FSI Flexible Solutions International Inc

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 10-Q

 

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2024

 

OR

 

☐	TRANSITION REPORT PURSUANT TO 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ________ to ________

 

Commission File Number: 001-31540

 

FLEXIBLE SOLUTIONS INTERNATIONAL INC.

(Exact Name of registrant as Specified in Its Charter)

 

Alberta		71-1630889
(State or other jurisdiction of		(Employer
incorporation or organization)		Identification No.)

 

6001 54 Ave.
Taber, Alberta, Canada		T1G 1X4
(Address of Principal Executive Offices)		(Zip Code)

 

Registrant’s telephone number: (403) 223-2995

 

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock		FSI		NYSE American

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

 

Indicate by check mark whether the registrant (1) has filed all reports to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): ☐ Yes ☒ No

 

Class of Stock		No. Shares Outstanding		Date
Common		12,450,532		August 14, 2024

 

 

 

FORM 10-Q

 

Index

 

PART I.	FINANCIAL INFORMATION		3
Item 1.	Financial Statements.		3
	(a)	Unaudited Condensed Interim Consolidated Balance Sheets at June 30, 2024 and December 31, 2023.	3
	(b)	Unaudited Condensed Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three Months Ended June 30, 2024 and 2023.	4
	(c)	Unaudited Condensed Interim Consolidated Statements of Operations and Comprehensive Income for the Six Months Ended June 30, 2024 and 2023.	5
	(d)	Unaudited Condensed Interim Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023.	6
	(e)	Unaudited Condensed Interim Consolidated Statements of Stockholders’ Equity for the Three and Six Months Ended June 30, 2024 and 2023.	7
	(f)	Notes to Unaudited Condensed Interim Consolidated Financial Statements for the Period Ended June 30, 2024.	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operation.		23
Item 4.	Controls and Procedures.		26
PART II.	OTHER INFORMATION		26
Item 5.	Other Information.		26
Item 6.	Exhibits.		26
SIGNATURES			27

 

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward-looking statements” for the purposes of the federal and state securities laws, including, but not limited to: any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing.

 

Forward-looking statements may include the words “may,” “could,” “will,” “estimate,” “intend,” “continue,” “believe,” “expect” or “anticipate” or other similar words. These forward-looking statements present our estimates and assumptions only as of the date of this report. Except for our ongoing obligation to disclose material information as required by the federal securities laws, we do not intend, and undertake no obligation, to update any forward-looking statement.

 

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties. The factors impacting these risks and uncertainties include but are not limited to:

 

	●	Increased competitive pressures from existing competitors and new entrants;
	●	Increases in interest rates or our cost of borrowing or a default under any material debt agreement;
	●	Deterioration in general or regional economic conditions;
	●	Adverse state or federal legislation or regulation that increases the costs of compliance, or adverse findings by a regulator with respect to existing operations;
	●	Loss of customers or sales weakness;
	●	Inability to achieve future sales levels or other operating results;
	●	The unavailability of funds for capital expenditures;
	●	Operational inefficiencies in distribution or other systems; and
	●	New tariffs relating to raw materials imported from China.

 

For a detailed description of these and other factors that could cause actual results to differ materially from those expressed in any forward-looking statement, please see “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023.

 

 

PART I FINANCIAL INFORMATION

 

Item 1. Financial Statements.

 

FLEXIBLE SOLUTIONS INTERNATIONAL, INC.

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS

(U.S. Dollars)

 

		June 30, 2024				December 31, 2023
		(Unaudited)
Assets
Current
Cash		$	6,843,825			$	5,017,583
Term deposits (Note 2)			2,365,613				2,690,241
Accounts receivable, net (Note 4)			8,792,696				9,843,056
Inventories (Note 5)			10,333,958				11,134,889
Prepaid expenses and deposits			586,473				1,540,923
Total current assets			28,922,565				30,226,692
Property, equipment and leaseholds, net (Note 6)			13,976,733				13,171,787
Right of use assets (Note 3)			-				115,293
Intangible assets (Note 7)			2,200,000				2,280,000
Long term deposits (Note 8)			2,521,905				824,254
Investments (Note 9)			5,904,624				6,033,960
Goodwill (Note 7)			2,534,275				2,534,275
Deferred tax asset (Note 2)			284,794				284,794
Total Assets		$	56,344,896			$	55,471,055
Liabilities
Current
Accounts payable		$	1,488,836			$	1,984,592
Accrued liabilities			1,258,609				284,131
Deferred revenue			79,917				148,292
Income taxes payable			5,307,642				4,485,213
Short term line of credit (Note 10)			619,844				1,810,479
Current portion of lease liability (Note 3)			-				59,520
Current portion of long term debt (Note 11)			2,163,602				1,281,632
Total current liabilities			10,918,450				10,053,859
Lease liability (Note 3)			-				55,773
Deferred income tax liability (Note 2)			260,047				260,047
Long term debt (Note 11)			6,102,531				6,833,304
Total Liabilities			17,281,028				17,202,983
Stockholders’ Equity
Capital stock (Note 13)
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:
12,450,532 (December 31, 2023: 12,435,532) common shares			12,451				12,436
Common stock, value			12,451				12,436
Capital in excess of par value			18,337,510				17,932,015
Other comprehensive loss			(732,805	)			(795,146	)
Accumulated earnings			18,545,020				18,053,051
Total stockholders’ equity – controlling interest			36,162,176				35,202,356
Non-controlling interests (Note 14)			2,901,692				3,065,716
Total Stockholders’ Equity			39,063,868				38,268,072
Total Liabilities and Stockholders’ Equity		$	56,344,896			$	55,471,055

 

— See Notes to Unaudited Condensed Interim Consolidated Financial Statements —

 

 

FLEXIBLE SOLUTIONS INTERNATIONAL, INC.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(U.S. Dollars — Unaudited)

 

		2024				2023
		Three Months Ended June 30,
		2024				2023
Sales		$	10,528,739			$	10,331,291
Cost of sales			6,589,644				7,292,438
Gross profit			3,939,095				3,038,853
Operating Expenses
Wages			594,384				787,621
Administrative salaries and benefits			289,777				394,305
Insurance			229,198				228,445
Office and miscellaneous			197,707				74,944
Interest expense			157,131				115,498
Consulting			142,395				69,253
Professional fees			122,470				79,532
Utilities			76,256				5,487
Advertising and promotion			63,283				62,011
Research			62,474				15,833
Travel			61,179				64,612
Currency exchange			47,681				13,925
Investor relations and transfer agent fee			46,174				32,993
Telecommunications			15,996				10,432
Lease expense			12,195				27,645
Shipping			7,014				5,100
Commissions
Total operating expenses			2,125,314				1,987,636
Operating income			1,813,781				1,051,217
Gain on investment			115,463				256,708
Loss on lease termination
Interest income			61,440				41,174
Income before income tax			1,990,684				1,349,099
Income taxes
Income tax expense			(558,251	)			(354,372	)
Net income for the period including non-controlling interests			1,432,433				994,727
Less: Net income attributable to non-controlling interests			(142,637	)			(184,862	)
Net income attributable to controlling interest		$	1,289,796			$	809,865
Income per share (basic)		$	0.10			$	0.07
Income per share (diluted)		$	0.10			$	0.06
Weighted average number of common shares (basic)			12,450,532				12,435,532
Weighted average number of common shares (diluted)			12,480,712				12,519,930
Other comprehensive income (loss):
Net income			1,432,433				994,727
Unrealized income (loss) on foreign currency translations			35,118				226,645
Total comprehensive income		$	1,467,551			$	1,221,372
Comprehensive income – non-controlling interest			(142,637	)			(184,862	)
Comprehensive income attributable to Flexible Solutions International Inc.		$	1,324,914			$	1,036,510

 

 

— See Notes to Unaudited Condensed Interim Consolidated Financial Statements —

 

 

FLEXIBLE SOLUTIONS INTERNATIONAL, INC.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE INCOME

(U.S. Dollars — Unaudited)

 

		2024				2023
		Six Months Ended June 30,
		2024				2023
Sales		$	19,753,611			$	20,178,808
Cost of sales			12,994,149				14,054,963
Gross profit			6,759,462				6,123,845
Operating Expenses
Wages			1,245,542				1,459,313
Administrative salaries and benefits			707,636				787,319
Insurance			473,458				429,975
Office and miscellaneous			355,330				173,790
Interest expense			332,397				250,368
Consulting			242,316				132,230
Research			189,128				37,335
Professional fees			183,465				142,299
Utilities			149,932				12,974
Advertising and promotion			130,232				110,409
Travel			127,440				126,264
Investor relations and transfer agent fee			85,478				122,885
Currency exchange			46,046				16,501
Lease expense			42,345				52,940
Telecommunications			29,528				23,010
Shipping			14,843				9,766
Commissions			-				2,985
Total operating expenses			4,355,116				3,890,363
Operating income			2,404,346				2,233,482
Gain on investment			298,438				326,703
Loss on lease termination			(41,350	)			-
Interest income			109,637				53,185
Income before income tax			2,771,071				2,613,370
Income taxes
Income tax expense			(822,429	)			(654,149	)
Net income for the period including non-controlling interests			1,948,642				1,959,221
Less: Net income attributable to non-controlling interests			(201,620	)			(264,987	)
Net income attributable to controlling interest		$	1,747,022			$	1,694,234
Income per share (basic and diluted)		$	0.14			$	0.14
Weighted average number of common shares (basic)			12,450,118				12,434,230
Weighted average number of common shares (diluted)			12,450,118				12,498,945
Other comprehensive income:
Net income		$	1,948,642			$	1,959,221
Unrealized gain (loss) on foreign currency translations			62,341				59,406
Total comprehensive income		$	2,010,983			$	2,018,627
Comprehensive income – non-controlling interest			(201,620	)			(264,987	)
Comprehensive income attributable to Flexible Solutions International Inc.		$	1,809,363			$	1,753,640

 

 

— See Notes to Unaudited Condensed Interim Consolidated Financial Statements —

 

 

FLEXIBLE SOLUTIONS INTERNATIONAL, INC.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. Dollars — Unaudited)

 

		2024				2023
		Six Months Ended June 30,
		2024				2023
Operating activities
Net income for the period including non-controlling interest		$	1,948,642			$	1,959,221
Adjustments to reconcile net income to cash provided by operations:
Stock based compensation			379,260				366,526
Depreciation and amortization			939,524				751,574
Lease right of use amortization			13,694				25,687
Lease right of use financing			1,186				3,353
Loss on termination lease			41,350				-
Gain on investment			(298,438	)			(326,703	)
Changes in non-cash working capital items:
(Increase) Decrease in accounts receivable			1,050,360				2,014,807
(Increase) Decrease in inventories			800,931				3,646,494
(Increase) Decrease in prepaid expenses			954,450				(558,583	)
Increase (Decrease) in accounts payable and accrued liabilities			478,723				(8,821	)
Increase (Decrease) in taxes payable			822,429				405,577
Increase (Decrease) deferred revenue			(68,375	)			(352,357	)
Cash provided by operating activities			7,063,736				7,926,775
Investing activities
Long term deposits			(1,703,091	)			(361,616	)
Proceeds of equity method investment distributions			427,000				-
Net purchase of property, equipment and leaseholds			(1,663,697	)			(3,784,193	)
Non-controlling interest of 317 Mendota			-				200,000
Additional investment in Trio			-				(470,000	)
Cash (used in) investing activities			(2,939,788	)			(4,415,809	)
Financing activities
Repayment of short term line of credit			(1,190,635	)			(2,818,591	)
Repayment of long term debt			(373,615	)			(361,265	)
Proceeds from loans			524,812				2,248,292
Dividends paid			(1,255,053	)			(626,777	)
Lease financing costs			(50,790	)			(29,040	)
Distributions to non-controlling interest			(365,644	)			(387,696	)
Proceeds of issuance of common stock			26,250				13,600
Cash (used in) financing activities			(2,684,675	)			(1,961,477	)
Effect of exchange rate changes on cash			62,341				59,406
Inflow (outflow) of cash			1,501,614				1,608,895
Cash and term deposits, beginning			7,707,824				6,815,099
Cash and term deposits, ending		$	9,209,438			$	8,423,994
Cash and term deposits are comprised of:
Cash		$	6,843,825			$	7,413,753
Term deposits			2,365,613				1,010,241
Cash and cash equivalents, ending		$	9,209,438			$	8,423,994

 

— See Notes to Unaudited Condensed Interim Consolidated Financial Statements —

 

 

FLEXIBLE SOLUTIONS INTERNATIONAL, INC.

CONDENSED INTERIM Consolidated Statements of Stockholders’ Equity

(U.S. Dollars – Unaudited)

 

		Shares				Par Value				Capital in Excess of Par Value				Accumulated Earnings				Other Comprehensive Income (Loss)				Total				Non- Controlling Interests				Total   Stockholders’ Equity
Balance December 31, 2023			12,435,532			$	12,436			$	17,932,015			$	18,053,051			$	(795,146	)		$	35,202,356			$	3,065,716			$	38,268,072
Translation adjustment			—				—				—				—				27,223				27,223				—				27,223
Net income			—				—				—				457,226				—				457,226				58,983				516,209
Common stock issued			15,000				15				26,235				—				—				26,250				—				26,250
Stock-based compensation			—				—				253,357				—				—				253,357				—				253,357
Balance March 31, 2024			12,450,532			$	12,451			$	18,211,607			$	18,510,277			$	(767,923	)		$	35,966,412			$	3,124,699			$	39,091,111
Translation adjustment			—				—				—				—				35,118				35,118				—				35,118
Net income			—				—				—				1,289,796				—				1,289,796				142,637				1,432,433
Dividends paid			—				—				—				(1,255,053	)			—				(1,255,053	)			—				(1,255,053	)
Distributions to noncontrolling interests			—				—				—				—				—				—				(365,644	)			(365,644	)
Stock-based compensation			—				—				125,903				—				—				125,903				—				125,903
Balance June 30, 2024			12,450,532			$	12,451			$	18,337,510			$	18,545,020			$	(732,805	)		$	36,162,176			$	2,901,692			$	39,063,868

 

— See Notes to Unaudited Condensed Interim Consolidated Financial Statements —

 

FLEXIBLE SOLUTIONS INTERNATIONAL, INC.

CONDENSED INTERIM Consolidated Statements of Stockholders’ Equity

(U.S. Dollars – Unaudited)

 

		Shares				Par Value				Capital in Excess of Par Value				Accumulated Earnings				Other Comprehensive Income (Loss)				Total				Non- Controlling Interests				Total   Stockholders’ Equity
Balance December 31, 2022			12,426,260			$	12,426			$	17,523,345			$	15,903,964			$	(805,799	)		$	32,633,936			$	2,605,034			$	35,238,970
Translation adjustment			—				—				—				—				(167,239	)			(167,239	)			—				(167,239	)
Net income			—				—				—				884,369				—				884,369				80,125				964,494
Common stock issued			9,272				10				13,590				—				—				13,600				—				13,600
Stock-based compensation			—				—				185,298				—				—				185,298				—				185,298
Balance March 31, 2023			12,435,532			$	12,436			$	17,722,233			$	16,788,333			$	(973,038	)		$	33,549,964			$	2,685,159			$	36,235,123
Balance			12,435,532			$	12,436			$	17,722,233			$	16,788,333			$	(973,038	)		$	33,549,964			$	2,685,159			$	36,235,123
Translation adjustment			—				—				—				—				226,645				226,645				—				226,645
Net income			—				—				—				809,865				—				809,865				184,862				994,727
Dividends paid			—				—				—				(626,777	)			—				(626,777	)			—				(626,777	)
Non-controlling interest of 317 Mendota LLC			—				—				—				—				—				—				200,000				200,000
Distributions to noncontrolling interests			—				—				—				—				—				—				(387,696	)			(387,696	)
Stock-based compensation			—				—				181,228				—				—				181,228				—				181,228
Balance June 30, 2023			12,435,532			$	12,436			$	17,903,461			$	16,971,421			$	(746,393	)		$	34,140,925			$	2,682,325			$	36,823,250
Balance			12,435,532			$	12,436			$	17,903,461			$	16,971,421			$	(746,393	)		$	34,140,925			$	2,682,325			$	36,823,250

 

— See Notes to Unaudited Condensed Interim Consolidated Financial Statements —

 

 

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the Six Months Ended June 30, 2024

(U.S. Dollars - Unaudited)

 

1. BASIS OF PRESENTATION

 

These interim condensed consolidated financial statements (“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., InnFlex Holdings Inc., ENP Peru Investments LLC (“ENP Peru”), its 80% controlling interest in 317 Mendota LLC (“317 Mendota”), and its 65% controlling interest in ENP Investments, LLC (“ENP Investments”) and ENP Mendota, LLC (“ENP Mendota”). All inter-company balances and transactions have been eliminated upon consolidation. The Company was incorporated on May 12, 1998 in the State of Nevada and in 2019 the Company redomiciled into Alberta, Canada.

 

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.

 

2. SIGNIFICANT ACCOUNTING POLICIES 

 

These consolidated financial statements have been prepared on a historical cost basis, except where otherwise noted, in accordance with accounting principles generally accepted in the United States applicable to a going concern and reflect the policies outlined below.

 

In the opinion of management, the accompanying unaudited condensed interim consolidated financial statements contain all adjustments (all of which are of a normal recurring nature) and disclosures necessary for a fair presentation of the Company’s financial position as of June 30, 2024 and the results of its operations for the three and six months then ended. The consolidated balance sheet as of December 31, 2023 is derived from the December 31, 2023 audited financial statements.

 

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S, GAAP have been condensed or omitted. These unaudited condensed interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Form 10-K/A for the year ended December 31, 2023. The results of operations for the period ended June 30, 2024 are not necessarily indicative of the operating results that may be expected for the full year.

 

(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. As of June 30, 2024 and December 31, 2023, the Company did not have any cash equivalents.

 

(b) Term Deposits.

 

The Company has four term deposits that are maintained by commercials banks. The first term deposit is for $303,954 and matures in February 2025. This deposit pays 1.3% interest and if withdrawn before maturity, a penalty may be applied. The second term deposit is for $731,767, matures in November 2024 and pays interest at a rate of 3.00%. If withdrawn before maturity, the greater of the loss of accrued interest or $150, plus 1% of the principal shall be levied. The third term deposit is for $1,019,197 and matures in November 2024. This deposit pays 3.85% and if withdrawn before maturity, the greater of the loss of accrued interest or $150, plus 1% of the principal shall be levied. The fourth term deposit is for $310,695, matures in August 2024 and pays interest at a rate of 3.85%. If withdrawn before maturity, a penalty may be applied.

 

(c) 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 or net realizable value. Cost is determined on a first-in, first-out basis or weighted average cost formula 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 (2024 - $288,826; 2023 - $286,290). Shipping and handling costs incurred are included in cost of goods sold (2024 - $509,167; 2023 - $542,321).

 

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(d) Allowance for expected credit losses.

 

The Company’s expected credit losses are determined through a review using historical credit loss experience; changes in asset specific characteristics, current conditions, and reasonable and supportable future forecasts, among other specific account data, and is performed at least quarterly. The Company develops and documents its methodology to determine its allowance for expected credit losses. Risk characteristics used by the Company may include customer mix, knowledge of customers and general economic conditions of the various local economics, among others. Specific account balances are written off when management determines the amounts to be uncollectible. Management has reviewed the balance reserved through the allowance for expected losses and believes it is reasonable.

 

(e) 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 

Manufacturing equipment		20% Declining balance
Office equipment		20% Declining balance
Building and improvements		10% Declining balance
Automobiles		Straight-line over 5 years
Technology		Straight-line over 10 years
Leasehold improvements		Straight-line over lease term
Customer relationships		Straight-line over 15 years

 

(f) Impairment of Long-Lived Assets.

 

In accordance with FASB Codification Topic 360, Property, Plant and Equipment (ASC 360), the Company reviews long-lived assets, including, but not limited to, property, equipment and leaseholds, patents and other assets, for impairment annually or whenever events or changes in circumstances indicate the carrying amounts of assets may not be recoverable. The carrying value of long-lived assets is assessed for impairment by evaluating operating performance and future undiscounted cash flows of the underlying assets. If the expected future cash flows of an asset is less than its carrying value, an impairment measurement is indicated. Impairment charges are recorded to the extent that an asset’s carrying value exceeds its fair value. Accordingly, actual results could vary significantly from such estimates. There were no impairment charges during the periods presented.

 

(g) 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 period. 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.

 

(h) Revenue Recognition.

 

The Company generates revenue primarily from energy and water conservation products and biodegradable polymers, as further discussed in Note 15.

 

9

 

 

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 free-on-board 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.

 

(i) 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.

 

(j) Stock-based Compensation.

 

The Company recognizes compensation expense for all share-based payments in accordance with FASB Codification Topic 718, Compensation — Stock Compensation (ASC 718). Under the fair value recognition provisions of ASC 718, the Company recognizes share-based compensation expense, net of an estimated forfeiture rate, over the requisite service period of the award.

 

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.

 

(k) 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 related to the translation of subsidiaries’ functional currency into the reporting currency.

 

(l) 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 three and six months ended June 30, 2024 and 2023.

 

10

 

 

(m) 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, valuation of assets acquired at fair value, 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 costing and recoverable value of inventory.

 

(n) 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, 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 and lease liabilities for all periods presented approximate their respective carrying amounts due to these financial instruments being at market rates.

 

(o) 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.

 

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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. The Company is not aware of any contingencies at the date of these consolidated financial statements.

 

(p) Income Taxes.

 

Income taxes are computed by multiplying the Company’s taxable net income by the Company’s effective tax rates. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss carry-forwards, if any. Deferred income 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 income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided to reduce the carrying amount of deferred income tax assets if it is considered more likely than not that some portion, or all, of the deferred income tax assets will not be realized.

 

In accordance with FASB Codification Topic 740, Income taxes (ASC 740) under the liability method, it is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At June 30, 2024, the Company believes it has appropriately accounted for any unrecognized tax benefits.

 

To the extent the Company prevails in matters for which a liability for an unrecognized benefit is established or is required to pay amounts in excess of the liability, the Company’s effective tax rate in a given financial statement period may be affected. Interest and penalties associated with the Company’s tax positions are recorded as interest expense in the consolidated statements of income and comprehensive income.

 

(q) 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 $9,843,563 (50%) for the six months ended June 30, 2024 (2023 - $9,276,058 or 46%) and $5,520,361 (52%) for the three months ended June 30, 2024 (2023 - $5,172,025 or 50%). Accounts receivable for the Company’s three primary customers for the six months ended June 30, 2024 totaled $4,443,400 or 49% (2023 - $4,172,657 or 56%). Accounts receivable for the Company’s three primary customers for the three months ended June 30, 2024 totaled $4,333,665 or 49% (2023 - $4,172,657 or 56%; December 31, 2023 - $6,561,164 or 67%).

 

The credit risk on cash is limited because the Company limits its exposure to credit loss by placing its cash 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 risk to the extent that market value rate fluctuations materially differ for financial assets and liabilities denominated in foreign currencies.

 

In order to manage its exposure to foreign exchange risks, the Company closely monitors the fluctuations in the foreign currency exchange rates and the impact on the value of cash, 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 subject to fixed long-term interest rates.

 

In order to manage its exposure to interest rate risk, the Company closely monitors fluctuations in market interest risks and will refinance its long-term debt where possible to obtain more favourable rates.

 

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(r) Equity Method Investment.

 

The Company accounts for investments using the equity method of accounting if the investment provides the Company the ability to exercise significant influence, but not control, over the investee. Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between 20% and 50%, although other factors, such as representation on the investee’s board of directors, are considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the investment is initially recorded at cost in the consolidated balance sheets under other assets and adjusted for dividends received and the Company’s share of the investee’s earnings or losses together with other-than-temporary impairments which are recorded through other income (loss), net in the consolidated statements of operations and comprehensive income (loss).

 

(s) 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 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. 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.

 

In accordance with FASB Codification Topic 350, Intangibles – Goodwill and Other, (ASC 350), qualitative assessments of goodwill and indefinite-lived intangible assets were performed at December 31, 2023. 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 amounts. Accordingly, no further impairment testing was completed and no impairment charges related to goodwill or indefinite-lived intangibles were recognized during the three or six months ended June 30, 2024.

 

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.

 

(t) 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.

 

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3. LEASES

 

Leases are 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-long term 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%.

 

In March 2024, the Company consolidated NanoChem operations into the Peril, IL locations and terminated the lease in Naperville, IL. The Company had to pay a penalty of $35,910 and forfeited the $5,440 security deposit to terminate the lease early and incurred a loss of $41,350 on early termination of the lease. The table below summarizes the right-of-use asset and lease liability for the periods ended June 30, 2024 and December 31, 2023.

 SUMMARY OF RIGHT-OF-USE ASSET AND LEASE LIABILITY

Right of Use Assets
Balance at December 31, 2022		$	167,222
Depreciation			(51,929	)
Balance at December 31, 2023		$	115,293
Depreciation			(13,694	)
Early termination of lease			(101,599	)
Balance at June 30, 2024		$	-
Lease Liability
Balance at December 31, 2022		$	167,222
Lease interest expense			6,151
Payments			(58,080	)
Balance at December 31, 2023		$	115,293
Lease interest expense			1,186
Payments			(14,880	)
Early termination of lease			(101,599	)
Balance at June 30, 2024		$	-

 

4. ACCOUNTS RECEIVABLE

 SCHEDULE OF ACCOUNTS RECEIVABLE

		June 30, 2024				December 31, 2023
Accounts receivable		$	9,081,600			$	10,133,249
Allowances for expected credit loss			(288,904	)			(290,193	)
Total accounts receivable		$	8,792,696			$	9,843,056

 

5. INVENTORIES

 SCHEDULE OF INVENTORY

		June 30, 2024				December 31, 2023
Completed goods		$	2,754,018			$	2,682,158
Raw materials and supplies			7,579,940				8,452,731
Total inventory		$	10,333,958			$	11,134,889

 

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6. PROPERTY, EQUIPMENT AND LEASEHOLDS

 SCHEDULE OF PROPERTY, EQUIPMENT AND LEASEHOLDS

		June 30, 2024				Accumulated				June 30, 2024
		Cost				Depreciation				Net
Buildings and improvements		$	12,797,310			$	4,208,582			$	8,588,728
Automobiles			196,255				154,424				41,831
Office equipment			122,083				113,956				8,127
Manufacturing equipment			11,220,799				6,323,344				4,897,455
Land			440,592				—				440,592
Leasehold improvements			88,872				88,872				—
Technology			99,808				99,808				—
		$	24,965,719			$	10,988,986			$	13,976,733

 

		December 31, 2023				Accumulated				December 31, 2023
		Cost				Depreciation				Net
Buildings and improvements		$	12,341,605			$	3,896,887			$	8,444,718
Automobiles			196,255				140,040				56,215
Office equipment			177,623				165,048				12,575
Manufacturing equipment			10,017,466				5,799,779				4,217,687
Land			440,592				—				440,592
Leasehold improvements			88,872				88,872				—
Technology			103,292				103,292				—
		$	23,365,705			$	10,193,918			$	13,171,787

 

Amount of depreciation expense for six months ended June 30, 2024 was: $859,524 (2023 - $671,574) and is included in cost of sales in the unaudited interim condensed consolidated statements of income and comprehensive income.

 

In January 2024, the Company lost power during a winter storm and some frozen pipes caused damage at two different locations. Insurance was in place and repairs are currently being made. The Company currently has $423,123 under accrued liability for funds received in the first six months ended June 30, 2024 but the work has not yet been completed.

 

7. GOODWILL AND INTANGIBLE ASSETS

 SCHEDULE OF GOODWILL AND INDEFINITE LIVED INTANGIBLE ASSETS

Goodwill
Balance as of December 31, 2023 and June 30, 2024		$	2,534,275
Indefinite Lived Intangible Assets
Balance as of December 31, 2023 and June 30, 2024		$	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, 2022			1,670,000
Amortization			(160,000	)
Balances as of December 31, 2023		$	1,510,000
Amortization			(80,000	)
Balances as of June 30, 2024		$	1,430,000

 

The amount of amortization for three months ended June 30, 2024 was $80,000 (2023 - $80,000) and was included in cost of sales in the unaudited interim condensed consolidated statements of income and comprehensive income.

 

Definite lived intangible assets consist of customer relationships and software related to the acquisition of ENP Investments.

 

Estimated amortization expense over the next five years is as follows:

 SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE

2024		$	160,000
2025			160,000
2026			160,000
2027			160,000
2028			160,000

 

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8. LONG TERM DEPOSITS

 

The Company has security deposits that are long term in nature which consist of damage deposits held by landlords and deposits held by various vendors for equipment purchases.

 SCHEDULE OF LONG TERM DEPOSITS

		June 30, 2024				December 31, 2023
Long term deposits		$	2,521,905			$	824,254

 

9. INVESTMENTS

 

(a) The Company previously held a 50% ownership interest in ENP Peru, split between NanoChem (41.67%) and ENP Investments (8.33%), which was acquired in fiscal 2016. ENP Peru is located in Illinois and leases warehouse space to other entities in the Company. In June 2022, NanoChem acquired an additional 50% ownership interest at a cost of $506,659 paid through a new cash payment was $247,659, mortgage was $259,000. The 35% non-controlling interest of the 8.33% owned by ENP Investments is included in non-controlling interest in these consolidated financial statements. The Company’s investment in ENP Peru was previously accounted for using the equity method, however, it is now consolidated into the consolidated financial statements from the date control was obtained. In June 2023, NanoChem purchased the remaining 8.33% of ENP Peru from ENP Investments to become full owner.

 

It was determined that ENP Peru did not meet the definition of a business in accordance with FASB Codification Topic 805, Business Combinations (ASC 805), and the acquisition was accounted for as an asset acquisition. The following table summarizes the final purchase price allocation of the consideration paid to the respective fair values of the assets acquired and liabilities assumed in ENP Peru as of the acquisition date. The gain on acquisition of ENP Peru represents a gain on remeasurement of the Company’s equity method investment immediately prior to the acquisition date.

 SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED

Purchase consideration		$	506,659
Assets acquired:
Cash			7,330
Building			3,750,000
Land			150,000
Liabilities assumed:
Deferred tax liability			(174,582	)
Long term debt			(2,849,500	)
Total identifiable net assets:			883,248
Excess of assets acquired over consideration			376,589
Less investment eliminated upon consolidation			(41,538	)
Gain on acquisition of ENP Peru		$	335,051

 

A summary of the Company’s investment follows:

 SCHEDULE OF EQUITY METHOD INVESTMENT

Balance, December 31, 2022			22,642
Return of equity			(8,750	)
Gain in equity method investment			27,646
Investment eliminated upon consolidation			(41,538	)
Balance, December 31, 2023 and June 30, 2024		$	-

 

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(b)In December 2018, the Company invested $200,000 in Applied Holding Corp. (“Applied”). Applied is a captive insurance company and the Company received a non-convertible promissory note for its investment which becomes due in 2021 but may be extended with notice for a maximum of two years. During the year ended December 31, 2021, the Company entered an agreement with Applied to extend the maturity date of this promissory note to December 2023. In October 2023, the Company received the payment of $200,000 to settle the promissory note and the balance of this investment at June 30, 2024 is $nil (December 31, 2023 - $nil).

 

(c) In December 2018, the Company invested $500,000 in Trio Opportunity Corp. (“Trio”), a privately held entity and a further $470,000 was invested in April 2023. Trio is a real estate investment vehicle and the Company received 97,000 non-voting Class B shares at $10.00/share. In accordance with ASC 321, the Company has elected to account for this investment at cost.

 

(d) In January 2019, the Company invested in a Florida based LLC that is engaged in international sales of fertilizer additives. The Company accounts for this investment using the equity method of accounting. According to the operating agreement, the Company has a 50% interest in the profit and loss of the Florida based LLC but does not have control. A summary of the Company’s investment follows:

 SCHEDULE OF EQUITY METHOD INVESTMENT

Balance, December 31, 2022		$	3,758,895
Gain in equity method investment			505,065
Return of equity			(200,000	)
Balance, December 31, 2023			4,063,960
Gain in equity method investment			297,664
Return of equity			(427,000	)
Balance, June 30, 2024		$	3,934,624

 

Summarized profit and loss information related to the equity accounted investment is as follows:

 SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT

		Six months ended June 30, 2024				Six months ended June 30, 2023
Net sales		$	7,159,499			$	8,231,298
Gross profit			2,044,578				2,435,858
Net income		$	595,329			$	653,407

 

During the six months ended June 30, 2024, the Company had sales of $4,812,619 (2023 - $5,091,764) to the Florida Based LLC, of which $1,390,812 is included within Accounts Receivable as at June 30, 2024 (December 31, 2023 - $2,073,813). See Note 17 – Subsequent events.

 

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(e) In December 2020, the Company invested $500,000 in Lygos Inc. (“Lygos”), a privately held entity, under a Simple Agreement for Future Equity (“SAFE”) agreement. Lygos is a company developing a sustainable aspartic acid microbe strain. In 2021, the Company made a second SAFE investment of $500,000 for a total of $1,000,000. In accordance with ASC 321, the Company has elected to account for this investment at cost.

 

10. SHORT-TERM LINE OF CREDIT

 

(a) In June 2024, ENP Investments renewed the line of credit with Stock Yards Bank and Trust (“Stock Yards”). The revolving line of credit is for an aggregate amount of up to the lesser of (i) $4,500,000, or (ii) 50-80% of eligible domestic accounts receivable plus 50% of inventory, capped at $2,000,000. Interest on the unpaid principal balance of this loan will be calculated using the greater of prime or 4.0%. The interest rate at June 30, 2024 is 8.5% (December 31, 2023 - 8.5%).

 

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 Stock Yards, Stock Yard’s access to collateral, formation or acquisition of subsidiaries, incurrence of indebtedness, dispositions of assets, granting liens, changes in business, ownership or business locations, engaging in mergers and acquisitions, making investments or distributions and affiliate transactions. NanoChem is a guarantor of 65% of all the principal and other loan costs not to exceed $2,925,000. The non-controlling interest is the guarantor of the remaining 35% of all the principal and other loan costs not to exceed $1,575,000. As of June 30, 2024, ENP Investments was in compliance with all loan covenants.

 

To secure the repayment of any amounts borrowed under the revolving line of credit, the Company granted Stock Yards a security interest in substantially all of the assets of ENP Investments, exclusive of intellectual property assets.

 

Short-term borrowings outstanding under the revolving line as of June 30, 2024 were $nil (December 31, 2023 - $1,810,479).

 

(b) In June 2023, the Company renewed the line of credit with Stock Yards Bank and Trust (“Stock Yards”). The revolving line of credit is for an aggregate amount of up to the lesser of (i) $4,000,000, or (ii) 80% of eligible domestic accounts receivable and certain foreign accounts receivable plus 50% of inventory, capped at $2,000,000. Interest on the unpaid principal balance of this loan will be calculated using the greater of prime or 8.25%. The interest rate at June 30, 2024 is 8.5% (December 31, 2023 - 8.5%).

 

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 Stock Yards, Stock Yards 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 June 30, 2024, the Company was in compliance with all loan covenants.

 

To secure repayment of any amounts borrowed under the revolving line of credit, the Company granted Stock Yards 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 June 30, 2024 were $619,844 (December 31, 2023 were $nil).

 

11. LONG TERM DEBT

 

(a) In January 2020, ENP Mendota refinanced its mortgage and signed a loan for $450,000 with Stock Yards to be repaid over 10 years with monthly installments plus interest. Interest for the first five years is at 4.35% and it will be adjusted for the last five years to the Cincinnati Federal Home Bank Loan 5 year fixed index plus 4.5%. Interest expense for the six months ended June 30, 2024 was $8,713 (2023 - $8,975). The balance owing at June 30, 2024 was $393,488 (December 31, 2023 - $399,269).

 

18

 

 

To secure repayment of any amounts borrowed under the mortgage, the Company granted Stock Yards a security interest in the real property under the mortgage and all rents on this property.

 

(b) In June 2022, NanoChem signed a loan for $1,935,000 with Stock Yards with an interest rate of 4.90% to be repaid over three years with equal monthly payments including interest. The funds were used to replace the loans at Midland for the purchase of the 65% interest in ENP Investments and the new manufacturing equipment. Interest expense for the six months ended June 30, 2024 was $21,681 (2023 - $37,280). The balance owing at June 30, 2024 was $678,987 (December 31, 2023 - $1,004,748).

 

(c) In January 2020 ENP Peru signed a $3,000,000 loan with an interest rate 4.35% to be repaid over ten years with equal monthly payments including interest. Upon the purchase of the remainder of ENP Peru in June 2022, the Company assumed the first mortgage at Stock Yards with a balance of $2,849,500. Interest expense for the six months ended June 30, 2024 was $60,173 (2023 - $61,251). The balance owing at June 30, 2024 was $2,698,241 (December 31, 2023 - $2,737,232).

 

(d) In June 2022, ENP Peru obtained a second mortgage for $259,000 with Stock Yards to be repaid over 10 years with monthly installments plus interest with an interest rate of 5.4%. Interest expense for the six months ended June 30, 2024 was $6,834 (2023 - $6,960). The balance owing at June 30, 2024 was $247,125 (December 31, 2023 - $250,207).

 

(e)In December 2022, NanoChem signed a three year loan for up to $2,000,000 with Stock Yards with an interest rate of 6.5%. Interest only payments are required for the first 18 months with interest and principal being paid in the last 18 months. The funds are being used to purchase new manufacturing equipment. Interest expense for the six months ended June 30, 2024 was $50,255 (2023 - $33,139). The balance owing at June 30, 2024 was $2,000,000 (December 31, 2023 - $1,475,188).

 

(f) In June 2023, 317 Mendota signed a five year loan for up to $3,240,000 with Stock Yards to purchase a building and any necessary renovations. Interest only payments are required for the first 12 months with interest and principal being paid the remaining four years and a lump sum due in June 2028. Interest expense for the six months ended June 30, 2024 was $93,257 (2023 - $nil). The balance owing at June 30, 2024 was $2,248,292 (December 31, 2023 - $2,248,292).

 

As of June 30, 2024, Company was in compliance with all loan covenants.

 SCHEDULE OF LOAN COVENANTS

Continuity		June 30, 2024				December 31, 2023
Balance, January 1		$	8,114,936			$	6,154,077
Balance, beginning of period		$	8,114,936			$	6,154,077
Plus: Proceeds from loans			524,812				2,686,682
Less: Payments on loan			(373,615	)			(725,823	)
Balance, end of period		$	8,266,133			$	8,114,936

 

 SCHEDULE OF OUTSTANDING BALANCE LOAN

Outstanding balance		June 30, 2024				December 31, 2023
a) Long term debt – Stock Yards Bank & Trust		$	393,488			$	399,269
b) Long term debt – Stock Yards Bank & Trust			678,987				1,004,748
c) Long term debt – Stock Yards Bank & Trust			2,698,241				2,737,232
d) Long term debt – Stock Yards Bank & Trust			247,125				250,207
e) Long term debt – Stock Yards Bank & Trust			2,000,000				1,475,188
f) Long term debt – Stock Yards Bank & Trust			2,248,292				2,248,292
Long-term debt			8,266,133				8,114,936
Less: current portion			(2,163,602	)			(1,281,632	)
Long-term debt non current		$	6,102,531			$	6,833,304

 

19

 

 

12. STOCK OPTIONS

 

The Company has a stock option plan (“Plan”). The purpose of this Plan is to provide additional incentives to key employees, officers, directors and consultants of the Company and its subsidiaries in order to help attract and retain the best available personnel for positions of responsibility and otherwise promote the success of the Company’s business. It is intended that options issued under this Plan constitute non-qualified stock options. The general terms of awards under the option plan are that 100% of the options granted will vest the year following the grant unless a executive employee is granted a multi-year stock option grant where an equal amount vests over the next 5 years. The maximum term of options granted is 5 years and the exercise price for all options are issued for not less than fair market value at the date of the grant.

 

The following table summarizes the Company’s stock option activities for the year ended December 31, 2023 and the six months ended June 30, 2024:

 SCHEDULE OF STOCK OPTION ACTIVITIES

		Number of shares				Exercise price per share				Weighted average exercise price
Balance, December 31, 2022			1,686,000			$	1.70 – 4.13			$	3.26
Cancelled or expired			(564,000	)		$	3.46 – 4.13			$	3.55
Exercised			(8,000	)		$	1.70			$	1.70
Balance, December 31, 2023			1,114,000			$	1.75 – 3.61			$	3.13
Granted			950,000			$	2.00			$	2.00
Cancelled or expired			(108,000	)		$	1.75 – 3.61			$	2.09
Exercised			(15,000	)		$	1.75			$	1.75
Balance, June 30, 2024			1,941,000			$	2.00 – 3.61			$	2.65
Exercisable, June 30, 2024			810,000			$	2.00 – 3.61			$	2.86

 

The weighted-average remaining contractual life of outstanding options is 3.55 years.

 

The fair value of each option grant is calculated using the following weighted average assumptions:

 SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTIONS

		2024
Expected life – years			3.0
Interest rate			3.893 – 4.22	%
Volatility			59.72 – 60.35	%
Weighted average fair value of options granted		$	0.71 – 0.79

 

During the six months ended June 30, 2024, the Company granted 56,000 options to consultants (2023 – nil) and has applied ASC 718 using the Black-Scholes option-pricing model, which resulted in expenses of $19,880 (2023 - $nil). During the six months ended June 30, 2024, employees were granted 894,000 (2023 – nil) stock options, which resulted in expenses of $271,921 (2023 – $nil). Options granted in other years resulted in additional expenses in the amount of $87,459 for employees during the six months ended June 30, 2024 (2023 - $43,730). There were 15,000 employee and nil consultant stock options exercised during the six months ended June 30, 2024 (2023 – 8,000 employee; nil consultant).

 

As of June 30, 2024, there was approximately $696,201 of compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted average period of 2.04 years.

 

The aggregate intrinsic value of vested options outstanding at June 30, 2024 is $nil (2023 – $nil). The intrinsic value of options exercised during the six months ended June 30, 2024 was $720 (2023 - $11,520).

 

20

 

 

13. CAPITAL STOCK

 

During the six months ended June 30, 2024, 15,000 shares were issued upon the exercise of employee stock options (2023 – 8,000).

 

In the six months ended June 30, 2024, the Company announced a special dividend of $0.10 per share that was paid on May 16, 2024 to shareholders for a total payment of $1,255,053.

 

During the six months ended June 30 2023, the Company issued 1,272 shares to a consultant for services rendered, resulting in an expense of $4,070 on the unaudited interim condensed consolidated statements of income and comprehensive income for the six months ended June 30, 2023.

 

In the six months ended June 30, 2023, the Company announced a special dividend of $0.05 per share that was paid on May 16, 2023 to shareholders.

 

14. NON-CONTROLLING INTERESTS

 

(a)ENP Investments is a limited liability corporation (“LLC”) that manufactures and distributes golf, turf and ornamental agriculture products in Mendota, Illinois. The Company owns a 65% interest in ENP Investments through its wholly-owned subsidiary NanoChem. An unrelated party (“NCI”) owns the remaining 35% interest in ENP Investments. ENP Mendota is a wholly owned subsidiary of ENP Investments. ENP Mendota is a LLC that leases warehouse space. For financial reporting purposes, the assets, liabilities and earnings of both of the LLC’s are consolidated into these financial statements. The NCI’s ownership interest in ENP Investments is recorded in non-controlling interests in these consolidated financial statements. The non-controlling interest represents NCI’s interest in the earnings and equity of ENP Investments. ENP Investments is allocated to the TPA segment.

 

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 $3,591,601.

 SCHEDULE OF DISTRIBUTIONS

Balance, December 31, 2022		$	2,605,034
Distribution			(719,439	)
Non-controlling interest share of income			1,015,604
Balance, December 31, 2023			2,901,199
Distribution			(365,644)
Non-controlling interest share of income			254,871
Balance, June 30, 2024		$	2,790,426

 

During the six months ended June 30, 2024, the Company had sales of $2,426,145 (2023 - $2,203,761) to NCI, of which $350,907 is included in Accounts Receivable as of June 30, 2024 (December 31, 2023 – $4,225,028).

 

b)317 Mendota is a LLC that owns real estate that the Company intends to occupy part of while renting out the excess. The Company owns a 80% interest in 317 Mendota and an unrelated party (“317 NCI”) owns the remaining 20% interest in 317 Mendota. For financial reporting purposes, the assets, liabilities and earnings of 317 Mendota are consolidated into these financial statements. The 317 NCI’s ownership interest in 317 Mendota is recorded in non-controlling interests in these consolidated financial statements. The non-controlling interest represents 317 NCI’s interest in the earnings and equity of 317 Mendota. 317 Mendota is allocated to the TPA segment as that is the intended use of the building.

SCHEDULE OF NON CONTROLLING INTEREST RELATED TO ACQUISITION 

Balance, December 31, 2022		$	-
Acquisition			200,000
Non-controlling interest share of income			(35,483	)
Balance, December 31, 2023			164,517
Non-controlling interest share of income			(53,251	)
Balance, June 30, 2024		$	111,266

 

15. 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 save energy and water by inhibiting evaporation from the pool surface, and (ii) food-safe powdered form of the active ingredient within the liquid blankets and which are designed to be used in still or slow moving drinking water sources.

 

21

 

 

(b) Biodegradable polymers, also known as TPA’s (as shown under the column heading “BCPA” below), used by the petroleum, chemical, utility and mining industries to prevent corrosion and scaling in water piping. This product can also be used in detergents to increase biodegradability and in agriculture to increase crop yields by enhancing fertilizer uptake.

 

The third product line is nitrogen conservation products used for the agriculture industry. These products decrease the loss of nitrogen fertilizer after initial application and allows less fertilizer to be used. These products are made and sold by the Company’s TPA division.

 

The accounting policies of the segments are the same as those described in Note 2, Significant Accounting Policies. The Company evaluates performance based on profit or loss from operations before income taxes, not including nonrecurring gains and losses and foreign exchange gains and losses

 

The Company’s reportable segments are strategic business units that offer different, but synergistic products and services. They are managed separately because each business requires different technology and marketing strategies.

 

Three months ended June 30, 2024:

SCHEDULE OF REPORTABLE SEGMENTS 

		EWCP				TPA				Total
Revenue		$	167,496			$	10,361,243			$	10,528,739
Interest expense			-				157,131				157,131
Depreciation and amortization			3,828				513,027				516,855
Income tax expense			(23,040	)			581,291				558,251
Segment profit (loss)			(198,936	)			1,488,732				1,289,796
Segment assets			3,366,670				52,978,226				56,344,896
Expenditures for segment assets			-				(1,186,346	)			(1,186,346	)

 

Three months ended June 30, 2023:

 

		EWCP				TPA				Total
Revenue		$	220,602			$	10,100,689			$	10,331,291
Interest expense			-				115,498				115,498
Depreciation and amortization			4,440				381,951				386,390
Income tax expense			11,657				342,715				354,372
Segment profit (loss)			(41,262	)			851,127				809,865
Segment assets			3,257,019				49,544,894				52,801,913
Expenditures for segment assets			-				(3,571,133	)			(3,571,133	)

 

Six months ended June 30, 2024:

 

		EWCP				TPA				Total
Revenue		$	209,104			$	19,544,507			$	19,753,611
Interest expense			-				332,397				332,397
Depreciation and amortization			7,711				931,813				939,524
Income tax expense			11,900				810,529				822,429
Segment profit (loss)			(180,396	)			1,927,417				1,747,021
Segment assets			3,366,670				52,978,226				56,344,896
Expenditures for segment assets			-				(1,663,696	)			(1,663,696	)

 

Six months ended June 30, 2023:

 

		EWCP				TPA				Total
Revenue		$	301,262			$	19,877,546			$	20,178,808
Interest expense			-				250,368				250,368
Depreciation and amortization			8,719				742,855				751,574
Income tax expense			12,571				641,578				654,149
Segment profit (loss)			(192,990	)			1,887,224				1,694,234
Segment assets			3,257,019				49,544,894				52,801,913
Expenditures for segment assets			-				(3,784,193	)			(3,784,193	)

 

Sales by territory are shown below:

SCHEDULE OF REVENUE GENERATED IN UNITED STATES AND CANADA 

		Six months ended June 30, 2024				Six months ended June 30, 2023
Canada		$	223,083			$	313,058
United States and abroad			19,530,528				19,865,750
Total		$	19,753,611			$	20,178,808

 

The Company’s long-lived assets (property, equipment, leaseholds, right of use assets, intangibles, and goodwill) are located in Canada and the United States as follows:

SCHEDULE OF LONG-LIVED ASSETS ARE LOCATED IN CANADA AND UNITED STATE 

		June 30, 2024				December 31, 2023
Canada		$	130,116			$	142,577
United States			18,580,892				17,958,778
Total		$	18,711,008			$	18,101,355

 

Three primary customers accounted for $9,843,563 (50%) of sales during the six-month period ended June 30, 2024 (2023 - $9,276,058 or 46%).

 

16. COMPARATIVE FIGURES.

 

Certain of the comparative figures have been reclassified to conform with the current period’s presentation.

 

17. SUBSEQUENT EVENTS

 

The Company granted 50,000 stock options to employees in July 2024.

 

On August 9, 2024, the Company sold its position in the Florida LLC and has received proceeds of $2,000,000 on closing. The Company will receive a further $800,000 each year for five years for a total selling price of $6,000,000. See Note 9(d).

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

Overview

 

The Company manufactures and markets biodegradable polymers which are used in the oil, gas and agriculture industries. The Company also develops, manufactures and markets specialty chemicals that slow the evaporation of water.

 

Results of Operations

 

We have three product lines.

 

The first is a chemical (“EWCP”) used in swimming pools and spas. The product forms a thin, transparent layer on the water’s surface. The transparent layer slows the evaporation of water, allowing the water to retain a higher temperature for a longer period of time thereby reducing the energy required to maintain the desired temperature of the water. A modified version of EWCP can also be used in reservoirs, potable water storage tanks, livestock watering pods, canals, and irrigation ditches for the purpose of reducing evaporation.

 

The second product, biodegradable polymers (“TPAs”), is used by the petroleum, chemical, utility and mining industries to prevent corrosion and scaling in water piping. TPAs can also be used to increase biodegradability in detergents and in the agriculture industry to increase crop yields by enhancing fertilizer uptake.

 

The third product line is nitrogen conservation products used for the agriculture industry. These products decrease the loss of nitrogen fertilizer after initial application and allows less fertilizer to be used. These products are made and sold by the Company’s TPA division.

 

Material changes in the Company’s Statement of Operations for six and three months ended June 30, 2024 compared to the same period in the prior year are discussed below:

 

Six Months ended June 30, 2024

 

Item		Increase (I) or Decrease (D)		Reason
Sales
EWCP products		D		Decreased customer orders.
TPA products		D		Decreased customer orders.
Gross profit as a percentage		I		Raw material costs declined to catch up with customer price reductions already in place.
Wages		D		Increased reliance on consultants instead of full time employees.
Insurance		I		Prior year increase in assets and in sales resulted in higher insurance costs.
Office and Miscellaneous		I		One time moving costs associated with closing the Naperville location.
Interest expense		I		Increased debt resulted in increased interest expense.
Consulting		I		Increased reliance on consultants instead of full time employees.
Research		I		New product development.
Utilities		I		Addition of real estate not yet rented out.
Investor relations		D		Reduced shares traded and filings required in 2023 did not reoccur in 2024.
Currency exchange		I		Currency exchange increased as a result of movements in the US / Canadian dollar exchange rate and its effects on US dollar cash balances and US dollar payables held by the Company’s Canadian subsidiaries.
Lease expense		D		Termination of lease in Naperville, IL reduced costs.
Lease termination fee		I		One time cost incurred terminating lease in Naperville, IL.
Interest income		I		Increased interest rates combined with increase in term deposits.

 

 

Three Months ended June 30, 2024

 

Item		Increase (I) or Decrease (D)		Reason
Sales
EWCP products		D		Decreased customer orders.
TPA products		I		Increased customer orders.
Gross profit as a percentage		I		Raw material costs declined to catch up with customer price reductions already in place.
Wages		D		Increased reliance on consultants instead of full time employees.
Office and Miscellaneous		I		One time moving costs associated with closing the Naperville location.
Interest expense		I		Increased debt resulted in increased interest expense.
Consulting		I		Increased reliance on consultants instead of full time employees.
Professional fees		I		Audit fees have increased year over year and there was a one time adjustment to reflect this on the accrual.
Utilities		I		Addition of real estate not yet rented out.
Research		I		New product development.
Currency exchange		I		Currency exchange increased as a result of movements in the US / Canadian dollar exchange rate and its effects on US dollar cash balances and US dollar payables held by the Company’s Canadian subsidiaries.
Lease expense		D		Termination of lease in Naperville, IL reduced costs.
Lease termination fee		I		One time cost incurred terminating lease in Naperville, IL.
Interest income		I		Increased interest rates combined with increase in term deposits.

 

Three customers accounted for 52% of our sales during the three months ended June 30, 2024 (2023 –50%) and 50% of our sales during the six months ended June 30, 2024 (2023 – 46%). The amount of revenue (all from the sale of TPA products) attributable to each customer is shown below.

 

		Three months ended June 30,								Six months ended June 30,
Customer		2023				2023				2024				2023
Company A		$	1,134,720			$	1,104,813			$	2,426,145	*		$	2,203,761
Company B		$	2,512,681			$	3,312,866			$	4,812,619			$	5,091,764
Company C		$	1,872,960			$	725,347	*		$	2,574,076			$	1,450,643	*
Company D		$	941,326	*		$	203,630	*		$	2,456,867			$	1,691,890	*
Company E		$	187,420	*		$	754,346			$	742,429	*		$	1,980,533
*not a primary customer in that period

 

 

Customers with balances greater than 10% of our receivables as of June 30, 2024 and 2023 are shown below:

 

		June 30,
		2024				2023
Company B		$	1,390,812			$	2,851,981
Company C		$	2,591,945			$	259,651	*
Company E		$	974,992			$	961,241
Company F		$	683,042	*		$	811,861
*less than 10%

 

Other factors that will most significantly affect future operating results will be:

 

	●	the sale price of crude oil which is used in the manufacture of aspartic acid we import from China. Aspartic acid is a key ingredient in our TPA products;
	●	activity in the oil and gas industry, as we sell our TPA products to oil and gas companies;
	●	drought conditions, since we also sell our TPA products to farmers; and

 

Other than the foregoing we do not know of any trends, events or uncertainties that have had, or are reasonably expected to have, a material impact on our revenues or expenses.

 

Capital Resources and Liquidity

 

The Company’s sources and (uses) of cash for the six months ended June 30, 2024 and 2023 are shown below:

 

		2024				2023
Cash provided (used) by operations			7,063,736				7,926,775
Long term deposits			(1,703,091	)			(361,616	)
Proceeds of equity investment distributions			427,000				-
Purchase of equipment			(1,663,697	)			(3,784,193	)
Repayments of short term line of credit			(1,190,635	)			(2,818,591	)
Loan repayments			(373,615	)			(361,265	)
Proceeds of loans			524,812				2,248,292
Dividends paid			(1,255,053	)			(626,777	)
Lease payments			(50,790	)			(29,040	)
Distributions to non-controlling interest			(365,644	)			(387,696	)
Proceeds from sale of common stock			26,250				13,600
Changes in exchange rates			62,341				59,406
Non-controlling interest of 317 Mendota			-				200,000
Additional investment in Trio			-				(470,000	)

 

The Company has sufficient cash resources to meets its future commitments and cash flow requirements for the coming year. As of June 30, 2024, working capital was $18,004,115 (December 31, 2023 - $20,172,833) and the Company has no substantial commitments that require significant outlays of cash over the coming fiscal year.

 

Other than as disclosed above, the Company does not anticipate any capital requirements for the twelve months ending June 30, 2025.

 

Other than as disclosed above, the Company does not know of any trends, demands, commitments, events or uncertainties that will result in, or that are reasonable likely to result in, its liquidity increasing or decreasing in any material way.

 

See Note 2 to the condensed interim consolidated financial statements included as part of this report for a description of the Company’s significant accounting policies.

 

 

Item 4. CONTROLS AND PROCEDURES.

 

Evaluation of Disclosure Controls and Procedures

 

Under the direction and with the participation of our management, including our Principal Executive and Financial Officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2024. We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our periodic reports with the Securities and Exchange Commission is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and regulations, and that such information is accumulated and communicated to our management, including our principal executive and financial officer, as appropriate, to allow timely decisions regarding required disclosure. Our disclosure controls and procedures are designed to provide a reasonable level of assurance of reaching desired disclosure control objectives. Based on the evaluation, our Principal Executive and Financial Officer concluded that these disclosure controls and procedures are effective as of June 30, 2024

 

Changes in Internal Control over Financial Reporting

 

Our management, with the participation of our Principal Executive and Financial Officer, evaluated whether any change in our internal control over financial reporting occurred during the three months ended June 30, 2024. Based on that evaluation, it was concluded that there has been no change in our internal control over financial reporting during the three months ended June 30, 2024 that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

PART II

 

Item 5. Other Information

 

None of our directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K) during the quarterly period ending June 30, 2024

 

Item 6. Exhibits.

 

Number		Description
3.1		Articles of Continuance (Articles of Incorporation) (1)
3.2		Bylaws (2)
31.1		Certification of Principal Executive Officer Pursuant to §302 of the Sarbanes-Oxley Act of 2002.*
31.2		Certification of Principal Financial Officer Pursuant to §302 of the Sarbanes-Oxley Act of 2002.*
32.1		Certification of Principal Executive and Financial Officer Pursuant to 18 U.S.C. §1350 and §906 of the Sarbanes-Oxley Act of 2002.*
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

* Filed with this report.

 

(1)	Incorporated by reference the same exhibit filed with the Company’s March 31, 2022 10-Q report.
(2)	Incorporated by reference to Exhibit 3(ii) filed the Company’s 8-K report dated April 10, 2022.

 

 

SIGNATURES

 

In accordance with the requirements of Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

  

August 14, 2024 

 

	Flexible Solutions International, Inc.
	By:	/s/ Daniel B. O’Brien
	Name:	Daniel B. O’Brien
	Title:	President and Principal Executive Officer
	By:	/s/ Daniel B. O’Brien
	Name:	Daniel B. O’Brien
	Title:	Principal Financial and Accounting Officer

 

 

Exhibit 31.1

 

CERTIFICATIONS

 

I, Daniel O’Brien, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Flexible Solutions International, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) designed such internal control over financial reporting, or cause such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of the internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b) any fraud, whether or not material, that involves management or other employees who have significant role in the registrant’s internal control over financial reporting.

 

August 14, 2024	/s/ Daniel B. O’Brien
	Daniel O’Brien
	Principal Executive Officer

 

 

Exhibit 31.2

 

CERTIFICATIONS

 

I, Daniel O’Brien, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Flexible Solutions International, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) designed such internal control over financial reporting, or cause such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of the internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b) any fraud, whether or not material, that involves management or other employees who have significant role in the registrant’s internal control over financial reporting.

 

August 14, 2024	/s/ Daniel B. O’Brien
	Daniel O’Brien
	Principal Financial Officer

 

 

 

Exhibit 32.1

 

CertificatION of Principal Executive Officer

Pursuant to 18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

 

Solely for the purposes of complying with 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, the undersigned Principal Executive and Financial Officer of Flexible Solutions International, Inc. (the “Company”), hereby certify that, to the best of my knowledge, the Quarterly Report on Form 10-Q of the Company for the quarter ended June 30, 2024 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

August 14, 2024	/s/ Daniel B. O’Brien
	Daniel B. O’Brien
	Principal Executive and Financial Officer

 

v3.24.2.u1

Cover - shares	6 Months Ended
	Jun. 30, 2024	Aug. 14, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
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, State or Province	AB
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
Trading Symbol	FSI
Security Exchange Name	NYSEAMER
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 Common Stock, Shares Outstanding		12,450,532

v3.24.2.u1

Condensed Interim Consolidated Balance Sheets - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current
Cash	$ 6,843,825	$ 5,017,583
Term deposits (Note 2)	2,365,613	2,690,241
Accounts receivable, net (Note 4)	8,792,696	9,843,056
Inventories (Note 5)	10,333,958	11,134,889
Prepaid expenses and deposits	586,473	1,540,923
Total current assets	28,922,565	30,226,692
Property, equipment and leaseholds, net (Note 6)	13,976,733	13,171,787
Right of use assets (Note 3)		115,293
Intangible assets (Note 7)	2,200,000	2,280,000
Long term deposits (Note 8)	2,521,905	824,254
Investments (Note 9)	5,904,624	6,033,960
Goodwill (Note 7)	2,534,275	2,534,275
Deferred tax asset (Note 2)	284,794	284,794
Total Assets	56,344,896	55,471,055
Current
Accounts payable	1,488,836	1,984,592
Accrued liabilities	1,258,609	284,131
Deferred revenue	79,917	148,292
Income taxes payable	5,307,642	4,485,213
Short term line of credit (Note 10)	619,844	1,810,479
Current portion of lease liability (Note 3)		59,520
Current portion of long term debt (Note 11)	2,163,602	1,281,632
Total current liabilities	10,918,450	10,053,859
Lease liability (Note 3)		55,773
Deferred income tax liability (Note 2)	260,047	260,047
Long term debt (Note 11)	6,102,531	6,833,304
Total Liabilities	17,281,028	17,202,983
Stockholders’ Equity
Common stock, value	12,451	12,436
Capital in excess of par value	18,337,510	17,932,015
Other comprehensive loss	(732,805)	(795,146)
Accumulated earnings	18,545,020	18,053,051
Total stockholders’ equity – controlling interest	36,162,176	35,202,356
Non-controlling interests (Note 14)	2,901,692	3,065,716
Total Stockholders’ Equity	39,063,868	38,268,072
Total Liabilities and Stockholders’ Equity	$ 56,344,896	$ 55,471,055

v3.24.2.u1

Condensed Interim Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
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	12,450,532	12,435,532
Common stock, shares outstanding	12,450,532	12,435,532

v3.24.2.u1

Condensed Interim Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Sales	$ 10,528,739	$ 10,331,291	$ 19,753,611	$ 20,178,808
Cost of sales	6,589,644	7,292,438	12,994,149	14,054,963
Gross profit	3,939,095	3,038,853	6,759,462	6,123,845
Operating Expenses
Wages	594,384	787,621	1,245,542	1,459,313
Administrative salaries and benefits	289,777	394,305	707,636	787,319
Insurance	229,198	228,445	473,458	429,975
Office and miscellaneous	197,707	74,944	355,330	173,790
Interest expense	157,131	115,498	332,397	250,368
Consulting	142,395	69,253	242,316	132,230
Professional fees	122,470	79,532	183,465	142,299
Utilities	76,256	5,487	149,932	12,974
Advertising and promotion	63,283	62,011	130,232	110,409
Research	62,474	15,833	189,128	37,335
Travel	61,179	64,612	127,440	126,264
Currency exchange	47,681	13,925	46,046	16,501
Investor relations and transfer agent fee	46,174	32,993	85,478	122,885
Telecommunications	15,996	10,432	29,528	23,010
Lease expense	12,195	27,645	42,345	52,940
Shipping	7,014	5,100	14,843	9,766
Commissions				2,985
Total operating expenses	2,125,314	1,987,636	4,355,116	3,890,363
Operating income	1,813,781	1,051,217	2,404,346	2,233,482
Gain on investment	115,463	256,708	298,438	326,703
Loss on lease termination			(41,350)
Interest income	61,440	41,174	109,637	53,185
Income before income tax	1,990,684	1,349,099	2,771,071	2,613,370
Income taxes
Income tax expense	(558,251)	(354,372)	(822,429)	(654,149)
Net income for the period including non-controlling interests	1,432,433	994,727	1,948,642	1,959,221
Less: Net income attributable to non-controlling interests	(142,637)	(184,862)	(201,620)	(264,987)
Net income attributable to controlling interest	$ 1,289,796	$ 809,865	$ 1,747,022	$ 1,694,234
Income per share (basic)	$ 0.10	$ 0.07	$ 0.14	$ 0.14
Income per share (diluted)	$ 0.10	$ 0.06	$ 0.14	$ 0.14
Weighted average number of common shares (basic)	12,450,532	12,435,532	12,450,118	12,434,230
Weighted average number of common shares (diluted)	12,480,712	12,519,930	12,450,118	12,498,945
Other comprehensive income:
Net income	$ 1,432,433	$ 994,727	$ 1,948,642	$ 1,959,221
Unrealized gain (loss) on foreign currency translations	35,118	226,645	62,341	59,406
Total comprehensive income	1,467,551	1,221,372	2,010,983	2,018,627
Comprehensive income – non-controlling interest	(142,637)	(184,862)	(201,620)	(264,987)
Comprehensive income attributable to Flexible Solutions International Inc.	$ 1,324,914	$ 1,036,510	$ 1,809,363	$ 1,753,640

v3.24.2.u1

Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Operating activities
Net income for the period including non-controlling interest	$ 1,948,642	$ 1,959,221
Adjustments to reconcile net income to cash provided by operations:
Stock based compensation	379,260	366,526
Depreciation and amortization	939,524	751,574
Lease right of use amortization	13,694	25,687
Lease right of use financing	1,186	3,353
Loss on termination lease	41,350
Gain on investment	(298,438)	(326,703)
Changes in non-cash working capital items:
(Increase) Decrease in accounts receivable	1,050,360	2,014,807
(Increase) Decrease in inventories	800,931	3,646,494
(Increase) Decrease in prepaid expenses	954,450	(558,583)
Increase (Decrease) in accounts payable and accrued liabilities	478,723	(8,821)
Increase (Decrease) in taxes payable	822,429	405,577
Increase (Decrease) deferred revenue	(68,375)	(352,357)
Cash provided by operating activities	7,063,736	7,926,775
Investing activities
Long term deposits	(1,703,091)	(361,616)
Proceeds of equity method investment distributions	427,000
Net purchase of property, equipment and leaseholds	(1,663,697)	(3,784,193)
Non-controlling interest of 317 Mendota		200,000
Additional investment in Trio		(470,000)
Cash (used in) investing activities	(2,939,788)	(4,415,809)
Financing activities
Repayment of short term line of credit	(1,190,635)	(2,818,591)
Repayment of long term debt	(373,615)	(361,265)
Proceeds from loans	524,812	2,248,292
Dividends paid	(1,255,053)	(626,777)
Lease financing costs	(50,790)	(29,040)
Distributions to non-controlling interest	(365,644)	(387,696)
Proceeds of issuance of common stock	26,250	13,600
Cash (used in) financing activities	(2,684,675)	(1,961,477)
Effect of exchange rate changes on cash	62,341	59,406
Inflow (outflow) of cash	1,501,614	1,608,895
Cash and term deposits, beginning	7,707,824	6,815,099
Cash and cash equivalents, ending	9,209,438	8,423,994
Cash and term deposits are comprised of:
Cash	6,843,825	7,413,753
Term deposits	$ 2,365,613	$ 1,010,241

v3.24.2.u1

Condensed Interim Consolidated Statements of Stockholders' Equity (Unaudited) - 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
Balance at Dec. 31, 2022	$ 12,426	$ 17,523,345	$ 15,903,964	$ (805,799)	$ 32,633,936	$ 2,605,034	$ 35,238,970
Balance, shares at Dec. 31, 2022	12,426,260
Translation adjustment				(167,239)	(167,239)		(167,239)
Net income			884,369		884,369	80,125	964,494
Common stock issued	$ 10	13,590			13,600		13,600
Common stock issued, shares	9,272
Stock-based compensation		185,298			185,298		185,298
Balance at Mar. 31, 2023	$ 12,436	17,722,233	16,788,333	(973,038)	33,549,964	2,685,159	36,235,123
Balance, shares at Mar. 31, 2023	12,435,532
Balance at Dec. 31, 2022	$ 12,426	17,523,345	15,903,964	(805,799)	32,633,936	2,605,034	35,238,970
Balance, shares at Dec. 31, 2022	12,426,260
Net income							1,959,221
Balance at Jun. 30, 2023	$ 12,436	17,903,461	16,971,421	(746,393)	34,140,925	2,682,325	36,823,250
Balance, shares at Jun. 30, 2023	12,435,532
Balance at Dec. 31, 2022	$ 12,426	17,523,345	15,903,964	(805,799)	32,633,936	2,605,034	35,238,970
Balance, shares at Dec. 31, 2022	12,426,260
Balance at Dec. 31, 2023	$ 12,436	17,932,015	18,053,051	(795,146)	35,202,356	3,065,716	38,268,072
Balance, shares at Dec. 31, 2023	12,435,532
Balance at Mar. 31, 2023	$ 12,436	17,722,233	16,788,333	(973,038)	33,549,964	2,685,159	36,235,123
Balance, shares at Mar. 31, 2023	12,435,532
Translation adjustment				226,645	226,645		226,645
Net income			809,865		809,865	184,862	994,727
Stock-based compensation		181,228			181,228		181,228
Dividends paid			(626,777)		(626,777)		(626,777)
Distributions to noncontrolling interests						(387,696)	(387,696)
Non-controlling interest of 317 Mendota LLC						200,000	200,000
Balance at Jun. 30, 2023	$ 12,436	17,903,461	16,971,421	(746,393)	34,140,925	2,682,325	36,823,250
Balance, shares at Jun. 30, 2023	12,435,532
Balance at Dec. 31, 2023	$ 12,436	17,932,015	18,053,051	(795,146)	35,202,356	3,065,716	38,268,072
Balance, shares at Dec. 31, 2023	12,435,532
Translation adjustment				27,223	27,223		27,223
Net income			457,226		457,226	58,983	516,209
Common stock issued	$ 15	26,235			26,250		26,250
Common stock issued, shares	15,000
Stock-based compensation		253,357			253,357		253,357
Balance at Mar. 31, 2024	$ 12,451	18,211,607	18,510,277	(767,923)	35,966,412	3,124,699	39,091,111
Balance, shares at Mar. 31, 2024	12,450,532
Balance at Dec. 31, 2023	$ 12,436	17,932,015	18,053,051	(795,146)	35,202,356	3,065,716	38,268,072
Balance, shares at Dec. 31, 2023	12,435,532
Net income							1,948,642
Dividends paid							(1,255,053)
Balance at Jun. 30, 2024	$ 12,451	18,337,510	18,545,020	(732,805)	36,162,176	2,901,692	39,063,868
Balance, shares at Jun. 30, 2024	12,450,532
Balance at Mar. 31, 2024	$ 12,451	18,211,607	18,510,277	(767,923)	35,966,412	3,124,699	39,091,111
Balance, shares at Mar. 31, 2024	12,450,532
Translation adjustment				35,118	35,118		35,118
Net income			1,289,796		1,289,796	142,637	1,432,433
Stock-based compensation		125,903			125,903		125,903
Dividends paid			(1,255,053)		(1,255,053)		(1,255,053)
Distributions to noncontrolling interests						(365,644)	(365,644)
Balance at Jun. 30, 2024	$ 12,451	$ 18,337,510	$ 18,545,020	$ (732,805)	$ 36,162,176	$ 2,901,692	$ 39,063,868
Balance, shares at Jun. 30, 2024	12,450,532

v3.24.2.u1

Pay vs Performance Disclosure - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ 1,289,796	$ 809,865	$ 1,747,022	$ 1,694,234

v3.24.2.u1

Insider Trading Arrangements	6 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual [Table]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

v3.24.2.u1

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION   These interim condensed consolidated financial statements (“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., InnFlex Holdings Inc., ENP Peru Investments LLC (“ENP Peru”), its 80% controlling interest in 317 Mendota LLC (“317 Mendota”), and its 65% controlling interest in ENP Investments, LLC (“ENP Investments”) and ENP Mendota, LLC (“ENP Mendota”). All inter-company balances and transactions have been eliminated upon consolidation. The Company was incorporated on May 12, 1998 in the State of Nevada and in 2019 the Company redomiciled into Alberta, Canada.   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.

v3.24.2.u1

SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	2. SIGNIFICANT ACCOUNTING POLICIES    These consolidated financial statements have been prepared on a historical cost basis, except where otherwise noted, in accordance with accounting principles generally accepted in the United States applicable to a going concern and reflect the policies outlined below.   In the opinion of management, the accompanying unaudited condensed interim consolidated financial statements contain all adjustments (all of which are of a normal recurring nature) and disclosures necessary for a fair presentation of the Company’s financial position as of June 30, 2024 and the results of its operations for the three and six months then ended. The consolidated balance sheet as of December 31, 2023 is derived from the December 31, 2023 audited financial statements.   Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S, GAAP have been condensed or omitted. These unaudited condensed interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Form 10-K/A for the year ended December 31, 2023. The results of operations for the period ended June 30, 2024 are not necessarily indicative of the operating results that may be expected for the full year.   (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. As of June 30, 2024 and December 31, 2023, the Company did not have any cash equivalents.   (b) Term Deposits.   The Company has four term deposits that are maintained by commercials banks. The first term deposit is for $303,954 and matures in February 2025. This deposit pays 1.3% interest and if withdrawn before maturity, a penalty may be applied. The second term deposit is for $731,767, matures in November 2024 and pays interest at a rate of 3.00%. If withdrawn before maturity, the greater of the loss of accrued interest or $150, plus 1% of the principal shall be levied. The third term deposit is for $1,019,197 and matures in November 2024. This deposit pays 3.85% and if withdrawn before maturity, the greater of the loss of accrued interest or $150, plus 1% of the principal shall be levied. The fourth term deposit is for $310,695, matures in August 2024 and pays interest at a rate of 3.85%. If withdrawn before maturity, a penalty may be applied.   (c) 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 or net realizable value. Cost is determined on a first-in, first-out basis or weighted average cost formula 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 (2024 - $288,826; 2023 - $286,290). Shipping and handling costs incurred are included in cost of goods sold (2024 - $509,167; 2023 - $542,321).     (d) Allowance for expected credit losses.   The Company’s expected credit losses are determined through a review using historical credit loss experience; changes in asset specific characteristics, current conditions, and reasonable and supportable future forecasts, among other specific account data, and is performed at least quarterly. The Company develops and documents its methodology to determine its allowance for expected credit losses. Risk characteristics used by the Company may include customer mix, knowledge of customers and general economic conditions of the various local economics, among others. Specific account balances are written off when management determines the amounts to be uncollectible. Management has reviewed the balance reserved through the allowance for expected losses and believes it is reasonable.   (e) 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        Manufacturing equipment   20% Declining balance Office equipment   20% Declining balance Building and improvements   10% Declining balance Automobiles   Straight-line over 5 years Technology   Straight-line over 10 years Leasehold improvements   Straight-line over lease term Customer relationships   Straight-line over 15 years         (f) Impairment of Long-Lived Assets.   In accordance with FASB Codification Topic 360, Property, Plant and Equipment (ASC 360), the Company reviews long-lived assets, including, but not limited to, property, equipment and leaseholds, patents and other assets, for impairment annually or whenever events or changes in circumstances indicate the carrying amounts of assets may not be recoverable. The carrying value of long-lived assets is assessed for impairment by evaluating operating performance and future undiscounted cash flows of the underlying assets. If the expected future cash flows of an asset is less than its carrying value, an impairment measurement is indicated. Impairment charges are recorded to the extent that an asset’s carrying value exceeds its fair value. Accordingly, actual results could vary significantly from such estimates. There were no impairment charges during the periods presented.   (g) 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 period. 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.   (h) Revenue Recognition.   The Company generates revenue primarily from energy and water conservation products and biodegradable polymers, as further discussed in Note 15.     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 free-on-board 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.   (i) 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.   (j) Stock-based Compensation.   The Company recognizes compensation expense for all share-based payments in accordance with FASB Codification Topic 718, Compensation — Stock Compensation (ASC 718). Under the fair value recognition provisions of ASC 718, the Company recognizes share-based compensation expense, net of an estimated forfeiture rate, over the requisite service period of the award.   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.   (k) 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 related to the translation of subsidiaries’ functional currency into the reporting currency.   (l) 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 three and six months ended June 30, 2024 and 2023.     (m) 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, valuation of assets acquired at fair value, 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 costing and recoverable value of inventory.   (n) 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, 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 and lease liabilities for all periods presented approximate their respective carrying amounts due to these financial instruments being at market rates.   (o) 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. The Company is not aware of any contingencies at the date of these consolidated financial statements.   (p) Income Taxes.   Income taxes are computed by multiplying the Company’s taxable net income by the Company’s effective tax rates. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss carry-forwards, if any. Deferred income 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 income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided to reduce the carrying amount of deferred income tax assets if it is considered more likely than not that some portion, or all, of the deferred income tax assets will not be realized.   In accordance with FASB Codification Topic 740, Income taxes (ASC 740) under the liability method, it is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At June 30, 2024, the Company believes it has appropriately accounted for any unrecognized tax benefits.   To the extent the Company prevails in matters for which a liability for an unrecognized benefit is established or is required to pay amounts in excess of the liability, the Company’s effective tax rate in a given financial statement period may be affected. Interest and penalties associated with the Company’s tax positions are recorded as interest expense in the consolidated statements of income and comprehensive income.   (q) 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 $9,843,563 (50%) for the six months ended June 30, 2024 (2023 - $9,276,058 or 46%) and $5,520,361 (52%) for the three months ended June 30, 2024 (2023 - $5,172,025 or 50%). Accounts receivable for the Company’s three primary customers for the six months ended June 30, 2024 totaled $4,443,400 or 49% (2023 - $4,172,657 or 56%). Accounts receivable for the Company’s three primary customers for the three months ended June 30, 2024 totaled $4,333,665 or 49% (2023 - $4,172,657 or 56%; December 31, 2023 - $6,561,164 or 67%).   The credit risk on cash is limited because the Company limits its exposure to credit loss by placing its cash 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 risk to the extent that market value rate fluctuations materially differ for financial assets and liabilities denominated in foreign currencies.   In order to manage its exposure to foreign exchange risks, the Company closely monitors the fluctuations in the foreign currency exchange rates and the impact on the value of cash, 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 subject to fixed long-term interest rates.   In order to manage its exposure to interest rate risk, the Company closely monitors fluctuations in market interest risks and will refinance its long-term debt where possible to obtain more favourable rates.     (r) Equity Method Investment.   The Company accounts for investments using the equity method of accounting if the investment provides the Company the ability to exercise significant influence, but not control, over the investee. Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between 20% and 50%, although other factors, such as representation on the investee’s board of directors, are considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the investment is initially recorded at cost in the consolidated balance sheets under other assets and adjusted for dividends received and the Company’s share of the investee’s earnings or losses together with other-than-temporary impairments which are recorded through other income (loss), net in the consolidated statements of operations and comprehensive income (loss).   (s) 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 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. 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.   In accordance with FASB Codification Topic 350, Intangibles – Goodwill and Other, (ASC 350), qualitative assessments of goodwill and indefinite-lived intangible assets were performed at December 31, 2023. 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 amounts. Accordingly, no further impairment testing was completed and no impairment charges related to goodwill or indefinite-lived intangibles were recognized during the three or six months ended June 30, 2024.   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.   (t) 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.

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LEASES	6 Months Ended
	Jun. 30, 2024
Leases
LEASES	3. LEASES   Leases are 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-long term 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%.   In March 2024, the Company consolidated NanoChem operations into the Peril, IL locations and terminated the lease in Naperville, IL. The Company had to pay a penalty of $35,910 and forfeited the $5,440 security deposit to terminate the lease early and incurred a loss of $41,350 on early termination of the lease. The table below summarizes the right-of-use asset and lease liability for the periods ended June 30, 2024 and December 31, 2023.  SUMMARY OF RIGHT-OF-USE ASSET AND LEASE LIABILITY Right of Use Assets         Balance at December 31, 2022   $ 167,222   Depreciation     (51,929 ) Balance at December 31, 2023   $ 115,293   Depreciation     (13,694 ) Early termination of lease     (101,599 ) Balance at June 30, 2024   $ -             Lease Liability         Balance at December 31, 2022   $ 167,222   Lease interest expense     6,151   Payments     (58,080 ) Balance at December 31, 2023   $ 115,293   Lease interest expense     1,186   Payments     (14,880 ) Early termination of lease     (101,599 ) Balance at June 30, 2024   $ -

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ACCOUNTS RECEIVABLE	6 Months Ended
	Jun. 30, 2024
Receivables [Abstract]
ACCOUNTS RECEIVABLE	4. ACCOUNTS RECEIVABLE  SCHEDULE OF ACCOUNTS RECEIVABLE     June 30, 2024     December 31, 2023                 Accounts receivable   $ 9,081,600     $ 10,133,249   Allowances for expected credit loss     (288,904 )     (290,193 ) Total accounts receivable   $ 8,792,696     $ 9,843,056

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INVENTORIES	6 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
INVENTORIES	5. INVENTORIES  SCHEDULE OF INVENTORY     June 30, 2024     December 31, 2023                 Completed goods   $ 2,754,018     $ 2,682,158   Raw materials and supplies     7,579,940       8,452,731   Total inventory   $ 10,333,958     $ 11,134,889

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PROPERTY, EQUIPMENT AND LEASEHOLDS	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
PROPERTY, EQUIPMENT AND LEASEHOLDS	6. PROPERTY, EQUIPMENT AND LEASEHOLDS  SCHEDULE OF PROPERTY, EQUIPMENT AND LEASEHOLDS     June 30, 2024     Accumulated     June 30, 2024       Cost     Depreciation     Net   Buildings and improvements   $ 12,797,310     $ 4,208,582     $ 8,588,728   Automobiles     196,255       154,424       41,831   Office equipment     122,083       113,956       8,127   Manufacturing equipment     11,220,799       6,323,344       4,897,455   Land     440,592       —       440,592   Leasehold improvements     88,872       88,872       —   Technology     99,808       99,808       —       $ 24,965,719     $ 10,988,986     $ 13,976,733         December 31, 2023     Accumulated     December 31, 2023       Cost     Depreciation     Net   Buildings and improvements   $ 12,341,605     $ 3,896,887     $ 8,444,718   Automobiles     196,255       140,040       56,215   Office equipment     177,623       165,048       12,575   Manufacturing equipment     10,017,466       5,799,779       4,217,687   Land     440,592       —       440,592   Leasehold improvements     88,872       88,872       —   Technology     103,292       103,292       —       $ 23,365,705     $ 10,193,918     $ 13,171,787     Amount of depreciation expense for six months ended June 30, 2024 was: $859,524 (2023 - $671,574) and is included in cost of sales in the unaudited interim condensed consolidated statements of income and comprehensive income.   In January 2024, the Company lost power during a winter storm and some frozen pipes caused damage at two different locations. Insurance was in place and repairs are currently being made. The Company currently has $423,123 under accrued liability for funds received in the first six months ended June 30, 2024 but the work has not yet been completed.

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GOODWILL AND INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	7. GOODWILL AND INTANGIBLE ASSETS  SCHEDULE OF GOODWILL AND INDEFINITE LIVED INTANGIBLE ASSETS Goodwill         Balance as of December 31, 2023 and June 30, 2024   $ 2,534,275             Indefinite Lived Intangible Assets         Balance as of December 31, 2023 and June 30, 2024   $ 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, 2022     1,670,000   Amortization     (160,000 ) Balances as of December 31, 2023   $ 1,510,000   Amortization     (80,000 ) Balances as of June 30, 2024   $ 1,430,000     The amount of amortization for three months ended June 30, 2024 was $80,000 (2023 - $80,000) and was included in cost of sales in the unaudited interim condensed consolidated statements of income and comprehensive income.   Definite lived intangible assets consist of customer relationships and software related to the acquisition of ENP Investments.   Estimated amortization expense over the next five years is as follows:  SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE 2024   $ 160,000   2025     160,000   2026     160,000   2027     160,000   2028     160,000

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LONG TERM DEPOSITS	6 Months Ended
	Jun. 30, 2024
Long Term Deposits
LONG TERM DEPOSITS	8. LONG TERM DEPOSITS   The Company has security deposits that are long term in nature which consist of damage deposits held by landlords and deposits held by various vendors for equipment purchases.  SCHEDULE OF LONG TERM DEPOSITS     June 30, 2024     December 31, 2023                 Long term deposits   $ 2,521,905     $ 824,254

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INVESTMENTS	6 Months Ended
	Jun. 30, 2024
Equity Method Investments and Joint Ventures [Abstract]
INVESTMENTS	9. INVESTMENTS   (a) The Company previously held a 50% ownership interest in ENP Peru, split between NanoChem (41.67%) and ENP Investments (8.33%), which was acquired in fiscal 2016. ENP Peru is located in Illinois and leases warehouse space to other entities in the Company. In June 2022, NanoChem acquired an additional 50% ownership interest at a cost of $506,659 paid through a new cash payment was $247,659, mortgage was $259,000. The 35% non-controlling interest of the 8.33% owned by ENP Investments is included in non-controlling interest in these consolidated financial statements. The Company’s investment in ENP Peru was previously accounted for using the equity method, however, it is now consolidated into the consolidated financial statements from the date control was obtained. In June 2023, NanoChem purchased the remaining 8.33% of ENP Peru from ENP Investments to become full owner.   It was determined that ENP Peru did not meet the definition of a business in accordance with FASB Codification Topic 805, Business Combinations (ASC 805), and the acquisition was accounted for as an asset acquisition. The following table summarizes the final purchase price allocation of the consideration paid to the respective fair values of the assets acquired and liabilities assumed in ENP Peru as of the acquisition date. The gain on acquisition of ENP Peru represents a gain on remeasurement of the Company’s equity method investment immediately prior to the acquisition date.  SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED           Purchase consideration   $ 506,659             Assets acquired:         Cash     7,330   Building     3,750,000   Land     150,000   Liabilities assumed:         Deferred tax liability     (174,582 ) Long term debt     (2,849,500 ) Total identifiable net assets:     883,248   Excess of assets acquired over consideration     376,589   Less investment eliminated upon consolidation     (41,538 ) Gain on acquisition of ENP Peru   $ 335,051     A summary of the Company’s investment follows:  SCHEDULE OF EQUITY METHOD INVESTMENT Balance, December 31, 2022     22,642   Return of equity     (8,750 ) Gain in equity method investment     27,646   Investment eliminated upon consolidation     (41,538 ) Balance, December 31, 2023 and June 30, 2024   $ -       (b)In December 2018, the Company invested $200,000 in Applied Holding Corp. (“Applied”). Applied is a captive insurance company and the Company received a non-convertible promissory note for its investment which becomes due in 2021 but may be extended with notice for a maximum of two years. During the year ended December 31, 2021, the Company entered an agreement with Applied to extend the maturity date of this promissory note to December 2023. In October 2023, the Company received the payment of $200,000 to settle the promissory note and the balance of this investment at June 30, 2024 is $nil (December 31, 2023 - $nil).   (c) In December 2018, the Company invested $500,000 in Trio Opportunity Corp. (“Trio”), a privately held entity and a further $470,000 was invested in April 2023. Trio is a real estate investment vehicle and the Company received 97,000 non-voting Class B shares at $10.00/share. In accordance with ASC 321, the Company has elected to account for this investment at cost.   (d) In January 2019, the Company invested in a Florida based LLC that is engaged in international sales of fertilizer additives. The Company accounts for this investment using the equity method of accounting. According to the operating agreement, the Company has a 50% interest in the profit and loss of the Florida based LLC but does not have control. A summary of the Company’s investment follows:  SCHEDULE OF EQUITY METHOD INVESTMENT Balance, December 31, 2022   $ 3,758,895   Gain in equity method investment     505,065   Return of equity     (200,000 ) Balance, December 31, 2023     4,063,960   Gain in equity method investment     297,664   Return of equity     (427,000 ) Balance, June 30, 2024   $ 3,934,624     Summarized profit and loss information related to the equity accounted investment is as follows:  SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT     Six months ended June 30, 2024     Six months ended June 30, 2023                 Net sales   $ 7,159,499     $ 8,231,298   Gross profit     2,044,578       2,435,858   Net income   $ 595,329     $ 653,407     During the six months ended June 30, 2024, the Company had sales of $4,812,619 (2023 - $5,091,764) to the Florida Based LLC, of which $1,390,812 is included within Accounts Receivable as at June 30, 2024 (December 31, 2023 - $2,073,813). See Note 17 – Subsequent events.     (e) In December 2020, the Company invested $500,000 in Lygos Inc. (“Lygos”), a privately held entity, under a Simple Agreement for Future Equity (“SAFE”) agreement. Lygos is a company developing a sustainable aspartic acid microbe strain. In 2021, the Company made a second SAFE investment of $500,000 for a total of $1,000,000. In accordance with ASC 321, the Company has elected to account for this investment at cost.

v3.24.2.u1

SHORT-TERM LINE OF CREDIT	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
SHORT-TERM LINE OF CREDIT	10. SHORT-TERM LINE OF CREDIT   (a) In June 2024, ENP Investments renewed the line of credit with Stock Yards Bank and Trust (“Stock Yards”). The revolving line of credit is for an aggregate amount of up to the lesser of (i) $4,500,000, or (ii) 50-80% of eligible domestic accounts receivable plus 50% of inventory, capped at $2,000,000. Interest on the unpaid principal balance of this loan will be calculated using the greater of prime or 4.0%. The interest rate at June 30, 2024 is 8.5% (December 31, 2023 - 8.5%).   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 Stock Yards, Stock Yard’s access to collateral, formation or acquisition of subsidiaries, incurrence of indebtedness, dispositions of assets, granting liens, changes in business, ownership or business locations, engaging in mergers and acquisitions, making investments or distributions and affiliate transactions. NanoChem is a guarantor of 65% of all the principal and other loan costs not to exceed $2,925,000. The non-controlling interest is the guarantor of the remaining 35% of all the principal and other loan costs not to exceed $1,575,000. As of June 30, 2024, ENP Investments was in compliance with all loan covenants.   To secure the repayment of any amounts borrowed under the revolving line of credit, the Company granted Stock Yards a security interest in substantially all of the assets of ENP Investments, exclusive of intellectual property assets.   Short-term borrowings outstanding under the revolving line as of June 30, 2024 were $nil (December 31, 2023 - $1,810,479).   (b) In June 2023, the Company renewed the line of credit with Stock Yards Bank and Trust (“Stock Yards”). The revolving line of credit is for an aggregate amount of up to the lesser of (i) $4,000,000, or (ii) 80% of eligible domestic accounts receivable and certain foreign accounts receivable plus 50% of inventory, capped at $2,000,000. Interest on the unpaid principal balance of this loan will be calculated using the greater of prime or 8.25%. The interest rate at June 30, 2024 is 8.5% (December 31, 2023 - 8.5%).   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 Stock Yards, Stock Yards 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 June 30, 2024, the Company was in compliance with all loan covenants.   To secure repayment of any amounts borrowed under the revolving line of credit, the Company granted Stock Yards 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 June 30, 2024 were $619,844 (December 31, 2023 were $nil).

v3.24.2.u1

LONG TERM DEBT	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
LONG TERM DEBT	11. LONG TERM DEBT   (a) In January 2020, ENP Mendota refinanced its mortgage and signed a loan for $450,000 with Stock Yards to be repaid over 10 years with monthly installments plus interest. Interest for the first five years is at 4.35% and it will be adjusted for the last five years to the Cincinnati Federal Home Bank Loan 5 year fixed index plus 4.5%. Interest expense for the six months ended June 30, 2024 was $8,713 (2023 - $8,975). The balance owing at June 30, 2024 was $393,488 (December 31, 2023 - $399,269).     To secure repayment of any amounts borrowed under the mortgage, the Company granted Stock Yards a security interest in the real property under the mortgage and all rents on this property.   (b) In June 2022, NanoChem signed a loan for $1,935,000 with Stock Yards with an interest rate of 4.90% to be repaid over three years with equal monthly payments including interest. The funds were used to replace the loans at Midland for the purchase of the 65% interest in ENP Investments and the new manufacturing equipment. Interest expense for the six months ended June 30, 2024 was $21,681 (2023 - $37,280). The balance owing at June 30, 2024 was $678,987 (December 31, 2023 - $1,004,748).   (c) In January 2020 ENP Peru signed a $3,000,000 loan with an interest rate 4.35% to be repaid over ten years with equal monthly payments including interest. Upon the purchase of the remainder of ENP Peru in June 2022, the Company assumed the first mortgage at Stock Yards with a balance of $2,849,500. Interest expense for the six months ended June 30, 2024 was $60,173 (2023 - $61,251). The balance owing at June 30, 2024 was $2,698,241 (December 31, 2023 - $2,737,232).   (d) In June 2022, ENP Peru obtained a second mortgage for $259,000 with Stock Yards to be repaid over 10 years with monthly installments plus interest with an interest rate of 5.4%. Interest expense for the six months ended June 30, 2024 was $6,834 (2023 - $6,960). The balance owing at June 30, 2024 was $247,125 (December 31, 2023 - $250,207).   (e)In December 2022, NanoChem signed a three year loan for up to $2,000,000 with Stock Yards with an interest rate of 6.5%. Interest only payments are required for the first 18 months with interest and principal being paid in the last 18 months. The funds are being used to purchase new manufacturing equipment. Interest expense for the six months ended June 30, 2024 was $50,255 (2023 - $33,139). The balance owing at June 30, 2024 was $2,000,000 (December 31, 2023 - $1,475,188).   (f) In June 2023, 317 Mendota signed a five year loan for up to $3,240,000 with Stock Yards to purchase a building and any necessary renovations. Interest only payments are required for the first 12 months with interest and principal being paid the remaining four years and a lump sum due in June 2028. Interest expense for the six months ended June 30, 2024 was $93,257 (2023 - $nil). The balance owing at June 30, 2024 was $2,248,292 (December 31, 2023 - $2,248,292).   As of June 30, 2024, Company was in compliance with all loan covenants.  SCHEDULE OF LOAN COVENANTS Continuity   June 30, 2024     December 31, 2023   Balance, January 1   $ 8,114,936     $ 6,154,077   Balance, beginning of period   $ 8,114,936     $ 6,154,077                     Plus: Proceeds from loans     524,812       2,686,682   Less: Payments on loan     (373,615 )     (725,823 ) Balance, end of period   $ 8,266,133     $ 8,114,936      SCHEDULE OF OUTSTANDING BALANCE LOAN Outstanding balance   June 30, 2024     December 31, 2023   a) Long term debt – Stock Yards Bank & Trust   $ 393,488     $ 399,269   b) Long term debt – Stock Yards Bank & Trust     678,987       1,004,748   c) Long term debt – Stock Yards Bank & Trust     2,698,241       2,737,232   d) Long term debt – Stock Yards Bank & Trust     247,125       250,207   e) Long term debt – Stock Yards Bank & Trust     2,000,000       1,475,188   f) Long term debt – Stock Yards Bank & Trust     2,248,292       2,248,292   Long-term debt     8,266,133       8,114,936   Less: current portion     (2,163,602 )     (1,281,632 ) Long-term debt non current   $ 6,102,531     $ 6,833,304

v3.24.2.u1

STOCK OPTIONS	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
STOCK OPTIONS	12. STOCK OPTIONS   The Company has a stock option plan (“Plan”). The purpose of this Plan is to provide additional incentives to key employees, officers, directors and consultants of the Company and its subsidiaries in order to help attract and retain the best available personnel for positions of responsibility and otherwise promote the success of the Company’s business. It is intended that options issued under this Plan constitute non-qualified stock options. The general terms of awards under the option plan are that 100% of the options granted will vest the year following the grant unless a executive employee is granted a multi-year stock option grant where an equal amount vests over the next 5 years. The maximum term of options granted is 5 years and the exercise price for all options are issued for not less than fair market value at the date of the grant.   The following table summarizes the Company’s stock option activities for the year ended December 31, 2023 and the six months ended June 30, 2024:  SCHEDULE OF STOCK OPTION ACTIVITIES     Number of shares     Exercise price per share     Weighted average exercise price                       Balance, December 31, 2022     1,686,000     $ 1.70 – 4.13     $   3.26   Cancelled or expired     (564,000 )   $ 3.46 – 4.13     $ 3.55   Exercised     (8,000 )   $ 1.70     $ 1.70   Balance, December 31, 2023     1,114,000     $ 1.75 – 3.61     $ 3.13   Granted     950,000     $ 2.00     $ 2.00   Cancelled or expired     (108,000 )   $ 1.75 – 3.61     $ 2.09   Exercised     (15,000 )   $ 1.75     $ 1.75   Balance, June 30, 2024     1,941,000     $ 2.00 – 3.61     $ 2.65   Exercisable, June 30, 2024     810,000     $ 2.00 – 3.61     $ 2.86     The weighted-average remaining contractual life of outstanding options is 3.55 years.   The fair value of each option grant is calculated using the following weighted average assumptions:  SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTIONS     2024   Expected life – years     3.0   Interest rate     3.893 – 4.22 % Volatility     59.72 – 60.35 % Weighted average fair value of options granted   $ 0.71 – 0.79     During the six months ended June 30, 2024, the Company granted 56,000 options to consultants (2023 – nil) and has applied ASC 718 using the Black-Scholes option-pricing model, which resulted in expenses of $19,880 (2023 - $nil). During the six months ended June 30, 2024, employees were granted 894,000 (2023 – nil) stock options, which resulted in expenses of $271,921 (2023 – $nil). Options granted in other years resulted in additional expenses in the amount of $87,459 for employees during the six months ended June 30, 2024 (2023 - $43,730). There were 15,000 employee and nil consultant stock options exercised during the six months ended June 30, 2024 (2023 – 8,000 employee; nil consultant).   As of June 30, 2024, there was approximately $696,201 of compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted average period of 2.04 years.   The aggregate intrinsic value of vested options outstanding at June 30, 2024 is $nil (2023 – $nil). The intrinsic value of options exercised during the six months ended June 30, 2024 was $720 (2023 - $11,520).

v3.24.2.u1

CAPITAL STOCK	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
CAPITAL STOCK	13. CAPITAL STOCK   During the six months ended June 30, 2024, 15,000 shares were issued upon the exercise of employee stock options (2023 – 8,000).   In the six months ended June 30, 2024, the Company announced a special dividend of $0.10 per share that was paid on May 16, 2024 to shareholders for a total payment of $1,255,053.   During the six months ended June 30 2023, the Company issued 1,272 shares to a consultant for services rendered, resulting in an expense of $4,070 on the unaudited interim condensed consolidated statements of income and comprehensive income for the six months ended June 30, 2023.   In the six months ended June 30, 2023, the Company announced a special dividend of $0.05 per share that was paid on May 16, 2023 to shareholders.

v3.24.2.u1

NON-CONTROLLING INTERESTS	6 Months Ended
	Jun. 30, 2024
Noncontrolling Interest [Abstract]
NON-CONTROLLING INTERESTS	14. NON-CONTROLLING INTERESTS   (a)ENP Investments is a limited liability corporation (“LLC”) that manufactures and distributes golf, turf and ornamental agriculture products in Mendota, Illinois. The Company owns a 65% interest in ENP Investments through its wholly-owned subsidiary NanoChem. An unrelated party (“NCI”) owns the remaining 35% interest in ENP Investments. ENP Mendota is a wholly owned subsidiary of ENP Investments. ENP Mendota is a LLC that leases warehouse space. For financial reporting purposes, the assets, liabilities and earnings of both of the LLC’s are consolidated into these financial statements. The NCI’s ownership interest in ENP Investments is recorded in non-controlling interests in these consolidated financial statements. The non-controlling interest represents NCI’s interest in the earnings and equity of ENP Investments. ENP Investments is allocated to the TPA segment.   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 $3,591,601.  SCHEDULE OF DISTRIBUTIONS Balance, December 31, 2022   $ 2,605,034   Distribution     (719,439 ) Non-controlling interest share of income     1,015,604   Balance, December 31, 2023     2,901,199   Distribution     (365,644)   Non-controlling interest share of income     254,871   Balance, June 30, 2024   $ 2,790,426     During the six months ended June 30, 2024, the Company had sales of $2,426,145 (2023 - $2,203,761) to NCI, of which $350,907 is included in Accounts Receivable as of June 30, 2024 (December 31, 2023 – $4,225,028).   b)317 Mendota is a LLC that owns real estate that the Company intends to occupy part of while renting out the excess. The Company owns a 80% interest in 317 Mendota and an unrelated party (“317 NCI”) owns the remaining 20% interest in 317 Mendota. For financial reporting purposes, the assets, liabilities and earnings of 317 Mendota are consolidated into these financial statements. The 317 NCI’s ownership interest in 317 Mendota is recorded in non-controlling interests in these consolidated financial statements. The non-controlling interest represents 317 NCI’s interest in the earnings and equity of 317 Mendota. 317 Mendota is allocated to the TPA segment as that is the intended use of the building. SCHEDULE OF NON CONTROLLING INTEREST RELATED TO ACQUISITION  Balance, December 31, 2022   $ -   Acquisition     200,000   Non-controlling interest share of income     (35,483 ) Balance, December 31, 2023     164,517   Non-controlling interest share of income     (53,251 ) Balance, June 30, 2024   $ 111,266

v3.24.2.u1

SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY	15. 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 save energy and water by inhibiting evaporation from the pool surface, and (ii) food-safe powdered form of the active ingredient within the liquid blankets and which are designed to be used in still or slow moving drinking water sources.     (b) Biodegradable polymers, also known as TPA’s (as shown under the column heading “BCPA” below), used by the petroleum, chemical, utility and mining industries to prevent corrosion and scaling in water piping. This product can also be used in detergents to increase biodegradability and in agriculture to increase crop yields by enhancing fertilizer uptake.   The third product line is nitrogen conservation products used for the agriculture industry. These products decrease the loss of nitrogen fertilizer after initial application and allows less fertilizer to be used. These products are made and sold by the Company’s TPA division.   The accounting policies of the segments are the same as those described in Note 2, Significant Accounting Policies. The Company evaluates performance based on profit or loss from operations before income taxes, not including nonrecurring gains and losses and foreign exchange gains and losses   The Company’s reportable segments are strategic business units that offer different, but synergistic products and services. They are managed separately because each business requires different technology and marketing strategies.   Three months ended June 30, 2024: SCHEDULE OF REPORTABLE SEGMENTS      EWCP     TPA     Total   Revenue   $ 167,496     $ 10,361,243     $ 10,528,739   Interest expense     -       157,131       157,131   Depreciation and amortization     3,828       513,027       516,855   Income tax expense     (23,040 )     581,291       558,251   Segment profit (loss)     (198,936 )     1,488,732       1,289,796   Segment assets     3,366,670       52,978,226       56,344,896   Expenditures for segment assets     -       (1,186,346 )     (1,186,346 )   Three months ended June 30, 2023:       EWCP     TPA     Total   Revenue   $ 220,602     $ 10,100,689     $ 10,331,291   Interest expense     -       115,498       115,498   Depreciation and amortization     4,440       381,951       386,390   Income tax expense     11,657       342,715       354,372   Segment profit (loss)     (41,262 )     851,127       809,865   Segment assets     3,257,019       49,544,894       52,801,913   Expenditures for segment assets     -       (3,571,133 )     (3,571,133 )   Six months ended June 30, 2024:       EWCP     TPA     Total   Revenue   $ 209,104     $ 19,544,507     $ 19,753,611   Interest expense     -       332,397       332,397   Depreciation and amortization     7,711       931,813       939,524   Income tax expense     11,900       810,529       822,429   Segment profit (loss)     (180,396 )     1,927,417       1,747,021   Segment assets     3,366,670       52,978,226       56,344,896   Expenditures for segment assets     -       (1,663,696 )     (1,663,696 )   Six months ended June 30, 2023:       EWCP     TPA     Total   Revenue   $ 301,262     $ 19,877,546     $ 20,178,808   Interest expense     -       250,368       250,368   Depreciation and amortization     8,719       742,855       751,574   Income tax expense     12,571       641,578       654,149   Segment profit (loss)     (192,990 )     1,887,224       1,694,234   Segment assets     3,257,019       49,544,894       52,801,913   Expenditures for segment assets     -       (3,784,193 )     (3,784,193 )   Sales by territory are shown below: SCHEDULE OF REVENUE GENERATED IN UNITED STATES AND CANADA      Six months ended June 30, 2024     Six months ended June 30, 2023                 Canada   $ 223,083     $ 313,058   United States and abroad     19,530,528       19,865,750   Total   $ 19,753,611     $ 20,178,808     The Company’s long-lived assets (property, equipment, leaseholds, right of use assets, intangibles, and goodwill) are located in Canada and the United States as follows: SCHEDULE OF LONG-LIVED ASSETS ARE LOCATED IN CANADA AND UNITED STATE      June 30, 2024     December 31, 2023                 Canada   $ 130,116     $ 142,577   United States     18,580,892       17,958,778   Total   $ 18,711,008     $ 18,101,355     Three primary customers accounted for $9,843,563 (50%) of sales during the six-month period ended June 30, 2024 (2023 - $9,276,058 or 46%).

v3.24.2.u1

COMPARATIVE FIGURES	6 Months Ended
	Jun. 30, 2024
Comparative Figures
COMPARATIVE FIGURES	16. COMPARATIVE FIGURES.   Certain of the comparative figures have been reclassified to conform with the current period’s presentation.

v3.24.2.u1

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	17. SUBSEQUENT EVENTS   The Company granted 50,000 stock options to employees in July 2024.   On August 9, 2024, the Company sold its position in the Florida LLC and has received proceeds of $2,000,000 on closing. The Company will receive a further $800,000 each year for five years for a total selling price of $6,000,000. See Note 9(d).

v3.24.2.u1

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2024
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. As of June 30, 2024 and December 31, 2023, the Company did not have any cash equivalents.
Term Deposits	(b) Term Deposits.   The Company has four term deposits that are maintained by commercials banks. The first term deposit is for $303,954 and matures in February 2025. This deposit pays 1.3% interest and if withdrawn before maturity, a penalty may be applied. The second term deposit is for $731,767, matures in November 2024 and pays interest at a rate of 3.00%. If withdrawn before maturity, the greater of the loss of accrued interest or $150, plus 1% of the principal shall be levied. The third term deposit is for $1,019,197 and matures in November 2024. This deposit pays 3.85% and if withdrawn before maturity, the greater of the loss of accrued interest or $150, plus 1% of the principal shall be levied. The fourth term deposit is for $310,695, matures in August 2024 and pays interest at a rate of 3.85%. If withdrawn before maturity, a penalty may be applied.
Inventories and Cost of Sales	(c) 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 or net realizable value. Cost is determined on a first-in, first-out basis or weighted average cost formula 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 (2024 - $288,826; 2023 - $286,290). Shipping and handling costs incurred are included in cost of goods sold (2024 - $509,167; 2023 - $542,321).
Allowance for expected credit losses	(d) Allowance for expected credit losses.   The Company’s expected credit losses are determined through a review using historical credit loss experience; changes in asset specific characteristics, current conditions, and reasonable and supportable future forecasts, among other specific account data, and is performed at least quarterly. The Company develops and documents its methodology to determine its allowance for expected credit losses. Risk characteristics used by the Company may include customer mix, knowledge of customers and general economic conditions of the various local economics, among others. Specific account balances are written off when management determines the amounts to be uncollectible. Management has reviewed the balance reserved through the allowance for expected losses and believes it is reasonable.
Property, Equipment, Leaseholds and Intangible Assets	(e) 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        Manufacturing equipment   20% Declining balance Office equipment   20% Declining balance Building and improvements   10% Declining balance Automobiles   Straight-line over 5 years Technology   Straight-line over 10 years Leasehold improvements   Straight-line over lease term Customer relationships   Straight-line over 15 years
Impairment of Long-Lived Assets	(f) Impairment of Long-Lived Assets.   In accordance with FASB Codification Topic 360, Property, Plant and Equipment (ASC 360), the Company reviews long-lived assets, including, but not limited to, property, equipment and leaseholds, patents and other assets, for impairment annually or whenever events or changes in circumstances indicate the carrying amounts of assets may not be recoverable. The carrying value of long-lived assets is assessed for impairment by evaluating operating performance and future undiscounted cash flows of the underlying assets. If the expected future cash flows of an asset is less than its carrying value, an impairment measurement is indicated. Impairment charges are recorded to the extent that an asset’s carrying value exceeds its fair value. Accordingly, actual results could vary significantly from such estimates. There were no impairment charges during the periods presented.
Foreign Currency	(g) 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 period. 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	(h) Revenue Recognition.   The Company generates revenue primarily from energy and water conservation products and biodegradable polymers, as further discussed in Note 15.     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 free-on-board 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	(i) 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	(j) Stock-based Compensation.   The Company recognizes compensation expense for all share-based payments in accordance with FASB Codification Topic 718, Compensation — Stock Compensation (ASC 718). Under the fair value recognition provisions of ASC 718, the Company recognizes share-based compensation expense, net of an estimated forfeiture rate, over the requisite service period of the award.   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	(k) 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 related to the translation of subsidiaries’ functional currency into the reporting currency.
Income Per Share	(l) 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 three and six months ended June 30, 2024 and 2023.
Use of Estimates	(m) 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, valuation of assets acquired at fair value, 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 costing and recoverable value of inventory.
Fair Value of Financial Instruments	(n) 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, 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 and lease liabilities for all periods presented approximate their respective carrying amounts due to these financial instruments being at market rates.
Contingencies	(o) 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. The Company is not aware of any contingencies at the date of these consolidated financial statements.
Income Taxes	(p) Income Taxes.   Income taxes are computed by multiplying the Company’s taxable net income by the Company’s effective tax rates. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss carry-forwards, if any. Deferred income 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 income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided to reduce the carrying amount of deferred income tax assets if it is considered more likely than not that some portion, or all, of the deferred income tax assets will not be realized.   In accordance with FASB Codification Topic 740, Income taxes (ASC 740) under the liability method, it is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At June 30, 2024, the Company believes it has appropriately accounted for any unrecognized tax benefits.   To the extent the Company prevails in matters for which a liability for an unrecognized benefit is established or is required to pay amounts in excess of the liability, the Company’s effective tax rate in a given financial statement period may be affected. Interest and penalties associated with the Company’s tax positions are recorded as interest expense in the consolidated statements of income and comprehensive income.
Risk Management	(q) 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 $9,843,563 (50%) for the six months ended June 30, 2024 (2023 - $9,276,058 or 46%) and $5,520,361 (52%) for the three months ended June 30, 2024 (2023 - $5,172,025 or 50%). Accounts receivable for the Company’s three primary customers for the six months ended June 30, 2024 totaled $4,443,400 or 49% (2023 - $4,172,657 or 56%). Accounts receivable for the Company’s three primary customers for the three months ended June 30, 2024 totaled $4,333,665 or 49% (2023 - $4,172,657 or 56%; December 31, 2023 - $6,561,164 or 67%).   The credit risk on cash is limited because the Company limits its exposure to credit loss by placing its cash 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 risk to the extent that market value rate fluctuations materially differ for financial assets and liabilities denominated in foreign currencies.   In order to manage its exposure to foreign exchange risks, the Company closely monitors the fluctuations in the foreign currency exchange rates and the impact on the value of cash, 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 subject to fixed long-term interest rates.   In order to manage its exposure to interest rate risk, the Company closely monitors fluctuations in market interest risks and will refinance its long-term debt where possible to obtain more favourable rates.
Equity Method Investment	(r) Equity Method Investment.   The Company accounts for investments using the equity method of accounting if the investment provides the Company the ability to exercise significant influence, but not control, over the investee. Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between 20% and 50%, although other factors, such as representation on the investee’s board of directors, are considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the investment is initially recorded at cost in the consolidated balance sheets under other assets and adjusted for dividends received and the Company’s share of the investee’s earnings or losses together with other-than-temporary impairments which are recorded through other income (loss), net in the consolidated statements of operations and comprehensive income (loss).
Goodwill and Intangible Assets	(s) 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 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. 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.   In accordance with FASB Codification Topic 350, Intangibles – Goodwill and Other, (ASC 350), qualitative assessments of goodwill and indefinite-lived intangible assets were performed at December 31, 2023. 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 amounts. Accordingly, no further impairment testing was completed and no impairment charges related to goodwill or indefinite-lived intangibles were recognized during the three or six months ended June 30, 2024.   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	(t) 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.

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SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2024
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        Manufacturing equipment   20% Declining balance Office equipment   20% Declining balance Building and improvements   10% Declining balance Automobiles   Straight-line over 5 years Technology   Straight-line over 10 years Leasehold improvements   Straight-line over lease term Customer relationships   Straight-line over 15 years

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LEASES (Tables)	6 Months Ended
	Jun. 30, 2024
Leases
SUMMARY OF RIGHT-OF-USE ASSET AND LEASE LIABILITY	In March 2024, the Company consolidated NanoChem operations into the Peril, IL locations and terminated the lease in Naperville, IL. The Company had to pay a penalty of $35,910 and forfeited the $5,440 security deposit to terminate the lease early and incurred a loss of $41,350 on early termination of the lease. The table below summarizes the right-of-use asset and lease liability for the periods ended June 30, 2024 and December 31, 2023.  SUMMARY OF RIGHT-OF-USE ASSET AND LEASE LIABILITY Right of Use Assets         Balance at December 31, 2022   $ 167,222   Depreciation     (51,929 ) Balance at December 31, 2023   $ 115,293   Depreciation     (13,694 ) Early termination of lease     (101,599 ) Balance at June 30, 2024   $ -             Lease Liability         Balance at December 31, 2022   $ 167,222   Lease interest expense     6,151   Payments     (58,080 ) Balance at December 31, 2023   $ 115,293   Lease interest expense     1,186   Payments     (14,880 ) Early termination of lease     (101,599 ) Balance at June 30, 2024   $ -

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ACCOUNTS RECEIVABLE (Tables)	6 Months Ended
	Jun. 30, 2024
Receivables [Abstract]
SCHEDULE OF ACCOUNTS RECEIVABLE	SCHEDULE OF ACCOUNTS RECEIVABLE     June 30, 2024     December 31, 2023                 Accounts receivable   $ 9,081,600     $ 10,133,249   Allowances for expected credit loss     (288,904 )     (290,193 ) Total accounts receivable   $ 8,792,696     $ 9,843,056

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INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
SCHEDULE OF INVENTORY	SCHEDULE OF INVENTORY     June 30, 2024     December 31, 2023                 Completed goods   $ 2,754,018     $ 2,682,158   Raw materials and supplies     7,579,940       8,452,731   Total inventory   $ 10,333,958     $ 11,134,889

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PROPERTY, EQUIPMENT AND LEASEHOLDS (Tables)	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
SCHEDULE OF PROPERTY, EQUIPMENT AND LEASEHOLDS	SCHEDULE OF PROPERTY, EQUIPMENT AND LEASEHOLDS     June 30, 2024     Accumulated     June 30, 2024       Cost     Depreciation     Net   Buildings and improvements   $ 12,797,310     $ 4,208,582     $ 8,588,728   Automobiles     196,255       154,424       41,831   Office equipment     122,083       113,956       8,127   Manufacturing equipment     11,220,799       6,323,344       4,897,455   Land     440,592       —       440,592   Leasehold improvements     88,872       88,872       —   Technology     99,808       99,808       —       $ 24,965,719     $ 10,988,986     $ 13,976,733         December 31, 2023     Accumulated     December 31, 2023       Cost     Depreciation     Net   Buildings and improvements   $ 12,341,605     $ 3,896,887     $ 8,444,718   Automobiles     196,255       140,040       56,215   Office equipment     177,623       165,048       12,575   Manufacturing equipment     10,017,466       5,799,779       4,217,687   Land     440,592       —       440,592   Leasehold improvements     88,872       88,872       —   Technology     103,292       103,292       —       $ 23,365,705     $ 10,193,918     $ 13,171,787

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GOODWILL AND INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2024
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, 2023 and June 30, 2024   $ 2,534,275             Indefinite Lived Intangible Assets         Balance as of December 31, 2023 and June 30, 2024   $ 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, 2022     1,670,000   Amortization     (160,000 ) Balances as of December 31, 2023   $ 1,510,000   Amortization     (80,000 ) Balances as of June 30, 2024   $ 1,430,000
SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE	Estimated amortization expense over the next five years is as follows:  SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE 2024   $ 160,000   2025     160,000   2026     160,000   2027     160,000   2028     160,000

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LONG TERM DEPOSITS (Tables)	6 Months Ended
	Jun. 30, 2024
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 deposits held by various vendors for equipment purchases.  SCHEDULE OF LONG TERM DEPOSITS     June 30, 2024     December 31, 2023                 Long term deposits   $ 2,521,905     $ 824,254

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INVESTMENTS (Tables)	6 Months Ended
	Jun. 30, 2024
ENP Peru Investments LLC [Member]
SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED	SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED           Purchase consideration   $ 506,659             Assets acquired:         Cash     7,330   Building     3,750,000   Land     150,000   Liabilities assumed:         Deferred tax liability     (174,582 ) Long term debt     (2,849,500 ) Total identifiable net assets:     883,248   Excess of assets acquired over consideration     376,589   Less investment eliminated upon consolidation     (41,538 ) Gain on acquisition of ENP Peru   $ 335,051
SCHEDULE OF EQUITY METHOD INVESTMENT	A summary of the Company’s investment follows:  SCHEDULE OF EQUITY METHOD INVESTMENT Balance, December 31, 2022     22,642   Return of equity     (8,750 ) Gain in equity method investment     27,646   Investment eliminated upon consolidation     (41,538 ) Balance, December 31, 2023 and June 30, 2024   $ -
Florida Based LLC [Member]
SCHEDULE OF EQUITY METHOD INVESTMENT	SCHEDULE OF EQUITY METHOD INVESTMENT Balance, December 31, 2022   $ 3,758,895   Gain in equity method investment     505,065   Return of equity     (200,000 ) Balance, December 31, 2023     4,063,960   Gain in equity method investment     297,664   Return of equity     (427,000 ) Balance, June 30, 2024   $ 3,934,624
SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT	Summarized profit and loss information related to the equity accounted investment is as follows:  SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT     Six months ended June 30, 2024     Six months ended June 30, 2023                 Net sales   $ 7,159,499     $ 8,231,298   Gross profit     2,044,578       2,435,858   Net income   $ 595,329     $ 653,407

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LONG TERM DEBT (Tables)	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
SCHEDULE OF LOAN COVENANTS	As of June 30, 2024, Company was in compliance with all loan covenants.  SCHEDULE OF LOAN COVENANTS Continuity   June 30, 2024     December 31, 2023   Balance, January 1   $ 8,114,936     $ 6,154,077   Balance, beginning of period   $ 8,114,936     $ 6,154,077                     Plus: Proceeds from loans     524,812       2,686,682   Less: Payments on loan     (373,615 )     (725,823 ) Balance, end of period   $ 8,266,133     $ 8,114,936
SCHEDULE OF OUTSTANDING BALANCE LOAN	SCHEDULE OF OUTSTANDING BALANCE LOAN Outstanding balance   June 30, 2024     December 31, 2023   a) Long term debt – Stock Yards Bank & Trust   $ 393,488     $ 399,269   b) Long term debt – Stock Yards Bank & Trust     678,987       1,004,748   c) Long term debt – Stock Yards Bank & Trust     2,698,241       2,737,232   d) Long term debt – Stock Yards Bank & Trust     247,125       250,207   e) Long term debt – Stock Yards Bank & Trust     2,000,000       1,475,188   f) Long term debt – Stock Yards Bank & Trust     2,248,292       2,248,292   Long-term debt     8,266,133       8,114,936   Less: current portion     (2,163,602 )     (1,281,632 ) Long-term debt non current   $ 6,102,531     $ 6,833,304

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STOCK OPTIONS (Tables)	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
SCHEDULE OF STOCK OPTION ACTIVITIES	The following table summarizes the Company’s stock option activities for the year ended December 31, 2023 and the six months ended June 30, 2024:  SCHEDULE OF STOCK OPTION ACTIVITIES     Number of shares     Exercise price per share     Weighted average exercise price                       Balance, December 31, 2022     1,686,000     $ 1.70 – 4.13     $   3.26   Cancelled or expired     (564,000 )   $ 3.46 – 4.13     $ 3.55   Exercised     (8,000 )   $ 1.70     $ 1.70   Balance, December 31, 2023     1,114,000     $ 1.75 – 3.61     $ 3.13   Granted     950,000     $ 2.00     $ 2.00   Cancelled or expired     (108,000 )   $ 1.75 – 3.61     $ 2.09   Exercised     (15,000 )   $ 1.75     $ 1.75   Balance, June 30, 2024     1,941,000     $ 2.00 – 3.61     $ 2.65   Exercisable, June 30, 2024     810,000     $ 2.00 – 3.61     $ 2.86
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     2024   Expected life – years     3.0   Interest rate     3.893 – 4.22 % Volatility     59.72 – 60.35 % Weighted average fair value of options granted   $ 0.71 – 0.79

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NON-CONTROLLING INTERESTS (Tables)	6 Months Ended
	Jun. 30, 2024
Noncontrolling Interest [Abstract]
SCHEDULE OF DISTRIBUTIONS	SCHEDULE OF DISTRIBUTIONS Balance, December 31, 2022   $ 2,605,034   Distribution     (719,439 ) Non-controlling interest share of income     1,015,604   Balance, December 31, 2023     2,901,199   Distribution     (365,644)   Non-controlling interest share of income     254,871   Balance, June 30, 2024   $ 2,790,426
SCHEDULE OF NON CONTROLLING INTEREST RELATED TO ACQUISITION	SCHEDULE OF NON CONTROLLING INTEREST RELATED TO ACQUISITION  Balance, December 31, 2022   $ -   Acquisition     200,000   Non-controlling interest share of income     (35,483 ) Balance, December 31, 2023     164,517   Non-controlling interest share of income     (53,251 ) Balance, June 30, 2024   $ 111,266

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SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY (Tables)	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
SCHEDULE OF REPORTABLE SEGMENTS	SCHEDULE OF REPORTABLE SEGMENTS      EWCP     TPA     Total   Revenue   $ 167,496     $ 10,361,243     $ 10,528,739   Interest expense     -       157,131       157,131   Depreciation and amortization     3,828       513,027       516,855   Income tax expense     (23,040 )     581,291       558,251   Segment profit (loss)     (198,936 )     1,488,732       1,289,796   Segment assets     3,366,670       52,978,226       56,344,896   Expenditures for segment assets     -       (1,186,346 )     (1,186,346 )   Three months ended June 30, 2023:       EWCP     TPA     Total   Revenue   $ 220,602     $ 10,100,689     $ 10,331,291   Interest expense     -       115,498       115,498   Depreciation and amortization     4,440       381,951       386,390   Income tax expense     11,657       342,715       354,372   Segment profit (loss)     (41,262 )     851,127       809,865   Segment assets     3,257,019       49,544,894       52,801,913   Expenditures for segment assets     -       (3,571,133 )     (3,571,133 )   Six months ended June 30, 2024:       EWCP     TPA     Total   Revenue   $ 209,104     $ 19,544,507     $ 19,753,611   Interest expense     -       332,397       332,397   Depreciation and amortization     7,711       931,813       939,524   Income tax expense     11,900       810,529       822,429   Segment profit (loss)     (180,396 )     1,927,417       1,747,021   Segment assets     3,366,670       52,978,226       56,344,896   Expenditures for segment assets     -       (1,663,696 )     (1,663,696 )   Six months ended June 30, 2023:       EWCP     TPA     Total   Revenue   $ 301,262     $ 19,877,546     $ 20,178,808   Interest expense     -       250,368       250,368   Depreciation and amortization     8,719       742,855       751,574   Income tax expense     12,571       641,578       654,149   Segment profit (loss)     (192,990 )     1,887,224       1,694,234   Segment assets     3,257,019       49,544,894       52,801,913   Expenditures for segment assets     -       (3,784,193 )     (3,784,193 )
SCHEDULE OF REVENUE GENERATED IN UNITED STATES AND CANADA	Sales by territory are shown below: SCHEDULE OF REVENUE GENERATED IN UNITED STATES AND CANADA      Six months ended June 30, 2024     Six months ended June 30, 2023                 Canada   $ 223,083     $ 313,058   United States and abroad     19,530,528       19,865,750   Total   $ 19,753,611     $ 20,178,808
SCHEDULE OF LONG-LIVED ASSETS ARE LOCATED IN CANADA AND UNITED STATE	The Company’s long-lived assets (property, equipment, leaseholds, right of use assets, intangibles, and goodwill) are located in Canada and the United States as follows: SCHEDULE OF LONG-LIVED ASSETS ARE LOCATED IN CANADA AND UNITED STATE      June 30, 2024     December 31, 2023                 Canada   $ 130,116     $ 142,577   United States     18,580,892       17,958,778   Total   $ 18,711,008     $ 18,101,355

v3.24.2.u1

BASIS OF PRESENTATION (Details Narrative)	6 Months Ended
	Jun. 30, 2024
317 Mendota LLC [Member]
Subsidiary company ownership interest rate	80.00%
ENP Investments LLC and ENP Mendota [Member]
Subsidiary company ownership interest rate	65.00%

v3.24.2.u1

SCHEDULE OF METHOD OF DEPRECIATION (Details)	6 Months Ended
	Jun. 30, 2024
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
Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Depreciation method used and annual rate	10% Declining balance
Automobiles [Member]
Property, Plant and Equipment [Line Items]
Depreciation method used and annual rate	Straight-line over 5 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 [Member]
Property, Plant and Equipment [Line Items]
Depreciation method used and annual rate	Straight-line over 15 years

v3.24.2.u1

SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Product Information [Line Items]
Sales	$ 10,528,739	$ 10,331,291	$ 19,753,611	$ 20,178,808
Cost of sales	6,589,644	7,292,438	$ 12,994,149	14,054,963
Investment [Member]
Product Information [Line Items]
Equity method investment, description			Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between 20% and 50%, although other factors, such as representation on the investee’s board of directors, are considered in determining whether the equity method of accounting is appropriate.
Three Primary Customers [Member] | Revenue from Contract with Customer Benchmark [Member]
Product Information [Line Items]
Sales	$ 5,520,361	$ 5,172,025	$ 9,843,563	$ 9,276,058
Concentration risk threshold percentage	52.00%	50.00%	50.00%	46.00%
Three Primary Customers [Member] | Accounts Receivable [Member]
Product Information [Line Items]
Sales	$ 4,333,665	$ 4,172,657	$ 4,443,400	$ 4,172,657	$ 6,561,164
Concentration risk threshold percentage	49.00%	56.00%	49.00%	56.00%	67.00%
Shipping and Handling [Member]
Product Information [Line Items]
Sales			$ 288,826	$ 286,290
Cost of sales			509,167	$ 542,321
First Term [Member]
Product Information [Line Items]
Deposits	$ 303,954		$ 303,954
Debt Instrument, Interest Rate, Stated Percentage	1.30%		1.30%
Second Term [Member]
Product Information [Line Items]
Deposits	$ 731,767		$ 731,767
Debt Instrument, Interest Rate, Stated Percentage	3.00%		3.00%
Minimum interest penalty	$ 150		$ 150
Third Term [Member]
Product Information [Line Items]
Deposits	$ 1,019,197		$ 1,019,197
Debt Instrument, Interest Rate, Stated Percentage	3.85%		3.85%
Minimum interest penalty	$ 150		$ 150
Fourth Term [Member]
Product Information [Line Items]
Deposits	$ 310,695		$ 310,695
Debt Instrument, Interest Rate, Stated Percentage	3.85%		3.85%

v3.24.2.u1

SUMMARY OF RIGHT-OF-USE ASSET AND LEASE LIABILITY (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Leases
Right of use assets, beginning balance	$ 115,293	$ 167,222
Depreciation	(13,694)	(51,929)
Right of use assets, early termination of lease	(101,599)
Right of use assets, ending balance		115,293
Lease liability, beginning balance	115,293	167,222
Lease interest expense	1,186	6,151
Payments	(14,880)	(58,080)
Lease liability, early termination of lease	(101,599)
Lease liability, ending balance		$ 115,293

v3.24.2.u1

LEASES (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Leases
Operating leases discount rate	5.50%
Payment of penalty	$ 35,910
Security deposit	5,440
Loss on terminating lease	$ 41,350

v3.24.2.u1

SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Receivables [Abstract]
Accounts receivable	$ 9,081,600	$ 10,133,249
Allowances for expected credit loss	(288,904)	(290,193)
Total accounts receivable	$ 8,792,696	$ 9,843,056

v3.24.2.u1

SCHEDULE OF INVENTORY (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Completed goods	$ 2,754,018	$ 2,682,158
Raw materials and supplies	7,579,940	8,452,731
Total inventory	$ 10,333,958	$ 11,134,889

v3.24.2.u1

SCHEDULE OF PROPERTY, EQUIPMENT AND LEASEHOLDS (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Cost	$ 24,965,719	$ 23,365,705
Accumulated Depreciation	10,988,986	10,193,918
Property, plant and equipment, net, total	13,976,733	13,171,787
Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Cost	12,797,310	12,341,605
Accumulated Depreciation	4,208,582	3,896,887
Property, plant and equipment, net, total	8,588,728	8,444,718
Automobiles [Member]
Property, Plant and Equipment [Line Items]
Cost	196,255	196,255
Accumulated Depreciation	154,424	140,040
Property, plant and equipment, net, total	41,831	56,215
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Cost	122,083	177,623
Accumulated Depreciation	113,956	165,048
Property, plant and equipment, net, total	8,127	12,575
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Cost	11,220,799	10,017,466
Accumulated Depreciation	6,323,344	5,799,779
Property, plant and equipment, net, total	4,897,455	4,217,687
Land [Member]
Property, Plant and Equipment [Line Items]
Cost	440,592	440,592
Accumulated Depreciation
Property, plant and equipment, net, total	440,592	440,592
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Cost	88,872	88,872
Accumulated Depreciation	88,872	88,872
Property, plant and equipment, net, total
Developed Technology Rights [Member]
Property, Plant and Equipment [Line Items]
Cost	99,808	103,292
Accumulated Depreciation	99,808	103,292
Property, plant and equipment, net, total

v3.24.2.u1

PROPERTY, EQUIPMENT AND LEASEHOLDS (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation	$ 859,524	$ 671,574
Accrued liability for funds received	$ 423,123

v3.24.2.u1

SCHEDULE OF GOODWILL AND INDEFINITE LIVED INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Dec. 31, 2023
Goodwill	$ 2,534,275		$ 2,534,275	$ 2,534,275
Indefinite lived intangible assets	770,000		770,000	770,000
Amortization	(80,000)	$ (80,000)
ENP Investments Limited Liability Corporation (LLC) [Member]
Definite lived intangible assets, beginning balance			1,510,000	1,670,000
Amortization			(80,000)	(160,000)
Definite lived intangible assets, ending balance	$ 1,430,000		$ 1,430,000	$ 1,510,000

v3.24.2.u1

SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE (Details) - Finite-Lived Intangible Assets [Member]	Jun. 30, 2024 USD ($)
Impairment Effects on Earnings Per Share [Line Items]
2024	$ 160,000
2025	160,000
2026	160,000
2027	160,000
2028	$ 160,000

v3.24.2.u1

GOODWILL AND INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization	$ 80,000	$ 80,000

v3.24.2.u1

SCHEDULE OF LONG TERM DEPOSITS (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Long Term Deposits
Long term deposits	$ 2,521,905	$ 824,254

v3.24.2.u1

SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details)	6 Months Ended
	Jun. 30, 2024 USD ($)
Equity Method Investments and Joint Ventures [Abstract]
Purchase consideration	$ 506,659
Cash	7,330
Building	3,750,000
Land	150,000
Deferred tax liability	(174,582)
Long term debt	(2,849,500)
Total identifiable net assets:	883,248
Excess of assets acquired over consideration	376,589
Less investment eliminated upon consolidation	(41,538)
Gain on acquisition of ENP Peru	$ 335,051

v3.24.2.u1

SCHEDULE OF EQUITY METHOD INVESTMENT (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Balance, Beginning	$ 6,033,960
Investment eliminated upon consolidation	(41,538)
Balance, Ending	5,904,624	$ 6,033,960
ENP Peru Investments LLC [Member]
Balance, Beginning		22,642
Return of equity		(8,750)
Gain in equity method investment		27,646
Investment eliminated upon consolidation		(41,538)
Balance, Ending
Florida Based LLC [Member]
Balance, Beginning	4,063,960	3,758,895
Return of equity	(427,000)	(200,000)
Gain in equity method investment	297,664	505,065
Balance, Ending	$ 3,934,624	$ 4,063,960

v3.24.2.u1

SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]
Net sales	$ 7,159,499	$ 8,231,298
Gross profit	2,044,578	2,435,858
Net income	$ 595,329	$ 653,407

v3.24.2.u1

INVESTMENTS (Details Narrative) - USD ($)	1 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2022	Dec. 31, 2020	Dec. 31, 2018	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2021	Dec. 31, 2023	Oct. 31, 2023	Apr. 30, 2023	Jan. 31, 2019	Dec. 31, 2016
Schedule of Equity Method Investments [Line Items]
Business Combination, Consideration Transferred				$ 506,659
Cash				6,843,825			$ 5,017,583
Investment								$ 200,000
Debt maturity						2023-12
Payments to acquire investments					$ 470,000
Applied Holding Corp [Member]
Schedule of Equity Method Investments [Line Items]
Investment			$ 200,000
Trio Opportunity Corp [Member]
Schedule of Equity Method Investments [Line Items]
Investment			$ 500,000						$ 470,000
Trio Opportunity Corp [Member] | Common Class B [Member]
Schedule of Equity Method Investments [Line Items]
Common stock issued, shares			97,000
Share price			$ 10.00
Florida Based LLC [Member]
Schedule of Equity Method Investments [Line Items]
Sales				4,812,619	$ 5,091,764
Accounts receivable related parties				$ 1,390,812			$ 2,073,813
Lygos Inc [Member]
Schedule of Equity Method Investments [Line Items]
Investment						$ 1,000,000
Payments to acquire investments		$ 500,000				$ 500,000
ENP Peru [Member]
Schedule of Equity Method Investments [Line Items]
Business Combination, Consideration Transferred	$ 506,659
Cash	247,659
Mortgage	$ 259,000
ENP Investments LLC [Member]
Schedule of Equity Method Investments [Line Items]
Subsidiary, Ownership Percentage, Noncontrolling Owner				35.00%
ENP Peru Investments LLC [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage											50.00%
Nano Chem [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage											41.67%
[custom:AdditionalEquityMethodInvestmentOwnershipPercentage-0]	50.00%
ENP Investments, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage											8.33%
ENP Investments LLC [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage				8.33%	8.33%
Florida Based LLC [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage										50.00%

v3.24.2.u1

SHORT-TERM LINE OF CREDIT (Details Narrative) - USD ($)	1 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Line of Credit Facility [Line Items]
Line of credit	$ 619,844		$ 1,810,479
Stock Yard And Bank One [Member] | Noncontrolling Interest [Member]
Line of Credit Facility [Line Items]
Loan guaranteed rate	35.00%
Line of credit	$ 1,575,000
Stock Yard And Bank One [Member] | New Agreement [Member] | NanoChem Solutions Inc [Member]
Line of Credit Facility [Line Items]
Loan guaranteed rate	65.00%
Line of credit	$ 2,925,000
Short term borrowings			$ 1,810,479
Stock Yard And Bank One [Member] | Midland States Bank [Member] | New Agreement [Member]
Line of Credit Facility [Line Items]
Aggregate amount of revolving line of credit	$ 4,500,000
Percentage of domestic accounts receivable of inventory	50.00%
Debt face amount	$ 2,000,000
Interest rate	8.50%		8.50%
Stock Bank [Member] | New Agreement [Member] | NanoChem Solutions Inc [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Short term borrowings	$ 619,844
Stock Bank [Member] | Midland States Bank [Member] | New Agreement [Member]
Line of Credit Facility [Line Items]
Aggregate amount of revolving line of credit		$ 4,000,000
Debt face amount		$ 2,000,000
Interest rate	8.50%		8.50%
Eligible percentage of domestic accounts receivable		50.00%

v3.24.2.u1

SCHEDULE OF LOAN COVENANTS (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
Balance, beginning of period	$ 8,114,936	$ 6,154,077
Plus: Proceeds from loans	524,812	2,686,682
Less: Payments on loan	(373,615)	(725,823)
Balance, end of period	$ 8,266,133	$ 8,114,936

v3.24.2.u1

SCHEDULE OF OUTSTANDING BALANCE LOAN (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]
Long-term debt	$ 8,266,133	$ 8,114,936	$ 6,154,077
Less: current portion	(2,163,602)	(1,281,632)
Long-term debt non current	6,102,531	6,833,304
Stock Yards Bank and Trust [Member]
Defined Benefit Plan Disclosure [Line Items]
Long-term debt	393,488	399,269
Stock Yards Bank and Trust One [Member]
Defined Benefit Plan Disclosure [Line Items]
Long-term debt	678,987	1,004,748
Stock Yards Bank and Trust Two [Member]
Defined Benefit Plan Disclosure [Line Items]
Long-term debt	2,698,241	2,737,232
Stock Yards Bank and Trust Three [Member]
Defined Benefit Plan Disclosure [Line Items]
Long-term debt	247,125	250,207
Stock Yards Bank and Trust Four [Member]
Defined Benefit Plan Disclosure [Line Items]
Long-term debt	2,000,000	1,475,188
Stock Yards Bank and Trust Five [Member]
Defined Benefit Plan Disclosure [Line Items]
Long-term debt	$ 2,248,292	$ 2,248,292

v3.24.2.u1

LONG TERM DEBT (Details Narrative) - USD ($)	1 Months Ended		6 Months Ended
	Jun. 30, 2022	Jan. 31, 2020	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Stock Yards Bank and Trust [Member] | ENP Realty LLC [Member]
Short-Term Debt [Line Items]
Debt instrument term	3 years	10 years
Debt instrument interest rate stated percentage		4.35%
Term Loan [Member] | Nano Chem [Member]
Short-Term Debt [Line Items]
Debt instrument face amount						$ 2,000,000
Debt instrument interest rate stated percentage						6.50%
Interest expense debt			$ 50,255	$ 33,139
Debt Long term debt amount			2,000,000		$ 1,475,188
Term Loan [Member] | Mendota [Member]
Short-Term Debt [Line Items]
Debt instrument face amount				3,240,000
Interest expense debt			93,257
Debt Long term debt amount			2,248,292		2,248,292
Term Loan [Member] | Midland Bank [Member] | ENP Mendota, LLC [Member]
Short-Term Debt [Line Items]
Debt instrument face amount		$ 450,000
Debt instrument term		5 years
Debt instrument interest rate stated percentage		4.50%
Interest expense debt			8,713	8,975
Debt Long term debt amount			393,488		399,269
Term Loan [Member] | Midland Bank [Member] | Nano Chem [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 1,935,000
Debt instrument interest rate stated percentage	4.90%
Interest expense debt			21,681	37,280
Debt Long term debt amount			678,987		1,004,748
Term Loan [Member] | Midland Bank [Member] | ENP Peru Investments [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 259,000
Debt instrument term	10 years
Debt instrument interest rate stated percentage	5.40%
Interest expense debt			6,834	6,960
Debt Long term debt amount			247,125		250,207
Purchase of fund interest rate percentage	65.00%
Term Loan [Member] | Midland Bank [Member] | ENP Peru One [Member]
Short-Term Debt [Line Items]
Debt instrument face amount		$ 3,000,000
Debt instrument term		10 years
Debt instrument interest rate stated percentage		4.35%
Debt Long term debt amount			2,698,241		$ 2,737,232
First mortgage	$ 2,849,500
Interest expense			$ 60,173	$ 61,251

v3.24.2.u1

SCHEDULE OF STOCK OPTION ACTIVITIES (Details) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares, Beginning Balance	1,114,000	1,686,000
Weighted average exercise price, Beginning Balance	$ 3.13	$ 3.26
Number of shares, Cancelled or expired	(108,000)	(564,000)
Weighted average exercise price, Cancelled or expired	$ 2.09	$ 3.55
Number of shares, Exercised	(15,000)	(8,000)
Exercise price per share, Exercised	$ 1.75	$ 1.70
Weighted average exercise price, Exercised	$ 1.75	$ 1.70
Number of shares, Granted	950,000
Exercise price per share, Granted	$ 2.00
Weighted average exercise price, Granted	$ 2.00
Number of shares, Ending Balance	1,941,000	1,114,000
Weighted average exercise price, Ending Balance	$ 2.65	$ 3.13
Number of shares Exercisable, Ending Balance	810,000
Weighted average exercise price, Exercisable, Ending Balance	$ 2.86
Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Exercise price per share, Beginning Balance	1.75	1.70
Exercise price per share, Cancelled or expired	1.75	3.46
Exercise price per share, Ending Balance	2.00	1.75
Exercise price per share Exercisable, Ending Balance	2.00
Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Exercise price per share, Beginning Balance	3.61	4.13
Exercise price per share, Cancelled or expired	3.61	4.13
Exercise price per share, Ending Balance	3.61	$ 3.61
Exercise price per share Exercisable, Ending Balance	$ 3.61

v3.24.2.u1

SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTIONS (Details)	6 Months Ended
	Jun. 30, 2024 $ / shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected life - years	3 years
Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Interest rate	3.893%
Volatility	59.72%
Weighted average fair value of options granted	$ 0.71
Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Interest rate	4.22%
Volatility	60.35%
Weighted average fair value of options granted	$ 0.79

v3.24.2.u1

STOCK OPTIONS (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Options granted percentage	100.00%
Vested term	5 years
Options maximum granted term	5 years
Weighted-average remaining contractual life	3 years 6 months 18 days
Stock options granted	950,000
Stock options exercised	15,000		8,000
Stock vested compensation non vested	$ 696,201
Weighted average period expected to be recognized	2 years 14 days
Canada Revenue Agency [Member]
Aggregate intrinsic value of vested options
Aggregate intrinsic value of vested options exercised	$ 720	$ 11,520
Consultants [Member]
Stock options granted	56,000
Stock option expense	$ 19,880
Stock options exercised
Employees [Member]
Stock options granted	894,000
Stock option expense	$ 271,921
Additional expenses due to options granted	$ 87,459	$ 43,730
Stock options exercised	15,000	8,000

v3.24.2.u1

CAPITAL STOCK (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock options exercised			15,000		8,000
Dividends per share	$ 0.10	$ 0.05	$ 0.10	$ 0.05
Dividend paid	$ 1,255,053	$ 626,777	$ 1,255,053
Consultant for services, shares				1,272
Consultant for services, value				$ 4,070
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock options exercised			15,000	8,000

v3.24.2.u1

SCHEDULE OF DISTRIBUTIONS (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Non-controlling interests, Balance			$ 3,065,716
Distribution	$ (365,644)	$ (387,696)
Non-controlling interest share of income	142,637	$ 184,862	201,620	$ 264,987
Non-controlling interests, Balance	2,901,692		2,901,692		$ 3,065,716
ENP Investments, LLC [Member] | Ownership Interest Purchase Agreement [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Non-controlling interests, Balance			2,901,199	$ 2,605,034	2,605,034
Distribution			(365,644)		(719,439)
Non-controlling interest share of income			254,871		1,015,604
Non-controlling interests, Balance	$ 2,790,426		$ 2,790,426		$ 2,901,199

v3.24.2.u1

SCHEDULE OF NON CONTROLLING INTEREST RELATED TO ACQUISITION (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Non-controlling interests, Balance	$ 3,065,716
Non-controlling interests, Balance	2,901,692	$ 3,065,716
317 Mendota LLC [Member] | Ownership Interest Purchase Agreement [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Non-controlling interests, Balance	164,517
Non-controlling interests, Acquisition		200,000
Non-controlling interest share of income	(53,251)	(35,483)
Non-controlling interests, Balance	$ 111,266	$ 164,517

v3.24.2.u1

NON-CONTROLLING INTERESTS (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Partnership distribution to non-controlling interest	$ 365,644	$ 387,696
Accounts receivable	$ 8,792,696		$ 9,843,056
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%
Related party owner ship percentage	35.00%
Partnership distribution to non-controlling interest	$ 3,591,601
Sales	2,426,145	$ 2,203,761
Accounts receivable	$ 350,907		$ 4,225,028
317 Mendota LLC [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Subsidiary company ownership interest rate	80.00%
Related party owner ship percentage	20.00%

v3.24.2.u1

SCHEDULE OF REPORTABLE SEGMENTS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue from External Customer [Line Items]
Revenue	$ 10,528,739	$ 10,331,291	$ 19,753,611	$ 20,178,808
Depreciation and amortization			939,524	751,574
Income tax expense	558,251	354,372	822,429	654,149
Segment profit (loss)	1,289,796	809,865	1,747,022	1,694,234
Expenditures for segment assets			(1,663,697)	(3,784,193)
Segment [Member]
Revenue from External Customer [Line Items]
Revenue	10,528,739	10,331,291	19,753,611	20,178,808
Interest expense	157,131	115,498	332,397	250,368
Depreciation and amortization	516,855	386,390	939,524	751,574
Income tax expense	558,251	354,372	822,429	654,149
Segment profit (loss)	1,289,796	809,865	1,747,021	1,694,234
Segment assets	56,344,896	52,801,913	56,344,896	52,801,913
Expenditures for segment assets	(1,186,346)	(3,571,133)	(1,663,696)	(3,784,193)
EWCP [Member] | Segment [Member]
Revenue from External Customer [Line Items]
Revenue	167,496	220,602	209,104	301,262
Interest expense
Depreciation and amortization	3,828	4,440	7,711	8,719
Income tax expense	(23,040)	11,657	11,900	12,571
Segment profit (loss)	(198,936)	(41,262)	(180,396)	(192,990)
Segment assets	3,366,670	3,257,019	3,366,670	3,257,019
Expenditures for segment assets
TPA [Member] | Segment [Member]
Revenue from External Customer [Line Items]
Revenue	10,361,243	10,100,689	19,544,507	19,877,546
Interest expense	157,131	115,498	332,397	250,368
Depreciation and amortization	513,027	381,951	931,813	742,855
Income tax expense	581,291	342,715	810,529	641,578
Segment profit (loss)	1,488,732	851,127	1,927,417	1,887,224
Segment assets	52,978,226	49,544,894	52,978,226	49,544,894
Expenditures for segment assets	$ (1,186,346)	$ (3,571,133)	$ (1,663,696)	$ (3,784,193)

v3.24.2.u1

SCHEDULE OF REVENUE GENERATED IN UNITED STATES AND CANADA (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 10,528,739	$ 10,331,291	$ 19,753,611	$ 20,178,808
CANADA
Revenues from External Customers and Long-Lived Assets [Line Items]
Total			223,083	313,058
United States and Abroad [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total			$ 19,530,528	$ 19,865,750

v3.24.2.u1

SCHEDULE OF LONG-LIVED ASSETS ARE LOCATED IN CANADA AND UNITED STATE (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 18,711,008	$ 18,101,355
CANADA
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	130,116	142,577
UNITED STATES
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 18,580,892	$ 17,958,778

v3.24.2.u1

SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY (Details Narrative)	6 Months Ended
	Jun. 30, 2024 USD ($) Segments	Jun. 30, 2023 USD ($)
Revenue, Major Customer [Line Items]
Number of operating segments | Segments	2
Accounts Receivable [Member] | Three Customers [Member]
Revenue, Major Customer [Line Items]
Accounts receivable, after allowance for credit loss | $	$ 9,843,563	$ 9,276,058
Stock option exercise percent	50.00%	46.00%

v3.24.2.u1

SUBSEQUENT EVENTS (Details Narrative) - USD ($)		1 Months Ended	6 Months Ended
	Aug. 09, 2024	Jul. 31, 2024	Jun. 30, 2024	Jun. 30, 2023
Subsequent Event [Line Items]
Granted stock option, shares			950,000
Employees [Member]
Subsequent Event [Line Items]
Granted stock option, shares			894,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Proceeds from sale of investments	$ 2,000,000
Proceeds from sale of investments	800,000
Selling price	$ 6,000,000
Subsequent Event [Member] | Employees [Member]
Subsequent Event [Line Items]
Granted stock option, shares		50,000

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