income tax expense 1,993,182 1,197,888 Deferred tax expense (recovery) 363,317 409,553 Total income tax expense $ 2,356,499 $ 1,607,441 |
SCHEDULE OF DEFERRED TAX ASSETS (LIABILITIES) | SCHEDULE OF DEFERRED TAX ASSETS (LIABILITIES) 2021 2020 Canada Non capital loss carryforwards $ 1,443,371 $ 1,638,357 Intangible assets 19,849 18,863 Property, equipment and leaseholds 587,408 624,016 Financial instruments - 26,690 2,050,628 2,307,926 Valuation allowance (2,050,628 ) (2,307,926 ) Net deferred tax asset $ - $ - US 2021 2020 Net operating loss carryforwards $ - $ - Intangible assets - - Investments (241,880 ) (167,635 ) Property, equipment and leaseholds (68,282 ) (66,116 ) Property, equipment and leaseholds 12,697 201,393 Financial instruments - 98,210 Deferred tax asset not recognized - - Net deferred tax asset (liability) $ (297,465 ) $ 65,852 |
SCHEDULE OF NON OPERATING LOSS CARRYFORWARDS | SCHEDULE OF NON OPERATING LOSS CARRYFORWARDS ` Loss 2029 891,014 2030 1,081,844 2031 1,245,577 2037 2,238,533 2038 372,149 2039 72,378 2040 166,494 2041 207,537 Total 6,275,526 |
INCOME PER SHARE (Tables)
INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE | The Company presents both basic and diluted income per share on the face of its consolidated statements of income. Basic and diluted income per share are calculated as follows: SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE 2021 2020 Net income attributable to controlling interest $ 3,449,162 $ 2,977,050 Weighted average common shares outstanding: Basic 12,316,254 12,240,641 Diluted 12,505,522 12,302,552 Net income per common share attributable to controlling interest: Basic and diluted $ 0.28 $ 0.24 |
SCHEDULE OF ANTI-DILUTIVE OPTIONS | SCHEDULE OF ANTI-DILUTIVE OPTIONS 2021 2020 Anti-dilutive options 21,000 507,000 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SCHEDULE OF STOCK OPTION ACTIVITIES | The following table summarizes the Company’s stock option activities for the years ended December 31, 2021 and 2020: SCHEDULE OF STOCK OPTION ACTIVITIES Number of shares Exercise Weighted 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 Granted 170,000 $ 3.61 $ 3.61 Cancelled or expired (34,799 ) $ 1.42 3.46 $ 2.30 Exercised (94,701 ) $ 0.75 3.46 $ 1.58 Balance, December 31, 2021 789,500 $ 1.42 4.13 $ 2.78 Exercisable, December 31, 2021 564,500 $ 1.42 4.13 $ 2.63 |
SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTIONS | The fair value of each option grant is calculated using the following weighted average assumptions: SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTIONS 2021 2020 Expected life – years 3.0 3.0 Interest rate 1.23 % 0.37 % Volatility 63.28 % 70.14 % Weighted average fair value of options granted $ 1.23 $ 1.12 |
NON-CONTROLLING INTERESTS (Tabl
NON-CONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
SCHEDULE OF DISTRIBUTIONS | SCHEDULE OF DISTRIBUTIONS 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 (804,003 ) Non-controlling interest share of income 845,095 Balance, December 31, 2021 $ 2,602,843 |
SEGMENTED, SIGNIFICANT CUSTOM_2
SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SCHEDULE OF REPORTABLE SEGMENTS | Year ended December 31, 2021: SCHEDULE OF REPORTABLE SEGMENTS EWCP BCPA Consolidated Sales $ 420,811 $ 33,995,524 $ 34,416,335 Interest expense - 199,930 199,930 Depreciation 40,247 925,688 965,935 Current and deferred income tax expense 24,384 2,361,298 2,385,682 Segment profit (368,994 ) 3,818,156 3,449,162 Segment assets 1,929,537 37,621,733 39,551,270 Expenditures for segment assets - 782,219 782,219 Year ended December 31, 2020: EWCP BCPA Consolidated Sales $ 334,423 $ 31,073,031 $ 31,407,454 Interest expense 54 260,603 260,657 Depreciation 41,969 809,703 851,672 Current and deferred income tax expense 121,164 1,486,277 1,607,441 Segment profit (536,220 ) 3,513,270 2,977,050 Segment assets 2,111,501 32,975,887 35,087,388 Expenditures for segment assets - 1,071,108 1,071,108 |
SCHEDULE OF REVENUE GENERATED IN UNITED STATES AND CANADA | Sales by territory are shown below: SCHEDULE OF REVENUE GENERATED IN UNITED STATES AND CANADA 2021 2020 Canada $ 525,900 $ 562,626 United States and abroad 33,890,435 30,844,828 Total $ 34,416,335 $ 31,407,454 |
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: SCHEDULE OF LONG-LIVED ASSETS ARE LOCATED IN CANADA AND UNITED STATES 2021 2020 Canada $ 191,752 $ 445,663 United States 10,105,202 10,519,903 Total $ 10,296,954 $ 10,965,566 |
BASIS OF PRESENTATION (Details
BASIS OF PRESENTATION (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Enp Peru Investments Llc [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Purchase price | $ 5,110,560 | ||
Enp Investments Llc And Enp Mendota [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subsidiary company ownership interest rate | 65.00% | ||
ENP Investments LLC [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subsidiary company ownership interest rate | 65.00% | 65.00% | |
Enp Investments LLC [Member] | Unrelated Party [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subsidiary company ownership interest rate | 35.00% | ||
Enp Realty LLC [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subsidiary company ownership interest rate | 24.00% | ||
Enp Realty LLC [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subsidiary company ownership interest rate | 100.00% |
SCHEDULE OF METHOD OF DEPRECIAT
SCHEDULE OF METHOD OF DEPRECIATION (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | 30% Declining balance |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | 20% Declining balance |
Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | 20% Declining balance |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | 20% Declining balance |
Boat [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | 20% Declining balance |
Building and improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | 10% Declining balance |
Trailer [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | 30% Declining balance |
Automobiles [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | Straight-line over 5 years |
Patents [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | Straight-line over 17 years |
Technology Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | Straight-line over 10 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | Straight-line over lease term |
Customer Relationships - ENP Investments [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | Straight-line over 15 years |
Software - ENP Investments [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | Straight-line over 3 years |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Product Information [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 34,416,335 | $ 31,407,454 |
Cost of Goods and Services Sold | $ 23,019,824 | 21,641,035 |
Equity Method Investment, Description of Principal Activities | 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] | ||
Product Information [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 16,917,947 | 14,713,127 |
Accounts Receivable, after Allowance for Credit Loss | $ 4,940,995 | $ 3,986,284 |
Three Primary Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | ||
Product Information [Line Items] | ||
[custom:ConcentrationRiskThresholdPercentage] | 49.00% | 47.00% |
Three Primary Customers [Member] | Accounts Receivable [Member] | ||
Product Information [Line Items] | ||
[custom:ConcentrationRiskThresholdPercentage] | 69.00% | 68.00% |
Shipping and Handling [Member] | ||
Product Information [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 465,493 | $ 427,920 |
Cost of Goods and Services Sold | $ 1,058,674 | $ 1,051,588 |
SUMMARY OF RIGHT-OF-USE ASSET A
SUMMARY OF RIGHT-OF-USE ASSET AND LEASE LIABILITY (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | ||
Right of Use Assets Ending Balance | $ 483,113 | $ 789,205 |
Addition | 260,661 | |
Termination | (234,980) | |
Depreciation | (265,846) | (331,773) |
Right of Use Assets Ending Balance | 217,267 | 483,113 |
Lease Liability Ending Balance | 483,113 | 789,205 |
Addition | 260,661 | |
Termination | (234,980) | |
Lease interest expense | 22,057 | 53,768 |
Payments | (287,903) | (385,541) |
Lease Liability Ending Balance | 217,267 | 483,113 |
Short-term portion | 77,715 | 287,900 |
Long-term portion | 139,552 | 195,213 |
Total | $ 217,267 | $ 483,113 |
SCHEDULE OF UNDISCOUNTED RENT P
SCHEDULE OF UNDISCOUNTED RENT PAYMENTS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Leases | |||
2022 | $ 78,240 | ||
2023 | 77,100 | ||
2024 | 70,440 | ||
2025 | 71,940 | ||
Total | 297,720 | ||
Impact of discounting | (80,453) | ||
Lease liability, December 31, 2021 | $ 217,267 | $ 483,113 | $ 789,205 |
LEASES (Details Narrative)
LEASES (Details Narrative) | Dec. 31, 2021 |
Leases | |
Operating leases discount rate | 5.50% |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Accounts receivable | $ 7,403,308 | $ 6,161,249 |
Allowances for doubtful accounts | (273,979) | (271,436) |
Total accounts receivable | $ 7,129,329 | $ 5,889,813 |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Completed goods | $ 3,417,829 | $ 3,393,794 |
Work in progress | 152,595 | |
Raw materials and supplies | 6,084,176 | 4,826,087 |
Total inventory | $ 9,502,005 | $ 8,372,476 |
SCHEDULE OF PROPERTY, EQUIPMENT
SCHEDULE OF PROPERTY, EQUIPMENT AND LEASEHOLDS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 12,538,418 | $ 11,982,741 |
Accumulated Depreciation | 7,606,705 | 6,840,700 |
Property, Plant and Equipment, Net, Total | 4,931,713 | 5,142,041 |
Building and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 4,823,708 | 4,798,370 |
Accumulated Depreciation | 2,983,589 | 2,836,142 |
Property, Plant and Equipment, Net, Total | 1,840,119 | 1,962,228 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 196,255 | 180,956 |
Accumulated Depreciation | 71,258 | 61,266 |
Property, Plant and Equipment, Net, Total | 124,997 | 119,690 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 43,605 | 43,593 |
Accumulated Depreciation | 42,456 | 41,957 |
Property, Plant and Equipment, Net, Total | 1,149 | 1,636 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 130,658 | 111,145 |
Accumulated Depreciation | 106,101 | 101,186 |
Property, Plant and Equipment, Net, Total | 24,557 | 9,959 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,872 | 1,864 |
Accumulated Depreciation | 1,155 | 971 |
Property, Plant and Equipment, Net, Total | 717 | 893 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 6,867,799 | 6,154,425 |
Accumulated Depreciation | 4,171,699 | 3,573,748 |
Property, Plant and Equipment, Net, Total | 2,696,100 | 2,580,677 |
Trailer [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 9,463 | 9,422 |
Accumulated Depreciation | 7,532 | 6,675 |
Property, Plant and Equipment, Net, Total | 1,931 | 2,747 |
Boat [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 34,400 | 34,400 |
Accumulated Depreciation | 26,284 | 24,255 |
Property, Plant and Equipment, Net, Total | 8,116 | 10,145 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 88,872 | 88,872 |
Accumulated Depreciation | 88,872 | 87,205 |
Property, Plant and Equipment, Net, Total | 1,667 | |
Developed Technology Rights [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 107,759 | 107,295 |
Accumulated Depreciation | 107,759 | 107,295 |
Property, Plant and Equipment, Net, Total | ||
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 234,027 | 452,399 |
Accumulated Depreciation | ||
Property, Plant and Equipment, Net, Total | $ 234,027 | $ 452,399 |
PROPERTY, EQUIPMENT AND LEASE_3
PROPERTY, EQUIPMENT AND LEASEHOLDS (Details Narrative) | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021CAD ($) | Jan. 12, 2021ft² | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation | $ 773,497 | $ 659,233 | |||
Area of land | ft² | 3.3 | ||||
Cost | 12,538,418 | 11,982,741 | |||
Accumulated depreciation | 7,606,705 | 6,840,700 | |||
Gain on disposal | 9,490 | ||||
Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Proceed for disposal | 263,380 | $ 333,899 | 24,789 | ||
Cost | 219,318 | 79,517 | $ 278,040 | ||
Recognized gains | $ 44,330 | $ 55,859 | |||
Accumulated depreciation | 64,218 | ||||
Gain on disposal | $ 9,490 |
SCHEDULE OF PATENTS (Details)
SCHEDULE OF PATENTS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Patents, Cost | $ 208,079 | $ 208,211 |
Accumulated Amortization | 194,380 | 178,074 |
Patents, Net | $ 13,699 | $ 30,137 |
SCHEDULE OF ESTIMATED AMORTIZAT
SCHEDULE OF ESTIMATED AMORTIZATION EXPENSE (Details) | Dec. 31, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 13,699 |
SCHEDULE OF GOODWILL AND INDEFI
SCHEDULE OF GOODWILL AND INDEFINITE LIVED INTANGIBLE ASSETS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill | $ 2,534,275 | $ 2,534,275 |
Indefinite Lived Intangible Asset | 770,000 | 770,000 |
Beginning balance | 30,137 | |
Amortization | 16,438 | 16,438 |
Ending balance | 13,699 | 30,137 |
EnP Investments Limited Liability Corporation (LLC) [Member] | ||
Beginning balance | 2,006,000 | 2,182,000 |
Amortization | (176,000) | (176,000) |
Ending balance | $ 1,830,000 | $ 2,006,000 |
PATENTS (Details Narrative)
PATENTS (Details Narrative) | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Amortization | $ 16,438 | $ 16,438 | ||
CAD [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Increase in currency conversion | $ 265,102 | $ 265,102 |
SCHEDULE OF ESTIMATED FUTURE AM
SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE (Details) | Dec. 31, 2021USD ($) |
Impairment Effects on Earnings Per Share [Line Items] | |
2022 | $ 13,699 |
Finite-Lived Intangible Assets [Member] | |
Impairment Effects on Earnings Per Share [Line Items] | |
2022 | 160,000 |
2023 | 160,000 |
2024 | 160,000 |
2025 | 160,000 |
2026 | $ 160,000 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Details Narrative) - ENP Investments LLC [Member] | 12 Months Ended |
Dec. 31, 2021 | |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 15 years |
Computer Software, Intangible Asset [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 3 years |
SCHEDULE OF LONG TERM DEPOSITS
SCHEDULE OF LONG TERM DEPOSITS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Long Term Deposits | ||
Long term deposits | $ 8,540 | $ 8,540 |
SCHEDULE OF EQUITY METHOD INVES
SCHEDULE OF EQUITY METHOD INVESTMENT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Balance, Beginning | $ 4,776,167 | |
Balance, Ending | 5,424,010 | $ 4,776,167 |
Investment eliminated upon consolidation | 63,165 | |
Enp Peru Investments Llc [Member] | ||
Balance, Beginning | 3,822 | 11,387 |
Return of equity | (3,822) | (9,063) |
Gain in equity method investment | 22,642 | 1,498 |
Balance, Ending | 22,642 | 3,822 |
Enp Realty LLC [Member] | ||
Balance, Beginning | 63,165 | |
Balance, Ending | ||
Investment eliminated upon consolidation | (63,165) | |
Florida Based LLC [Member] | ||
Balance, Beginning | 3,572,345 | 1,141,033 |
Return of equity | (325,000) | (896,714) |
Gain in equity method investment | 454,023 | 809,342 |
Balance, Ending | 3,701,368 | 3,572,345 |
Additional payment | 2,518,684 | |
Lygos Inc [Member] | ||
Balance, Beginning | 500,000 | |
Balance, Ending | 1,000,000 | 500,000 |
Additional payment | $ 500,000 | |
Acquisition | $ 500,000 |
SUMMARY OF PROFIT AND LOSS INFO
SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Enp Peru Investments Llc [Member] | ||
Net sales | $ 322,079 | $ 295,800 |
Net income | 45,285 | 2,996 |
Florida Based LLC [Member] | ||
Net sales | 11,543,277 | 12,138,511 |
Net income | 908,045 | 1,618,685 |
Gross profit | $ 3,517,387 | $ 4,688,654 |
SCHEDULE OF FAIR VALUES OF ASSE
SCHEDULE OF FAIR VALUES OF ASSETS ACQUIRED AND LIABILITIES ASSUMPTION (Details) | 12 Months Ended |
Dec. 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 |
INVESTMENTS (Details Narrative)
INVESTMENTS (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Jan. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | |
Enp Realty LLC [Member] | |||||
Non-controlling interests | 35.00% | 35.00% | |||
Enp Peru Investments Llc [Member] | |||||
Ownership interest | 50.00% | ||||
Proceeds from investment | $ 30,478 | ||||
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 Instrument, 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 | $ 1,000,000 | $ 1,000,000 | |||
Contigent consideration of additional payment | 2,518,684 | ||||
Revenue | 7,982,281 | 7,476,047 | |||
Accounts Receivable | 1,593,272 | $ 2,202,345 | $ 1,593,272 | ||
Lygos Inc [Member] | |||||
Investment | $ 500,000 |
SHORT-TERM LINE OF CREDIT (Deta
SHORT-TERM LINE OF CREDIT (Details Narrative) - USD ($) | 1 Months Ended | ||||||
Oct. 31, 2021 | Aug. 30, 2021 | Sep. 30, 2018 | Mar. 31, 2022 | Dec. 31, 2021 | Aug. 31, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | |||||||
Line of Credit | $ 2,300,819 | $ 2,116,073 | |||||
Harris Bank [Member] | NanoChem Solutions Inc [Member] | Term Loan [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument interest rate | 4.50% | ||||||
New Agreement [Member] | NanoChem Solutions Inc [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Loan guaranteed rate | 65.00% | ||||||
Line of Credit | $ 1,950,000 | ||||||
New Agreement [Member] | Midland States Bank [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Aggregate amount of revolving line of credit | $ 3,000,000 | ||||||
Debt effective rate | 0.50% | 1.00% | |||||
Annual interest rate of loan | 4.25% | 4.50% | |||||
Short-term borrowings | $ 811,665 | $ 541,456 | |||||
New Agreement [Member] | Midland States Bank [Member] | Subsequent Event [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Revolving line of credit | $ 4,000,000 | ||||||
New Agreement [Member] | Midland States Bank [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Annual interest rate of loan | 4.25% | ||||||
New Agreement [Member] | Harris Bank [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
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] | |||||||
Line of Credit Facility [Line Items] | |||||||
Aggregate amount of revolving line of credit | $ 3,500,000 | ||||||
Eligible percentage of domestic accounts receivable | 80.00% | ||||||
Percentage of foreign accounts receivable of inventory | 50.00% | ||||||
Annual interest rate of loan | 4.50% | 3.75% | |||||
Line of Credit | $ 1,489,154 | $ 1,574,617 |
SCHEDULE OF INTEREST LOAN REPAY
SCHEDULE OF INTEREST LOAN REPAYMENT (Details) - USD ($) | Oct. 31, 2020 | Jan. 31, 2020 |
Promissory Note One With Midland Bank [Member] | ||
Short-term Debt [Line Items] | ||
2022 | $ 382,705 | |
2023 | 397,414 | |
2025 | 413,516 | |
2025 | $ 360,409 | |
Promissory Note With Midland Bank [Member] | ||
Short-term Debt [Line Items] | ||
2022 | $ 29,749 | |
2023 | 29,749 | |
2025 | 29,749 | |
2025 | $ 29,749 |
SCHEDULE OF LOAN COVENANTS (Det
SCHEDULE OF LOAN COVENANTS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
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 | (943,080) | (4,395,915) |
Balance, December 31 | $ 2,366,598 | $ 3,847,638 |
SCHEDULE OF OUTSTANDING BALANCE
SCHEDULE OF OUTSTANDING BALANCE LOAN (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term Debt | $ 2,366,598 | $ 3,847,638 | $ 4,380,393 |
Less: current portion | (793,574) | (848,794) | |
Long term balance | 1,573,024 | 2,998,844 | |
Harris Bank [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term Debt | |||
Harris Bank One [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term Debt | |||
Midland States Bank [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term Debt | 125,543 | ||
Ford Motor Credit Company [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term Debt | |||
Paycheck Protection Program [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term Debt | 322,000 | ||
Paycheck Protection Program One [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term Debt | 215,960 | ||
Midland States Bank One [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term Debt | 1,554,044 | 1,920,976 | |
Midland States Bank Two [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term Debt | 381,674 | 822,380 | |
Stock Yards Bank Trust [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term Debt | $ 430,880 | $ 440,779 |
LONG TERM DEBT (Details Narrati
LONG TERM DEBT (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2018 | Jan. 31, 2018 | Mar. 31, 2016 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2021 | Apr. 30, 2019 | Dec. 31, 2018 | |
Enp Peru Investments Llc [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Ownership interest percentage | 50.00% | ||||||||||
Enp Realty LLC [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Ownership interest percentage | 24.00% | ||||||||||
Harris Bank [Member] | Enp Investments LLC [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt instrument, interest rate, stated percentage | 1.00% | ||||||||||
Harris Bank [Member] | NanoChem Solutions Inc [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Promissory note | $ 1,100,000 | ||||||||||
Interest expense | $ 36,272 | ||||||||||
Harris Bank [Member] | NanoChem Solutions Inc [Member] | Prime Rate [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt instrument, interest rate, stated percentage | 0.50% | ||||||||||
Midland Bank [Member] | NanoChem Solutions Inc [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Promissory note | $ 894,253 | ||||||||||
Interest expense | $ 24,827 | 6,218 | |||||||||
Debt balance owing | 381,674 | 822,380 | |||||||||
Midland Bank [Member] | NanoChem Solutions Inc [Member] | Prime Rate [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt instrument, interest rate, stated percentage | 3.85% | ||||||||||
Midland Bank [Member] | Enp Peru Investments Llc [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Promissory note | $ 200,000 | ||||||||||
Debt instrument, term | 7 years | ||||||||||
Interest expense | 2,788 | 7,588 | |||||||||
Debt instrument, interest rate, stated percentage | 5.25% | ||||||||||
Debt balance owing | 125,543 | ||||||||||
Ford Motor Credit Company [Member] | Enp Peru Investments Llc [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Promissory note | $ 215,960 | $ 45,941 | |||||||||
Debt instrument, term | 2 years | 5 years | |||||||||
Debt instrument, interest rate, stated percentage | 0.00% | ||||||||||
Paycheck Protection Program [Member] | NanoChem Solutions Inc [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Promissory note | $ 322,000 | ||||||||||
Debt instrument, term | 2 years | ||||||||||
Debt instrument, interest rate, stated percentage | 1.00% | ||||||||||
Stock Yards Bank Trust [Member] | Enp Realty LLC [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Promissory note | $ 450,000 | ||||||||||
Debt instrument, term | 10 years | ||||||||||
Interest expense | 17,107 | 18,049 | |||||||||
Debt balance owing | 430,880 | 440,779 | |||||||||
Stock Yards Bank Trust [Member] | Enp Realty LLC [Member] | Federal Home Loan Bank of Cincinnati [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt instrument, term | 5 years | ||||||||||
Stock Yards Bank Trust [Member] | Enp Realty LLC [Member] | Prime Rate [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt instrument, interest rate, stated percentage | 4.35% | ||||||||||
Stock Yards Bank Trust [Member] | Enp Realty LLC [Member] | Prime Rate [Member] | Federal Home Loan Bank of Cincinnati [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt instrument, interest rate, stated percentage | 2.50% | ||||||||||
Term Loan [Member] | Enp Investments LLC [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Ownership interest percentage | 65.00% | 65.00% | |||||||||
Term Loan [Member] | Harris Bank [Member] | NanoChem Solutions Inc [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Promissory note | $ 4,100,000 | ||||||||||
Debt instrument, term | 7 years | ||||||||||
Payment of monthly installments interest rate | 25.00% | ||||||||||
Debt instrument periodic payment | $ 300,000 | ||||||||||
Interest expense | 75,874 | ||||||||||
Term Loan [Member] | Harris Bank [Member] | NanoChem Solutions Inc [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt instrument, interest rate, stated percentage | 4.50% | ||||||||||
Term Loan [Member] | Midland Bank [Member] | NanoChem Solutions Inc [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Promissory note | $ 1,980,947 | ||||||||||
Debt instrument, term | 5 years | ||||||||||
Interest expense | 69,831 | 13,389 | |||||||||
Debt balance owing | $ 1,554,044 | $ 1,920,976 | |||||||||
Term Loan [Member] | Midland Bank [Member] | NanoChem Solutions Inc [Member] | Prime Rate [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt instrument, interest rate, stated percentage | 3.85% |
CONVERTIBLE NOTE PAYABLE (Detai
CONVERTIBLE NOTE PAYABLE (Details Narrative) - USD ($) | 1 Months Ended | ||
Apr. 30, 2020 | Jun. 30, 2019 | 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 | ||
Debt convertible due date | Sep. 30, 2023 | ||
Debt conversion ratio | 5.00% |
SCHEDULE OF PROVISION FOR INCOM
SCHEDULE OF PROVISION FOR INCOME TAX EXPENSE (BENEFIT) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Current tax, federal | $ 1,309,503 | $ 739,113 |
Current tax, state | 592,394 | 334,361 |
Current tax, foreign | 91,285 | 124,414 |
Current tax, total | 1,993,182 | 1,197,888 |
Deferred income tax, federal | 250,153 | 158,308 |
Deferred income tax, state | 113,164 | 71,616 |
Deferred income tax, foreign | 179,629 | |
Deferred income tax, total | 363,317 | 409,553 |
Total | $ 2,356,499 | $ 1,607,441 |
SCHEDULE OF RECONCILIATION OF I
SCHEDULE OF RECONCILIATION OF INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income before tax | $ 6,650,756 | $ 5,190,975 |
US statutory tax rates | 30.50% | 30.50% |
Expected income tax | $ 2,028,481 | $ 1,583,247 |
Non-deductible items | (29,508) | (60,470) |
Change in estimates and other | (65,027) | 603,422 |
Change in enacted tax rate | 337,961 | |
Foreign tax rate difference | (86,696) | (120,372) |
Change in valuation allowance | 171,288 | (398,386) |
Total income tax expense | 2,356,499 | 1,607,441 |
Current income tax expense | 1,993,182 | 1,197,888 |
Deferred tax expense (recovery) | $ 363,317 | $ 409,553 |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS (LIABILITIES) (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Canada Revenue Agency [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Non capital loss carryforwards | $ 1,443,371 | $ 1,638,357 |
Intangible assets | 19,849 | 18,863 |
Property, equipment and leaseholds | 587,408 | 624,016 |
Financial instruments | 26,690 | |
Deferred tax asset (liability) | 2,050,628 | 2,307,926 |
Valuation Allowance | (2,050,628) | (2,307,926) |
Net Deferred tax asset | ||
Internal Revenue Service (IRS) [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Non capital loss carryforwards | ||
Intangible assets | ||
Property, equipment and leaseholds | (68,282) | (66,116) |
Financial instruments | 98,210 | |
Investments | (241,880) | (167,635) |
Property, equipment and leaseholds | 12,697 | 201,393 |
Deferred tax asset not recognized | ||
Net deferred tax asset (liability) | $ (297,465) | $ 65,852 |
SCHEDULE OF NON OPERATING LOSS
SCHEDULE OF NON OPERATING LOSS CARRYFORWARDS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Canada Revenue Agency [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Total | $ 6,275,526 | $ 6,068,054 |
2029 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Total | 891,014 | |
2030 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Total | 1,081,844 | |
2031 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Total | 1,245,577 | |
2037 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Total | 2,238,533 | |
2038 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Total | 372,149 | |
2039 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Total | 72,378 | |
2040 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Total | 166,494 | |
2041 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Total | $ 207,537 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Canada Revenue Agency [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 6,275,526 | $ 6,068,054 |
SCHEDULE OF BASIC AND DILUTED L
SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net income attributable to controlling interest | $ 3,449,162 | $ 2,977,050 |
Basic | 12,316,254 | 12,240,641 |
Diluted | 12,505,522 | 12,302,552 |
Basic and diluted | $ 0.28 | $ 0.24 |
SCHEDULE OF ANTI-DILUTIVE OPTIO
SCHEDULE OF ANTI-DILUTIVE OPTIONS (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive options | 21,000 | 507,000 |
INCOME PER SHARE (Details Narra
INCOME PER SHARE (Details Narrative) - Canada Revenue Agency [Member] - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Loss Carryforwards [Line Items] | ||
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
SCHEDULE OF STOCK OPTION ACTIVI
SCHEDULE OF STOCK OPTION ACTIVITIES (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares, Beginning Balance | 749,000 | 635,000 |
Weighted average exercise price, Beginning Balance | $ 2.42 | $ 1.35 |
Number of shares, Granted | 170,000 | 172,000 |
Exercise price per share, Granted | $ 3.61 | $ 2.44 |
Weighted average exercise price, Granted | $ 3.61 | $ 2.44 |
Number of shares, Cancelled or expired | (34,799) | (13,000) |
Weighted average exercise price, Cancelled or expired | $ 2.30 | $ 2.75 |
Number of shares, Exercised | (94,701) | (45,000) |
Weighted average exercise price, Exercised | $ 1.58 | $ 0.88 |
Number of shares, Ending Balance | 789,500 | 749,000 |
Weighted average exercise price, Ending Balance | $ 2.78 | $ 2.42 |
Number of shares Exercisable, Ending Balance | 564,500 | |
Weighted average exercise price Exercisable, Ending Balance | $ 2.63 | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price per share, Beginning Balance | 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] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price per share, Beginning Balance | 4.13 | 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 |
SCHEDULE OF STOCK OPTION FAIR V
SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTIONS (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Expected life - years | 3 years | 3 years |
Interest rate | 1.23% | 0.37% |
Volatility | 63.28% | 70.14% |
Weighted average fair value of options granted | $ 1.23 | $ 1.12 |
STOCK OPTIONS (Details Narrativ
STOCK OPTIONS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Options granted percentage | 100.00% | |
Options maximum granted term | 5 years | |
Weighted-average remaining contractual life | 3 years 2 months 12 days | |
Stock options granted | 170,000 | 172,000 |
Stock options exercised | 94,701 | 45,000 |
Compensation expense related to non-vested awards, weighted average period | 1 year | |
Canada Revenue Agency [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Compensation expense related to non-vested awards | $ 229,918 | |
Aggregate intrinsic value of vested options | 712,945 | |
Aggregate intrinsic value of vested options exercised | $ 203,701 | $ 56,230 |
Consultants [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Stock options granted | 45,000 | 45,000 |
Stock option expense | $ 13,860 | $ 10,080 |
Additional expenses due to options granted | $ 51,210 | $ 43,905 |
Stock options exercised | 33,201 | 10,000 |
Employees [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Stock options granted | 125,000 | 127,000 |
Stock option expense | $ 38,500 | $ 28,316 |
Additional expenses due to options granted | $ 106,542 | $ 73,711 |
Stock options exercised | 61,500 | 35,000 |
CAPITAL STOCK (Details Narrativ
CAPITAL STOCK (Details Narrative) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Offsetting Assets [Line Items] | ||
Stock options exercised | 94,701 | 45,000 |
Employees Stock Option [Member] | ||
Offsetting Assets [Line Items] | ||
Stock options exercised | 61,500 | 35,000 |
Consultants Stock Options [Member] | ||
Offsetting Assets [Line Items] | ||
Stock options exercised | 33,201 | 10,000 |
SCHEDULE OF DISTRIBUTIONS (Deta
SCHEDULE OF DISTRIBUTIONS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Distribution to noncontrolling interests, Beginning balance | $ 2,561,751 | |
Distribution | (804,003) | $ (594,882) |
Non-controlling interest share of income | 845,095 | 606,484 |
Distribution to noncontrolling interests, Ending balance | 2,602,843 | 2,561,751 |
ENP Investments LLC [Member] | Ownership Interest Purchase Agreement [Member] | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Distribution to noncontrolling interests, Beginning balance | 2,561,751 | 2,550,149 |
Distribution | (804,003) | (594,882) |
Non-controlling interest share of income | 845,095 | 606,484 |
Distribution to noncontrolling interests, Ending balance | $ 2,602,843 | $ 2,561,751 |
NON-CONTROLLING INTERESTS (Deta
NON-CONTROLLING INTERESTS (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Partnership distribution to non-controlling interest | $ 804,003 | $ 594,882 | |
ENP Investments LLC [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Subsidiary company ownership interest rate | 65.00% | 65.00% | |
Related party owner ship percentage | 35.00% | ||
Partnership distribution to non-controlling interest | $ 1,924,995 | ||
ENP Investment [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Revenue | $ 4,877,690 | 4,094,622 | |
Equity Method Investment, Ownership Percentage | 35.00% | ||
Accounts Receivable | $ 2,215,119 | $ 2,056,631 |
SCHEDULE OF REPORTABLE SEGMENTS
SCHEDULE OF REPORTABLE SEGMENTS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from External Customer [Line Items] | ||
Sales | $ 34,416,335 | $ 31,407,454 |
Current and deferred income tax expense | 2,356,499 | 1,607,441 |
Segment profit | 4,294,257 | 3,583,534 |
Expenditures for segment assets | 782,219 | 1,080,598 |
Corporate and Other [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 34,416,335 | 31,407,454 |
Interest expense | 199,930 | 260,657 |
Depreciation | 965,935 | 851,672 |
Current and deferred income tax expense | 2,385,682 | 1,607,441 |
Segment profit | 3,449,162 | 2,977,050 |
Segment assets | 39,551,270 | 35,087,388 |
Expenditures for segment assets | 782,219 | 1,071,108 |
EWCP [Member] | Corporate and Other [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 420,811 | 334,423 |
Interest expense | 54 | |
Depreciation | 40,247 | 41,969 |
Current and deferred income tax expense | 24,384 | 121,164 |
Segment profit | (368,994) | (536,220) |
Segment assets | 1,929,537 | 2,111,501 |
Expenditures for segment assets | ||
BCPA [Member] | Corporate and Other [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 33,995,524 | 31,073,031 |
Interest expense | 199,930 | 260,603 |
Depreciation | 925,688 | 809,703 |
Current and deferred income tax expense | 2,361,298 | 1,486,277 |
Segment profit | 3,818,156 | 3,513,270 |
Segment assets | 37,621,733 | 32,975,887 |
Expenditures for segment assets | $ 782,219 | $ 1,071,108 |
SCHEDULE OF REVENUE GENERATED I
SCHEDULE OF REVENUE GENERATED IN UNITED STATES AND CANADA (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | $ 34,416,335 | $ 31,407,454 |
CANADA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 525,900 | 562,626 |
United States and Abroad [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | $ 33,890,435 | $ 30,844,828 |
SCHEDULE OF LONG-LIVED ASSETS A
SCHEDULE OF LONG-LIVED ASSETS ARE LOCATED IN CANADA AND UNITED STATES (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 10,296,954 | $ 10,965,566 |
CANADA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 191,752 | 445,663 |
UNITED STATES | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 10,105,202 | $ 10,519,903 |
SEGMENTED, SIGNIFICANT CUSTOM_3
SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY (Details Narrative) - Three Customers [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue, Major Customer [Line Items] | ||
Accounted risk percentage | 49.00% | 47.00% |
Accounts Receivable [Member] | ||
Revenue, Major Customer [Line Items] | ||
Accounts receivable | $ 16,917,948 | $ 14,713,127 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - shares | 3 Months Ended | 12 Months Ended | |
Mar. 29, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsequent Event [Line Items] | |||
Stock options granted | 170,000 | 172,000 | |
Employee [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Stock options granted | 5,000 | ||
Employee [Member] | Subsequent Event [Member] | Upon Exercise of Stock Options [Member] | |||
Subsequent Event [Line Items] | |||
Stock options granted | 20,500 |