# Flexible Solutions International Inc: Form 10-Q for the period ended Mar 31, 2025

- Company: [Flexible Solutions International Inc](/companies/fsi.md) (CIK 1069394)
- Form: 10-Q
- Filed: 2025-05-15
- Accepted by EDGAR: May 15, 2025, 20:00 ET
- Period: 2025-03-31
- Accession: 0001641172-25-010832
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1069394/000164117225010832/form10-q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1069394/000164117225010832/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-03-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-01-01 to 2025-03-31 | $7.5m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2025-01-01 to 2025-03-31 | $5.5m | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months, 2025-01-01 to 2025-03-31 | $2.0m | us-gaap:GrossProfit |
| Research and development | 3 months, 2025-01-01 to 2025-03-31 | $106.8k | us-gaap:ResearchAndDevelopmentExpense |
| Operating income | 3 months, 2025-01-01 to 2025-03-31 | −$69.2k | us-gaap:OperatingIncomeLoss |
| Income tax | 3 months, 2025-01-01 to 2025-03-31 | $110.4k | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-01-01 to 2025-03-31 | −$277.7k | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-01-01 to 2025-03-31 | −$0.02 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-01-01 to 2025-03-31 | −$0.02 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-01-01 to 2025-03-31 | 12,587,476 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 3 months, 2025-01-01 to 2025-03-31 | −$544.3k | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 3 months, 2025-01-01 to 2025-03-31 | $354.1k | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Cash and equivalents | at 2025-03-31 | $9.6m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-03-31 | $36.1m | us-gaap:AssetsCurrent |
| Total assets | at 2025-03-31 | $61.7m | us-gaap:Assets |
| Current liabilities | at 2025-03-31 | $13.3m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-03-31 | $19.9m | us-gaap:Liabilities |
| Long-term debt | at 2025-03-31 | $6.5m | us-gaap:LongTermDebtNoncurrent |
| Current portion of debt | at 2025-03-31 | $1.6m | us-gaap:LongTermDebtCurrent |
| Shareholders' equity | at 2025-03-31 | $38.4m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 6,274 characters.

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

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

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

The Company also manufactures food grade products that are made and sold by the TPA division.

Material changes in the Company’s Statement of Operations for three months ended March 31, 2025 compared to the same period in the prior year are discussed below:

#### Three Months ended March 31, 2025

|  |  |  |
| --- | --- | --- |
| Item | Increase (I) or Decrease (D) | Reason |
| Sales |  |  |
| EWCP products | D | Decreased customer orders. |
| TPA products | D | Decreased customer orders. |
| Gross profit | D | Increase in tariffs. |
| Wages | D | Stock options granted in the three months ending March 31, 2024 did not reoccur in 2025. |
| Administrative salaries and benefits | D | Stock options granted in the three months ending March 31, 2024 did not reoccur in 2025. |
| Professional fees | I | Increase in accounting fees related to tax filings and increase in audit fees related to growth of the Company. |
| Utilities | I | Addition of real estate not yet rented out. |
| Advertising and promotion | I | Increased outreach to customers and prospects. |
| Travel | D | Travel requirements were lower in for the first quarter in 2025 than it was in 2024. |
| Lease expense | D | Termination of lease in Naperville, IL reduced costs. |
| Lease termination fee | D | One time cost incurred in March 2024 upon terminating lease in Naperville, IL. |
| Gain on investment | D | Sale of 30.1% of profitable Florida based LLC in 2024 reduced the amount of our proportionate share of earnings. |
| Interest expense | I | Increased debt resulted in increased interest expense. |
| Interest income | D | Decrease in term deposits held. |

16

Three primary customers accounted for 49% of the Company’s sales during the three months ended March 31, 2025 (2024 - 55%). The amount of revenue (all from the sale of TPA products) attributable to each customer is shown below.

|  | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Company A | $830,483 | $1,291,426 |
| Company B | $1,856,395 | $2,299,938 |
| Company C | $978,357 | $1,515,541 |

Customers with balances greater than 10% of our receivables as of March 31, 2025 and December 31, 2024 are shown below:

|  | March 31, 2025 |  | December 31, 2024 |
| --- | ---: | --- | ---: |
| Company A | $5,986,298 |  | $5,377,088 |
| Company B | $1,508,783 |  | $1,866,645 |
| Company D | $344,528 | \* | $1,189,157 |

\*less than 10% in that period

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
- new tariffs relating to raw materials imported from China.

17

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 three months ended March 31, 2025 and 2024 are shown below:

|  | 2025 | 2024 |
| --- | ---: | ---: |
| Cash used in operating activities | (544,294) | (604,819) |
| Purchase of property and equipment | (354,121) | (478,123) |
| Distributions received from equity investments | - | 327,000 |
| Advance of short term lines of credit | 1,938,670 | 1,449,456 |
| Repayment of long term debt | (616,343) | (185,916) |
| Proceeds of long term debt | - | 57,816 |
| Proceeds from shares issued upon exercise of stock options | 381,690 | 26,250 |
| Effect of exchange rate changes on cash | 188,840 | 27,223 |

The Company has sufficient cash resources to meets its future commitments and cash flow requirements for the coming year. As of March 31, 2025, working capital was $22,796,690 (December 31, 2024 - $22,714,190) and the Company has no substantial commitments that require significant outlays of cash over the coming fiscal year.

Other than as disclosed above, the Company does not anticipate any capital requirements for the twelve months ending March 31, 2026.

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

Other than as disclosed above, we do not know of any significant changes in our expected sources and uses of cash.

We do not have any commitments or arrangements from any person to provide us with any equity capital.

There have been no significant changes to the critical accounting estimates disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2024 Form 10-K.

## Controls and procedures

As filed, 1,829 characters.

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 March 31, 2025. 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 March 31, 2025.

Changes in Internal Control over Financial Reporting

At December 31, 2024, management identified material weaknesses in our internal control over financial reporting (“ICFR”) related to a material adjustment identified during the audit process indicating that controls over the financial statement close and review process were not operating effectively to prevent or detect misstatements on a timely basis. Because of the material weaknesses described above, we implemented new procedures to improve our financial statement close and review process during the quarter ended March 31, 2025 which included hiring a new tax consultant to ensure for more timely Canadian tax filings moving forward.

Filed May 15, 2025.
Source: SEC EDGAR, the filing index for accession 0001641172-25-010832. Last ingested by Listed: Oct 24, 2026, 15:03 ET. No prices; not investment advice.