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<SEC-DOCUMENT>0000897069-06-000746.txt : 20061115
<SEC-HEADER>0000897069-06-000746.hdr.sgml : 20061115
<ACCEPTANCE-DATETIME>20060307191513
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000897069-06-000746
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20060307

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FLEXIBLE SOLUTIONS INTERNATIONAL INC
		CENTRAL INDEX KEY:			0001069394
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS CHEMICAL PRODUCTS [2890]
		IRS NUMBER:				911922863
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		2614 QUEENSWOOD DR
		CITY:			VICTORIA B C V8N 1X5
		STATE:			A1
		BUSINESS PHONE:		2504779969

	MAIL ADDRESS:	
		STREET 1:		2614 QUEENSWOOD DR
		CITY:			VICTORIA BC CANADA
		STATE:			A1
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>


<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[FLEXIBLE SOLUTIONS
LETTERHEAD] </FONT></H1>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>March 7, 2006 </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>VIA EDGAR &#150;
CORRESPONDENCE FILING</U> </FONT></H1>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Securities and Exchange
Commission<BR>100 F Street, N.E.<BR>Mail Stop 7010<BR>Washington, D.C. 20549-7010<BR>
Attn: Ms. Pamela A. Long </FONT></P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Re: </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Flexible
Solutions International, Inc.<BR>Waiver Request Letter Dated December 8, 2005 and<BR>Annual Report on Form 10-KSB for the Year Ended December 31, 2004,
filed<BR><U>on March 24, 2005 and restated on December 6, 2005 (File No. 1-31540)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></I></B> </FONT></TD>
</TR>
</TABLE>
<BR>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dear Ms. Long: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Flexible
Solutions International, Inc. (the &#147;<U>Company</U>&#148;), has reviewed the
Securities and Exchange Commission (the &#147;Commission&#148;) letter dated January 5,
2006 (the &#147;<U>January 5 Comment Letter</U>&#148;) regarding the Company&#146;s Waiver
Request Letter dated December 8, 2005, and the Company&#146;s restated Annual Report on
Form 10-KSB for the year ended December 31, 2004 (the &#147;<U>2004 Form
</U>10-KSB&#148;), filed by the Company on December 6, 2005. The Company responds to the
January 5 Comment Letter as follows: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>A.&nbsp;&nbsp;&nbsp;&nbsp;
<U>Response to Commission Comment 1 (&#147;Waiver Request Dated December 8, 2005&#148;)</U></B> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
respect to the Commission&#146;s request that the Company include additional disclosures
in its Form 10-KSB for the year ended December 31, 2005 (the &#147;<U>2005 Form
10-KSB</U>&#148;) in regards to its Biodegradable Polymer and Chemical Additives segment,
the Company respectfully informs the Commission that the Company&#146;s 2005 Form 10-KSB
will, when filed, include additional disclosures relating to this segment. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>B.&nbsp;&nbsp;&nbsp;&nbsp;
<U>Response to Commission Comment 2 (&#147;Item 8A. Controls and Procedures&#148;)</U></B> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
respect to the Commission&#146;s request for a more detailed explanation in the
Company&#146;s disclosure controls and procedures section in light of the restatement of
its financial statements for the periods ending between September 30, 2002 and June 30, 2005, the
Company respectfully informs the Commission that the 2004 Form 10-KSB will, when filed, be
revised in response to this comment as follows: </FONT></P>




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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ms. Pamela A. Long<BR>
Securities and Exchange Commission<BR>March 7, 2006<BR>Page 2 </FONT></P>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
do not believe that our system of disclosure controls and procedures was ineffective as a
result of the restatements to our financial statements for the periods ending between
September 30, 2002 and June 30, 2005. The only significant error to our restatement of
these financial statements was as a result of the misapplication of accounting
methodologies to our stock compensation expense. In particular, when we granted a stock
option to purchase two million shares of our common stock to Ondeo in September 2002, we
were aware that there were various accounting treatments for the potential stock
compensation expense. At that time, we reviewed the provisions of FAS No. 123, <I>Accounting
for Stock-based Compensation</I>, and discussed the matter with our independent auditors.
Our auditors advised us that since the option vested immediately, the entire stock
compensation expense should be recognized in fiscal 2002, at the date of granting.  </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
was later noted that we erred in determining the measurement date for the option and that
our auditors similarly erred in their application of FAS No. 123 and the related
literature issued by the Emerging Issues Task Force. This restatement was as a result of
a one-time error in the application of accounting treatments to a very complex issue and
has had no effect on our remaining disclosure controls and procedures.  </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>C.&nbsp;&nbsp;&nbsp;&nbsp;
<U>Response to Commission Comments 3 and 4 (&#147;Report of Independent Registered Public
Accounting Firm&#148;)</U></B> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s amended 2004 Form 10-KSB will, when filed, be revised in response to this
comment. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>D.&nbsp;&nbsp;&nbsp;&nbsp;<U>Response
to Commission Comments 5 and 6 (&#147;Note 3. Restatements as a           Result of
Correcting Stock-Based Compensation Expense&#148;)</U></B> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Commission has requested a more detailed explanation of how the Company accounted for the
stock option issued by the Company to Ondeo Nalco Company (&#147;<U>Ondeo</U>&#148;) in
September 2002. In addition, the Commission has requested an explanation as to how the
Company determined the amount of compensation expense recorded in connection with the
option. </FONT></P>



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<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ms. Pamela A. Long<BR>
Securities and Exchange Commission<BR>March 7, 2006<BR>Page 3 </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has reviewed Emerging Issues Task Force (&#147;<U>EITF</U>&#148;): </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;          Issue
No. 96-18, <I>Accounting for Equity Instruments That Are Issued to Other           Than
Employees for Acquiring, or in Conjunction with Selling, Goods or           Services</I>,
which addresses the measurement date for accounting for equity           instruments that
are issued to other than employees in exchange for goods and           services;  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;          Issue
No. 00-18, <I>Accounting Recognition for Certain Transactions Involving           Equity
Instruments Granted to Other Than Employees</I>, which requires the           recognition
of fully vested, exercisable, non-forfeitable equity instruments at           the time
when they are issued; and  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;          Issue
No. 01-9, <I>Accounting for Consideration Given by a Vendor to a Customer
          (Including a Reseller of the Vendor&#146;s Products)</I>, which addresses
          various issues related to classification of the consideration given from a
          vendor to a reseller or another party that purchases the vendor&#146;s products
          and whether such consideration should be classified as a deduction from
revenue.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
selecting its prior accounting treatment, the Company relied on the following: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;          In
September 2002, the Company entered into a distribution agreement with Ondeo
          whereby Ondeo agreed to serve as the exclusive distributor of the Company&#146;s
          WATER$AVR&reg; products for so long as Ondeo maintained certain threshold sales
          levels as defined in the agreement;  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;          As
consideration for signing the agreement, Ondeo was granted an option to
          purchase two million shares of the Company&#146;s common stock: (a) half of the
          option for one million shares was exercisable immediately at an exercise price
          of $4.25 for each common share, and (b) the remaining half of the option for
          one million shares was exercisable after certain threshold sales targets were
          achieved at a price of $5.50 for each common share; and  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;          The
distribution agreement and the corresponding stock option were cancellable           if
Ondeo did not meet the defined sales targets.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
accordance with EITF Issue Numbers 96-18, 00-18 and 01-9, and as set forth in the
Company&#146;s restated financial statements, the Company selected a measurement date as of
when the performance of the distribution agreement was complete, as viewed in relation to
the sales achieved by Ondeo. Accordingly, the stock compensation expense was to be
recognized over a rational and systematic basis in accordance with sales recognized. </FONT></P>





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<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ms. Pamela A. Long<BR>
Securities and Exchange Commission<BR>March 7, 2006<BR>Page 4 </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
value attributed to the option was $1,429,000 for the first half of the option and
$1,275,000 for the second half of the option, for a total option fair value of $2,704,000
(with a Black-Scholes calculation incorporating volatility of 72.23%, interest rate of 3%
and 1,825 days to expiry). The fair value of the option was to be recognized over the
period that the performance thresholds were met. During the quarter ended March 31, 2003,
Ondeo met the first performance threshold of 500,000 units (2% of a total of 24,680,000
units over five years). As such, the Company recognized 2% of the fair value of the
option, in the amount of $54,080 (0.02 x $2,704,000). The Ondeo agreement was then
cancelled in the quarter ended September 30, 2003 and, consequently, the stock
compensation expense recognized in the quarter ended March 31, 2003 was reversed, similar
to the accounting treatment of a forfeiture. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>E.&nbsp;&nbsp;&nbsp;&nbsp;<U>Response
to Commission Comment 7 (&#147;Note 3. Restatements as a Result           of Correcting
Stock-Based Compensation Expense&#148;)</U></B> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Commission has asked for an explanation as to how the Company determined it was
appropriate to classify the amount recorded related to the Ondeo option as an operating
expense rather than a reduction of revenue. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
making this determination, the Company relied upon EITF Issue No. 01-9, <I>Accounting for
Consideration Given by a Vendor to a Customer (Including a Reseller of the Vendor&#146;s
Products)</I>, which primarily addresses whether consideration given to a customer as a
sales incentive or other benefit should be an adjustment of the selling price, a cost
incurred by the vendor and expensed accordingly or a reduction of revenue. The consensus
reached by the EITF was that cash consideration given by a vendor to a customer is
presumed to be a reduction of the selling price and therefore should be characterized as
reduction of revenue when recognized by the vendor. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However,
paragraphs 9 and 10 of EITF Issue No. 01-9 state that when the consideration consists of a
free product or service, or anything other than cash, the cost of the consideration should
be characterized as an expense. Since the consideration given to Ondeo was essentially a
&#147;free product,&#148; or a separate deliverable, the proper accounting treatment
should have been to expense the cost rather than to deduct the amount from revenue. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because
of the immateriality of the amounts involved, being only $54,080 for one fiscal quarter,
the Company recorded the incentive as an operating expense rather than as a cost of
sale or a reduction of revenue. Materiality was determined on the basis of sales. Sales
for the quarter ended March 31, 2003 were approximately $1,281,000. The Company did not
consider, for interim reporting purposes, that a possible misclassification of $54,080 (4%
of sales) between a reduction of sales or an additional expense, that had no effect on
income, was material. As a result of the restatements and the recognition of the stock
compensation expense in the quarter ended March 31, 2003, and its reversal in the quarter
ended September 30, 2003, there was no amount recognized for stock compensation expense
for the year ended December 31, 2003. As stated, the stock compensation expense of $54,080
was recognized in the quarter ended March 31, 2003 as the sales targets were met and then
reversed in the quarter ended September 30, 2003 when the Ondeo agreement and
corresponding stock option were cancelled. </FONT></P>




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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ms. Pamela A. Long<BR>
Securities and Exchange Commission<BR>March 7, 2006<BR>Page 5 </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>F.&nbsp;&nbsp;&nbsp;&nbsp;
<U>Response to Commission Comment 8 (&#147;Note 7. Investments&#148;)</U></B> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Commission
has asked what consideration was given by the Company to the guidance provided by EITF
Issue No. 02-14, <I>Whether an Investor Should Apply the Equity Method of Accounting to
Investments Other Than Common Stock if the Investor Has the Ability to Exercise
Significant Influence Over the Operating and Financial Policies of the Investee</I>, with
respect to the Company&#146;s option acquired in fiscal 2003 to purchase twenty percent of
the outstanding capital stock of Tatko, Inc. (&#147;<U>Tatko</U>&#148;) in exchange for
the issuance of 100,000 shares of the Company&#146;s common stock. In particular, the
Commission has asked the Company to refer to each of the characteristics discussed in
paragraph 6 of EITF Issue No. 02-14. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EITF
Issue No. 02-14 states that an investor should only apply the equity method of accounting
when it has investments in either common stock or &#147;in-substance common stock&#148; of
a corporation, provided that the investor has the ability to exercise significant
influence over the operating and financial policies of the investee. Paragraph 6 of EITF
Issue No. 02-14 defines &#147;in-substance common stock&#148; as an investment that has
the risk and reward characteristics that are substantially similar to common stock,
considering: (a) subordination; (b) risks and rewards of ownership; and (c) obligation to
transfer value. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Tatko investment meets the definition of &#147;in-substance common stock&#148; as the
investment has subordination characteristics that are similar to common stock, the Company
has the ability to convert the investment into common stock without any significant
restrictions or contingencies that prevent the Company from participating in capital
appreciation of the investee in a manner similar to common stock, and there is no
requirement to transfer substantive value to the Company. Accordingly, the Company has
determined that the option to acquire twenty percent of the issued and outstanding shares
of Tatko for a nominal amount is &#147;in-substance common stock.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However,
in order for the Company to account for its investment in Tatko using the equity method,
it must be able to exercise some form of significant influence over its financial and
operating policies. The concept of significant influence is not addressed in EITF Issue
No. 02-14, but is referred to in Accounting Principles Board (&#147;<U>APB</U>&#148;)
Opinion No. 18, <I>The Equity Method of Accounting For Investments in Common Stock</I>. In
paragraph 17 of APB Opinion No. 18, the APB states that the equity method should be
followed by an investor whose investment in common stock gives it the ability to exercise
significant influence over the operating and financial policies of an investee even though
the investor holds fifty percent or less of the voting stock. The ability to exercise that
influence may be indicated in several ways, such as representation on the board of
directors, participation in policy-making processes, material inter-company transactions,
interchange of managerial personnel or technological dependency. These factors, coupled
with the extent of ownership of the investee, should dictate whether or not the investor
exercises significant influence over the financial and operating policies of the investee.
The APB also concluded that an investment of twenty percent or more of the voting stock of
an investee should lead to the presumption that, in the absence of evidence to the
contrary, an investor has the ability to exercise significant influence. </FONT></P>





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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ms. Pamela A. Long<BR>
Securities and Exchange Commission<BR>March 7, 2006<BR>Page 6 </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
light of the above, the Company has concluded that it does not have significant influence
over the financial and operating policies of Tatko for the following reasons: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;          The
Company is not and does not have the ability to be a member of the board of
          directors of Tatko;  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;          Although
the Company hopes to use Tatko&#146;s technology in the future, it has           used
very little of Tatko&#146;s technology or products, which is currently the
          subject of litigation between the Company and Tatko, nor is it required to do
          so;  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;          The
companies do not interchange any operating or managerial personnel, nor are
          there any communications between the two companies other than to discuss the
          advancement of Tatko&#146;s technology and to discuss the lawsuit between them;  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;          The
companies are in a relatively antagonistic relationship in that the Company           is
suing Tatko for the return of its shares as it believes that Tatko has not
          performed to the terms of the agreement; as indicia of the Company&#146;s lack
          of influence over the operations of Tatko, the Company has resorted to suing
          Tatko for performance; and  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;          The
Company only has the option to acquire twenty percent of Tatko and the
          remaining eighty percent is held by a closely coordinated group; consequently,
          the Company has not been able to, and it is unlikely that it will be able to,
          participate in any policy-making initiatives, nor obtain representation on
          Tatko&#146;s board of directors.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
agreement reached between the Company and Tatko was essentially a supply agreement, which
would allow the Company the right to use Tatko&#146;s bio-chemicals and patents in the
Company&#146;s products. In addition, Tatko is a private company in its development stage
and, to date, has been very slow in supplying the Company with its products pursuant to
the terms of the agreement. Consequently, the Company has asserted that Tatko has breached
the agreement and has demanded the return of its 100,000 shares. Until such time as the
issue is settled, the Company still maintains the right to acquire the twenty percent
interest in Tatko. The Company continues to monitor the investment in Tatko to ensure that
there is no impairment issue. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>* * * </FONT></P>




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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ms. Pamela A. Long<BR>
Securities and Exchange Commission<BR>March 7, 2006<BR>Page 7 </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
respect to its 2004 Form 10-KSB, the Company respectfully informs the Commission that it
intends to file via EDGAR an amendment thereto following the submission of this letter,
and such amendment will include the revisions referenced herein; <U>except that</U>, if
the responses to Commission comments 5 through 8 set forth above are satisfactory to the
Commission, the Company will not further amend its 2004 Form 10-KSB with respect to those
comments. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
you have any further comments regarding this letter or the responses contained herein,
please contact directly the attorney for the Company, Deepak Nanda, at (310) 975-7912 with
any questions or comments regarding this matter. Mr. Nanda&#146;s facsimile number is
(310) 557-8475. </FONT></P>


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     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH></TR>
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     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Very truly yours,</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><B>FLEXIBLE SOLUTIONS INTERNATIONAL, INC.</B></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U><BR><BR>/s/ Daniel B. O'Brien&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Daniel B. O'Brien</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>President and Chief Executive Officer</FONT></TD></TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>cc:  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chris
Edwards (via EDGAR only)<BR>          Matt Franker (via EDGAR only)<BR>          Nudrat Salik
(via EDGAR only)          <BR>Marie Humphrey (via EDGAR only)          <BR>Andrew B. Serwin
         <BR>Deepak Nanda</FONT></TD>
</TR>
</TABLE>
<BR>



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