<SEC-DOCUMENT>0001004878-19-000178.txt : 20191118
<SEC-HEADER>0001004878-19-000178.hdr.sgml : 20191118
<ACCEPTANCE-DATETIME>20191115173804
ACCESSION NUMBER:		0001004878-19-000178
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20191114
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20191118
DATE AS OF CHANGE:		20191115

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:		191225489

	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>form8k202confcall11-19.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): November 14, 2019

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

         Alberta                        001-31540               71-1630889
 --------------------------        -----------------       ------------------
(State or other jurisdiction     (Commission File No.)  (IRS Identification No.)
Employer  of incorporation)

                                  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))

Securities registered pursuant to Section 12(b) of the Act:

--------------------------------------------------------------------------------
     Title of each        Trading             Name of each exchange on which
     class                Symbol(s)                     registered
--------------------------------------------------------------------------------

     Common Stock              FSI                    NYSE American
--------------------------------------------------------------------------------

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 November 14, 2019,  the Company  issued a press release  announcing  the
Company's financial results for the nine months ended September 30, 2019.

Item 8.01   Other Events

     On November  15, 2019,  the Company  held a conference  call to discuss its
financial results for the nine months ended September 30, 2019, as well as other
information regarding the Company.

Item 9.01   Exhibits

Exhibit
Number      Description of Document

  99.1      November 14, 2019 Press Release

  99.2      Text of opening remarks by Dan O'Brien/November 15, 2019
            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:  November 15, 2019
                                 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>form8k202ex991nov-19.txt
<TEXT>




                                  EXHIBIT 99.1




<PAGE>


NEWS RELEASE
November 14, 2019

              FSI ANNOUNCES Third Quarter, 2019 FINANCIAL RESULTS A
  Conference call is scheduled for Friday November 15th , 11:00am Eastern time,
          8:00 am Pacific Time See dial in number and explanation below


VICTORIA,   BRITISH   COLUMBIA,   November   14,   2019  -  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 third quarter (Q3) ended September 30, 2019.

Mr. Daniel B. O'Brien, CEO, states, "We are pleased to show significant positive
revenue  growth for the quarter and  anticipate  that this will  continue in Q4,
however,  it is  important  to note that Q4 2018 was the first time that the ENP
acquisition  appeared in our revenue." Mr.  O'Brien  continues,  "Profit for the
quarter and year to date is good but  operating  cash flow for the 9 months plus
our investment income is the number that shows how strong we have become."

     o    Sales in the Third quarter (Q3) were $7,403,492,  up approximately 94%
          when  compared to sales of $3,816,626  in the  corresponding  period a
          year ago. The  financials  show a Q3, 2019 net profit of $412,048,  or
          $0.03 per  share,  compared  to a net loss of  $145,470,  or $0.01 per
          share,  in Q3,  2018.

     o    Basic  weighted  average  shares used in computing  earnings per share
          amounts in Q3 were 12,108,110 and 11,630,991 for Q3, 2019 and Q3, 2018
          respectively.

     o    Non-GAAP  operating cash flow:  For the 9 months ending  September 30,
          2019, net income reflects $591,472 of non-cash charges  (depreciation,
          stock option  expenses),  as well as gain (loss) on  disposition  (and
          involuntary  disposition) of equipment,  gain on investment,  interest
          expense, interest income, write down of inventory, and income tax; Net
          income attributable to non-controlling  interests. These are items not
          related to operating or current operating activities. When these items
          are removed,  the Company shows operating cash flow of $2,534,644,  or
          $0.21 per share. This compares with operating cash flow of $1,658,924,
          or $0.14 per  share,  in the  corresponding  9 months of 2018 (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.


Conference call

A conference  call has been scheduled for 11:00 am Eastern Time, 8:00 am Pacific
Time,  on  Friday  November  15th . CEO,  Dan  O'Brien  will be  presenting  and
answering  questions on the conference  call. To participate in this call please
dial 1 800-667-5617  (or 1 334-323-0501)  just prior to the scheduled call time.
The conference call title, "Third Quarter 2019 Financials," may be requested.


The above  information  and  following  table contain  supplemental  information
regarding  income and cash flow from  operations for the period ended  September
30, 2019.  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:

                                       1
<PAGE>



                     FLEXIBLE SOLUTIONS INTERNATIONAL, INC.
                      Consolidated Statement of Operations
               For 3 Months Ended September 30 (9 Months Operating Cash Flow)
                                   (Unaudited)
-------------------------------------------------------------------------------
                                                  3 months ended September 30
                                                    2019             2018
                                               --------------------------------
Revenue                                        $7,403,492      $3,816,626

Income (loss) before income tax - GAAP         $  915,802     $  (182,838)

Provision for Income tax (expense) /           $ (213,771)    $    37,368
recovery  - GAAP
Net income (loss)  - GAAP                      $  412,048 a   $  (145,470)

Net income (loss) per common share - basic. -  $     0.03 a   $     (0.01)
GAAP
3 month weighted average shares used in        12,108,110      11,630,991
computing per share amounts - basic.-  GAAP
                                                  9 month Operating Cash Flow
                                                       Ended September 30
                                               --------------------------------
Operating Cash flow (9 months). NON-GAAP       $2,534,664 b,c  $1,658,924 b

Operating Cash flow per share excluding        $     0.21 b,c  $     0.14 b
non-operating items and items not related to
current operations (9 months) - basic.
NON-GAAP
Non-cash Adjustments (9 month) GAAP            $  591,472 d    $  257,875 d
Shares (9 month basic weighted average)
used in computing per share
amounts - basic GAAP                           11,862,484      11,627,464


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

a)   Non-GAAP -:: Flexible Solutions  International  purchased 65% of ENP in 4th
     quarter,  2018 (October  2018).  Therefore 3 month Net Income is reduced by
     the dollar amount of non-controlling interest in ENP.

b)   Non-GAAP - amounts exclude  certain cash and non-cash  items:  depreciation
     and stock compensation expense (2019 = $591,472, 2018 = $257,875), interest
     expense (2019 = $341,791, 2018 = $22,222),  interest income (2019 = 69,154,
     2018 = $17,459),  gain on investment (2019 = $342,248,  2018 = $5,336), net
     gain/(loss)  on involuntary  disposition  of equipment  (2019 = N/A, 2018 =
     $1,714,261),  write down of inventory  (2019 = N/A,  2018 = N/A),  deferred
     income  tax  recovery  (2019 =  $125,999,  2018 = N/A),  Income tax (2019 =
     743,317,  2018 = 421,783),  and Net income  attributable to non-controlling
     interests. See the financial statements for all adjustments.

c)   The revenue  and gain from the 50%  investment  in the private  Florida LLC
     announced  in  January  2019 is not  treated  as  revenue  or  profit  from
     operations by Flexible  Solutions  given the Company only  purchased 50% of
     the LLC. The profit is treated as investment  income and  therefore  occurs
     below  Operating  income in the  Statement of  Operations.  As a result the
     $342,248 in gains from all investments,  including that of the Florida LLC,
     are removed from the calculation to arrive at Operating Cash Flow.

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.


                        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>form8k202ex992nov-19.txt
<TEXT>




                                  EXHIBIT 99.2




<PAGE>

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 Q3 2019.

Prior to speaking  about our  financials,  I'd like to talk about our  corporate
condition and product lines plus what we think might occur over the next several
quarters.

Insurance  compensation  from  the  fire has  been  received  in  full,  but the
accounting  and tax  effects  of the  payments  will  continue  to  distort  and
complicate our financials  until year over year  comparisons that do not contain
compensation or tax adjustments are available. The first quarter this will occur
is Q1 2020.

Our NanoChem division:  NCS represents more than 1/2 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 the 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.
We do not recommend reducing fertilizer; instead the grower obtains more salable
crop per acre farmed and a more profitable operation.

TPA in agriculture has a strong economic value for all links in the sales to end
user  chain.  Even after our margin and the  distributor's  profits,  the grower
receives a good return on his investment in our products.

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

                                       1
<PAGE>

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 reducing  nitrogen loss through  leaching
and evaporation. Each of our nitrogen products are equal to, or better than, the
competing products.

ENP,  the October  2018  acquisition:  ENP is focused on sales into the turf and
golf markets,  whereas,  our NCS sales are into row crop  agriculture - two very
distinct  markets.  We account for ENP as a subsidiary and expect it to generate
consolidated revenue of greater than $8 million in full year 2019. Historic data
suggest that FSI should expect annual pretax  profits of greater than $1 MM from
this division with moderate annual growth. The strong quarters for ENP are 2 and
3 to match the US spring and summer. Q3 rebounded well from the weather problems
encountered in the spring and ENP is positioned for growth in 2020.

Effect of the LLC investment  announced in January:  This  investment  generated
quarterly cash flow and profits  starting in Q1 2019 as shown in the financials.
The company we invested in will also order substantially more product from us in
each quarter of 2019 than it did in 2018.  We expect this growth to continue for
many quarters to come which will further increase revenue and profitability. The
LLC has started representing more of our product line internationally with small
sales already  booked.  We expect this to grow over several  seasons and benefit
our NCS division while also  increasing the profits from the LLC which will show
on our bottom line. It is worth noting that the  seasonality  of the LLC's sales
is  opposite  to our North  American  sales  which  will tend to smooth  out our
quarterly  revenue  numbers  in a  positive  manner.  After a poor Q2, the LLC's
purchases  from us rebounded in Q3 as predicted  and look strong for 4th quarter
and on into 2020.

Watersavr(TM): News regarding Watersavr(TM) trials and sales will be released if
and when it occurs. As the rest of the company grows, Watersavr(TM) will be less
of a focus  but will  remain  available  for sale to  existing  and  prospective
customers.

Q4 2019 and the start of 2020

TPA,  SUN 27(TM) and N Savr 30(TM) for  agricultural  use have peak uptake in Q1
and Q2 with early buy volumes occurring in Q4. This is expected again at the end
of 2019 and the  first  half of 2020.  Our  seasonality  has been  significantly
reduced by the ENP acquisition and the LLC investment, indicating that Q4 should
be strong.  This,  along with Q4 sales for US early buy and winter crop programs
is  expected  to  provide  growth  in Q4  relative  to the year  earlier.  It is
important  to  remember  that  Q4  2018  was  the  first  quarter  that  ENP was
consolidated into FSI and as a result, the growth rates to be expected in Q4 and
through 2020 will be at organic rather than acquisition levels.

Oil, gas and  industrial  sales of TPA increased  compared to the previous year.
Increased sales into this market  vertical are expected to continue  through the

                                       2
<PAGE>

end of the year and through  2020.  Full year 2019  revenue will  increase  very
strongly  compared to 2018 driven by; historic  operations,  the ENP acquisition
and the January LLC  investment.  We expect that profits and cash flow will also
increase significantly driven by the increases in top line revenue.

Tariffs:  Since Sept 30th 2018,  all our raw materials  imported from China have
included a 10%  additional  tariff which rose to 25% in 2019. US customers  have
received  price  increases  from us now that this  inventory  is being used.  US
customers have received additional price increases when we began using inventory
that was subject to the 25% tariff.  International customers are not charged the
tariffs because we are applying for the export rebates  available to recover the
tariffs. To hedge against the chance of even higher tariffs,  and to service the
increased  production in 2019, we have increased inventory  substantially.  As a
result,  the  accumulating  tariff  payments to the Government are affecting our
cost of goods,  our cash flow and our profits  negatively  until the rebates are
received.  Rebates  can take  many  months  to arrive  after  the  inventory  is
converted  and  exported.  The total  dollar  amount  due back to us has  become
significant and continues to increase.  The rebates will increase  profitability
and cash flow while  decreasing  cost of goods for the future  quarters in which
the rebates are received.

Highlights of the financial results:

Sales for the quarter increased 94% to $7.4 million, compared with $3.82 million
for Q3 2018.  The result is a gain of 412  thousand  or 3 cents per share in the
2019 period, compared to a loss of $145 thousand or 1 cent per share, in 2018.

Profit for the quarter and year to date is good but, operating cash flow for the
9 months [detailed in our press release yesterday] plus our investment income is
the  number  that  shows how  strong  we have  become  by  joining  with ENP and
investing in the Florida LLC that is also a major customer.

Working  capital is adequate  for all our  purposes  and is expected to increase
during 2020 as our revenue grows.  We also have a line of credit with BMO Harris
Bank of  Chicago.  We are  confident  that we can  execute  our  plans  with our
existing  capital.  The ENP  acquisition  was funded with a loan from BMO Harris
plus a convertible note to the seller and did not reduce our cash position.  The
LLC investment in January was made with cash on hand.

The text of this speech  will be  available  on our website by Monday,  November
18th.   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>
