<SEC-DOCUMENT>0001004878-18-000175.txt : 20180816
<SEC-HEADER>0001004878-18-000175.hdr.sgml : 20180816
<ACCEPTANCE-DATETIME>20180816163041
ACCESSION NUMBER:		0001004878-18-000175
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20180814
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20180816
DATE AS OF CHANGE:		20180816

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:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31540
		FILM NUMBER:		181023636

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

	MAIL ADDRESS:	
		STREET 1:		2614 QUEENSWOOD DR
		CITY:			VICTORIA BC CANADA
		STATE:			A1
		ZIP:			V8N 1X5
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k202confcall8-18.txt
<TEXT>


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K


                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

      Date of Report (date of earliest event reported): August 14, 2018

                    FLEXIBLE SOLUTIONS INTERNATIONAL INC.
                    -------------------------------------
            (Exact name of Registrant as specified in its charter)


         Nevada                        001-31540                 91-1922863
 --------------------------        -----------------         ------------------
(State or other jurisdiction     (Commission File No.)      (IRS
Employer  of incorporation)                                  Identification No.)

                                  6001 54 Ave.
                         Taber, Alberta, Canada T1G 1X4
                      -------------------------------------
          (Address of principal executive offices, including Zip Code)

       Registrant's telephone number, including area code: (250) 477-9969


                                       N/A
                      -------------------------------------
          (Former name or former address if changed since last report)

Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously satisfy the filing obligations of the registrant under any of the
following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17CFR
    230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
    240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
    Act (17 CFR 240.14d-2(b)

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
    Act (17 CFR 240.13e-14c))

Indicate by check mark whether the  registrant is an emerging  growth company as
defined in Rule 405 of the Securities  Act of 1933  (ss.203.405 of this chapter)
or Rule  12b-2 of the  Securities  Exchange  Act of 1934  (ss.204.12b-2  of this
chapter.

Emerging growth company [ ]

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

                                       1
<PAGE>

Item 2.02   Results of Operations and Financial Condition

     On August 14,  2018,  the Company  issued a press  release  announcing  the
Company's financial results for the three months ended June 30, 2018.

Item 8.01   Other Events

     On August 15,  2018,  the  Company  held a  conference  call to discuss its
financial  results for the three months  ended June 30,  2018,  as well as other
information regarding the Company.

Item 9.01   Exhibits

Exhibit
Number      Description of Document
-------     -----------------------

  99.1      August 14, 2018 Press Release

  99.2      Text of opening remarks by Dan  O'Brien/August 15, 2018 conference
            call














                                       2
<PAGE>


                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.


Date:  August 15, 2018
                                 FLEXIBLE SOLUTIONS INTERNATIONAL INC.



                                 By: /s/ Daniel B. O'Brien
                                   ----------------------------------------
                                     Daniel B. O'Brien, President and Chief
                                     Executive Officer
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>form8kconfcallex991aug-18.txt
<DESCRIPTION>EXHIBIT 99.1 PRESS RELEASE
<TEXT>




                                  EXHIBIT 99.1




<PAGE>

NEWS RELEASE
August 14, 2018

              FSI ANNOUNCES Second Quarter, 2018 FINANCIAL RESULTS

          Conference call scheduled for Wednesday August 15th, 11:00am
                        Eastern time, 8:00am Pacific Time
                            See dial in number below


VICTORIA,  BRITISH COLUMBIA, August 14, 2018 - FLEXIBLE SOLUTIONS INTERNATIONAL,
INC. (NYSE Amex:  FSI,  FRANKFURT:  FXT), is the developer and  manufacturer  of
biodegradable  polymers  for oil  extraction,  detergent  ingredients  and water
treatment as well as crop nutrient  availability  chemistry.  Flexible Solutions
also  manufactures  biodegradable  and  environmentally  safe  water and  energy
conservation technologies. Today the Company announces financial results for the
second quarter (Q2) ended June 30, 2018.

Mr. Daniel B. O'Brien,  CEO, states,  "We are disappointed  that we have not yet
returned  to  positive  revenue  growth.  We see  signs  indicating  we  will be
successful  over the next several months but those signs have yet to become firm
purchase  orders."  Mr.  O'Brien  continues,  "International  trade issues could
affect our business in the future. We have been planning to counteract  negative
conditions  as we identify them and hope that our planning will result in little
net cost to our Company."

o    Sales in the second quarter (Q2) were $4,137,545,  down  approximately  12%
     when  compared to sales of $4,722,366  in the  corresponding  period a year
     ago. The financials show a Q2, 2018 net income of $2,135,906,  or $0.18 per
     share,  compared to a net income of  $273,623,  or $0.02 per share,  in Q2,
     2017.  Note:  Due to an  insurance  payout  (net  of  tax)  in Q2,  2018 of
     $1,721,977 the financials show a net income of $2,135,906. If the insurance
     payout were removed net income would be approximately $414,000 or $0.04 per
     share (basic). This is a non-GAAP number Also, the Q2, 2017 financials give
     an expense,  "loss on involuntary  disposition"  of $326,570,  or $0.03 per
     share, related to the clean-up of the fire damaged site in Taber,  Alberta.
     This expense is covered by a significant  insurance  payout that was listed
     as revenue in Q1, 2017 and as a net  revenue  number in the  six-month  Q2,
     "consolidated   statement  of   operations"   (see  "Gain  on   involuntary
     disposition").  This clean-up expense is a non-operating  expense, which if
     added  back to net  income  would  result in net  income  of  approximately
     $600,193 or $0.05 per share for Q2 2017.  This is a non-GAAP number and the
     demonstration  of the  adding  back of this  non-operating  expense  to net
     income does not take into account  additional  income tax expense,  if any,
     that may reduce the effect of this adjustment.  Furthermore, as a result of
     the fire damage,  any additional  significant  insurance payouts or related
     expenses (such as write down of inventory, short term loss of revenue, etc)
     will make year over financial  comparisons difficult in the short term. o o
     Basic weighted average shares used in computing  earnings per share amounts
     in  Q2  were   11,630,991   and  11,465,606  for  Q2,  2018  and  Q2,  2017
     respectively.

o    Non-GAAP  operating  cash flow:  For the 6 months ending June 30, 2018, net
     income reflects $171,496 of non-cash charges (depreciation and stock option
     expenses),  income  tax,  as  well  as  gain  (loss)  on  disposition  (and
     involuntary  disposition)  of  equipment,  interest  income,  write down of
     inventory,  and income  tax;  which are items not related to  operating  or
     current  operating  activities.  When these items are removed,  the Company
     shows operating cash flow of $1,749,063,  or $0.15 per share. This compares
     with  operating  cash  flow of  $1,968,716,  or  $0.17  per  share,  in the
     corresponding  6 months of 2017 (see the table that  follows for details of
     these calculations).

The NanoChem  division  continues to be the dominant  source of revenue and cash
flow for the Company. New opportunities  continue to unfold in detergent,  water
treatment,  oil field  extraction and agricultural use to further increase sales
in this  division.  In past  years the  NanoChem  division  sales have been less
volatile  quarter over quarter,  however due to increasing sales to agriculture,
revenue  seasonality  may  become  larger.  Also new  sales  opportunities  have
appeared in the  WaterSavrTM  division as a result of the ongoing drought in the
southern United States.  Many  municipalities are water stressed and are seeking
ways to conserve water.

                                       1
<PAGE>

*    a conference  call has been  scheduled for 11:00 am Eastern  Time,  8:00 am
     Pacific  Time,  on  Wednesday  August 15,  2018.  CEO,  Dan O'Brien will be
     presenting and answering  questions on the conference  call. To participate
     in this call please dial 1 877-260-1479  (or 1 334-323-0522)  just prior to
     the scheduled call time. The conference  call title,  "Second  Quarter 2018
     Financials," may be requested.

The above  information  and  following  table contain  supplemental  information
regarding  income and cash flow from  operations  for the period  ended June 30,
2018.  Adjustments to exclude  depreciation,  stock option expenses and one time
charges are given. This financial information is a Non-GAAP financial measure as
defined by SEC regulation G. The GAAP financial measure most directly comparable
is net income.  The reconciliation of each of the Non-GAAP financial measures is
as follows:


                     FLEXIBLE SOLUTIONS INTERNATIONAL, INC.
                      Consolidated Statement of Operations
          For 3 Months Ended June 30 (6 Months Operating Cash Flow)
                                   (Unaudited)

                                                     3 months ended June 30
                                                    2018             2017
                                              ---------------------------------

Revenue                                        $ 4,137,545        $ 4,722,366
Income (loss) before income tax - GAAP         $ 2,296,161 a      $   408,995 a
Provision for Income tax(net)  - GAAP          $   157,255        $   135,372
Net income (loss)  - GAAP                      $ 2,135,906 a      $   273,623 a
Net income (loss) per common share - basic. -  $      0.18 a      $      0.02
GAAP
3 month weighted average shares used in         11,630,991         11,465,606 b
computing per share amounts - basic.-  GAAP
                                                  6 month Operating Cash Flow
                                                         Ended June 30
                                               --------------------------------
Operating Cash flow (6months). NON-GAAP        $ 1,749,063 c      $ 1,968,716 c

Operating Cash flow per share excluding        $      0.15 c      $      0.17 c
non-operating items and items not related to
current operations (6 months) - basic.
NON-GAAP
Non-cash Adjustments (6 month) GAAP            $   171,496 d      $   181,229 d

Shares (6 month basic weighted average) used    11,625,671         11,462,167 b
in computing per share amounts - basic GAAP


Notes: certain items not related to "operations" of the Company have been
       excluded from net income as follows.

a)   Non-GAAP  -:: The  financials  give an expense  of  $326,570,  or $0.03 per
     share, related to the clean-up of the fire damaged site in Taber Alberta in
     Q2,  2017.  This is a  non-operating  expense,  which if added  back to net
     income  would result in net income of  approximately  $600,193 or $0.05 per
     share. This is a non-GAAP number and the adding back of this expense to net
     income does not take into account  additional  income tax expense,  if any,
     that may result.  . The financials  also give a Q2, 2018 "Gain" as a result
     of an insurance payout of $1,721,977 which is also non-operating income.

b)   Also a share buyback of 1,175,000 shares took place in January 2016.

c)   Non-GAAP - amounts exclude  certain cash and non-cash  items:  depreciation
     and stock option expense (2018 = $171,496, 2017 = $181,229), gain/(loss) on
     the disposition of equipment (2018 = $1,714,261, 2017 = $2,245,718),  write
     down of inventory  (2018 = N/A,  2017 = $51,346),  interest  income (2018 =
     $6,893, 2017 = $82), deferred tax expense (2018 = N/A, 2017 = $23,404), and
     Income tax (2018 = 459,151, 2017 = $432,247).  See the financial statements
     for all adjustments.

d)   Non-GAAP - amounts represent depreciation and stock compensation expense.

Safe Harbor Provision

The Private  Securities  Litigation  Reform Act of 1995 provides a "Safe Harbor"
for  forward-looking  statements.  Certain of the statements  contained  herein,
which are not historical  facts,  are forward looking  statement with respect to
events,  the  occurrence  of  which  involve  risks  and  uncertainties.   These
forward-looking  statements may be impacted, either positively or negatively, by
various factors.  Information concerning potential factors that could affect the
company is detailed  from time to time in the  company's  reports filed with the
Securities and Exchange Commission.

                                       2
<PAGE>



                        Flexible Solutions International
                6001 54th Ave, Taber, Alberta, CANADA T1G 1X4
                                Company Contacts
                                                                   Jason Bloom
                                                       Toll Free: 800 661 3560
                                                             Fax: 403 223 2905
                                            E-mail: info@flexiblesolutions.com
                                                    --------------------------


If you have  received  this news  release  by mistake or if you would like to be
removed from our update list please reply to: info@flexiblesolutions.com To find
out more  information  about Flexible  Solutions and our products,  please visit
www.flexiblesolutions.com.
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>form8kconfcallex992aug-18.txt
<DESCRIPTION>EXHIBIT 99.2 SPEECH
<TEXT>




                                  EXHIBIT 99.2




<PAGE>



Q2 2018

Good morning. I'm Dan O'Brien, CEO of Flexible Solutions.

Safe Harbor provision:

The Private  Securities  Litigation  Reform Act of 1995 provides a "Safe Harbor"
for  forward-looking  statements.  Certain of the statements  contained  herein,
which are not historical  facts, are forward looking  statements with respect to
events,  the  occurrence  of  which  involve  risks  and  uncertainties.   These
forward-looking  statements may be impacted, either positively or negatively, by
various factors.  Information concerning potential factors that could affect the
company is detailed  from time to time in the  company's  reports filed with the
Securities and Exchange Commission.

Welcome to the FSI conference call for second quarter 2018.

Before addressing our financials,  I'd like to speak about our product lines and
what we think might occur over the next several quarters.

Insurance compensation from the fire has been received in full. There will be no
further  payments,  but the  accounting  and tax  effects of the  payments  will
continue to distort and complicate our financials for several more quarters. The
property  where the fire  took  place  has been  listed  and will be sold when a
reasonable offer is received.

Our NanoChem  division,  NCS,  represents nearly all of the revenue of FSI. This
division makes thermal poly-aspartic acid, called TPA for short, a biodegradable
polymer with many valuable  uses.  NCS also  manufactures  SUN 27(TM) and N Savr
30(TM) which are used to reduce nitrogen fertilizer loss from soil.

TPA is used in agriculture to  significantly  increase crop yield. The method of
action is by slowing  crystal growth between  fertilizer  ions and other ions in
the soil resulting in fertilizer  remaining  available  longer for the plants to
use. The  attraction  between the TPA and the  fertilizer  ions also retains the
nutrients  closer to the plant roots.  Keeping  fertilizer more easily available
for crops to use, results in better yield with the same level of fertilization.

TPA in agriculture has a strong economic value for all links in the sales to end
user chain.  There are good profits from  manufacturer  through the distribution
system to the grower,  yet the grower  still earns a great profit from the extra
crops  produced using the same land but no extra  fertilizer.  A recent trial on
alfalfa had the  interesting  result of  producing  130 extra pounds of milk per
acre. The alfalfa did not produce milk; it was fed to cows but the extra protein
and weight of alfalfa  per acre  converts  to milk using  ratio  standard in the
dairy industry. The TPA required to achieve the extra milk cost the dairy farmer
$5.

TPA is also a biodegradable way of treating oilfield water to prevent pipes from
plugging with mineral scale. Our sales into this market are well established and
normally grow steadily but slowly. A simple  explanation of TPA's effect is that
it prevents the scaling out of minerals  that are part of the water  fraction of

                                       1
<PAGE>

oil as it exits the rock  formation.  Scale  must be  prevented  to keep the oil
recovery pipes from clogging.

SUN 27(TM) and N Savr 30(TM) are our nitrogen conservation products. Nitrogen is
a critical  fertilizer  but it is subject to loss through  bacterial  breakdown,
evaporation  and soil  runoff.  Both our nitrogen  products  are  becoming  well
respected  and sales  continue to grow.  They utilize much more  environmentally
friendly solvents than some of the competing products.

SUN 27(TM) is used to conserve  nitrogen from attack by soil  bacterial  enzymes
while N Savr  30(TM) is directed  toward  nitrogen  loss  through  leaching  and
evaporation.  Each of our nitrogen  products  are equal to, or better than,  the
competing products and we have very compelling pricing.

Watersavr(TM):  We are continuing our efforts in the USA, Turkey, Africa, Chile,
Brazil, parts of East-Asia and Australia.

We like to illustrate the potential of WaterSavr(TM): using it on the Salton Sea
for 6 months a year would save 320,000 acre feet of water per year. This is more
than 100 billion gallons.  It's not just the water;  WaterSavr(TM) can have huge
effects on city water budgets.  Delivered  water costs now exceed $1000 per acre
foot in many California cities while the total cost of saving an acre foot using
WaterSavr(TM)  is less than $200.  WaterSavr(TM)  can reduce  annual losses from
reservoirs by up to 2 feet per treated acre. A municipality,  such as San Diego,
that pays  $1200 - $2400 per acre foot for water and does not use  WaterSavr(TM)
is wasting  significant tax revenue  regardless of the drought conditions in any
particular year.

Q3 and the rest of 2018

TPA,  SUN 27(TM) and N Savr 30(TM) for  agricultural  use have peak uptake in Q1
and were strong as reported. Q2 was good but not exceptional.  Q3 will be weaker
because the crops will have  received  most of their 2018  nutrition  then in Q4
agriculture should strengthen to service early buy and winter crop programs.

Oil, gas and Industrial  sales of TPA were not as strong in Q2 2018 as they were
in the same  period of 2017.  We are  working  to change  this and expect to see
improvement by 4th quarter of this year.

WaterSavr(TM)  sales have been slow so far in 2018. We get a constant  stream of
inquiries about  Watersavr(TM)  and continue to believe that the product line is
worth supporting.

We hope that full year 2018 revenue will  increase  compared to 2017,  even with
the need to replace the  shortfall  from the first 6 months of the year. We also
expect that profits and operating cash flow will increase provided that the cost
of raw  materials  do not  increase  more  quickly  than we can move our pricing
upward.   The   accounting   effects  of  the  fire  will  distort  the  numbers
unpredictably  until Q2 2019 and our  regular  warning  applies  - that we can't
control customer behavior,  shipping dates,  weather, crop pricing, oil platform
maintenance and the other variables of our business,  so quarterly  results will
be unlikely to form a straight line on a graph.

                                       2
<PAGE>

Tariffs:  International  trade  issues in the form of new or  increased  tariffs
could affect our  business in the future.  We have been  planning to  counteract
negative  conditions  as we identify them and hope that our planning will result
in little net cost to our Company.  In addition to  continuous  research on what
may occur,  we have purchased  additional raw materials for near-term  delivery.
Extra inventory will give us time to cope with new conditions if they happen.

Highlights of the financial results:

Sales for the  quarter  decreased  12% to $4.14  million,  compared  with  $4.72
million for Q2 2017. The result is a gain of $2.14 million or $0.18 per share in
the 2018  period,  compared to a gain of $274  thousand  or $0.02 per share,  in
2017. If the fire insurance  repayment of Q2 2018 and the property cleanup costs
from Q2 2017 are backed out,  the earnings per share are roughly 4 cents in 2018
and roughly 5 cents in 2017. We are working  diligently to recover the year over
year  revenue  drop and  resume  growth as well as  increasing  our  pricing  to
customers so that the selling prices reflect the higher raw material costs which
reflect increased oil prices. This will proceed over the remainder of 2018.

Working capital is excellent,  including  substantial  cash on hand as well as a
line of credit with Harris Bank of Chicago. We are confident that we can execute
our plans with our existing capital.

The  insurance  recovery  and site  remediation  costs from the Taber fire had a
large effect on our results in 2017 and this will continue through 2018 and into
2019. The final cash recovery in April 2018, any tax adjustments and the amounts
received  already will affect our GAAP  financials  until at least Q2 2019 - the
period allowed by Canadian tax law before a final tax occurs on any profits from
an insured event. It is highly probable that the deferred tax asset shown on our
balance sheet will offset any tax owing on the insurance recovery.

The text of this speech will be  available  on our website by  Thursday,  August
16th  and  email  or  fax  copies  can  be   requested   from  Jason   Bloom  at
Jason@flexiblesolutions.com.


Thank you, the floor is open for questions.
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
