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<SEC-DOCUMENT>0000897069-06-000765.txt : 20060309
<SEC-HEADER>0000897069-06-000765.hdr.sgml : 20060309
<ACCEPTANCE-DATETIME>20060309152225
ACCESSION NUMBER:		0000897069-06-000765
CONFORMED SUBMISSION TYPE:	10KSB/A
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20041231
FILED AS OF DATE:		20060309
DATE AS OF CHANGE:		20060309

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:		10KSB/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31540
		FILM NUMBER:		06676018

	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>10KSB/A
<SEQUENCE>1
<FILENAME>dbk113.htm
<DESCRIPTION>AMENDMENT NO. 2
<TEXT>
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     <TD WIDTH=100% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>UNITED STATES</B></FONT></TD></TR>
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     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4><B>SECURITIES AND EXCHANGE COMMISSION</B></FONT></TD></TR>
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     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Washington, D.C.&nbsp;&nbsp;20549</B></FONT></TD></TR>
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     <P ALIGN=CENTER>_________________ </P>


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     <TD WIDTH=100% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4><B>FORM 10-KSB/A</B></FONT></TD></TR>
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     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>(Amendment No. 2)</B></FONT></TD></TR>
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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Mark one)<BR>[X]&nbsp;&nbsp;&nbsp;&nbsp;Annual Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934</FONT></P>



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<TD WIDTH=5%>&nbsp;</TD>
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<B>For
The Fiscal Year Ended December 31, 2004.</B> </FONT></TD>
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<BR>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[_]&nbsp;&nbsp;&nbsp;&nbsp;Transition Report
Under Section 13 or 15(d) of the Securities Exchange Act of 1934  </FONT></P>

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<TD WIDTH=5%>&nbsp;</TD>
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For
the transition period from ______ to ______. </FONT></TD>
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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Commission File Number
000-29649 </FONT></P>


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     <P ALIGN=CENTER>_________________ </P>


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     <TD WIDTH=100% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4><B>FLEXIBLE SOLUTIONS INTERNATIONAL, INC.</B></FONT></TD></TR>
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     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Name of Small Business Issuer in Its Charter)</FONT></TD></TR>
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     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Nevada</B></FONT></TD>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>91-1922863</B></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(State of Incorporation)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(IRS Employer Identification No.)</FONT></TD></TR>
</TABLE>
<BR>

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     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>615 Discovery Street</B></FONT></TD>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Victoria, British Columbia, CANADA</B></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>V8T 5G4</B></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Address of Principal Executive Offices)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Zip Code)</FONT></TD></TR>
</TABLE>
<BR>


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     <TD WIDTH=100% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>(250) 477-9969</B></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Issuer&#146;s Telephone Number)</FONT></TD></TR>
</TABLE>


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     <P ALIGN=CENTER>_________________ </P>



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     <TD WIDTH=100% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>None</B></FONT></TD></TR>
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     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Securities registered under Section 12(b) of the Exchange Act)</FONT></TD></TR>
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<BR>


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     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Common Stock, $0.001 par value</B></FONT></TD></TR>
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     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Securities registered under Section 12(g) of the Exchange Act)</FONT></TD></TR>
</TABLE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check
whether the issuer is not required to file reports pursuant to Section 13 or 15(d) of the
Exchange Act.&nbsp;&nbsp;&nbsp;&nbsp;[_] </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check
whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of
the Exchange Act during the past 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.&nbsp;&nbsp;&nbsp;&nbsp;Yes [X]&nbsp;&nbsp;&nbsp;&nbsp;No [_] </FONT></P>





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check
if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B
contained in this form, and no disclosure will be contained, to the best of
registrant&#146;s knowledge, in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-KSB or any amendment to this Form 10-KSB.&nbsp;&nbsp;&nbsp;&nbsp;[X] </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act).&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;[_]&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;[X]  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State
issuer's revenues for its most recent fiscal year:  $3,392,937. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State
the aggregate market value of the voting and non-voting common equity held by
non-affiliates computed by reference to the price at which the common equity was sold, or
the average bid and asked price of such common equity, as of a specified date within the
past 60 days: As of March 19, 2005, the aggregate market value of the Company&#146;s
common stock held by non-affiliates was approximately $48,155,898 based on the closing
price for shares of the registrant&#146;s common stock on the American Stock Exchange for
that date. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State
the number of shares outstanding of each of the issuer&#146;s class of common equity, as
of the latest practicable date: As of March 11, 2005, there were 11,831,916 shares of the
Company&#146;s common stock outstanding. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DOCUMENTS INCORPORATED
BY REFERENCE </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
documents are incorporated by reference. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transitional
Small Business Disclosure Format (check one):&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;[_]&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;[X] </FONT></P>



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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FLEXIBLE SOLUTIONS
INTERNATIONAL, INC.<BR>INDEX TO ANNUAL REPORT ON FORM 10-KSB/A<BR>For the fiscal year
ended December 31, 2004 </FONT></H1>


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     <TD WIDTH=8% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD WIDTH=85% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U><B>Page</B></U></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD COLSPAN=2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><B>Explanatory Note</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ii</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD COLSPAN=2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><B>Cautionary Note Regarding Forward-Looking Statements</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>iii</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><B>PART I</B></FONT></TD> </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Item 1.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Description of Business.</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><B>PART II</B></FONT></TD> </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Item 7.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Financial Statements.</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Item 8A.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Controls and Procedures.</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>PART III</B></FONT></TD> </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Item 11.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Security Ownership of Certain Beneficial Owners and Management and Related Stockholder</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></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>Matters.</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Item 13.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibits.</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR><B>Signatures</B></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14</FONT></TD></TR>
</TABLE>
<BR>


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



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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>EXPLANATORY NOTE</U> </FONT></H1>

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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. (&#147;we,&#148; &#147;us,&#148; and &#147;our&#148;) is
filing this Amendment No. 2 to its Annual Report on Form 10-KSB/A (this
&#147;Amendment&#148;) to amend its Annual Report on Form 10-KSB for the fiscal year ended
December 31, 2004, which was originally filed with the Securities and Exchange Commission
(&#147;SEC&#148;) on March 24, 2005 (the &#147;Original Filing&#148;) and subsequently
restated in its entirety and filed with the SEC on December 5, 2005 (the
&#147;Restatement&#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;This
Amendment is being filed in response to certain comments from the SEC relating to our
disclosures that appear in &#147;Item 1. Description of Business&#148; of Part I,
&#147;Item 7. Financial Statements&#151;<I>Report of Independent Registered Public
Accounting Firm</I>&#148; of Part II, &#147;Item 8A. Controls and Procedures&#148; of Part
II, &#147;Item 11. Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters&#148; of Part III, and &#147;Item 13. Exhibits&#148; of Part
III of our Restatement. As required under SEC rules, this Amendment sets forth the
complete text of each of these amended disclosures. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
for the amended disclosures identified above and as set forth herein, this Amendment does
not reflect events occurring after the filing of the Original Filing, nor modify any of
the disclosures contained in the Restatement, or in the accompanying financial statements
and notes thereto. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Amendment should be read in conjunction with our periodic filings made with the SEC
subsequent to the date of the Original Filing, including any amendments to those filings.
In addition, in accordance with Rule 12b-15 under the Securities Exchange Act of 1934, as
amended, and certain other rules, this Amendment includes an updated Consent of
Independent Registered Public Accounting Firm and updated certifications from our Chief
Executive Officer and Chief Financial Officer. </FONT></P>


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


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CAUTIONARY NOTE
REGARDING FORWARD-LOOKING STATEMENTS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Annual Report on Form 10-KSB/A for the year ended December 31, 2004 (&#147;Annual
Report&#148;), contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements include, without
limitation, those statements relating to development of new products, our financial
condition, our ability to increase distribution of our products, integration of businesses
we acquire and disposition of any of our current business. Forward-looking statements can
be identified by the use of forward-looking terminology, such as &#147;may,&#148;
&#147;will,&#148; &#147;should,&#148; &#147;expect,&#148; &#147;anticipate,&#148;
&#147;estimate,&#148; &#147;continue,&#148; &#147;plans,&#148; &#147;intends,&#148; or
other similar terminology. These forward-looking statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that are difficult to
predict. Therefore, actual outcomes and results may differ materially from what is
anticipated or forecasted in these forward-looking statements due to numerous factors,
including, but not limited to, our ability to generate or obtain sufficient working
capital to continue our operations, changes in demand for our products, the timing of
customer orders and deliveries and the impact of competitive products and pricing. In
addition, such statements could be affected by general industry and market conditions and
growth rates, and general domestic and international economic conditions. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although
we believe that the expectations reflected in these forward-looking statements are
reasonable and achievable, such statements involve risks and uncertainties and no
assurance can be given that our actual results will be consistent with these
forward-looking statements. Except as otherwise required by applicable securities laws, we
undertake no obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events, changed circumstances or any other
reason, after the date of this Annual Report. </FONT></P>


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


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I </FONT></H1>

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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item 1.</B>  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Description of Business.</B> </FONT></TD>
</TR>
</TABLE>
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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our Company </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Flexible
Solutions International, Inc.</I> </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. (&#147;we,&#148; &#147;us,&#148; and &#147;our&#148;)
develops, manufactures and markets specialty chemicals which slow down the evaporation of
water. Our primary product, HEAT$AVR&reg;, is marketed for use in swimming pools and spas
where its use, by slowing the evaporation of water, allows the water to retain a higher
temperature for a longer period of time and thereby reduces the energy required to
maintain the desired temperature of the water in the pool. Another product,
WATER$AVR&reg;, is marketed for water conservation in irrigation canals, aquaculture, and
reservoirs where its use slows down water loss due to evaporation. We also make and sell
dispensers which automate the deployment of our chemical products. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
were incorporated as Flexible Solutions, Ltd. (referred to hereinafter as &#147;Flexible
Ltd.&#148;), a British Columbia corporation, on January 26, 1991. On May 12, 1998, we
merged Flexible Ltd. with and into Flexible Solutions International, Inc., a Nevada
corporation, and, in exchange for all of the outstanding shares of Flexible Ltd., we
issued 7,000,000 shares of common stock, which represented all of our then-issued and
then-outstanding shares, to the former shareholders of Flexible Ltd. Flexible Ltd. is now
our wholly-owned subsidiary. For further information on Flexible Ltd., see &#147;Our
Subsidiaries&#151;<I>Flexible Solutions, Ltd.</I>&#148; below. At the time of our merger
with Flexible Ltd., we had no other business and were incorporated solely in order to
acquire Flexible Ltd. This merger facilitated the establishment of a public trading market
for our common stock. Trading in our common stock commenced on October 12, 1999, through
the OTC Bulletin Board under the trading symbol &#147;FXSO&#148;. Since November 2002, our
common stock has traded on the American Stock Exchange under the trading symbol
&#147;FSI&#148;. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our Subsidiaries </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are the parent holding company for Flexible Ltd., WaterSavr Global Solutions Inc.
(hereinafter referred to as &#147;WaterSavr&#148;) and NanoChem Solutions Inc.
(hereinafter referred to as &#147;NanoChem&#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;<I>Flexible
Solutions, Ltd.</I> </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
Ltd., a British Columbia corporation, was organized to develop and market swimming pool
chemical products designed to reduce heat loss. HEAT$AVR&reg; and ECO$AVR&reg; are
Flexible Ltd.&#145;s principal products. For further information on these products, see
&#147;Our Products&#151;<I>HEAT$AVR&reg; and ECO$AVR</I>&reg;&#148; below. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>WaterSavr
Global Solutions Inc.</I> </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
2002, we established WaterSavr Global Solutions Inc. to concentrate on the marketing of
our WATER$AVR&reg; product. Since February 7, 2005, WaterSavr has been organized as a
Nevada corporation. WATER$AVR&reg; is a patented powder that, when deployed onto a water
surface of any size, will significantly reduce evaporation. For further information on our
WaterSavr products, see &#147;Our Products&#151;<I>WATER$AVR&reg;</I>&#148; below. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1 </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>NanoChem
Solutions Inc.</I> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
May 25, 2004, we formed NanoChem in order to acquire certain of the assets of Donlar
Corporation, which owned a broad portfolio of environmentally friendly technologies and
products. In June 2004, NanoChem purchased these assets from the bankruptcy estate of
Donlar Corporation (&#147;Donlar&#148;) for $6.15 million. In exchange for the capital
contribution necessary to purchase the Donlar assets, we were issued all of the
outstanding shares of NanoChem, making it our wholly-owned subsidiary. The newly acquired
assets include 52 U.S. and 139 International patents relating to environmental products
and technologies, as well as a 56,780 sq. ft. manufacturing plant on 40 acres of property
in an area outside of Chicago, Illinois. As part of the asset acquisition from Donlar, we
also acquired leaseholds to corporate offices and a laboratory in Bedford Park, Illinois
that are now occupied by NanoChem. The principal products that we acquired from Donlar via
our wholly-owned subsidiary, NanoChem, consist of water-soluble chemicals utilizing
thermal polyaspartate biopolymers (hereinafter referred to as &#147;TPAs&#148;), 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 as additives for household laundry detergents,
consumer care products and pesticides. For further information on these products, see
&#147;Our Products&#151;<I>Biopolymer Products (TPAs)</I>&#148; below. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our Products </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>HEAT$AVR&reg;and
ECO$AVR&#153;</I> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
principal products consist of the HEAT$AVR&reg; and ECO$AVR&reg; branded chemical
solutions. HEAT$AVR&reg; is a chemical product for use in swimming pools and personal spas
that forms a thin, transparent layer on the water&#146;s surface that reduces water
evaporation and heat loss. We market the HEAT$AVR&reg; product as a cost-effective and
convenient way to save on the cost of energy required to heat pools and spas. Our studies
indicate that approximately 70% of the energy lost from a swimming pool occurs through
water evaporation. By using our HEAT$AVR&reg; product, we can minimize that heat loss and
save our customers money on their pool and spa energy needs. For example, we have received
reports from our commercial customers documenting energy savings of between $2,400 to
$6,000 per year when using our HEAT$AVR&reg; product. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
completed the development of our HEAT$AVR&reg; product and introduced it to the commercial
marketplace in 1998, achieving initial sales of $84,252 that year. Since that time, we
have expanded our marketing of the HEAT$AVR&reg; product to include the residential
marketplace. We found that by designing the HEAT$AVR&reg; product to be
&#147;residential-friendly,&#148; we could increase sales. As a result, we created a
patented, fish-shaped dispensing unit for the HEAT$AVR&reg; residential market and have
designated the dispensing unit as the ECO$AVR&reg;. Since that time, we have increased
sales and market share on our HEAT$AVR&reg; and ECO$AVR&reg; products. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
ECO$AVR&reg; dispenser is made of molded plastic in the form of a ten-inch long colorful
ECO$AVR&reg; fish that is filled with enough HEAT$AVR&reg; solution to cover the surface
of a 400 sq. ft. swimming pool for about one month. The ECO$AVR&reg; is deployed by
cutting off the dorsal fin and tossing the fish into the pool where it submerges to the
bottom. Differential pressure causes the HEAT$AVR&reg; solution inside the ECO$AVR&reg; to
escape into the water where it rises to the surface and forms a transparent layer on the
water&#146;s surface. Once the ECO$AVR&reg; is empty, the dispenser is removed and
replaced. We also make and sell automatic metering system dispensers for automatically
dispensing HEAT$AVR&reg; into a swimming pool or spa. These dispensers contain a reservoir
holding a one-gallon supply of HEAT$AVR&reg;. The unit is programmed to inject the
appropriate amount of the HEAT$AVR&reg; product into the pool at the rate of one ounce per
400 sq. ft. of pool surface per day. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2 </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
ECO$AVR&reg; product has a suggested retail price of between $11.95 and $14.95 in the
United States. HEAT$AVR&reg; retails for between $200 and $300 per four gallon case in the
United States. In outdoor swimming pools, our HEAT$AVR&reg; product can provide savings on
pool heating costs and provides convenience of use when compared to pool blankets. Pool
blankets are plastic covers, which are cut to the size and shape of the surface of the
pool or spa. They float on the surface and perform the same function as our HEAT$AVR&reg;
product: reducing energy cost by inhibiting water evaporation. Pool personnel often find
it inconvenient to use conventional pool blankets because a pool blanket must be removed
and stored prior to entering the pool and provides no energy savings when not on the pool.
Conversely, our HEAT$AVR&reg; product eliminates the necessity of installing, removing and
storing the blanket and works 24 hours a day. We believe that the ease of use provided by
HEAT$AVR&reg; results in more consistent pool and spa usage. In addition, the use of
HEAT$AVR&reg; in an indoor pool results in even greater energy savings. Indoor pool
locations use energy not only to heat the pool water, but also to air condition the pool
environment. By slowing the transfer of heat and water vapor from the pool to the
atmosphere of the pool enclosure, less energy is required to maintain a pool at the
desired temperature and there is a reduced load on the air-conditioning system because
less heat is transferred from the pool water to the surrounding air and less water vapor
will have to be removed from the air to maintain the required comfort level. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
market our HEAT$AVR&reg; and ECO$AVR&reg; products to both residential and commercial
markets, consisting of individual homeowners with swimming pools and personal spas and
commercial consumers consisting of operators of swimming pools and personal spas located
in hotels, motels, schools, and municipal and private recreational facilities. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Traditionally,
we sold our HEAT$AVR&reg; and ECO$AVR&reg; products directly to a wholesale network.
However, in February 2004, we reorganized the distribution of our HEAT$AVR&reg; and
ECO$AVR&reg; products so that we now handle distribution of the products from our sales
and marketing office in Richmond, British Columbia. By bringing our product distribution
in-house, we believe we can fully integrate our manufacturing and distribution processes
such that we can increase our revenue per unit by 100%. While we now maintain greater
control over our distribution process, we also still maintain non-exclusive
distributorships in Canada and the United States for the sale of bulk HEAT$AVR&reg;
(without the ECO$AVR&reg; dispenser) and exclusive distributorships in Australia, Japan,
Korea, Spain and Great Britain. We support our distributors and seek additional market
opportunities by annually attending the major pool industry trade shows in the United
States. We also advertise in trade magazines, maintain a semi-annual newsletter that is
sent to buyer associations, customers and potential customers, and maintain an internet
presence containing information about our products. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>WATER$AVR&reg;</I> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
introduced our WATER$AVR&reg; product in June 2002. This product utilizes our core
technology to reduce water evaporation. We market it as a water conservation product for
use where water is standing or gently flowing and the need for water conservation can
justify the cost of purchase and deployment of the product. We believe that our
WATER$AVR&reg; product may find a market for use in the following markets: reservoirs,
potable water storage, aqueducts and canals, agricultural irrigation, flood water crops,
lawn and turf care, potted and bedding plants, stock watering ponds, and mining. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WATER$AVR&reg;
is sold in granulated form and can be provided in shaker containers holding &frac34; lbs.
or in 50 lbs. weatherproof bags. WATER$AVR&reg; can be applied in various ways from hand
dispersal to fully automated scheduled metering, and we also offer an automatic dispenser
for WATER$AVR&reg; to automate deployment of the product. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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;In
May 2004, the Metropolitan Water District of Southern California awarded us a $30,000
grant under that agency&#146;s Innovation Supply Program for an evaporation control
project to start in June 2004. In September and October 2004, we achieved positive results
from our evaporation control testing conducted at Owens Lake, California. The evaporation
control results were as follows: </FONT></P>

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<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>&#149;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Evaporation
reduction for 2- and 3-day application cycles over September and October were 37% and
30%, respectively; and</FONT></TD>
</TR>
</TABLE>
<BR>

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<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> &#149;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Evaporation
savings were as high as 54% and as low as 22% on individual days depending on
environmental factors. </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;We
also ordered a simultaneous toxicity study to be performed by McGuire Environmental
Consultants Inc. of Denver, Colorado to determine if any water quality change occurred as
a result of the application of WATER$AVR&reg; to a body of water. With respect to the
environmental impact testing performed in Colorado, the results were as follows: </FONT></P>

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<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>&#149;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No
effect on odor; </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>&#149;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No
effect on invertebrates; </FONT></TD>
</TR>
</TABLE>
<BR>


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<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>&#149;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No
effect on vertebrates; </FONT></TD>
</TR>
</TABLE>
<BR>


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<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>&#149;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No
anticipated effect on any current drinking water treatment processes; and </FONT></TD>
</TR>
</TABLE>
<BR>


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<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>&#149;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Biodegradability
reconfirmed independently.</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;We
anticipate our initial market for WATER$AVR&reg; will be in Spain, Australia and the
United States. We have provided quantities of the product for testing in these countries
and, if successful, we anticipate that substantial orders may be received. We also
anticipate marketing WATER$AVR&reg; to both developed and drought stricken countries to
address water conservation concerns. In this regard, we are seeking to establish strategic
relationships with companies in the water processing industry who have marketing and
manufacturing operations in countries with water conservation concerns. We have two
full-time employees and two other employees more than 50% assigned to establishing sales
channels throughout the world for WATER$AVR&reg;. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>WATER$AVR&#151;BTI&#153;</I> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over
the last three years, our continued research and development has resulted in a patent
pending modification of the original WATER$AVR&reg; that combines evaporation control with
control of mosquito larvae. The result is our new WATER$AVR&#151;BTI&#153; product. The
BTI portion of the product is a recognized and approved, environmentally friendly method
of killing mosquito larvae during the first, second and third stages of larvae
development. Combined with our original WATER$AVR&reg; product, WATER$AVR&#151;BTI&#153;
can be effectively and quickly spread across large and small water surfaces evenly and can
be constrained to the water/air interface where larvae must go to obtain air. </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
November 2004, after announcing positive test results from independent trials conducted at
Louisiana State University on the efficacy of the WATER$AVR&#151;BTI&#153; product, we
filed an application with the U.S. Environmental Protection Agency (&#147;EPA&#148;) to
obtain product registration. This application is still pending. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Included
in our application were the results of the field tests on the performance of
WATER$AVR&#151;BTI&#153;, carried out by the Entomology Department at the Louisiana State
University Agricultural Center. The results of the field testing at Louisiana State
University were as follows: WATER$AVR&#151;BTI&#153; has been shown to correspond to a
reduction in the density of mosquito larvae present in a body of water. These field tests
back up our internal laboratory tests, showing that the use of WATER$AVR&#151;BTI&#153;
resulted in a 100% kill rate of mosquito larvae in contact with the product. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Biopolymer
Products (TPAs)</I> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
subsidiary, NanoChem, produces TPAs used in industrial and consumer products. TPAs have a
wide range of molecular weights. The ideal weight depends on the application, formulation
and required performance characteristics in specific processes. This allows for
customization of the products to correspond to particular product applications. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>TPAs
for Oilfields</U>. TPAs are used to reduce scale and corrosion in various
&#147;topside&#148; water systems. They are chosen over traditional phosphate and other
products when biodegradability is required by environmental regulation. In this regard, we
create products that can be used by our NanoChem sales force to market to oil service
company technicians on a oil well-by-oil well basis according to the specific water
conditions involved. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>TPAs
for the Agricultural Industry</U>. TPAs have the ability to reduce fertilizer
crystallization before, during and after application and can also prevent crystal
formation between fertilizer and minerals present in the soil. Once crystallized,
fertilizer and soil minerals are not bio-available to provide plant nourishment. As a
result, in select conditions the use of TPAs either blended with fertilizer or applied
directly to crops can increase yield values significantly beyond the cost of the TPA used.
We conduct sales of these TPA-specific products by distribution through agricultural input
companies, with a current emphasis on the Western United States. These proteins are
designated for crop nutrient management programs and should not be confused with crop
protection and pesticides or other agricultural chemical application. Depending on the
application, these TPA products are marketed under a variety of brands including Amisorb,
LYNX, MAGNET, AmGro and VOLT. Markets of significance include potatoes, sugar beets,
cotton, tomatoes, almonds and other high value per acre crops. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>TPAs
for Irrigation</U>. The crystallization prevention ability of TPAs can also be useful in
select irrigation conditions. By reducing calcium carbonate scale propagation, TPAs can
prevent early plugging of drip irrigation ports and reduce maintenance costs and lengthen
equipment lifetimes. These TPAs can replace and compete with acid type scale removers, but
have the competitive advantages of a positive yield effect on the plant, as well as an
easier deployment formulation with liquid fertilizers when used as part of a
&#147;fertigation&#148; program. Our TPAs for drip irrigation scale prevention are at an
early stage of commercialization and will be marketed and sold through the same channels
as our TPAs for the agricultural industry. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>TPAs
for Detergent</U>. In detergents, TPAs are a biodegradable substitute for poly-acrylic
acid. In select markets, the use of this substitute outweighs the added cost of TPAs,
which has allowed for the continued growth of this TPA product line. However, to increase
penetration of this market beyond specialty detergent manufacturers, we will have to find
ways to decrease the cost of goods sold or wait for legislative intervention regarding
biodegradability of detergent components. In the meantime, we are researching various
methods of reducing production costs. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>TPAs
for Personal Care Products</U>. TPAs can also be used in shampoo and cosmetic products for
increased hydration that improves the feel of the core product to consumers. It may also
be used as an additive to toothpaste with the documented effect of reducing decay bacteria
adhesion to tooth enamel and presumed reduction in total decay. We do not currently sell
TPAs for personal care products into these markets. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5 </FONT></P>



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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Competition </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>HEAT$AVR&reg;and
ECO$AVR&#153;</I> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are aware of only one other company that manufactures a chemical evaporation reduction
product that competes with our HEAT$AVR&reg; product. This other product has had limited
sales to date and does not have the important convenience factor of our ECO$AVR&reg;
product. In addition to this existing competitor, our previous distributor, Sun Solar
Energy Technologies Inc. (hereinafter referred to as &#147;Sun Solar&#148;), has recently
begun selling a product called Turbo-Tropical Fish that directly competes with our
ECO$AVR&reg; product. This product, while having a higher price point and no sales history
to date, must be taken seriously because of the expertise Sun Solar derived from working
with us for six years as our exclusive North American distributor of ECO$AVR&reg;, which
relationship ended in February 2004. We also believe that Sun Solar is infringing our
trademark rights by using the name &#147;Turbo Tropical Fish&#148; and we are actively
litigating the issue. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
mentioned above, HEAT$AVR&reg; also competes against plastic pool blanket products. We
compete against pool blankets on the basis of convenience of use of HEAT$AVR&reg; versus
the inconvenience of deploying and storing pool blankets. Pool owners and operators may
also decide that evaporation control products are not needed for their pools. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>WATER$AVR&reg;</I> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aegis
Chemical Industries Ltd. of India directly competes with our WATER$AVR(R)product.  We
believe our WATER$AVR(R)product is superior for the following reasons: </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>&#149;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Easier
Application</U>. WATER$AVR&reg; may be deployed directly to the water surface by hand or
machine. Our competition requires premixing to dilute the product to usable strength,
followed by extensive pumping. </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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &#149;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Cost</U>.
In order to achieve comparable water savings levels, other products would cost more than
the WATER$AVR&reg;product. </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;Water
conservation is an important priority throughout the world, and numerous researchers in
industry and academia are seeking to develop solutions that may compete with, or be
superior to our products. Climate changes that relieve water shortage conditions or a
technological breakthrough in water desalination could reduce the need for water
conservation products. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>WATER$AVR&#151;BTI&#153;</I> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are not aware of any direct competition to our WATER$AVR&#151;BTI&#153; product; however,
the business of pest control is very large and very well funded. There are a multitude of
methods and materials that can be used for mosquito control and all of them are
competition for our product. We believe that we will be able to compete by: </FONT></P>

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<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>&#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Providing
an environmentally sensitive alternative; </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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Increasing
effectiveness per unit cost; and</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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Reducing
cost of application respective to similar products. </FONT></TD>
</TR>
</TABLE>
<BR>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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;<I>Biopolymers
(TPAs)</I> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
TPA products have direct competition with Lanxess AG (recently spun out of Bayer AG), a
German TPA manufacture of similar quality operating pursuant to a different patented
process from that used by NanoChem. NanoChem and Lanxess have cross-licensed each
other&#146;s processes and either company can use either process for the term of the
patents involved. It is believed that Lanxess has approximately the same production
capacity as NanoChem and it must be presumed that their cost of goods sold is competitive.
We believe that we can compete effectively with Lanxess by offering excellent customer
service in oilfield sales, superior distributor support in the agricultural marketplace
and the advantage of flexibility because of the relative size of our company. In addition,
we intend to continue to seek market niches that are not the primary targets of Lanxess,
such that we can attempt to avoid confusion. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
TPA products face indirect competition from other chemicals in every market in which we
are active. In irrigation scale control, acid washes can be utilized. In detergent,
poly-acrylic acid is most often used due to price advantage. For crop enhancement,
increased fertilizer levels or reduced concentrations can serve as a substitute for TPAs.
Likewise, in oilfield scale prevention, phosphonates, phosphates and molibdonates provide
the same effect. Notwithstanding the above, we believe our competitive advantages include: </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>&#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Biodegradability
compared to poly-acrylic acid for detergents;</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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &#149;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Biodegradability
compared to competing oil field chemicals;</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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cost-effectiveness
for crop enhancement compared to increased fertilizer use; and</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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Environmental
considerations, ease of formulation and increased crop yield opportunities in irrigation
scale control markets. </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Manufacturing </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
HEAT$AVR&reg; and ECO$AVR&reg; products and dispensers are made from chemicals, plastic
and other materials and parts that are readily available from multiple suppliers. We have
never experienced any shortage in the availability of raw materials and parts for our
products and we do not have any long term supply contracts for any such items. We
manufacture our products in an approximately 11,000 sq. ft. plant in Calgary, Alberta,
Canada. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
WATER$AVR&reg; products are manufactured under contract with Ondeo Nalco Company
(&#147;Ondeo&#148;) under a five-year agreement effective as of April 2002, with a
five-year extension available. We are not required to purchase any minimum quantity of
such product. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
56,780 sq. ft. manufacturing facility in Peru, Illinois presently satisfies our TPA needs
for our NanoChem subsidiary. Precursor chemicals for TPA production are sourced from
various manufacturers throughout the world and we believe they are available in sufficient
quantities for any expected increase in sales. The precursor chemicals are, however,
derived from crude oil and are subject to price fluctuations related to world oil prices. </FONT></P>


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


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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Governmental Regulations </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>HEAT$AVR&reg;and
ECO$AVR&reg;</I> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chemical
products for use in swimming pools are covered by a variety of governmental regulations in
the countries where we sell our products. These regulations cover such matters as
packaging, labeling, and product safety. We believe our products are in compliance with
such regulations. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>WATER$AVR&reg;</I> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
WATER$AVR&reg; product is subject to additional regulation in most countries, particularly
for agricultural and drinking water uses. As we continue to develop this product, and
prior to its full-scale commercial roll-out, we will address these issues on a
country-by-country basis. We do not anticipate that governmental regulations will be an
impediment to marketing our WATER$AVR&reg; product because the ingredients have
historically been used in agriculture for many years for other purposes. Nevertheless, we
will need to obtain approval to sell WATER$AVR&reg; in the United States for agricultural
users. To date, we have already applied for and received National Sanitation Foundation
approval for drinking water in the United States. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>WATER$AVR&#151;BTI&#153;</I> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
a new pesticide formulation, WATER$AVR&#151;BTI&#153; must be approved by the EPA and
equivalent bodies in countries throughout the world where we will sell the product. An
application for product approval was filed with the EPA in November 2004. It has been
accepted for fast track status and the application fee has been waived. Fast track status
requires the EPA to provide a decision within six months of accepting an application and,
as such, an answer is expected by no later than May 2005. If the product is approved by
the EPA, our subsidiary, WaterSavr, will proceed to apply for certification in any country
where significant markets are identified. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Biopolymer
Products (TPAs)</I> </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
the oil field and agricultural markets, NanoChem has applied for and received government
approval in all areas of current use. As new markets are accessed, we will seek additional
certification for such markets. We believe our NanoChem employees are experienced and
skilled in the successful prosecution of these certifications. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In the detergent market, there are
currently no regulatory requirements for use of TPAs in detergent formulations. For
personal care products such as shampoo and toothpaste, there are various regulatory
bodies, including the National Sanitation Foundation and the United States Food and Drug
Administration, that regulate TPA use. If we begin to market our TPA products to these
industries, we will need to satisfy the regulatory approval requirements therefor. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proprietary Rights </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
success and ability to compete is dependent, in part, upon our proprietary technology. We
rely on a combination of patent, copyright and trade secret laws and nondisclosure
agreements to protect our proprietary technology. We currently hold 56 U.S. patents and
139 International patents, the duration of which range from six to eighteen years. We also
have three U.S. patent applications pending and have applied to extend these pending
patents to certain other countries where we operate. There can be no assurance that our
pending patent applications will be granted or that any issued patent will be upheld as
valid or prevent the development of competitive products, which may be equivalent to or
superior to our products. Except as specifically set forth in &#147;Item 3&#151;Legal
Proceedings,&#148; we have not received any claims alleging infringement of the
intellectual property rights of others, but there can be no assurance that we may not be
subject to such claims in the future. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8 </FONT></P>



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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Research and Development </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have spent approximately $58,552 for the year ended December 31, 2004 and $67,615 for the
year ended December 31, 2003, on research and development activities. This work relates
primarily to the development of our water and energy conservation products, as well as new
research in connection with our TPA products. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Employees </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of December 31, 2004, we had 34 employees, including one officer, twenty-two sales and
customer support personnel, and eleven manufacturing personnel. None of our employees is
represented by a labor union and we have experienced no work stoppages to date. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9 </FONT></P>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART II </FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item  7.</B></FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Financial Statements.</B> </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Report of Independent
Registered Public Accounting Firm </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To the board of directors and
stockholders<BR>of FLEXIBLE SOLUTIONS INTERNATIONAL, INC.: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have audited the consolidated balance sheet of Flexible Solutions International, Inc. as
at December 31, 2004 and 2003 and the consolidated statements of operations,
stockholders&#146; equity and cash flows for the years then ended. The consolidated
financial statements are the responsibility of the company&#146;s management. Our
responsibility is to express an opinion on these consolidated financial statements. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
conducted our audit in accordance with the standards of the Public Company Accounting
Oversight Board in the United States of America. Those standards require that we plan and
perform an audit to obtain reasonable assurance whether the consolidated financial
statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. </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
our opinion the consolidated financial statements present fairly, in all material
respects, the financial position of the company as at December 31, 2004 and 2003 and the
results of its operations and its cash flows for each of the two years in the period ended
December 31, 2004 in conformity with generally accepted accounting principles in the
United States of America. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
described in note 3 to the consolidated financial statements, the accompanying
consolidated financial statements of Flexible Solutions International, Inc. as of December
31, 2004 and 2003 and for the years then ended have been restated. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
February 11, 2005 (September 30, 2005 as to the effects of the restatements described in
note 3), we reported separately to the shareholders of Flexible Solutions International,
Inc. on consolidated financial statements for the same period, audited in accordance with
auditing standards generally accepted in the United States of America and prepared in
accordance with accounting principles generally accepted in the United States of America. </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=60% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Cinnamon Jang Willoughby &amp; Company,</I></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>Chartered Accountants</FONT></TD></TR>
</TABLE>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Burnaby, British Columbia<BR>March 15,
2005 (September 30, 2005 as to the effects of the restatements described in note 3) </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10 </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item 8A.</B></FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Controls and Procedures.</B> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Disclosure Controls and
Procedures </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
maintain disclosure controls and procedures that are designed to ensure that information
required to be disclosed in our periodic reports to the SEC is recorded, processed,
summarized and reported within the time periods specified in the SEC&#146;s rules and
regulations, and that such information is accumulated and communicated to our management,
including our principal executive officer and principal 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 our desired
disclosure control objectives. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of the end of the period covered by this Annual Report, we carried out an evaluation,
under the supervision and with the participation of management, including our principal
executive officer and principal financial officer, of the effectiveness of the design and
operation of our disclosure controls and procedures (as defined under Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934, as amended). Based upon that
evaluation, our principal executive officer and principal financial officer concluded that
our disclosure controls and procedures are effective in timely alerting them to material
information relating to us (including our consolidated subsidiaries) that is required to
be included in our periodic reports. </FONT></P>

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<P><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></P>

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<P><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></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Changes in Internal
Control Over Financial Reporting </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
was no change in our internal control over financial reporting that occurred during the
period covered by this report that has materially affected, or is reasonably likely to
materially affect, our internal control over financial reporting. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11 </FONT></P>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART III </FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item 11.</B> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Security Ownership of Certain Beneficial
Owners and Management and Related Stockholder Matters.</B> </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;The
following table sets forth certain information regarding the beneficial ownership of our
common stock as of March 11, 2005 by (i) each stockholder who is known by us to own
beneficially more than five percent of our outstanding common stock, (ii) each member of
our board of directors, (iii)&nbsp;the named executive officer, and (iv) by all of our
executive officers and directors as a group. The information as to each person or entity
has been furnished by such person or group. </FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=90%>
<TR>
     <TD COLSPAN=3><HR WIDTH=100% COLOR=BLACK NOSHADE></TD>
     <TD COLSPAN=3><HR WIDTH=100% COLOR=BLACK NOSHADE></TD>
     <TD COLSPAN=3><HR WIDTH=100% COLOR=BLACK NOSHADE></TD></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TD ALIGN=CENTER COLSPAN=6><FONT FACE="Times New Roman" SIZE=2>Shares Beneficially Owned (1)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TD ALIGN=CENTER COLSPAN=3><FONT FACE="Times New Roman" SIZE=2>Common Stock</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD ALIGN=CENTER COLSPAN=3><FONT FACE="Times New Roman" SIZE=2>Percentage</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=60% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Daniel B. O'Brien (2)(3)</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=13% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,816,200</FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=13% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40.7%</FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dr. Robert N. O'Brien (2)(3)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,825,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15.5%</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>John Bientjes (2)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.3%</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dale Friend (2)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.0%</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Eric Hodges (2)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.0%</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As a group (5 persons)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,671,200</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>56.4%</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD></TR>
<TR>
     <TD COLSPAN=3><HR WIDTH=100% COLOR=BLACK NOSHADE></TD>
     <TD COLSPAN=3><HR WIDTH=100% COLOR=BLACK NOSHADE></TD>
     <TD COLSPAN=3><HR WIDTH=100% COLOR=BLACK NOSHADE></TD></TR>
</TABLE>
<BR>


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<HR SIZE=1 COLOR=BLACK NOSHADE WIDTH=15% ALIGN=LEFT>

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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><BR>(1)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>
          Applicable percentage of ownership at March 11, 2005, is based upon 11,831,916
          shares of Common Stock outstanding. Beneficial ownership is determined in
          accordance with the rules of the SEC and includes voting and investment power
          with respect to shares shown as beneficially owned. Shares of Common Stock
          subject to options or warrants currently exercisable or exercisable within 60
          days of March 11, 2005, are deemed outstanding for computing the shares and
          percentage ownership of the person holding such options or warrants, but are not
          deemed outstanding for computing the percentage ownership of any other person or
          entity. </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>(2)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Address for this shareholder is 2614 Queenswood Drive, Victoria, V8N 1X5,
          CANADA. </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>(3)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Includes shares which may be acquired on the exercise of stock options as
          follows. </FONT></TD>
          </TR>
          </TABLE>
          <BR>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR>
     <TD></TD>
     <TD><HR WIDTH=100% COLOR=BLACK NOSHADE></TD>
     <TD><HR WIDTH=100% COLOR=BLACK NOSHADE></TD>
     <TD><HR WIDTH=100% COLOR=BLACK NOSHADE></TD>
     <TD><HR WIDTH=100% COLOR=BLACK NOSHADE></TD></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TD><FONT FACE="Times New Roman" SIZE=2><U>Name</U></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2><U>No. of Options</U></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>Exercise<BR><U>&nbsp;&nbsp;&nbsp;&nbsp;Price&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2><U>Expiration Date</U></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=8% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD WIDTH=35% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Daniel O'Brien</FONT></TD>
     <TD WIDTH=16% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>100,000</FONT></TD>
     <TD WIDTH=13% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$1.40</FONT></TD>
     <TD WIDTH=28% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December 21, 2006</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></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>50,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$4.25</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December 31, 2007</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></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$3.60</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December 31, 2008</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>Dr. Robert O'Brien</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>50,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$1.40</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December 21, 2006</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></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$4.25</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December 31, 2007</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></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$3.60</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December 31, 2008</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>John Bientjes</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$4.25</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December 31, 2007</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></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$3.60</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December 31, 2008</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>Dale Friend</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$4.25</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December 31, 2007</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></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$3.60</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December 31, 2008</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>Eric Hodges</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$3.60</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December 31, 2008</FONT></TD></TR>
<TR>
     <TD></TD>
     <TD><HR WIDTH=100% COLOR=BLACK NOSHADE></TD>
     <TD><HR WIDTH=100% COLOR=BLACK NOSHADE></TD>
     <TD><HR WIDTH=100% COLOR=BLACK NOSHADE></TD>
     <TD><HR WIDTH=100% COLOR=BLACK NOSHADE></TD></TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12 </FONT></P>


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<HR SIZE=5 COLOR=GRAY NOSHADE>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
total does not include the following shares which may be acquired on the exercise of stock
options which are not exercisable until December 31, 2005 and must also be approved at the
annual general meeting. </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD><HR WIDTH=100% COLOR=BLACK NOSHADE></TD>
     <TD><HR WIDTH=100% COLOR=BLACK NOSHADE></TD>
     <TD><HR WIDTH=100% COLOR=BLACK NOSHADE></TD>
     <TD><HR WIDTH=100% COLOR=BLACK NOSHADE></TD></TR>
<TR VALIGN=Bottom>
     <TD><FONT FACE="Times New Roman" SIZE=2><U>Name</U></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2><U>No. of Options</U></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>Exercise<BR><U>&nbsp;&nbsp;&nbsp;&nbsp;Price&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2><U>Expiration Date</U></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=25% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Daniel O'Brien</FONT></TD>
     <TD WIDTH=25% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>50,000&nbsp;</FONT></TD>
     <TD WIDTH=25% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$3.00</FONT></TD>
     <TD WIDTH=25% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December 31, 2009</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>John H. Bientjes</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;5,000&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$3.00</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December 31, 2009</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dr. Robert O'Brien</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25,000&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$3.00</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December 31, 2009</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dale Friend</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;5,000&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$3.00</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December 31, 2009</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Eric Hodges</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;5,000&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$3.00</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December 31, 2009</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD><HR WIDTH=100% COLOR=BLACK NOSHADE></TD>
     <TD><HR WIDTH=100% COLOR=BLACK NOSHADE></TD>
     <TD><HR WIDTH=100% COLOR=BLACK NOSHADE></TD>
     <TD><HR WIDTH=100% COLOR=BLACK NOSHADE></TD></TR>
</TABLE>
<BR>


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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Securities Authorized
for Issuance Under Equity Compensation Plans </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
a tabular description of our securities authorized for issuance under equity compensation
plans, please refer to Item 5 hereof. </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item 13.</B>  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Exhibits.</B> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Number</U>  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Description</U> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.1  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Articles
of Incorporation of the Registrant. (1)</FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.2  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Bylaws
of the Registrant. (1)</FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21.1  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Subsidiaries.
(2)</FONT></TD>
</TR>
</TABLE>


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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23.1  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Consent
of Independent Accountants.</FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31.1  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certification
of Principal Executive Officer Pursuant to &sect;302 of the Sarbanes-Oxley Act of 2002.</FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31.2  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certification
of Principal Financial Officer Pursuant to &sect;302 of the Sarbanes-Oxley Act of 2002.</FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32.1  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certification
of Principal Executive Officer Pursuant to 18 U.S.C. &sect;1350 and &sect;906 of the
Sarbanes-Oxley Act of 2002.</FONT></TD>
</TR>
</TABLE>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32.2  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certification
of Principal Financial Officer Pursuant to 18 U.S.C. &sect;1350 and &sect;906 of the
Sarbanes-Oxley Act of 2002.</FONT></TD>
</TR>
</TABLE>
<BR>



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<HR SIZE=2 COLOR=BLACK NOSHADE WIDTH=15% ALIGN=LEFT>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Previously
filed as an exhibit to our Registration Statement on Form 10-SB filed                with
the Commission on February 22, 2000, and incorporated herein by reference. </FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Previously
filed as an exhibit to our Registration Statement on Form SB-2 filed                with
the Commission on January 22, 2003, and incorporated herein by reference. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13 </FONT></P>


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<HR SIZE=5 COLOR=GRAY NOSHADE>



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

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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 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. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: March 8, 2006. </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <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><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><BR><BR>By: <U>/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>Name:&nbsp;&nbsp;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>Title:&nbsp;&nbsp;&nbsp;&nbsp;President and Chief Executive Officer</FONT></TD></TR>
</TABLE>



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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 the Exchange Act, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and on the dates indicated: </FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=90%>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2><U>Signature</U></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2><U>Title</U></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2><U>Date</U></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=33% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><U>/s/ Daniel B. O'Brien</U></FONT></TD>
     <TD WIDTH=33% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>President and Chief Executive</FONT></TD>
     <TD WIDTH=34% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>March 8, 2006</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Daniel B. O'Brien</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Officer (principal executive</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></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>officer), Chief Financial Officer</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></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>(principal accounting officer) and</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></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>Director</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><U>/s/ John H. Bientjes</U></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>March 8, 2006</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>John H. Bientjes</FONT></TD>
     <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></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><U>/s/ Robert N. O'Brien</U></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>March 8, 2006</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Robert N. O'Brien</FONT></TD>
     <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></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><U>/s/ Dale Friend</U></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>March 8, 2006</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dale Friend</FONT></TD>
     <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></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><U>/s/ Eric G. Hodges</U></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>March 8, 2006</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Eric G. Hodges</FONT></TD>
     <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></FONT></TD></TR>
</TABLE>
<BR>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14 </FONT></P>




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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>2
<FILENAME>dbk113a.htm
<DESCRIPTION>CONSENT
<TEXT>
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<HEAD>
<TITLE></TITLE>
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<BODY>


<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Project" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>EXHIBIT 23.1</B> </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONSENT OF INDEPENDENT
REGISTERED <BR><BR>PUBLIC ACCOUNTING FIRM </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
hereby consent to the incorporation by reference of our report, dated March 15, 2005
(September 30, 2005 as to the effects of the restatement), appearing in this amended
Annual Report on Form 10-KSB/A (Amendment No. 2) of Flexible Solutions International, Inc.
for the year ended December 31, 2004 in the previously filed Registration Statements of
Flexible Solutions International, Inc. on Form S-3 (File No. 333-124751) and on Form S-3/A
(File No. 333-124751). </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>
<TR VALIGN=Bottom>
     <TD WIDTH=10% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD WIDTH=90% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ CINNAMON JANG WILLOUGHBY &amp; COMPANY,&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chartered Accountants&nbsp;</FONT></TD></TR>
</TABLE>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Burnaby, British Columbia<BR>March
7, 2006 </FONT></P>


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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>3
<FILENAME>dbk113b.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
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<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Project" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>EXHIBIT 31.1</B> </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CERTIFICATION OF
PRINCIPAL EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE<BR>SARBANES-OXLEY ACT OF
2002 AND RULE 13A-14(A) OR 15D-14(A) UNDER THE SECURITIES<BR>EXCHANGE ACT OF 1934 </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I,
Daniel B. O&#146;Brien, certify that: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I
have reviewed this Annual Report on Form 10-KSB/A (Amendment No. 2) of           Flexible
Solutions International, Inc. for the year ended December 31, 2004;  </FONT></P>


<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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;  </FONT></P>


<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 small business issuer as
          of, and for, the periods presented in this report;  </FONT></P>


<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
small business issuer&#146;s other certifying officer(s) and I are           responsible
for establishing and maintaining disclosure controls and procedures           (as defined
in Exchange Act Rules 13(a)-15(e) and 15(d)-15(e)) for the small           business
issuer and have:  </FONT></P>


<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;               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 small business issuer, 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;  </FONT></P></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Project" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               Evaluated the effectiveness of the small business issuer&#146;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 </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Project" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               Disclosed in this report any change in the small business issuer&#146;s internal
               control over financial reporting that occurred during the small business
               issuer&#146;s most recent fiscal quarter (the small business issuer&#146;s
               fourth fiscal quarter in the case of an annual report) that has materially
               affected, or is reasonably likely to materially affect, the small business
               issuer&#146;s internal control over financial reporting; and </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The small business issuer&#146;s other certifying officer(s) and I have
          disclosed, based on our most recent evaluation of internal control over
          financial reporting, to the small business issuer&#146;s auditors and the audit
          committee of the small business issuer&#146;s board of directors (or persons
          performing the equivalent functions): </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Default" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               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 small business issuer&#146;s ability to record, process,
               summarize and report financial information; and </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>


<!-- MARKER PAGE="sheet: 38; page: 38" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>



<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Default" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               Any fraud, whether or not material, that involves management or other employees
               who have a significant role in the small business issuer&#146;s internal control
               over financial reporting. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Date:  March 8, 2006</FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>/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>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>4
<FILENAME>dbk113c.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>


<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Project" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>EXHIBIT 31.2</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CERTIFICATION OF
PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE<BR>SARBANES-OXLEY ACT OF
2002 AND RULE 13A-14(A) OR 15D-14(A) UNDER THE SECURITIES<BR>EXCHANGE ACT OF 1934 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I,
Daniel B. O&#146;Brien, certify that: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          I have reviewed this Annual Report on Form 10-KSB/A (Amendment No. 2) of
          Flexible Solutions International, Inc. for the year ended December 31, 2004; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          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; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          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 small business issuer as
          of, and for, the periods presented in this report; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The small business issuer&#146;s other certifying officer(s) and I are
          responsible for establishing and maintaining disclosure controls and procedures
          (as defined in Exchange Act Rules 13(a)-15(e) and 15(d)-15(e)) for the small
          business issuer and have: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Project" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               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 small business issuer, 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; </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Project" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               Evaluated the effectiveness of the small business issuer&#146;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 </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Project" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               Disclosed in this report any change in the small business issuer&#146;s internal
               control over financial reporting that occurred during the small business
               issuer&#146;s most recent fiscal quarter (the small business issuer&#146;s
               fourth fiscal quarter in the case of an annual report) that has materially
               affected, or is reasonably likely to materially affect, the small business
               issuer&#146;s internal control over financial reporting; and </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The small business issuer&#146;s other certifying officer(s) and I have
          disclosed, based on our most recent evaluation of internal control over
          financial reporting, to the small business issuer&#146;s auditors and the audit
          committee of the small business issuer&#146;s board of directors (or persons
          performing the equivalent functions): </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Default" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               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 small business issuer&#146;s ability to record, process,
               summarize and report financial information; and </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>


<!-- MARKER PAGE="sheet: 40; page: 40" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>



<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Default" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               Any fraud, whether or not material, that involves management or other employees
               who have a significant role in the small business issuer&#146;s internal control
               over financial reporting. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Date:  March 8, 2006</FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>/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>Chief Financial Officer</FONT></TD></TR>
</TABLE>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>5
<FILENAME>dbk113d.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>


<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Project" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>EXHIBIT 32.1</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CERTIFICATION OF
PRINCIPAL EXECUTIVE OFFICER<BR>PURSUANT TO 18 U.S.C. SECTION 1350,<BR>AS ADOPTED PURSUANT TO<BR>
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Chief Executive Officer of
Flexible Solutions International, Inc. (the &#147;Company&#148;), hereby certify that, to
the best of my knowledge, the Annual Report on Form 10-KSB/A (Amendment No. 2) of the
Company for the year ended December 31, 2004 (the &#147;Report&#148;) 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. </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Date: March 8, 2006</FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>/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>





</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>6
<FILENAME>dbk113e.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>


<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Project" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>EXHIBIT 32.2</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CERTIFICATION OF
PRINCIPAL FINANCIAL OFFICER<BR>PURSUANT TO 18 U.S.C. SECTION 1350,<BR>AS ADOPTED PURSUANT TO<BR>
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Chief Financial Officer of
Flexible Solutions International, Inc. (the &#147;Company&#148;), hereby certify that, to
the best of my knowledge, the Annual Report on Form 10-KSB/A (Amendment No. 2) of the
Company for the year ended December 31, 2004 (the &#147;Report&#148;) 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. </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Date: March 8, 2006</FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>/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>Chief Financial Officer</FONT></TD></TR>
</TABLE>
<BR>




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