Form 10-Q - Quarterly report [Sections 13 or 15(d)]

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 September 30, 2023

☐	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		12,435,532		November 14, 2023

FORM 10-Q

Index

PART I.	FINANCIAL INFORMATION		3

Item 1.	Financial Statements.		3

	(a)	Unaudited Condensed Interim Consolidated Balance Sheets at September 30, 2023 and December 31, 2022.	3

	(b)	Unaudited Condensed Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three Months Ended September 30, 2023 and 2022.	4

	(c)	Unaudited Condensed Interim Consolidated Statements of Operations and Comprehensive Income for the Nine Months Ended September 30, 2023 and 2022.	5

	(d)	Unaudited Condensed Interim Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2023 and 2022.	6

	(e)	Unaudited Condensed Interim Consolidated Statements of Stockholders’ Equity for the Three and Nine Months Ended September 30, 2023 and 2022.	7

	(e)	Notes to Unaudited Condensed Interim Consolidated Financial Statements for the Period Ended September 30, 2023.	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operation.		26

Item 4.	Controls and Procedures.		29

PART II.	OTHER INFORMATION		30

Item 6.	Exhibits.		30

SIGNATURES			31

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, 2022.

PART I FINANCIAL INFORMATION

Item 1. Financial Statements.

FLEXIBLE SOLUTIONS INTERNATIONAL, INC.
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS

(U.S. Dollars)

	September 30, 2023			December 31, 2022
	(Unaudited)
Assets
Current
Cash and cash equivalents	$	8,943,972		$	6,115,099
Term deposits		1,010,241			700,000
Accounts receivable, net (Note 4)		6,914,321			9,449,857
Inventories (Note 5)		9,440,152			14,419,430
Prepaid expenses		1,940,601			310,297
Total current assets		28,249,287			30,994,683
Property, equipment and leaseholds, net (Note 6)		12,940,325			9,709,288
Right of use assets (Note 3)		128,484			167,222
Intangible assets (Note 8)		2,320,000			2,440,000
Long term deposits (Note 9)		396,154			8,540
Investments (Note 10)		6,251,818			5,458,895
Goodwill (Note 8)		2,534,275			2,534,275
Deferred tax asset		274,289			274,289
Total Assets	$	53,094,632		$	51,587,192

Liabilities
Current
Accounts payable	$	2,048,419		$	873,904
Accrued liabilities		811,180			959,856
Deferred revenue		18,220			387,763
Income taxes payable		5,240,892			4,486,350
Short term line of credit (Note 11)		-			2,818,591
Current portion of lease liability (Note 3)		59,160			58,080
Current portion of long term debt (Note 12)		830,760			717,612
Total current liabilities		9,008,631			10,302,156
Lease liability (Note 3)		69,324			109,142
Deferred income tax liability		500,459			500,459
Long term debt (Note 12)		7,029,461			5,436,465
Total Liabilities		16,607,875			16,348,222

Stockholders’ Equity
Capital stock (Note 14)
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:
12,435,532 (December 31, 2022: 12,426,260) common shares		12,436			12,426
Common stock, value		12,436			12,426

Capital in excess of par value		18,079,409			17,523,345
Other comprehensive loss		(605,465	)		(805,799	)
Accumulated earnings		16,253,260			15,903,964
Total stockholders’ equity – controlling interest		33,739,640			32,633,936
Non-controlling interests (Note 15)		2,747,117			2,605,034
Total Stockholders’ Equity		36,486,757			35,238,970
Total Liabilities and Stockholders’ Equity	$	53,094,632		$	51,587,192

— 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)

		2023			2022
	Three Months Ended September 30,
	2023			2022
Sales	$	8,720,621		$	11,685,107
Cost of sales		7,248,266			8,502,551
Gross profit		1,472,355			3,182,556

Operating Expenses
Wages		545,255			587,935
Administrative salaries and benefits		392,051			220,406
Insurance		218,723			185,371
Office and miscellaneous		181,349			111,832
Interest expense		119,599			80,609
Professional fees		97,057			131,602
Travel		60,796			27,659
Consulting		57,941			85,477
Research		52,834			19,088
Advertising and promotion		50,909			32,705
Lease expense		28,775			30,284
Investor relations and transfer agent fee		26,626			34,440
Telecommunications		15,640			10,879
Utilities		12,249			5,451
Shipping		6,032			6,042
Currency exchange		(6,808	)		(20,983	)
Commissions		-			529
Total operating expenses		1,859,028			1,549,326

Operating income (loss)		(386,673	)		1,633,230

Gain on acquisition of ENP Peru		-			-
Gain (loss) on investment		97,254			(451	)
Interest income		5,380			37,213
Income (loss) before income tax		(284,039	)		1,669,992

Income taxes
Income tax expense		(219,712	)		(349,181	)
Net income (loss) for the period including non-controlling interests		(503,751	)		1,320,811
Less: Net income attributable to non-controlling interests		(214,410	)		(212,680	)
Net income (loss) attributable to controlling interest	$	(718,161	)	$	1,108,131
Income (loss) per share (basic and diluted)	$	(0.06	)	$	0.09

Weighted average number of common shares (basic)		12,435,532			12,384,746
Weighted average number of common shares (diluted)		12,496,748			12,417,026
Other comprehensive income (loss):
Net income (loss)		(503,751	)		1,320,811
Unrealized income (loss) on foreign currency translations		140,928			(70,167	)
Total comprehensive income (loss)	$	(362,823	)	$	1,250,644
Comprehensive income – non-controlling interest		(214,410	)		(212,680	)
Comprehensive income (loss) attributable to Flexible Solutions International Inc.	$	(577,233	)	$	1,037,964

— 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)

		2023			2022
	Nine Months Ended September 30,
	2023			2022
Sales	$	28,899,429		$	33,633,530
Cost of sales		21,303,229			22,777,467
Gross profit		7,596,200			10,856,063

Operating Expenses
Wages		2,004,568			1,890,727
Administrative salaries and benefits		1,179,370			681,017
Insurance		648,698			508,056
Interest expense		369,967			190,366
Office and miscellaneous		355,139			271,144
Professional fees		239,356			597,505
Consulting		190,171			248,168
Travel		187,060			120,185
Advertising and promotion		161,318			124,910
Investor relations and transfer agent fee		149,511			100,317
Research		90,169			63,345
Lease expense		81,715			124,123
Telecommunications		38,650			31,438
Utilities		25,223			20,635
Shipping		15,798			18,943
Currency exchange		9,693			(9,351	)
Commissions		2,985			61,459
Total operating expenses		5,749,391			5,042,987

Operating income		1,846,809			5,813,076
Gain on acquisition of ENP Peru		-			335,051
Gain on investment		423,957			213,865
Interest income		58,565			69,354
Income before income tax		2,329,331			6,431,346

Income taxes
Income tax expense		(873,861	)		(1,604,429	)
Net income for the period including non-controlling interests		1,455,470			4,826,917
Less: Net income attributable to non-controlling interests		(479,397	)		(523,272	)
Net income attributable to controlling interest	$	976,073		$	4,303,645
Income per share (basic)	$	0.08		$	0.35
Income per share (diluted)	$	0.08		$	0.34
Weighted average number of common shares (basic)		12,434,669			12,376,818
Weighted average number of common shares (diluted)		12,517,064			12,479,769
Other comprehensive income:
Net income		1,455,470			4,826,917
Unrealized gain (loss) on foreign currency translations		200,334			(29,531	)
Total comprehensive income	$	1,655,804		$	4,797,386
Comprehensive income – non-controlling interest		(479,397	)		(523,272	)
Comprehensive income attributable to Flexible Solutions International Inc.	$	1,176,407		$	4,274,114

— See Notes to Unaudited Condensed Interim Consolidated Financial Statements —

FLEXIBLE SOLUTIONS INTERNATIONAL, INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. Dollars — Unaudited)

		2023			2022
	Nine Months Ended September 30,
	2023			2022

Operating activities
Net income for the period including non-controlling interests	$	1,455,470		$	4,826,917
Adjustments to reconcile net income to net cash:
Stock based compensation		542,474			164,659
Depreciation and amortization		1,215,171			811,877
Lease right of use depreciation		38,738			37,748
Lease right of use financing		4,822			6,687
Gain on investment		(423,957	)		(213,865	)
Gain on ENP Peru		-			(335,051	)

Changes in non-cash working capital items:
(Increase) decrease in accounts receivable		2,535,536			(2,638,030	)
(Increase) decrease in inventory		4,520,141			(4,780,381	)
Increase in prepaid expenses		(1,630,304	)		(50,749	)
Increase (decrease) in accounts payable and accrued liabilities		1,484,976			(22,484	)
Increase in income taxes payable		754,542			1,604,429
Increase (decrease) in deferred revenue		(369,543	)		(70,295	)

Cash provided by (used in) operating activities		10,128,066			(658,538	)

Investing activities
Non-controlling interest of 317 Mendota		200,000			-
Long term deposits		(387,614	)		-
Additional investment in Trio		(470,000	)		-
Proceeds of equity investment		101,034			108,750
Net purchase of property, equipment and leaseholds		(4,326,208	)		(647,232	)
Acquisition of ENP Peru		-			(499,329	)

Cash used in investing activities		(4,882,788	)		(1,037,811	)

Financing activities
Repayment of short term line of credit		(2,818,591	)		(276,079	)
Repayment of long term debt		(542,148	)		(2,117,928	)
Loan proceeds received		2,248,292			2,194,000
Dividends paid		(626,777	)		-
Lease payments		(43,560	)		(44,435	)
Distributions to non-controlling interests		(537,314	)		(499,789	)
Proceeds from issuance of common stock		13,600			74,020

Cash used in financing activities		(2,306,498	)		(670,211	)

Effect of exchange rate changes on cash		200,334			(29,531	)

Inflow (outflow) of cash		3,139,114			(2,396,091	)
Cash and cash equivalents, beginning		6,815,099			6,735,574

Cash and cash equivalents, ending	$	9,954,213		$	4,339,483

Cash and cash equivalents consists of:
Cash	$	8,943,972		$	4,339,483
Term Deposits		1,010,241			-
Cash resources	$	9,954,213		$	4,339,483

Supplemental disclosure of cash flow information:
Income taxes paid	$	119,319		$	-
Interest paid	$	369,967		$	190,366
Inventory additions in accounts payable	$	1,252,540		$	422,340

— 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
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
Translation adjustment		—		—		—		—			140,928			140,928			—			140,928
Net income		—		—		—		(718,161	)		—			(718,161	)		214,410			(503,751	)
Distributions to noncontrolling interests		—		—		—		—			—			—			(149,618	)		(149,618	)
Stock-based compensation		—		—		175,948		—			—			175,948			—			175,948
Balance September 30, 2023		12,435,532	$	12,436	$	18,079,409	$	16,253,260		$	(605,465	)	$	33,739,640		$	2,747,117		$	36,486,757

— 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		Capital Stock		Capital in Excess of Par Value		Accumulated Earnings		Other Comprehensive Loss			Total			Non- Controlling Interests			Total Stockholders’ Equity

Balance December 31, 2021		12,355,246	$	12,355	$	16,983,648	$	8,882,360	$	(775,730	)	$	25,102,633		$	2,602,843		$	27,705,476
Translation adjustment		—		—		—		—		42,543			42,543			—			42,543
Net income		—		—		—		1,533,059		—			1,533,059			144,477			1,677,536
Common stock issued		22,500		23		56,917		—		—			56,940			—			56,940
Distributions to non-controlling interests		—		—		—		—		—			—			(265,922	)		(265,922	)
Stock-based compensation		—		—		54,271		—		—			54,271			—			54,271

Balance March 31, 2022		12,377,746	$	12,378	$	17,094,836	$	10,415,419	$	(733,187	)	$	26,789,446		$	2,481,398		$	29,270,844
Translation adjustment		—		—		—		—		(1,907	)		(1,907	)		—			(1,907	)
Net income		—		—		—		1,662,455		—			1,662,455			166,115			1,828,570
Common stock issued		7,000		7		17,073		—		—			17,080			—			17,080
Distributions to noncontrolling interests		—		—		—		—		—			—			(116,934	)		(116,934	)
Stock-based compensation		—		—		55,194		—		—			55,194			—			55,194
Balance June 30, 2022		12,384,746	$	12,385	$	17,167,103	$	12,077,874	$	(735,094	)	$	28,522,268		$	2,530,579		$	31,052,847
Balance		12,384,746	$	12,385	$	17,167,103	$	12,077,874	$	(735,094	)	$	28,522,268		$	2,530,579		$	31,052,847
Translation adjustment		—		—		—		—		(70,167	)		(70,167	)		—			(70,167	)
Net income		—		—		—		1,108,131		—			1,108,131			212,680			1,320,811
Distributions to non-controlling interests		—		—		—		—		—			—			(116,933	)		(116,933	)
Stock-based compensation		—		—		55,194		—		—			55,194			—			55,194
Balance September 30, 2022		12,384,746	$	12,385	$	17,222,297	$	13,186,005	$	(805,261	)	$	29,615,426		$	2,626,326		$	32,241,752
Balance		12,384,746	$	12,385	$	17,222,297	$	13,186,005	$	(805,261	)	$	29,615,426		$	2,626,326		$	32,241,752

— See Notes to Unaudited Condensed Interim Consolidated Financial Statements —

FLEXIBLE SOLUTIONS INTERNATIONAL, INC.
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the Period Ended September 30, 2023

(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 100% 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 had no operations until June 30, 1998. In 2019, the Company redomiciled into Alberta, Canada.

In 2022, NanoChem purchased an additional 50% in ENP Peru, increasing its share to 91.67%. ENP Investments owns the remaining 8.33%, of which the Company has a 65% interest. In 2023, NanoChem purchased the remaining 8.33% of shares to become sole owner. ENP Peru was previously accounted for under the equity method however, it is now consolidated into the financial statements from the date control was obtained.

In June 2023, the Company purchased an 80% interest in 317 Mendota, a newly incorporated company established to purchase a large manufacturing building. ENP Investments will occupy part of this building, freeing up more space in the building owned by ENP Peru for NanoChem. The Company intends to rent the remainder of the space to suitable tenants. The remaining 20% interest is held by unrelated parties.

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.

The condensed interim consolidated financial statements of the Company have been prepared by management in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information, applied on a basis consistent for all periods. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for a complete set of financial statements. These consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission on March 31, 2023. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal 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.

(b) Term Deposits.

The deposits maintained by the Company with banks comprises term deposits. The Company has two term deposits, the first for $700,000 that matures in December 2023 and pays interest at a rate of 8.25%. If withdrawn before maturity, the greater of the loss of accrued interest or $150, plus 1% of the principal shall be levied. The second term deposit is for $300,000 and matures in February 2024. Paying 1.3% interest, it can be withdrawn by the Company at any point without prior notice or penalty.

The Company has three major classes of inventory: completed goods, work in progress and raw materials and supplies. In all classes inventories are stated at the lower of cost and net realizable value. 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 (2023 - $381,740; 2022 - $341,918). Shipping and handling costs incurred are included in cost of goods sold (2023 - $771,772; 2022 - $783,917).

(d) Allowance for Doubtful Accounts.

The Company provides an allowance for doubtful accounts when management estimates collectability to be uncertain. Accounts receivable are continually reviewed to determine which, if any, accounts are doubtful of collection. In making the determination of the appropriate allowance amount, the Company considers current economic and industry conditions, relationships with each significant customer, overall customer credit-worthiness and historical experience.

(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

	Computer hardware		30% Declining balance
	Manufacturing equipment		20% Declining balance
	Office equipment		20% Declining balance
	Boat		20% Declining balance
	Building and improvements		10% Declining balance
	Trailer		30% Declining balance
	Automobiles		Straight-line over 5 years
	Patents		Straight-line over 17 years
	Technology		Straight-line over 10 years
	Leasehold improvements		Straight-line over lease term
	Customer relationships		Straight-line over 15 years
	Software		Straight-line over 3 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 year. Translation adjustments arising on conversion of the Company’s financial statements from the subsidiary’s functional currency, Canadian dollars, into the reporting currency, U.S. dollars, are excluded from the determination of income (loss) and are disclosed as other comprehensive income in the consolidated statements of income and comprehensive income.

Foreign exchange gains and losses relating to transactions not denominated in the applicable local currency are included in operating income (loss) if realized during the year and in comprehensive income (loss) if they remain unrealized at the end of the year.

(h) Revenue Recognition.

The Company generates revenue primarily from energy and water conservation products and biodegradable polymers, as further discussed in Note 16.

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 (loss) per share have been excluded from the calculation of diluted weighted average shares outstanding for the three and nine months ended September 30, 2023 and 2022.

(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 valuation 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 and cash equivalents, term deposits, accounts receivable, accounts payable, accrued liabilities and the short term line of credit for all periods presented approximate their respective carrying amounts due to the short term nature of these financial instruments.

The fair value of the long term debt 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, 2023, 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 $14,020,837 (49%) for the nine months ended September 30, 2023 (2022 - $19,050,848 or 57%) and $5,811,847 (67%) for the three months ended September 30, 2023 (2022 - $7,452,860 or 64%). Accounts receivable for the Company’s three primary customers totaled $4,688,642 (68%) at September 30, 2023 (December 31, 2022 - $6,124,424 or 65%).

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 exchange and interest rate risk to the extent that market value rate fluctuations materially differ from financial assets and liabilities, subject to fixed long-term rates.

In order to manage its exposure to foreign exchange risks, the Company is closely monitoring the fluctuations in the foreign currency exchange rates and the impact on the value of cash, accounts receivable, and accounts payable and accrued liabilities. The Company has not hedged its exposure to currency fluctuations.

The Company is exposed to interest rate risk to the extent that the fair value or future cash flows for financial liabilities will fluctuate as a result of changes in market interest rates. The Company is exposed to interest rate risk on its long-term debt.

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

(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, 2022. 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 nine months ended September 30, 2023.

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.

3. LEASES

Accounting and reporting guidance for leases requires that leases be evaluated and classified as either operating or finance leases by the lessee and as either operating, sales-type or direct financing leases by the lessor. For leases with terms greater than 12 months, the Company records the related right-of-use (“ROU”) asset and lease obligation at the present value of lease payments over the term. Leases may include fixed rental escalation clauses, renewal options and / or termination options that are factored into the determination of lease payments when appropriate. The Company’s operating leases are included in ROU assets, lease liabilities-current portion and lease liability-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%.

The table below summarizes the right-of-use asset and lease liability for the nine months ended September 30, 2023 and the year ended December 31, 2022:

	September 30, 2023			December 31, 2022
Right of Use Assets
Balance, January 1	$	167,222		$	217,267
Right of use assets, beginning balance	$	167,222		$	217,267
Depreciation		(38,738	)		(50,045	)
Balance, end of period	$	128,484		$	167,222
Right of use assets, ending balance	$	128,484		$	167,222

Lease Liability
Balance, January 1	$	167,222		$	217,267
Lease liability, beginning balance	$	167,222		$	217,267
Lease interest expense		4,812			8,566
Payments		(43,550	)		(58,611	)
Balance, end of period	$	128,484		$	167,222
Lease liability, ending balance	$	128,484		$	167,222

Short-term portion	$	59,160		$	58,080
Long-term portion		69,324			109,142
Total	$	128,484		$	167,222

Undiscounted rent payments for the next four years are as follows:

SCHEDULE OF UNDISCOUNTED RENT PAYMENTS


2023	$	14,520
2024		59,520
2025		61,020
Total	$	135,060
Impact of discounting		(6,576	)
Lease liability, September 30, 2023	$	128,484

4. ACCOUNTS RECEIVABLE.

SCHEDULE OF ACCOUNTS RECEIVABLE

	September 30, 2023			December 31, 2022

Accounts receivable	$	7,203,680		$	9,739,150
Allowances for doubtful accounts		(289,359	)		(289,293	)
Total accounts receivable	$	6,914,321		$	9,449,857

5. INVENTORIES.

SCHEDULE OF INVENTORY

	September 30, 2023		December 31, 2022

Completed goods	$	2,539,460	$	3,806,646
Raw materials and supplies		6,900,692		10,612,784
Total inventory	$	9,440,152	$	14,419,430

6. PROPERTY, EQUIPMENT & LEASEHOLDS.

	September 30,		Accumulated		September 30,
	2023 Cost		Depreciation		2023 Net
Buildings and improvements	$	12,180,004	$	3,729,894	$	8,450,110
Automobiles		196,255		132,847		63,408
Computer hardware		43,436		42,840		596
Manufacturing equipment		9,498,662		5,533,484		3,965,178
Boat		34,400		29,331		5,069
Office equipment		134,119		119,730		14,389
Trailer		8,873		7,890		983
Leasehold Improvements		88,872		88,872		—
Land		440,592		—		440,592
Technology		101,038		101,038		—
	$	22,726,251	$	9,785,926	$	12,940,325

	December 31,		Accumulated		December 31,
	2022 Cost		Depreciation		2022 Net
Buildings and improvements	$	8,775,629	$	3,310,920	$	5,464,709
Automobiles		196,255		107,055		89,200
Computer hardware		43,432		42,663		769
Office equipment		133,280		112,782		20,498
Manufacturing equipment		8,634,063		4,891,736		3,742,327
Trailers		8,857		7,592		1,265
Boat		34,400		27,907		6,493
Leasehold improvements		88,872		88,872		—
Technology		100,860		100,860		—
Land		384,027		—		384,027
	$	18,399,675	$	8,690,387	$	9,709,288

The amount of depreciation expense for nine months ended September 30, 2023 was $1,095,171 (2022: $679,548) and is included in cost of sales in the unaudited condensed interim consolidated statements of operations and comprehensive income.

7. PATENTS.

SCHEDULE OF PATENTS

		September 30, 2023 Cost				Accumulated Amortization				September 30, 2023 Net
Patents		$	196,069			$	196,069			$	-

		December 31, 2022 Cost				Accumulated Amortization				December 31, 2022 Net
Patents		$	195,725			$	195,725			$	-

The amount of amortization for the nine months ended September 30, 2023 was $nil (2022 - $12,329) and is included in cost of sales in the unaudited condensed interim consolidated statements of operations and comprehensive income. The movement in cost relates solely to foreign exchange differences.

8. GOODWILL AND INTANGIBLE ASSETS

Goodwill
Balance as of December 31, 2021	$	2,534,275
Additions		-
Impairment		-
Balance as of December 31, 2022 and September 30, 2023	$	2,534,275

Indefinite Lived Intangible Assets
Balance as of December 31, 2021	$	770,000
Additions		-
Impairment		-
Balance as of December 31, 2022 and September 30, 2023	$	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, 2021	$	1,830,000
Amortization		(160,000	)
Balance as of December 31, 2022		1,670,000
Amortization		(120,000	)
Balance as of September 30, 2023	$	1,550,000

Definite life intangible assets consist of customer relationships and software related to the acquisition of ENP Investments. Customer relationships and software are amortized over their estimated useful life of 15 years and 3 years, respectively.

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

2023	$	160,000
2024		160,000
2025		160,000
2026		160,000
2027		160,000

9. LONG TERM DEPOSITS

Long term deposits consist of damage deposits held by landlords and security deposits held by various vendors.

SCHEDULE OF LONG TERM DEPOSITS

	September 30, 2023		December 31, 2022

Long term deposits	$	396,154	$	8,540

10. 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. In June 2022, NanoChem acquired an additional 50% ownership interest at a cost of $506,659 paid through a new $259,000 mortgage and cash on hand. The 35% non-controlling interest of the 8.33% owned by ENP Investments is included in non-controlling interest in these unaudited condensed interim 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 unaudited condensed interim 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.


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, 2021	$	22,642
Return of equity		(8,750	)
Gain in equity method investment		27,646
Investment eliminated upon consolidation		(41,538	)
Balance, December 31, 2022 and September 30, 2023	$	-

(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 6, 2023. In accordance with FASB Codification Topic 323, Investments – Equity Method and Joint Ventures (ASC 323), the Company has elected to account for this investment at cost. See subsequent events.

(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 FASB Codification Topic 321, Investments – Equity Securities (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, 2021	$	3,701,368
Gain in equity method investment		307,527
Return of equity		(250,000	)
Balance, December 31, 2022	$	3,758,895
Gain in equity method investment		422,923
Return of equity		(100,000	)
Balance, September 30, 2023	$	4,081,818

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

	Nine months ended September 30, 2023		Nine months ended September 30, 2022

Net sales	$	11,915,398	$	11,101,350
Gross profit		3,514,142		2,519,331
Net income		845,846	$	359,938

During the nine months ended September 30, 2023, the Company had sales of $7,116,232 (2022 - $7,931,549) to the Florida based LLC, of which $2,274,958 is included within Accounts Receivable as at September 30, 2023 (December 31, 2022 - $2,423,285).

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.

11. SHORT-TERM LINE OF CREDIT.

(a) In June 2023, ENP Investments signed a new agreement with Stock Yards Bank and Trust (“Stock Yards”). Increasing the limit by $500,000, 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 8.25%. The interest rate at September 30, 2023 is 8.5% (December 31, 2022 - 7.5%).

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 September 30, 2023, 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 September 30, 2023 were $nil (December 31, 2022 - $2,477,794).

(b) In June 2023, the Company signed a new agreement 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 September 30, 2023 was 8.5% (December 31, 2022 - 7.5%).

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 September 30, 2023, the Company was in compliance with all loan covenants.

To secure the repayment of any amounts borrowed under the revolving line of credit, the Company granted 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 September 30, 2023 were $nil (December 31, 2022 - $340,797).

12. LONG TERM DEBT.

(a) In October 2020, NanoChem signed a loan for $1,980,947 with Midland with a rate of 3.85% to be repaid over 5 years with equal monthly payments including interest. The money was used to retire the debt at Harris related to the loan to purchase a 65% interest in ENP Investments. In June 2022, the loan was paid in full with funds from Stock Yards. Interest expense for the nine months ended September 30, 2023 was $nil (2022 - $30,334). The balance owing at September 30, 2023 was $nil (December 31, 2022 - $nil).

(b) In October 2020, NanoChem signed a loan for $894,253 with Midland with an interest rate 3.85% to be repaid over two years with equal monthly payments including interest. The funds were used to replace the loan at Harris for the purchase of new manufacturing equipment. In June 2022, the loan was paid in full with funds from Stock Yards. Interest expense for the nine months ended September 30, 2023 was $nil (2022 - $5,816). The balance owing at September 30, 2023 was $nil (December 31, 2022 - $nil)

(c) 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 2.5%. Interest expense for the nine months ended September 30, 2023 was $13,459 (2022 - $13,959). The balance owing at September 30, 2023 was $402,137 (December 31, 2022 - $415,430).

(d) 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 nine months ended September 30, 2023 was $53,176 (2022 - $23,632). The balance owing at September 30, 2023 was $1,164,686 (December 31, 2022 - $1,632,672).

(e) 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 nine months ended September 30, 2023 was $92,304 (2022 - $23,632). The balance owing at September 30, 2023 was $2,756,573 (December 31, 2022 - $2,813,015).

(f) 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 nine months ended September 30, 2023 was $10,447 (2022 - $3,568). The balance owing at September 30, 2023 was $251,735 (December 31, 2022 - $256,162).

(g) 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 nine months ended September 30, 2023 was $50,361 (2022 - $nil). The balance owing at September 30, 2023 was $1,036,798 (December 31, 2022 - $1,036,798).

(h) In June 2023, 317 Mendota signed a five year loan for up to $3,240,000 with Stock Yards Bank to purchase the 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 nine months ended September 30, 2023 was $47,450 (2022 - $nil). The balance owing at September 30, 2023 was $2,248,292 (December 31, 2022 - $nil).

As of September 30, 2023, Company was in compliance with all loan covenants.

SCHEDULE OF LOAN COVENANTS

Continuity	September 30, 2023			December 31, 2022
Balance, January 1	$	6,154,077		$	2,366,598
Balance, beginning of period	$	6,154,077		$	2,366,598
Plus: Proceeds from loans		2,248,292			3,230,798
Plus: Loan acquired with acquisition of ENP Peru		-			2,849,500
Less: Payments on loan		(542,148	)		(2,292,819	)
Balance, end of period	$	7,860,221		$	6,154,077

SCHEDULE OF OUTSTANDING BALANCE LOAN

Outstanding balance at December 31,	September 30, 2023			December 31, 2022
a) Long term debt – Midland States Bank	$	-		$	-
b) Long term debt – Midland States Bank		-			-
c) Long term debt – Stock Yards Bank & Trust		402,137			415,430
d) Long term debt – Stock Yards Bank & Trust		1,164,686			1,632,672
e) Long term debt – Stock Yards Bank & Trust		2,756,573			2,813,015
f) Long term debt – Stock Yards Bank & Trust		251,735			256,162
g) Long term debt – Stock Yards Bank & Trust		1,036,798			1,036,798
h) Long term debt – Stock Yards Bank & Trust		2,248,292			—
Long-term Debt		7,860,221			6,154,077
Less: current portion		(830,760	)		(717,612	)
Long-term debt non current	$	7,029,461		$	5,436,465

13. STOCK OPTIONS.

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

The following table summarizes the Company’s stock option activities for the year ended December 31, 2022 and the nine month period ended September 30, 2023:

SCHEDULE OF STOCK OPTION ACTIVITIES

	Number of shares			Exercise price per share		Weighted average exercise price

Balance, December 31, 2021		789,500			$1.42 – 4.13	$	2.78
Granted		981,000			$3.55 – 3.61	$	3.55
Cancelled or expired		(13,486	)		$1.70 – 3.61	$	2.32
Exercised		(71,014	)		$1.42 – 2.44	$	1.98
Balance, December 31, 2022		1,686,000			$1.70 – 4.13	$	3.27
Cancelled or expired		(12,000	)		$3.46 – 4.13	$	3.60
Exercised		(8,000	)	$	1.70	$	1.70
Balance, September 30, 2023		1,666,000			$1.75 – 4.13	$	3.27
Exercisable, September 30, 2023		664,000			$1.75 – 4.13	$	2.93

The weighted average remaining contractual life of options outstanding is 3.4 years.

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

	2022
Expected life – years		3.0
Interest rate		1.76 – 3.64%
Volatility		66.01 - 69.66%
Weighted average fair value of options granted	$	1.46 – 1.65

During the nine months ended September 30, 2023 and 2022, the Company did not grant any new options to consultants. Options granted in previous quarters resulted in expenses in the amount of $47,391 for consultants (2022 - $47,380). During the nine months ended September 30, 2023 the Company did not grant any new options to employees. The Company issued 5,000 new options to employees in the nine months ended September 30, 2022 for an expense of $5,475. Options granted in previous quarters resulted in expenses in the amount of $491,013 for employees during the nine months ended September 30, 2023 (2022 - $111,804).

There were 8,000 employee and nil consultant stock options exercised during the nine months ended September 30, 2023 (2022 – 29,500 employee; nil consultant).

As of September 30, 2023, there was approximately $887,957 compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted average period of 1.9 years.

The aggregate intrinsic value of vested options outstanding at September 30, 2023 is $nil (2022 – $nil).

14. CAPITAL STOCK.

During the nine months ended September 30, 2023, 8,000 shares were issued upon the exercise of employee stock options (2022 – 29,500).

During the nine months ended September 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 operations and comprehensive income for the nine months ended September 30, 2023

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

15. 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 $3,043,833.

SCHEDULE OF DISTRIBUTIONS

Balance, December 31, 2021	$	2,602,843
Distribution		(689,434	)
Non-controlling interest share of income		691,625
Balance, December 31, 2022		2,605,034
Distribution		(537,314	)
Non-controlling interest share of income		490,012
Balance, September 30, 2023	$	2,557,732

During the nine months ended September 30, 2023, the Company had sales of $4,728,562 (2022 - $4,913,342) to the party that holds 35% interest in ENP Investments, of which $2,154,033 is included within Accounts Receivable as of September 30, 2023 (December 31, 2022 – $3,634,083).

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 (“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 NCI’s ownership interest in 317 Mendota 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 317 Mendota. 317 Mendota is allocated to the TPA segment as that is the intended use of the building.

Balance, December 31, 2022	$	-
Acquisition		200,000
Non-controlling interest share of loss		(10,615	)
Balance, September 30, 2023	$	189,385

16. 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 September 30, 2023:

SCHEDULE OF REPORTABLE SEGMENTS

	EWCP			BCPA			Total
Revenue	$	144,794		$	8,575,827		$	8,720,621
Interest expense		-			119,599			119,599
Depreciation and amortization		4,380			459,217			463,597
Income tax expense		12,770			206,942			219,712
Segment profit (loss)		(22,105	)		(696,056	)		(718,161	)
Segment assets		3,697,284			49,397,348			53,094,632
Expenditures for segment assets		-			(542,014	)		(542,014	)

Three months ended September 30, 2022:

	EWCP		BCPA			Total
Revenue	$	179,007	$	11,506,100		$	11,685,107
Interest expense		-		80,609			80,609
Depreciation and amortization		9,091		330,508			339,599
Income tax expense		24,035		325,146			349,181
Segment profit (loss)		69,376		1,038,755			1,108,131
Segment assets		2,345,580		46,462,283			48,807,863
Expenditures for segment assets		-		(233,862	)		(233,862	)

Nine months ended September 30, 2023:

	EWCP			BCPA			Total
Revenue	$	446,056		$	28,453,373		$	28,899,429
Interest expense		-			369,967			369,967
Depreciation and amortization		13,099			1,202,072			1,215,171
Income tax expense		25,341			848,520			873,861
Segment profit (loss)		(215,095	)		1,191,168			976,073
Segment assets		3,697,284			49,397,348			53,094,632
Expenditures for segment assets		-			(4,326,208	)		(4,326,208	)

Nine months ended September 30, 2022:

	EWCP			BCPA			Total
Revenue	$	415,830		$	33,217,700		$	33,633,530
Interest expense		-			190,366			190,366
Depreciation and amortization		27,537			784,340			811,877
Income tax expense		35,341			1,569,088			1,604,429
Segment profit (loss)		(139,362	)		4,443,007			4,303,645
Segment assets		2,345,580			46,462,283			48,807,863
Expenditures for segment assets		-			(647,232	)		(647,232	)

The sales generated in the United States and Canada are as follows:

	Nine months ended September 30, 2023		Nine months ended September 30, 2022
Canada	$	413,265	$	449,106
United States and abroad		28,486,164		33,184,424
Total	$	28,899,429	$	33,633,530

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

	September 30, 2023		December 31, 2022
Canada	$	143,811	$	150,890
United States		17,779,273		14,699,896
Total	$	17,923,084	$	14,850,786

Three primary customers accounted for $14,020,837 (49%) of sales during nine months ended September 30, 2023 (2022 - $19,050,848 or 57%).

17. COMPARATIVE FIGURES.

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

18. SUBSEQUENT EVENTS .

In October 2023, the Company received the payment of $200,000 to settle its promissory note issued by Applied Holdings.

On November 2, 2023 the Board of Directors voted to cancel all stock options granted to Dan O’Brien on December 14, 2022.

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

The Company has 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.

Material changes in the Company’s Statement of Operations for the nine and three months ended September 30, 2023 compared to the same period in the prior year are discussed below:

Nine Months ended September 30, 2023

Item	Increase (I) or Decrease (D)	Reason

Sales
EWCP products	I	Increased customer orders.

TPA products	D	Decreased customer orders along with decrease in pricing.

Cost of goods sold, as a percentage of sales	I	Increased raw material costs and increased wages to add and retain manufacturing employees along with added costs associated with obtaining new certifications.

Administrative salaries	I	Increased wages and stock option expense for employee retention.

Insurance	I	Prior year increase in assets and in sales resulted in higher insurance costs.

Interest expense	I	Increased debt resulted in increased interest expense.

Professional fees	D	Decreased due to one time costs associated with the planned merger with Lygos in 2022.
Consulting	D	Addition of new employees decreased the need for consultants.
Travel	I	Travel has resumed as COVID-19 has become an endemic.
Advertising and promotion	I	Increased outreach to customers and prospects.
Investor relations	I	Increased due to higher stock transactions and costs associated with the dividend payment.
Lease expense	D	Purchases of ENP Mendota and ENP Peru, the businesses we were renting from, reduced our lease expense.

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.

Three months ended September 30, 2023

Item	Increase (I) or Decrease (D)	Reason

Sales
EWCP products	D	Decreased customer orders.

TPA products	D	Decreased customer orders along with decrease in pricing.

Cost of goods sold, as a percentage of sales	I	Increased raw material costs and increased wages to add and retain manufacturing employees along with added costs associated with obtaining new certifications.
Administrative salaries	I	Increased wages and stock option expense for employee retention.

Insurance	I	Prior year increase in assets and in sales resulted in higher insurance costs.

Interest expense	I	Increased debt resulted in increased interest expense.

Professional fees	D	Decreased due to one time costs associated with the planned merger with Lygos in 2022.
Travel	I	Travel has resumed as COVID-19 has become an endemic.
Consulting	D	Addition of new employees decreased the need for consultants.
Advertising and promotion	I	Increased outreach to customers and prospects.
Currency exchange	D	Currency exchange decreased 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.

Three customers accounting for 67% of our sales during the three months ended September 30, 2023 (2022 – 64%) and 49% of our sales during the nine months ended September 30, 2023 (2022 - 57%). The amount of revenue attributable to each customer is shown below.

	Three months						Nine months
	ended September 30,						ended September 30,
Customer	2023			2022			2023			2022

Company A	$	2,524,802		$	2,152,681		$	4,728,562		$	4,913,342
Company B	$	2,561,698		$	2,480,590		$	7,116,232		$	7,931,549
Company C	$	725,347		$	766,342	*	$	2,176,042		$	1,912,121	*
Company D	$	343,776	*	$	2,819,590		$	2,035,666	*		6,205,957

*Not a primary customer in that period

Customers with balances greater than 10% of our receivables as of September 30, 2023 and 2022 are shown below:

	September 30,
	2023			2022

Company A		2,154,033			1,904,110
Company B		2,274,958			2,422,104
Company D		1,512	*		2,086,502
*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 nine months ended September 30, 2023 and 2022 are shown below:

	2023			2022

Cash provided (used) by operations		10,128,066			(658,538	)
Long term deposits		(387,614	)		-
Non-controlling interest of 317 Mendota		200,000			-
Proceeds of equity investment		101,034			108,750
Additional investment in Trio		(470,000	)		-
Purchase of equipment		(4,326,208	)		(647,232	)
Acquisition of ENP Peru		-			(499,329	)
Repayments of short term line of credit		(2,818,591	)		(276,079	)
Repayment of long term debt		(542,148	)		(2,117,928	)
Proceeds of long term debt		2,248,292			2,194,000
Dividends paid		(626,777	)		-
Lease payments		(43,560	)		(44,435	)
Distributions to non-controlling interest		(537,314	)		(499,789	)
Proceeds from issuance of common stock		13,600			74,020
Changes in exchange rates		200,334			(29,531	)

The Company has sufficient cash resources to meets its future commitments and cash flow requirements for the coming year. As of September 30, 2023, working capital was $19,240,656 (December 31, 2022 - $20,692,527) and the Company has no substantial commitments that require significant outlays of cash over the coming fiscal year.

We are committed to minimum rental payments for property and premises aggregating approximately $211,380 over the term of two leases, the last expiring on December 31, 2025.

Commitments for rent in the next three years are as follows:

2023	$	69,000
2024	$	70,440
2025	$	71,940

Other than as disclosed above, the Company does not anticipate any capital requirements for the twelve months ending December 31, 2024.

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 September 30, 2023. 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 September 30, 2023

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 September 30, 2023. 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 September 30, 2023 that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II

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.

November 14, 2023

	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.

November 14, 2023	/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.;

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.

November 14, 2023	/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 September 30, 2023 (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.

November 14, 2023	/s/ Daniel B. O’Brien
	Daniel B. O’Brien
	Principal Executive and Financial Officer

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2023	Nov. 14, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
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		12,435,532

Condensed Interim Consolidated Balance Sheets - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Current
Cash and cash equivalents	$ 8,943,972	$ 6,115,099
Term deposits	1,010,241	700,000
Accounts receivable, net (Note 4)	6,914,321	9,449,857
Inventories (Note 5)	9,440,152	14,419,430
Prepaid expenses	1,940,601	310,297
Total current assets	28,249,287	30,994,683
Property, equipment and leaseholds, net (Note 6)	12,940,325	9,709,288
Right of use assets (Note 3)	128,484	167,222
Intangible assets (Note 8)	2,320,000	2,440,000
Long term deposits (Note 9)	396,154	8,540
Investments (Note 10)	6,251,818	5,458,895
Goodwill (Note 8)	2,534,275	2,534,275
Deferred tax asset	274,289	274,289
Total Assets	53,094,632	51,587,192
Current
Accounts payable	2,048,419	873,904
Accrued liabilities	811,180	959,856
Deferred revenue	18,220	387,763
Income taxes payable	5,240,892	4,486,350
Short term line of credit (Note 11)		2,818,591
Current portion of lease liability (Note 3)	59,160	58,080
Current portion of long term debt (Note 12)	830,760	717,612
Total current liabilities	9,008,631	10,302,156
Lease liability (Note 3)	69,324	109,142
Deferred income tax liability	500,459	500,459
Long term debt (Note 12)	7,029,461	5,436,465
Total Liabilities	16,607,875	16,348,222
Stockholders’ Equity
Common stock, value	12,436	12,426
Capital in excess of par value	18,079,409	17,523,345
Other comprehensive loss	(605,465)	(805,799)
Accumulated earnings	16,253,260	15,903,964
Total stockholders’ equity – controlling interest	33,739,640	32,633,936
Non-controlling interests (Note 15)	2,747,117	2,605,034
Total Stockholders’ Equity	36,486,757	35,238,970
Total Liabilities and Stockholders’ Equity	$ 53,094,632	$ 51,587,192

Condensed Interim Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
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	12,435,532	12,426,260
Common stock, shares outstanding	12,435,532	12,426,260

Condensed Interim Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Sales	$ 8,720,621	$ 11,685,107	$ 28,899,429	$ 33,633,530
Cost of sales	7,248,266	8,502,551	21,303,229	22,777,467
Gross profit	1,472,355	3,182,556	7,596,200	10,856,063
Operating Expenses
Wages	545,255	587,935	2,004,568	1,890,727
Administrative salaries and benefits	392,051	220,406	1,179,370	681,017
Insurance	218,723	185,371	648,698	508,056
Office and miscellaneous	181,349	111,832	355,139	271,144
Interest expense	119,599	80,609	369,967	190,366
Professional fees	97,057	131,602	239,356	597,505
Travel	60,796	27,659	187,060	120,185
Consulting	57,941	85,477	190,171	248,168
Research	52,834	19,088	90,169	63,345
Advertising and promotion	50,909	32,705	161,318	124,910
Lease expense	28,775	30,284	81,715	124,123
Investor relations and transfer agent fee	26,626	34,440	149,511	100,317
Telecommunications	15,640	10,879	38,650	31,438
Utilities	12,249	5,451	25,223	20,635
Shipping	6,032	6,042	15,798	18,943
Currency exchange	(6,808)	(20,983)	9,693	(9,351)
Commissions		529	2,985	61,459
Total operating expenses	1,859,028	1,549,326	5,749,391	5,042,987
Operating income	(386,673)	1,633,230	1,846,809	5,813,076
Gain on acquisition of ENP Peru				335,051
Gain on investment	97,254	(451)	423,957	213,865
Interest income	5,380	37,213	58,565	69,354
Income before income tax	(284,039)	1,669,992	2,329,331	6,431,346
Income taxes
Income tax expense	(219,712)	(349,181)	(873,861)	(1,604,429)
Net income for the period including non-controlling interests	(503,751)	1,320,811	1,455,470	4,826,917
Less: Net income attributable to non-controlling interests	(214,410)	(212,680)	(479,397)	(523,272)
Net income attributable to controlling interest	$ (718,161)	$ 1,108,131	$ 976,073	$ 4,303,645
Income per share (basic)	$ (0.06)	$ 0.09	$ 0.08	$ 0.35
Income per share (diluted)	$ (0.06)	$ 0.09	$ 0.08	$ 0.34
Weighted average number of common shares (basic)	12,435,532	12,384,746	12,434,669	12,376,818
Weighted average number of common shares (diluted)	12,496,748	12,417,026	12,517,064	12,479,769
Other comprehensive income:
Net income	$ (503,751)	$ 1,320,811	$ 1,455,470	$ 4,826,917
Unrealized gain (loss) on foreign currency translations	140,928	(70,167)	200,334	(29,531)
Total comprehensive income	(362,823)	1,250,644	1,655,804	4,797,386
Comprehensive income – non-controlling interest	(214,410)	(212,680)	(479,397)	(523,272)
Comprehensive income attributable to Flexible Solutions International Inc.	$ (577,233)	$ 1,037,964	$ 1,176,407	$ 4,274,114

Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Operating activities
Net income for the period including non-controlling interests	$ 1,455,470	$ 4,826,917
Adjustments to reconcile net income to net cash:
Stock based compensation	542,474	164,659
Depreciation and amortization	1,215,171	811,877
Lease right of use depreciation	38,738	37,748
Lease right of use financing	4,822	6,687
Gain on investment	(423,957)	(213,865)
Gain on ENP Peru		(335,051)
Changes in non-cash working capital items:
(Increase) decrease in accounts receivable	2,535,536	(2,638,030)
(Increase) decrease in inventory	4,520,141	(4,780,381)
Increase in prepaid expenses	(1,630,304)	(50,749)
Increase (decrease) in accounts payable and accrued liabilities	1,484,976	(22,484)
Increase in income taxes payable	754,542	1,604,429
Increase (decrease) in deferred revenue	(369,543)	(70,295)
Cash provided by (used in) operating activities	10,128,066	(658,538)
Investing activities
Non-controlling interest of 317 Mendota	200,000
Long term deposits	(387,614)
Additional investment in Trio	(470,000)
Proceeds of equity investment	101,034	108,750
Net purchase of property, equipment and leaseholds	(4,326,208)	(647,232)
Acquisition of ENP Peru		(499,329)
Cash used in investing activities	(4,882,788)	(1,037,811)
Financing activities
Repayment of short term line of credit	(2,818,591)	(276,079)
Repayment of long term debt	(542,148)	(2,117,928)
Loan proceeds received	2,248,292	2,194,000
Dividends paid	(626,777)
Lease payments	(43,560)	(44,435)
Distributions to non-controlling interests	(537,314)	(499,789)
Proceeds from issuance of common stock	13,600	74,020
Cash used in financing activities	(2,306,498)	(670,211)
Effect of exchange rate changes on cash	200,334	(29,531)
Inflow (outflow) of cash	3,139,114	(2,396,091)
Cash and cash equivalents, beginning	6,815,099	6,735,574
Cash resources	9,954,213	4,339,483
Cash and cash equivalents consists of:
Cash	8,943,972	4,339,483
Term Deposits	1,010,241
Supplemental disclosure of cash flow information:
Income taxes paid	119,319
Interest paid	369,967	190,366
Inventory additions in accounts payable	$ 1,252,540	$ 422,340

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, 2021	$ 12,355	$ 16,983,648	$ 8,882,360	$ (775,730)	$ 25,102,633	$ 2,602,843	$ 27,705,476
Balance, shares at Dec. 31, 2021	12,355,246
Translation adjustment				42,543	42,543		42,543
Net income			1,533,059		1,533,059	144,477	1,677,536
Common stock issued	$ 23	56,917			56,940		56,940
Common stock issued, shares	22,500
Stock-based compensation		54,271			54,271		54,271
Distributions to non-controlling interests						(265,922)	(265,922)
Balance at Mar. 31, 2022	$ 12,378	17,094,836	10,415,419	(733,187)	26,789,446	2,481,398	29,270,844
Balance, shares at Mar. 31, 2022	12,377,746
Balance at Dec. 31, 2021	$ 12,355	16,983,648	8,882,360	(775,730)	25,102,633	2,602,843	27,705,476
Balance, shares at Dec. 31, 2021	12,355,246
Net income							4,826,917
Balance at Sep. 30, 2022	$ 12,385	17,222,297	13,186,005	(805,261)	29,615,426	2,626,326	32,241,752
Balance, shares at Sep. 30, 2022	12,384,746
Balance at Dec. 31, 2021	$ 12,355	16,983,648	8,882,360	(775,730)	25,102,633	2,602,843	27,705,476
Balance, shares at Dec. 31, 2021	12,355,246
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 Mar. 31, 2022	$ 12,378	17,094,836	10,415,419	(733,187)	26,789,446	2,481,398	29,270,844
Balance, shares at Mar. 31, 2022	12,377,746
Translation adjustment				(1,907)	(1,907)		(1,907)
Net income			1,662,455		1,662,455	166,115	1,828,570
Common stock issued	$ 7	17,073			17,080		17,080
Common stock issued, shares	7,000
Stock-based compensation		55,194			55,194		55,194
Distributions to non-controlling interests						(116,934)	(116,934)
Balance at Jun. 30, 2022	$ 12,385	17,167,103	12,077,874	(735,094)	28,522,268	2,530,579	31,052,847
Balance, shares at Jun. 30, 2022	12,384,746
Translation adjustment				(70,167)	(70,167)		(70,167)
Net income			1,108,131		1,108,131	212,680	1,320,811
Stock-based compensation		55,194			55,194		55,194
Distributions to non-controlling interests						(116,933)	(116,933)
Balance at Sep. 30, 2022	$ 12,385	17,222,297	13,186,005	(805,261)	29,615,426	2,626,326	32,241,752
Balance, shares at Sep. 30, 2022	12,384,746
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							1,455,470
Balance at Sep. 30, 2023	$ 12,436	18,079,409	16,253,260	(605,465)	33,739,640	2,747,117	36,486,757
Balance, shares at Sep. 30, 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)
Non-controlling interest of 317 Mendota LLC						200,000	200,000
Distributions to non-controlling interests						(387,696)	(387,696)
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
Translation adjustment				140,928	140,928		140,928
Net income			(718,161)		(718,161)	214,410	(503,751)
Stock-based compensation		175,948			175,948		175,948
Distributions to non-controlling interests						(149,618)	(149,618)
Balance at Sep. 30, 2023	$ 12,436	$ 18,079,409	$ 16,253,260	$ (605,465)	$ 33,739,640	$ 2,747,117	$ 36,486,757
Balance, shares at Sep. 30, 2023	12,435,532

BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

BASIS OF PRESENTATION

1. BASIS OF PRESENTATION.

SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

2. SIGNIFICANT ACCOUNTING POLICIES.

(a) Cash and Cash Equivalents.

(b) Term Deposits.

(d) Allowance for Doubtful Accounts.

(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

	Computer hardware		30% Declining balance
	Manufacturing equipment		20% Declining balance
	Office equipment		20% Declining balance
	Boat		20% Declining balance
	Building and improvements		10% Declining balance
	Trailer		30% Declining balance
	Automobiles		Straight-line over 5 years
	Patents		Straight-line over 17 years
	Technology		Straight-line over 10 years
	Leasehold improvements		Straight-line over lease term
	Customer relationships		Straight-line over 15 years
	Software		Straight-line over 3 years

(f) Impairment of Long-Lived Assets.

(g) Foreign Currency.

(h) Revenue Recognition.

The Company generates revenue primarily from energy and water conservation products and biodegradable polymers, as further discussed in Note 16.

Since the Company’s inception, product returns have been insignificant; therefore, no provision has been established for estimated product returns.

(i) Stock Issued in Exchange for Services.

(j) Stock-based Compensation.

(k) Other Comprehensive Income.

(l) Income Per Share.

(m) Use of Estimates.

(n) Fair Value of Financial Instruments.

	●	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 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.

(p) Income Taxes.

(q) Risk Management.

(r) Equity Method Investment.

(s) Goodwill and Intangible Assets.

(t) Recent Accounting Pronouncements.

LEASES

9 Months Ended

Sep. 30, 2023

Leases

LEASES

3. LEASES

The table below summarizes the right-of-use asset and lease liability for the nine months ended September 30, 2023 and the year ended December 31, 2022:

	September 30, 2023			December 31, 2022
Right of Use Assets
Balance, January 1	$	167,222		$	217,267
Right of use assets, beginning balance	$	167,222		$	217,267
Depreciation		(38,738	)		(50,045	)
Balance, end of period	$	128,484		$	167,222
Right of use assets, ending balance	$	128,484		$	167,222

Lease Liability
Balance, January 1	$	167,222		$	217,267
Lease liability, beginning balance	$	167,222		$	217,267
Lease interest expense		4,812			8,566
Payments		(43,550	)		(58,611	)
Balance, end of period	$	128,484		$	167,222
Lease liability, ending balance	$	128,484		$	167,222

Short-term portion	$	59,160		$	58,080
Long-term portion		69,324			109,142
Total	$	128,484		$	167,222

Undiscounted rent payments for the next four years are as follows:

SCHEDULE OF UNDISCOUNTED RENT PAYMENTS


2023	$	14,520
2024		59,520
2025		61,020
Total	$	135,060
Impact of discounting		(6,576	)
Lease liability, September 30, 2023	$	128,484

ACCOUNTS RECEIVABLE

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

ACCOUNTS RECEIVABLE

4. ACCOUNTS RECEIVABLE.

SCHEDULE OF ACCOUNTS RECEIVABLE

	September 30, 2023			December 31, 2022

Accounts receivable	$	7,203,680		$	9,739,150
Allowances for doubtful accounts		(289,359	)		(289,293	)
Total accounts receivable	$	6,914,321		$	9,449,857

INVENTORIES

9 Months Ended

Sep. 30, 2023

Inventory Disclosure [Abstract]

INVENTORIES

5. INVENTORIES.

SCHEDULE OF INVENTORY

	September 30, 2023		December 31, 2022

Completed goods	$	2,539,460	$	3,806,646
Raw materials and supplies		6,900,692		10,612,784
Total inventory	$	9,440,152	$	14,419,430

PROPERTY, EQUIPMENT & LEASEHOLDS

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

PROPERTY, EQUIPMENT & LEASEHOLDS

6. PROPERTY, EQUIPMENT & LEASEHOLDS.

	September 30,		Accumulated		September 30,
	2023 Cost		Depreciation		2023 Net
Buildings and improvements	$	12,180,004	$	3,729,894	$	8,450,110
Automobiles		196,255		132,847		63,408
Computer hardware		43,436		42,840		596
Manufacturing equipment		9,498,662		5,533,484		3,965,178
Boat		34,400		29,331		5,069
Office equipment		134,119		119,730		14,389
Trailer		8,873		7,890		983
Leasehold Improvements		88,872		88,872		—
Land		440,592		—		440,592
Technology		101,038		101,038		—
	$	22,726,251	$	9,785,926	$	12,940,325

	December 31,		Accumulated		December 31,
	2022 Cost		Depreciation		2022 Net
Buildings and improvements	$	8,775,629	$	3,310,920	$	5,464,709
Automobiles		196,255		107,055		89,200
Computer hardware		43,432		42,663		769
Office equipment		133,280		112,782		20,498
Manufacturing equipment		8,634,063		4,891,736		3,742,327
Trailers		8,857		7,592		1,265
Boat		34,400		27,907		6,493
Leasehold improvements		88,872		88,872		—
Technology		100,860		100,860		—
Land		384,027		—		384,027
	$	18,399,675	$	8,690,387	$	9,709,288

PATENTS

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

PATENTS

7. PATENTS.

SCHEDULE OF PATENTS

		September 30, 2023 Cost				Accumulated Amortization				September 30, 2023 Net
Patents		$	196,069			$	196,069			$	-

		December 31, 2022 Cost				Accumulated Amortization				December 31, 2022 Net
Patents		$	195,725			$	195,725			$	-

GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

8. GOODWILL AND INTANGIBLE ASSETS

Goodwill
Balance as of December 31, 2021	$	2,534,275
Additions		-
Impairment		-
Balance as of December 31, 2022 and September 30, 2023	$	2,534,275

Indefinite Lived Intangible Assets
Balance as of December 31, 2021	$	770,000
Additions		-
Impairment		-
Balance as of December 31, 2022 and September 30, 2023	$	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, 2021	$	1,830,000
Amortization		(160,000	)
Balance as of December 31, 2022		1,670,000
Amortization		(120,000	)
Balance as of September 30, 2023	$	1,550,000

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

2023	$	160,000
2024		160,000
2025		160,000
2026		160,000
2027		160,000

LONG TERM DEPOSITS

9 Months Ended

Sep. 30, 2023

Long Term Deposits

LONG TERM DEPOSITS

9. LONG TERM DEPOSITS

Long term deposits consist of damage deposits held by landlords and security deposits held by various vendors.

SCHEDULE OF LONG TERM DEPOSITS

	September 30, 2023		December 31, 2022

Long term deposits	$	396,154	$	8,540

INVESTMENTS

9 Months Ended

Sep. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENTS

10. INVESTMENTS


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, 2021	$	22,642
Return of equity		(8,750	)
Gain in equity method investment		27,646
Investment eliminated upon consolidation		(41,538	)
Balance, December 31, 2022 and September 30, 2023	$	-

SCHEDULE OF EQUITY METHOD INVESTMENT

Balance, December 31, 2021	$	3,701,368
Gain in equity method investment		307,527
Return of equity		(250,000	)
Balance, December 31, 2022	$	3,758,895
Gain in equity method investment		422,923
Return of equity		(100,000	)
Balance, September 30, 2023	$	4,081,818

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

	Nine months ended September 30, 2023		Nine months ended September 30, 2022

Net sales	$	11,915,398	$	11,101,350
Gross profit		3,514,142		2,519,331
Net income		845,846	$	359,938

SHORT-TERM LINE OF CREDIT

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

SHORT-TERM LINE OF CREDIT

11. SHORT-TERM LINE OF CREDIT.

Short-term borrowings outstanding under the revolving line as of September 30, 2023 were $nil (December 31, 2022 - $2,477,794).

Short-term borrowings outstanding under the revolving line as of September 30, 2023 were $nil (December 31, 2022 - $340,797).

LONG TERM DEBT

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

LONG TERM DEBT

12. LONG TERM DEBT.

As of September 30, 2023, Company was in compliance with all loan covenants.

SCHEDULE OF LOAN COVENANTS

Continuity	September 30, 2023			December 31, 2022
Balance, January 1	$	6,154,077		$	2,366,598
Balance, beginning of period	$	6,154,077		$	2,366,598
Plus: Proceeds from loans		2,248,292			3,230,798
Plus: Loan acquired with acquisition of ENP Peru		-			2,849,500
Less: Payments on loan		(542,148	)		(2,292,819	)
Balance, end of period	$	7,860,221		$	6,154,077

SCHEDULE OF OUTSTANDING BALANCE LOAN

Outstanding balance at December 31,	September 30, 2023			December 31, 2022
a) Long term debt – Midland States Bank	$	-		$	-
b) Long term debt – Midland States Bank		-			-
c) Long term debt – Stock Yards Bank & Trust		402,137			415,430
d) Long term debt – Stock Yards Bank & Trust		1,164,686			1,632,672
e) Long term debt – Stock Yards Bank & Trust		2,756,573			2,813,015
f) Long term debt – Stock Yards Bank & Trust		251,735			256,162
g) Long term debt – Stock Yards Bank & Trust		1,036,798			1,036,798
h) Long term debt – Stock Yards Bank & Trust		2,248,292			—
Long-term Debt		7,860,221			6,154,077
Less: current portion		(830,760	)		(717,612	)
Long-term debt non current	$	7,029,461		$	5,436,465

STOCK OPTIONS

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

STOCK OPTIONS

13. STOCK OPTIONS.

The following table summarizes the Company’s stock option activities for the year ended December 31, 2022 and the nine month period ended September 30, 2023:

SCHEDULE OF STOCK OPTION ACTIVITIES

	Number of shares			Exercise price per share		Weighted average exercise price

Balance, December 31, 2021		789,500			$1.42 – 4.13	$	2.78
Granted		981,000			$3.55 – 3.61	$	3.55
Cancelled or expired		(13,486	)		$1.70 – 3.61	$	2.32
Exercised		(71,014	)		$1.42 – 2.44	$	1.98
Balance, December 31, 2022		1,686,000			$1.70 – 4.13	$	3.27
Cancelled or expired		(12,000	)		$3.46 – 4.13	$	3.60
Exercised		(8,000	)	$	1.70	$	1.70
Balance, September 30, 2023		1,666,000			$1.75 – 4.13	$	3.27
Exercisable, September 30, 2023		664,000			$1.75 – 4.13	$	2.93

The weighted average remaining contractual life of options outstanding is 3.4 years.

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

	2022
Expected life – years		3.0
Interest rate		1.76 – 3.64%
Volatility		66.01 - 69.66%
Weighted average fair value of options granted	$	1.46 – 1.65

There were 8,000 employee and nil consultant stock options exercised during the nine months ended September 30, 2023 (2022 – 29,500 employee; nil consultant).

As of September 30, 2023, there was approximately $887,957 compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted average period of 1.9 years.

The aggregate intrinsic value of vested options outstanding at September 30, 2023 is $nil (2022 – $nil).

CAPITAL STOCK

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

CAPITAL STOCK

14. CAPITAL STOCK.

During the nine months ended September 30, 2023, 8,000 shares were issued upon the exercise of employee stock options (2022 – 29,500).

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

NON-CONTROLLING INTERESTS

9 Months Ended

Sep. 30, 2023

Noncontrolling Interest [Abstract]

NON-CONTROLLING INTERESTS

15. NON-CONTROLLING INTERESTS

SCHEDULE OF DISTRIBUTIONS

Balance, December 31, 2021	$	2,602,843
Distribution		(689,434	)
Non-controlling interest share of income		691,625
Balance, December 31, 2022		2,605,034
Distribution		(537,314	)
Non-controlling interest share of income		490,012
Balance, September 30, 2023	$	2,557,732

Balance, December 31, 2022	$	-
Acquisition		200,000
Non-controlling interest share of loss		(10,615	)
Balance, September 30, 2023	$	189,385

SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

16. SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY.

The Company operates in two segments:

Three months ended September 30, 2023:

SCHEDULE OF REPORTABLE SEGMENTS

	EWCP			BCPA			Total
Revenue	$	144,794		$	8,575,827		$	8,720,621
Interest expense		-			119,599			119,599
Depreciation and amortization		4,380			459,217			463,597
Income tax expense		12,770			206,942			219,712
Segment profit (loss)		(22,105	)		(696,056	)		(718,161	)
Segment assets		3,697,284			49,397,348			53,094,632
Expenditures for segment assets		-			(542,014	)		(542,014	)

Three months ended September 30, 2022:

	EWCP		BCPA			Total
Revenue	$	179,007	$	11,506,100		$	11,685,107
Interest expense		-		80,609			80,609
Depreciation and amortization		9,091		330,508			339,599
Income tax expense		24,035		325,146			349,181
Segment profit (loss)		69,376		1,038,755			1,108,131
Segment assets		2,345,580		46,462,283			48,807,863
Expenditures for segment assets		-		(233,862	)		(233,862	)

Nine months ended September 30, 2023:

	EWCP			BCPA			Total
Revenue	$	446,056		$	28,453,373		$	28,899,429
Interest expense		-			369,967			369,967
Depreciation and amortization		13,099			1,202,072			1,215,171
Income tax expense		25,341			848,520			873,861
Segment profit (loss)		(215,095	)		1,191,168			976,073
Segment assets		3,697,284			49,397,348			53,094,632
Expenditures for segment assets		-			(4,326,208	)		(4,326,208	)

Nine months ended September 30, 2022:

	EWCP			BCPA			Total
Revenue	$	415,830		$	33,217,700		$	33,633,530
Interest expense		-			190,366			190,366
Depreciation and amortization		27,537			784,340			811,877
Income tax expense		35,341			1,569,088			1,604,429
Segment profit (loss)		(139,362	)		4,443,007			4,303,645
Segment assets		2,345,580			46,462,283			48,807,863
Expenditures for segment assets		-			(647,232	)		(647,232	)

The sales generated in the United States and Canada are as follows:

	Nine months ended September 30, 2023		Nine months ended September 30, 2022
Canada	$	413,265	$	449,106
United States and abroad		28,486,164		33,184,424
Total	$	28,899,429	$	33,633,530

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

	September 30, 2023		December 31, 2022
Canada	$	143,811	$	150,890
United States		17,779,273		14,699,896
Total	$	17,923,084	$	14,850,786

Three primary customers accounted for $14,020,837 (49%) of sales during nine months ended September 30, 2023 (2022 - $19,050,848 or 57%).

COMPARATIVE FIGURES

9 Months Ended

Sep. 30, 2023

Comparative Figures

COMPARATIVE FIGURES

17. COMPARATIVE FIGURES.

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

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2023

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

18. SUBSEQUENT EVENTS .

In October 2023, the Company received the payment of $200,000 to settle its promissory note issued by Applied Holdings.

On November 2, 2023 the Board of Directors voted to cancel all stock options granted to Dan O’Brien on December 14, 2022.

SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Cash and Cash Equivalents

(a) Cash and Cash Equivalents.

Term Deposits

(b) Term Deposits.

Inventories and Cost of Sales

Allowance for Doubtful Accounts

(d) Allowance for Doubtful Accounts.

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

	Computer hardware		30% Declining balance
	Manufacturing equipment		20% Declining balance
	Office equipment		20% Declining balance
	Boat		20% Declining balance
	Building and improvements		10% Declining balance
	Trailer		30% Declining balance
	Automobiles		Straight-line over 5 years
	Patents		Straight-line over 17 years
	Technology		Straight-line over 10 years
	Leasehold improvements		Straight-line over lease term
	Customer relationships		Straight-line over 15 years
	Software		Straight-line over 3 years

Impairment of Long-Lived Assets

(f) Impairment of Long-Lived Assets.

Foreign Currency

(g) Foreign Currency.

Revenue Recognition

(h) Revenue Recognition.

The Company generates revenue primarily from energy and water conservation products and biodegradable polymers, as further discussed in Note 16.

Since the Company’s inception, product returns have been insignificant; therefore, no provision has been established for estimated product returns.

Stock Issued in Exchange for Services

(i) Stock Issued in Exchange for Services.

Stock-based Compensation

(j) Stock-based Compensation.

Other Comprehensive Income

(k) Other Comprehensive Income.

Income Per Share

(l) Income Per Share.

Use of Estimates

(m) Use of Estimates.

Fair Value of Financial Instruments

(n) Fair Value of Financial Instruments.

	●	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 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.

Income Taxes

(p) Income Taxes.

Risk Management

(q) Risk Management.

Equity Method Investment

(r) Equity Method Investment.

Goodwill and Intangible Assets

(s) Goodwill and Intangible Assets.

Recent Accounting Pronouncements

(t) Recent Accounting Pronouncements.

SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

SCHEDULE OF METHOD OF DEPRECIATION

The following assets are recorded at cost and depreciated using the methods and annual rates shown below:

SCHEDULE OF METHOD OF DEPRECIATION

	Computer hardware		30% Declining balance
	Manufacturing equipment		20% Declining balance
	Office equipment		20% Declining balance
	Boat		20% Declining balance
	Building and improvements		10% Declining balance
	Trailer		30% Declining balance
	Automobiles		Straight-line over 5 years
	Patents		Straight-line over 17 years
	Technology		Straight-line over 10 years
	Leasehold improvements		Straight-line over lease term
	Customer relationships		Straight-line over 15 years
	Software		Straight-line over 3 years

LEASES (Tables)

9 Months Ended

Sep. 30, 2023

Leases

SUMMARY OF RIGHT-OF-USE ASSET AND LEASE LIABILITY

The table below summarizes the right-of-use asset and lease liability for the nine months ended September 30, 2023 and the year ended December 31, 2022:

	September 30, 2023			December 31, 2022
Right of Use Assets
Balance, January 1	$	167,222		$	217,267
Right of use assets, beginning balance	$	167,222		$	217,267
Depreciation		(38,738	)		(50,045	)
Balance, end of period	$	128,484		$	167,222
Right of use assets, ending balance	$	128,484		$	167,222

Lease Liability
Balance, January 1	$	167,222		$	217,267
Lease liability, beginning balance	$	167,222		$	217,267
Lease interest expense		4,812			8,566
Payments		(43,550	)		(58,611	)
Balance, end of period	$	128,484		$	167,222
Lease liability, ending balance	$	128,484		$	167,222

Short-term portion	$	59,160		$	58,080
Long-term portion		69,324			109,142
Total	$	128,484		$	167,222

SCHEDULE OF UNDISCOUNTED RENT PAYMENTS

Undiscounted rent payments for the next four years are as follows:

SCHEDULE OF UNDISCOUNTED RENT PAYMENTS


2023	$	14,520
2024		59,520
2025		61,020
Total	$	135,060
Impact of discounting		(6,576	)
Lease liability, September 30, 2023	$	128,484

ACCOUNTS RECEIVABLE (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

SCHEDULE OF ACCOUNTS RECEIVABLE

	September 30, 2023			December 31, 2022

Accounts receivable	$	7,203,680		$	9,739,150
Allowances for doubtful accounts		(289,359	)		(289,293	)
Total accounts receivable	$	6,914,321		$	9,449,857

INVENTORIES (Tables)

9 Months Ended

Sep. 30, 2023

Inventory Disclosure [Abstract]

SCHEDULE OF INVENTORY

	September 30, 2023		December 31, 2022

Completed goods	$	2,539,460	$	3,806,646
Raw materials and supplies		6,900,692		10,612,784
Total inventory	$	9,440,152	$	14,419,430

PROPERTY, EQUIPMENT & LEASEHOLDS (Tables)

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

SCHEDULE OF PROPERTY, EQUIPMENT AND LEASEHOLDS

	September 30,		Accumulated		September 30,
	2023 Cost		Depreciation		2023 Net
Buildings and improvements	$	12,180,004	$	3,729,894	$	8,450,110
Automobiles		196,255		132,847		63,408
Computer hardware		43,436		42,840		596
Manufacturing equipment		9,498,662		5,533,484		3,965,178
Boat		34,400		29,331		5,069
Office equipment		134,119		119,730		14,389
Trailer		8,873		7,890		983
Leasehold Improvements		88,872		88,872		—
Land		440,592		—		440,592
Technology		101,038		101,038		—
	$	22,726,251	$	9,785,926	$	12,940,325

	December 31,		Accumulated		December 31,
	2022 Cost		Depreciation		2022 Net
Buildings and improvements	$	8,775,629	$	3,310,920	$	5,464,709
Automobiles		196,255		107,055		89,200
Computer hardware		43,432		42,663		769
Office equipment		133,280		112,782		20,498
Manufacturing equipment		8,634,063		4,891,736		3,742,327
Trailers		8,857		7,592		1,265
Boat		34,400		27,907		6,493
Leasehold improvements		88,872		88,872		—
Technology		100,860		100,860		—
Land		384,027		—		384,027
	$	18,399,675	$	8,690,387	$	9,709,288

PATENTS (Tables)

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

SCHEDULE OF PATENTS

		September 30, 2023 Cost				Accumulated Amortization				September 30, 2023 Net
Patents		$	196,069			$	196,069			$	-

		December 31, 2022 Cost				Accumulated Amortization				December 31, 2022 Net
Patents		$	195,725			$	195,725			$	-

GOODWILL AND INTANGIBLE ASSETS (Tables)

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

SCHEDULE OF GOODWILL AND INDEFINITE LIVED INTANGIBLE ASSETS

Goodwill
Balance as of December 31, 2021	$	2,534,275
Additions		-
Impairment		-
Balance as of December 31, 2022 and September 30, 2023	$	2,534,275

Indefinite Lived Intangible Assets
Balance as of December 31, 2021	$	770,000
Additions		-
Impairment		-
Balance as of December 31, 2022 and September 30, 2023	$	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, 2021	$	1,830,000
Amortization		(160,000	)
Balance as of December 31, 2022		1,670,000
Amortization		(120,000	)
Balance as of September 30, 2023	$	1,550,000

SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE

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

2023	$	160,000
2024		160,000
2025		160,000
2026		160,000
2027		160,000

LONG TERM DEPOSITS (Tables)

9 Months Ended

Sep. 30, 2023

Long Term Deposits

SCHEDULE OF LONG TERM DEPOSITS

Long term deposits consist of damage deposits held by landlords and security deposits held by various vendors.

SCHEDULE OF LONG TERM DEPOSITS

	September 30, 2023		December 31, 2022

Long term deposits	$	396,154	$	8,540

INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2023

Enp Peru Investments Llc [Member]

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, 2021	$	22,642
Return of equity		(8,750	)
Gain in equity method investment		27,646
Investment eliminated upon consolidation		(41,538	)
Balance, December 31, 2022 and September 30, 2023	$	-

Florida Based LLC [Member]

SCHEDULE OF EQUITY METHOD INVESTMENT

Balance, December 31, 2021	$	3,701,368
Gain in equity method investment		307,527
Return of equity		(250,000	)
Balance, December 31, 2022	$	3,758,895
Gain in equity method investment		422,923
Return of equity		(100,000	)
Balance, September 30, 2023	$	4,081,818

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:

	Nine months ended September 30, 2023		Nine months ended September 30, 2022

Net sales	$	11,915,398	$	11,101,350
Gross profit		3,514,142		2,519,331
Net income		845,846	$	359,938

LONG TERM DEBT (Tables)

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

SCHEDULE OF LOAN COVENANTS

As of September 30, 2023, Company was in compliance with all loan covenants.

SCHEDULE OF LOAN COVENANTS

Continuity	September 30, 2023			December 31, 2022
Balance, January 1	$	6,154,077		$	2,366,598
Balance, beginning of period	$	6,154,077		$	2,366,598
Plus: Proceeds from loans		2,248,292			3,230,798
Plus: Loan acquired with acquisition of ENP Peru		-			2,849,500
Less: Payments on loan		(542,148	)		(2,292,819	)
Balance, end of period	$	7,860,221		$	6,154,077

SCHEDULE OF OUTSTANDING BALANCE LOAN

Outstanding balance at December 31,	September 30, 2023			December 31, 2022
a) Long term debt – Midland States Bank	$	-		$	-
b) Long term debt – Midland States Bank		-			-
c) Long term debt – Stock Yards Bank & Trust		402,137			415,430
d) Long term debt – Stock Yards Bank & Trust		1,164,686			1,632,672
e) Long term debt – Stock Yards Bank & Trust		2,756,573			2,813,015
f) Long term debt – Stock Yards Bank & Trust		251,735			256,162
g) Long term debt – Stock Yards Bank & Trust		1,036,798			1,036,798
h) Long term debt – Stock Yards Bank & Trust		2,248,292			—
Long-term Debt		7,860,221			6,154,077
Less: current portion		(830,760	)		(717,612	)
Long-term debt non current	$	7,029,461		$	5,436,465

STOCK OPTIONS (Tables)

9 Months Ended

Sep. 30, 2023

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, 2022 and the nine month period ended September 30, 2023:

SCHEDULE OF STOCK OPTION ACTIVITIES

	Number of shares			Exercise price per share		Weighted average exercise price

Balance, December 31, 2021		789,500			$1.42 – 4.13	$	2.78
Granted		981,000			$3.55 – 3.61	$	3.55
Cancelled or expired		(13,486	)		$1.70 – 3.61	$	2.32
Exercised		(71,014	)		$1.42 – 2.44	$	1.98
Balance, December 31, 2022		1,686,000			$1.70 – 4.13	$	3.27
Cancelled or expired		(12,000	)		$3.46 – 4.13	$	3.60
Exercised		(8,000	)	$	1.70	$	1.70
Balance, September 30, 2023		1,666,000			$1.75 – 4.13	$	3.27
Exercisable, September 30, 2023		664,000			$1.75 – 4.13	$	2.93

SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTIONS

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

	2022
Expected life – years		3.0
Interest rate		1.76 – 3.64%
Volatility		66.01 - 69.66%
Weighted average fair value of options granted	$	1.46 – 1.65

NON-CONTROLLING INTERESTS (Tables)

9 Months Ended

Sep. 30, 2023

Noncontrolling Interest [Abstract]

SCHEDULE OF DISTRIBUTIONS

Balance, December 31, 2021	$	2,602,843
Distribution		(689,434	)
Non-controlling interest share of income		691,625
Balance, December 31, 2022		2,605,034
Distribution		(537,314	)
Non-controlling interest share of income		490,012
Balance, September 30, 2023	$	2,557,732

SCHEDULE OF NON CONTROLLING INTEREST RELATED TO ACQUISITION

Balance, December 31, 2022	$	-
Acquisition		200,000
Non-controlling interest share of loss		(10,615	)
Balance, September 30, 2023	$	189,385

SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY (Tables)

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

SCHEDULE OF REPORTABLE SEGMENTS

	EWCP			BCPA			Total
Revenue	$	144,794		$	8,575,827		$	8,720,621
Interest expense		-			119,599			119,599
Depreciation and amortization		4,380			459,217			463,597
Income tax expense		12,770			206,942			219,712
Segment profit (loss)		(22,105	)		(696,056	)		(718,161	)
Segment assets		3,697,284			49,397,348			53,094,632
Expenditures for segment assets		-			(542,014	)		(542,014	)

Three months ended September 30, 2022:

	EWCP		BCPA			Total
Revenue	$	179,007	$	11,506,100		$	11,685,107
Interest expense		-		80,609			80,609
Depreciation and amortization		9,091		330,508			339,599
Income tax expense		24,035		325,146			349,181
Segment profit (loss)		69,376		1,038,755			1,108,131
Segment assets		2,345,580		46,462,283			48,807,863
Expenditures for segment assets		-		(233,862	)		(233,862	)

Nine months ended September 30, 2023:

	EWCP			BCPA			Total
Revenue	$	446,056		$	28,453,373		$	28,899,429
Interest expense		-			369,967			369,967
Depreciation and amortization		13,099			1,202,072			1,215,171
Income tax expense		25,341			848,520			873,861
Segment profit (loss)		(215,095	)		1,191,168			976,073
Segment assets		3,697,284			49,397,348			53,094,632
Expenditures for segment assets		-			(4,326,208	)		(4,326,208	)

Nine months ended September 30, 2022:

	EWCP			BCPA			Total
Revenue	$	415,830		$	33,217,700		$	33,633,530
Interest expense		-			190,366			190,366
Depreciation and amortization		27,537			784,340			811,877
Income tax expense		35,341			1,569,088			1,604,429
Segment profit (loss)		(139,362	)		4,443,007			4,303,645
Segment assets		2,345,580			46,462,283			48,807,863
Expenditures for segment assets		-			(647,232	)		(647,232	)

SCHEDULE OF REVENUE GENERATED IN UNITED STATES AND CANADA

The sales generated in the United States and Canada are as follows:

	Nine months ended September 30, 2023		Nine months ended September 30, 2022
Canada	$	413,265	$	449,106
United States and abroad		28,486,164		33,184,424
Total	$	28,899,429	$	33,633,530

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

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

	September 30, 2023		December 31, 2022
Canada	$	143,811	$	150,890
United States		17,779,273		14,699,896
Total	$	17,923,084	$	14,850,786

BASIS OF PRESENTATION (Details Narrative)	1 Months Ended	9 Months Ended	12 Months Ended
BASIS OF PRESENTATION (Details Narrative)	Jun. 30, 2023	Sep. 30, 2023	Dec. 31, 2022
Enp Peru Investments Llc [Member]
Subsidiary company ownership interest rate		100.00%
ENP Investments LLC and ENP Mendota [Member]
Subsidiary company ownership interest rate		65.00%
ENP Peru [Member]
Subsidiary company ownership interest rate			65.00%
Increase decrease in share percentage			91.67%
Remaining investment owned percentage		8.33%	8.33%
ENP Peru [Member] \| Unrelated Party [Member]
Subsidiary company ownership interest rate			50.00%
Mendota LLC [Member]
Subsidiary company ownership interest rate		80.00%
Mendota LLC [Member] \| Unrelated Party [Member]
Subsidiary company ownership interest rate	80.00%
Mendota LLC [Member] \| Related Party [Member]
Noncontrolling interest percentage	20.00%

SCHEDULE OF METHOD OF DEPRECIATION (Details)	9 Months Ended
SCHEDULE OF METHOD OF DEPRECIATION (Details)	Sep. 30, 2023
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciation method used and annual rate	30% Declining balance
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciation method used and annual rate	20% Declining balance
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciation method used and annual rate	20% Declining balance
Boat [Member]
Property, Plant and Equipment [Line Items]
Depreciation method used and annual rate	20% Declining balance
Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Depreciation method used and annual rate	10% Declining balance
Trailer [Member]
Property, Plant and Equipment [Line Items]
Depreciation method used and annual rate	30% Declining balance
Automobiles [Member]
Property, Plant and Equipment [Line Items]
Depreciation method used and annual rate	Straight-line over 5 years
Patents [Member]
Property, Plant and Equipment [Line Items]
Depreciation method used and annual rate	Straight-line over 17 years
Technology Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciation method used and annual rate	Straight-line over 10 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Depreciation method used and annual rate	Straight-line over lease term
Customer Relationships [Member]
Property, Plant and Equipment [Line Items]
Depreciation method used and annual rate	Straight-line over 15 years
Software [Member]
Property, Plant and Equipment [Line Items]
Depreciation method used and annual rate	Straight-line over 3 years

SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Product Information [Line Items]
Deposit	$ 700,000		$ 700,000
Term deposits percent	8.25%		8.25%
Accured interest	$ 150		$ 150
Other term deposit	300,000		300,000
Sale	8,720,621	$ 11,685,107	28,899,429	$ 33,633,530
Cost of sales	7,248,266	8,502,551	$ 21,303,229	22,777,467
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]
Product Information [Line Items]
Sale	$ 5,811,847	$ 7,452,860	$ 14,020,837	$ 19,050,848
Three Primary Customers [Member] \| Revenue from Contract with Customer Benchmark [Member]
Product Information [Line Items]
Accounts receivable, after allowance for credit loss, percentage	67.00%	64.00%	49.00%	57.00%
Three Primary Customers [Member] \| Accounts Receivable [Member]
Product Information [Line Items]
Sale			$ 4,688,642		$ 6,124,424
Accounts receivable, after allowance for credit loss, percentage			68.00%		65.00%
Shipping and Handling [Member]
Product Information [Line Items]
Sale			$ 381,740	$ 341,918
Cost of sales			$ 771,772	$ 783,917

SUMMARY OF RIGHT-OF-USE ASSET AND LEASE LIABILITY (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Leases
Right of use assets, beginning balance	$ 167,222	$ 217,267
Depreciation	(38,738)	(50,045)
Right of use assets, ending balance	128,484	167,222
Lease liability, beginning balance	167,222	217,267
Lease interest expense	4,812	8,566
Payments	(43,550)	(58,611)
Lease liability, ending balance	128,484	167,222
Short-term portion	59,160	58,080
Long-term portion	69,324	109,142
Total	$ 128,484	$ 167,222

SCHEDULE OF UNDISCOUNTED RENT PAYMENTS (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Leases
2023	$ 14,520
2024	59,520
2025	61,020
Total	135,060
Impact of discounting	(6,576)
Lease liability, September 30, 2023	$ 128,484	$ 167,222	$ 217,267

LEASES (Details Narrative)	Sep. 30, 2023
Leases
Operating leases discount rate	5.50%

SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Receivables [Abstract]
Accounts receivable	$ 7,203,680	$ 9,739,150
Allowances for doubtful accounts	(289,359)	(289,293)
Total accounts receivable	$ 6,914,321	$ 9,449,857

SCHEDULE OF INVENTORY (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Completed goods	$ 2,539,460	$ 3,806,646
Raw materials and supplies	6,900,692	10,612,784
Total inventory	$ 9,440,152	$ 14,419,430

SCHEDULE OF PROPERTY, EQUIPMENT AND LEASEHOLDS (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Cost	$ 22,726,251	$ 18,399,675
Accumulated Depreciation	9,785,926	8,690,387
Property, plant and equipment, net, total	12,940,325	9,709,288
Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Cost	12,180,004	8,775,629
Accumulated Depreciation	3,729,894	3,310,920
Property, plant and equipment, net, total	8,450,110	5,464,709
Automobiles [Member]
Property, Plant and Equipment [Line Items]
Cost	196,255	196,255
Accumulated Depreciation	132,847	107,055
Property, plant and equipment, net, total	63,408	89,200
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Cost	43,436	43,432
Accumulated Depreciation	42,840	42,663
Property, plant and equipment, net, total	596	769
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Cost	9,498,662	8,634,063
Accumulated Depreciation	5,533,484	4,891,736
Property, plant and equipment, net, total	3,965,178	3,742,327
Boat [Member]
Property, Plant and Equipment [Line Items]
Cost	34,400	34,400
Accumulated Depreciation	29,331	27,907
Property, plant and equipment, net, total	5,069	6,493
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Cost	134,119	133,280
Accumulated Depreciation	119,730	112,782
Property, plant and equipment, net, total	14,389	20,498
Trailer [Member]
Property, Plant and Equipment [Line Items]
Cost	8,873	8,857
Accumulated Depreciation	7,890	7,592
Property, plant and equipment, net, total	983	1,265
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
Land [Member]
Property, Plant and Equipment [Line Items]
Cost	440,592	384,027
Accumulated Depreciation
Property, plant and equipment, net, total	440,592	384,027
Developed Technology Rights [Member]
Property, Plant and Equipment [Line Items]
Cost	101,038	100,860
Accumulated Depreciation	101,038	100,860
Property, plant and equipment, net, total

PROPERTY, EQUIPMENT & LEASEHOLDS (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation	$ 1,095,171	$ 679,548

SCHEDULE OF PATENTS (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Patents, cost	$ 196,069	$ 195,725
Patents, Accumulated amortization	196,069	195,725
Patents, net

SCHEDULE OF GOODWILL AND INDEFINITE LIVED INTANGIBLE ASSETS (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Goodwill	$ 2,534,275	$ 2,534,275
Goodwill, Additions
Goodwill, Impairment
Goodwill	2,534,275	2,534,275
Indefinite lived intangible assets, beginning balance	770,000	770,000
Indefinite lived intangible assets, Additions
Indefinite lived intangible assets, Impairment
Indefinite lived intangible assets, ending balance	770,000	770,000
ENP Investments Limited Liability Corporation (LLC) [Member]
Indefinite lived intangible assets, beginning balance	1,670,000	1,830,000
Indefinite lived intangible assets, ending balance	1,550,000	1,670,000
Amortization	$ (120,000)	$ (160,000)

PATENTS (Details Narrative) - USD ($)	9 Months Ended
PATENTS (Details Narrative) - USD ($)	Sep. 30, 2023	Sep. 30, 2022
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Amount of amortization		$ 12,329

SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE (Details) - Finite-Lived Intangible Assets [Member]	Sep. 30, 2023 USD ($)
Impairment Effects on Earnings Per Share [Line Items]
2023	$ 160,000
2024	160,000
2025	160,000
2026	160,000
2027	$ 160,000

GOODWILL AND INTANGIBLE ASSETS (Details Narrative)	Sep. 30, 2023
Software and Software Development Costs [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	3 years
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	15 years

SCHEDULE OF LONG TERM DEPOSITS (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Long Term Deposits
Long term deposits	$ 396,154	$ 8,540

SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details)	12 Months Ended
	Dec. 31, 2022 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

SCHEDULE OF EQUITY METHOD INVESTMENT (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Balance, Beginning	$ 5,458,895
Investment eliminated upon consolidation		$ (41,538)
Balance, Ending	6,251,818	5,458,895
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	3,758,895	3,701,368
Return of equity	(100,000)	(250,000)
Gain in equity method investment	422,923	307,527
Balance, Ending	$ 4,081,818	$ 3,758,895

SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT (Details) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Equity Method Investments and Joint Ventures [Abstract]
Net sales	$ 11,915,398	$ 11,101,350
Gross profit	3,514,142	2,519,331
Net income	$ 845,846	$ 359,938

INVESTMENTS (Details Narrative) - USD ($)	1 Months Ended			9 Months Ended		12 Months Ended
INVESTMENTS (Details Narrative) - USD ($)	Jun. 30, 2022	Dec. 31, 2020	Dec. 31, 2018	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2021	Jun. 30, 2023	Apr. 30, 2023	Dec. 31, 2022	Jan. 31, 2019	Dec. 01, 2018	Dec. 31, 2016
Schedule of Equity Method Investments [Line Items]
Cash				$ 8,943,972	$ 4,339,483
Debt maturity date						Dec. 06, 2023
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								$ 470,000			$ 500,000
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				7,116,232	$ 7,931,549
Accounts receivable related parties				$ 2,274,958					$ 2,423,285
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]
[custom:RemainningShareOutstanding]	$ 506,659
Cash	$ 259,000
ENP Investments LLC [Member]
Schedule of Equity Method Investments [Line Items]
Subsidiary, Ownership Percentage, Parent				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%			8.33%					8.33%
Florida Based LLC [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage										50.00%

SHORT-TERM LINE OF CREDIT (Details Narrative) - USD ($)	1 Months Ended
SHORT-TERM LINE OF CREDIT (Details Narrative) - USD ($)	Jun. 30, 2023	Sep. 30, 2023	Dec. 31, 2022
Line of Credit Facility [Line Items]
Line of credit			$ 2,818,591
Stock Yard And Bank One [Member] \| NanoChem Solutions Inc [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			$ 2,477,794
Stock Yard And Bank One [Member] \| Midland States Bank [Member] \| New Agreement [Member]
Line of Credit Facility [Line Items]
Increasing amount of revolving line of credit	$ 500,000
Aggregate amount of revolving line of credit	$ 4,500,000
Percentage of foreign accounts receivable of inventory	50.00%
Debt face amount	$ 2,000,000
Interest rate		8.50%	7.50%
Stock Bank [Member] \| New Agreement [Member] \| NanoChem Solutions Inc [Member] \| Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Short term borrowings			$ 340,797
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
Percentage of foreign accounts receivable of inventory	50.00%
Debt face amount	$ 2,000,000
Interest rate		8.50%	7.50%
Eligible percentage of domestic accounts receivable	80.00%

SCHEDULE OF LOAN COVENANTS (Details) - USD ($)	9 Months Ended	12 Months Ended
SCHEDULE OF LOAN COVENANTS (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Debt Disclosure [Abstract]
Balance, beginning of period	$ 6,154,077	$ 2,366,598
Plus: Proceeds from loans	2,248,292	3,230,798
Plus: Loan acquired with acquisition of ENP Peru		2,849,500
Less: Payments on loan	(542,148)	(2,292,819)
Balance, end of period	$ 7,860,221	$ 6,154,077

SCHEDULE OF OUTSTANDING BALANCE LOAN (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Long-term Debt	$ 7,860,221	$ 6,154,077	$ 2,366,598
Less: current portion	(830,760)	(717,612)
Long-term debt non current	7,029,461	5,436,465
Midland States Bank [Member]
Defined Benefit Plan Disclosure [Line Items]
Long-term Debt
Midland States Bank One [Member]
Defined Benefit Plan Disclosure [Line Items]
Long-term Debt
Stock Yards Bank & Trust [Member]
Defined Benefit Plan Disclosure [Line Items]
Long-term Debt	402,137	415,430
Stock Yards Bank Trust One [Member]
Defined Benefit Plan Disclosure [Line Items]
Long-term Debt	1,164,686	1,632,672
Stock Yards Bank Trust Two [Member]
Defined Benefit Plan Disclosure [Line Items]
Long-term Debt	2,756,573	2,813,015
Stock Yards Bank Trust Three [Member]
Defined Benefit Plan Disclosure [Line Items]
Long-term Debt	251,735	256,162
Stock Yards Bank Trust Four [Member]
Defined Benefit Plan Disclosure [Line Items]
Long-term Debt	1,036,798	1,036,798
Stock Yards Bank Trust Five [Member]
Defined Benefit Plan Disclosure [Line Items]
Long-term Debt	$ 2,248,292

LONG TERM DEBT (Details Narrative) - USD ($)	1 Months Ended			3 Months Ended		9 Months Ended		12 Months Ended
LONG TERM DEBT (Details Narrative) - USD ($)	Jun. 30, 2022	Oct. 31, 2020	Jan. 31, 2020	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Jun. 30, 2023
Short-Term Debt [Line Items]
Interest expense				$ 119,599	$ 80,609	$ 369,967	$ 190,366
Midland Bank [Member] \| NanoChem Solutions Inc [Member]
Short-Term Debt [Line Items]
Debt instrument face amount		$ 894,253
Debt instrument term		2 years
Interest expense debt							5,816
Debt Long term debt amount
Midland Bank [Member] \| NanoChem Solutions Inc [Member] \| Prime Rate [Member]
Short-Term Debt [Line Items]
Debt instrument interest rate stated percentage		3.85%
Stock Yards Bank & Trust [Member] \| ENP Realty LLC [Member]
Short-Term Debt [Line Items]
Debt instrument term			10 years
Stock Yards Bank & Trust [Member] \| ENP Realty LLC [Member] \| Prime Rate [Member]
Short-Term Debt [Line Items]
Debt instrument interest rate stated percentage			4.35%
Term Loan [Member] \| Nano Chem [Member]
Short-Term Debt [Line Items]
Debt instrument face amount								2,000,000
Interest expense debt						50,361
Debt Long term debt amount				1,036,798		1,036,798		$ 1,036,798
Term Loan [Member] \| Nano Chem [Member] \| Prime Rate [Member]
Short-Term Debt [Line Items]
Debt instrument interest rate stated percentage								6.50%
Term Loan [Member] \| Mendota [Member]
Short-Term Debt [Line Items]
Debt instrument face amount									$ 3,240,000
Interest expense debt						47,450
Debt Long term debt amount				2,248,292		2,248,292
Term Loan [Member] \| Midland Bank [Member] \| NanoChem Solutions Inc [Member]
Short-Term Debt [Line Items]
Debt instrument face amount		$ 1,980,947
Debt instrument interest rate stated percentage		65.00%
Debt instrument term		5 years
Interest expense debt							30,334
Term Loan [Member] \| Midland Bank [Member] \| NanoChem Solutions Inc [Member] \| Prime Rate [Member]
Short-Term Debt [Line Items]
Debt instrument interest rate stated percentage		3.85%
Term Loan [Member] \| Midland Bank [Member] \| ENP Mendota, LLC [Member]
Short-Term Debt [Line Items]
Debt instrument face amount	$ 1,935,000		$ 450,000
Debt instrument interest rate stated percentage			2.50%
Debt instrument term			5 years
Interest expense debt						13,459	13,959
Debt Long term debt amount				402,137		402,137		415,430
Term Loan [Member] \| Midland Bank [Member] \| Nano Chem [Member]
Short-Term Debt [Line Items]
Interest expense debt						53,176	23,632
Debt Long term debt amount				1,164,686		1,164,686		1,632,672
Term Loan [Member] \| Midland Bank [Member] \| ENP Peru One [Member]
Short-Term Debt [Line Items]
Debt instrument face amount			$ 3,000,000	2,756,573		2,756,573		2,813,015
Debt instrument term			10 years
First mortgage	2,849,500
Interest expense						92,304	23,632
Term Loan [Member] \| Midland Bank [Member] \| ENP Peru One [Member] \| Prime Rate [Member]
Short-Term Debt [Line Items]
Debt instrument interest rate stated percentage			4.35%
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
Interest expense debt						10,447	$ 3,568
Debt Long term debt amount				$ 251,735		$ 251,735		$ 256,162
Term Loan [Member] \| Midland Bank [Member] \| ENP Peru Investments [Member] \| Prime Rate [Member]
Short-Term Debt [Line Items]
Debt instrument interest rate stated percentage	5.40%

SCHEDULE OF STOCK OPTION ACTIVITIES (Details) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares, Beginning Balance	1,686,000	789,500
Weighted average exercise price, Beginning Balance	$ 3.27	$ 2.78
Number of shares, Granted		981,000
Weighted average exercise price, Granted		$ 3.55
Number of shares, Cancelled or expired	(12,000)	(13,486)
Weighted average exercise price, Cancelled or expired	$ 3.60	$ 2.32
Number of shares, Exercised	(8,000)	(71,014)
Exercise price per share, Exercised	$ 1.70
Weighted average exercise price, Exercised	$ 1.70	$ 1.98
Number of shares Exercisable, Ending Balance	1,666,000	1,686,000
Weighted average exercise price, Ending Balance	$ 3.27	$ 3.27
Number of shares Exercisable, Ending Balance	664,000
Weighted average exercise price, Exercisable, Ending Balance	$ 2.93
Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Exercise price per share, Beginning Balance	1.70	1.42
Exercise price per share, Granted		3.55
Exercise price per share, Cancelled or expired	3.46	1.70
Exercise price per share, Exercised		1.42
Exercise price per share, Ending Balance	1.75	1.70
Exercise price per share Exercisable, Ending Balance	1.75
Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Exercise price per share, Beginning Balance	4.13	4.13
Exercise price per share, Granted		3.61
Exercise price per share, Cancelled or expired	4.13	3.61
Exercise price per share, Exercised		2.44
Exercise price per share, Ending Balance	4.13	$ 4.13
Exercise price per share Exercisable, Ending Balance	$ 4.13

SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTIONS (Details)	12 Months Ended
	Dec. 31, 2022 $ / 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	1.76%
Volatility	66.01%
Weighted average fair value of options granted	$ 1.46
Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Interest rate	3.64%
Volatility	69.66%
Weighted average fair value of options granted	$ 1.65

STOCK OPTIONS (Details Narrative) - USD ($)	9 Months Ended		12 Months Ended
STOCK OPTIONS (Details Narrative) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Options granted percentage	100.00%
Options maximum granted term	5 years
Weighted-average remaining contractual life	3 years 4 months 24 days
Number of shares, granted			981,000
Stock options exercised	8,000		71,014
Stock vested compensation non vested	$ 887,957
Weighted average period expected to be recognized	1 year 10 months 24 days
Canada Revenue Agency [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Aggregate intrinsic value of vested options
Consultants [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Stock option plan expense	47,391	47,380
Employees [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Stock option plan expense	$ 491,013	$ 111,804
Number of shares, granted		5,000
Additional expenses due to options granted		$ 5,475
Stock options exercised	8,000	29,500
Consultant [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Stock options exercised

CAPITAL STOCK (Details Narrative) - USD ($)	9 Months Ended		12 Months Ended
CAPITAL STOCK (Details Narrative) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Stock options granted			981,000
Consultant for services, shares	1,272
Consultant for services, value	$ 4,070
Dividends per share	$ 0.05
Employee [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Stock options granted	8,000	29,500

SCHEDULE OF DISTRIBUTIONS (Details) - USD ($)	3 Months Ended					9 Months Ended		12 Months Ended
SCHEDULE OF DISTRIBUTIONS (Details) - USD ($)	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Distribution to noncontrolling interests, Beginning balance						$ 2,605,034
Distribution	$ (149,618)	$ (387,696)	$ (116,933)	$ (116,934)	$ (265,922)
Non-controlling interest share of income	214,410		$ 212,680			479,397	$ 523,272
Distribution to noncontrolling interests, Ending balance	2,747,117					2,747,117		$ 2,605,034
ENP Investments, LLC [Member] \| Ownership Interest Purchase Agreement [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Distribution to noncontrolling interests, Beginning balance					$ 2,602,843	2,605,034	$ 2,602,843	2,602,843
Distribution						(537,314)		(689,434)
Non-controlling interest share of income						490,012		691,625
Distribution to noncontrolling interests, Ending balance	$ 2,557,732					$ 2,557,732		$ 2,605,034

SCHEDULE OF NON CONTROLLING INTEREST RELATED TO ACQUISITION (Details)	9 Months Ended
	Sep. 30, 2023 USD ($)
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Distribution to noncontrolling interests, Beginning balance	$ 2,605,034
Distribution to noncontrolling interests, Ending balance	2,747,117
Mendota LLC [Member] \| Ownership Interest Purchase Agreement [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Distribution to noncontrolling interests, Beginning balance
Distribution to noncontrolling interests, Acquisition	200,000
Distribution to noncontrolling interests, Non-controlling interest share of loss	(10,615)
Distribution to noncontrolling interests, Ending balance	$ 189,385

NON-CONTROLLING INTERESTS (Details Narrative) - USD ($)	9 Months Ended
NON-CONTROLLING INTERESTS (Details Narrative) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Partnership distribution to non-controlling interest	$ 537,314	$ 499,789
Accounts receivable	$ 6,914,321		$ 9,449,857
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	$ 3,043,833
Sales	4,728,562	$ 4,913,342
Accounts receivable	$ 2,154,033		$ 3,634,083
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%

SCHEDULE OF REPORTABLE SEGMENTS (Details) - USD ($)	3 Months Ended		9 Months Ended
SCHEDULE OF REPORTABLE SEGMENTS (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue from External Customer [Line Items]
Revenue	$ 8,720,621	$ 11,685,107	$ 28,899,429	$ 33,633,530
Interest expense	119,599	80,609	369,967	190,366
Income tax expense	219,712	349,181	873,861	1,604,429
Segment profit (loss)	(718,161)	1,108,131	976,073	4,303,645
Expenditures for segment assets			(4,326,208)	(647,232)
Segment [Member]
Revenue from External Customer [Line Items]
Revenue	8,720,621	11,685,107	28,899,429	33,633,530
Interest expense	119,599	80,609	369,967	190,366
Depreciation and amortization	463,597	339,599	1,215,171	811,877
Income tax expense	219,712	349,181	873,861	1,604,429
Segment profit (loss)	(718,161)	1,108,131	976,073	4,303,645
Segment assets	53,094,632	48,807,863	53,094,632	48,807,863
Expenditures for segment assets	(542,014)	(233,862)	(4,326,208)	(647,232)
EWCP [Member] \| Segment [Member]
Revenue from External Customer [Line Items]
Revenue	144,794	179,007	446,056	415,830
Interest expense
Depreciation and amortization	4,380	9,091	13,099	27,537
Income tax expense	12,770	24,035	25,341	35,341
Segment profit (loss)	(22,105)	69,376	(215,095)	(139,362)
Segment assets	3,697,284	2,345,580	3,697,284	2,345,580
Expenditures for segment assets
BCPA [Member] \| Segment [Member]
Revenue from External Customer [Line Items]
Revenue	8,575,827	11,506,100	28,453,373	33,217,700
Interest expense	119,599	80,609	369,967	190,366
Depreciation and amortization	459,217	330,508	1,202,072	784,340
Income tax expense	206,942	325,146	848,520	1,569,088
Segment profit (loss)	(696,056)	1,038,755	1,191,168	4,443,007
Segment assets	49,397,348	46,462,283	49,397,348	46,462,283
Expenditures for segment assets	$ (542,014)	$ (233,862)	$ (4,326,208)	$ (647,232)

SCHEDULE OF REVENUE GENERATED IN UNITED STATES AND CANADA (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales	$ 8,720,621	$ 11,685,107	$ 28,899,429	$ 33,633,530
CANADA
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales			413,265	449,106
United Statesand Abroad [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales			$ 28,486,164	$ 33,184,424

SCHEDULE OF LONG-LIVED ASSETS ARE LOCATED IN CANADA AND UNITED STATES (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 17,923,084	$ 14,850,786
CANADA
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	143,811	150,890
UNITED STATES
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 17,779,273	$ 14,699,896

SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY (Details Narrative)	9 Months Ended
	Sep. 30, 2023 USD ($) Segments	Sep. 30, 2022 USD ($)
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 \| $	$ 14,020,837	$ 19,050,848
Stock option exercise percent	49.00%	57.00%

SUBSEQUENT EVENTS (Details Narrative)	1 Months Ended
SUBSEQUENT EVENTS (Details Narrative)	Oct. 31, 2023 USD ($)
Subsequent Event [Member] \| Applied Holdings [Member]
Subsequent Event [Line Items]
Payment received	$ 200,000