<SEC-DOCUMENT>0001004878-20-000166.txt : 20201117
<SEC-HEADER>0001004878-20-000166.hdr.sgml : 20201117
<ACCEPTANCE-DATETIME>20201116175420
ACCESSION NUMBER:		0001004878-20-000166
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20201116
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20201117
DATE AS OF CHANGE:		20201116

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:		201318701

	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>form8k2023qresults11-20.txt
<DESCRIPTION>8-K 3RD QUARTER RESULTS
<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 16, 2020

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

        Alberta                     001-31540             71 163 0889
-------------------------        ---------------        ---------------
(State or other jurisdiction  (Commission File No.)        (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 (17
   CFR 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-14(c)  under the
   Exchange Act (17 CFR 240.13e-4(c))

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

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

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

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. [ ]


<PAGE>


Item 2.02. Results of Operations and Financial Condition

     On November 13, 2020,  the Company  issued a press release  announcing  its
financial results for the period ended September 30, 2020.

Item 8.01 Other Events

     On  November  16, 2020 the Company  held a  conference  call to discuss its
financial  results for the three months  ended  September  30, 2020,  as well as
other information regarding the Company.

Item 9.01 Exhibits

Exhibit
Number     Description of Document
-------    ------------------------
 99.1      November 13, 2020 Press Release

 99.2      Text  of  opening  remarks  by  Dan  O'Brien/  November  16,  2020
           conference call


<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 16, 2020
                                 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>form8k3qpr11-20.txt
<DESCRIPTION>EXH. 99.1 PRESS RELEASE
<TEXT>

NEWS RELEASE
                                                              November 13, 2020


               FSI ANNOUNCES Third Quarter, 2020 FINANCIAL RESULTS
        A Conference call is scheduled for Monday November 16th, 11:00am
                  Eastern time, 8:00am Pacific Time See dial in
                                  numbers below


VICTORIA,   BRITISH   COLUMBIA,   November   13,   2020  -  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, 2020.

Mr.  Daniel B.  O'Brien,  CEO,  states,  "We  continue  to  generate  growth and
profitability in tough and uncertain times.  This is driven by the hard work and
flexibility of our employees." Mr. O'Brien continues,  "As conditions change, we
will react and do our best to continue our success."

     o    Sales in the Third quarter (Q3) were $8,112,930,  up approximately 10%
          when  compared to sales of $7,403,492  in the  corresponding  period a
          year ago. The  financials  show a Q3, 2020 net profit of $582,369,  or
          $0.05 per share,  compared to a net profit of  $412,048,  or $0.03 per
          share, in Q3, 2019.

     o    Basic  weighted  average  shares used in computing  earnings per share
          amounts in Q3 were 12,240,545 and 12,108,110 for Q3, 2020 and Q3, 2019
          respectively.

     o    Non-GAAP  operating cash flow:  For the 9 months ending  September 30,
          2020, net income reflects $534,333 of non-cash charges  (depreciation,
          stock  option  expenses),  as well as gain  (loss) on  disposition  of
          equipment,  gain on investment,  interest  expense,  interest  income,
          write down of inventory,  and income tax. Net income  attributable  to
          non-controlling interests (minority interest) is removed from the cash
          flow calculation.  These are items not related to operating or current
          operating activities.  When these items are removed, the Company shows
          operating cash flow of $4,082,754,  or $0.33 per share.  This compares
          with  operating cash flow of  $2,534,644,  or $0.21 per share,  in the
          corresponding 9 months of 2019 (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.

Conference call

A conference  call has been scheduled for 11:00 am Eastern Time, 8:00 am Pacific
Time,  on Monday,  November  16th.  CEO,  Dan  O'Brien  will be  presenting  and
answering  questions on the conference  call. To participate in this call please
dial 1 877-876-9173  (or 1 785-424-1667)  just prior to the scheduled call time.
The conference  call title,  "FSI Third Quarter 2020 Financial  Results," may be
requested.


<PAGE>


The above  information  and  following  table contain  supplemental  information
regarding  income and cash flow from  operations for the period ended  September
30, 2020.  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 September 30 (9 Months Operating Cash Flow)
                                   (Unaudited)
-------------------------------------------------------------------------------
                                                  3 months ended September 30
                                                    2020             2019
                                              ---------------------------------
Revenue                                        $8,112,930    $ 7,403,492
Income (loss) before income tax - GAAP         $1,311,803    $   915,802
Provision for Income tax (expense)/
recovery  - GAAP                               $ (370,203)   $  (213,771)
Net income (loss)  - GAAP                      $  582,369    $   412,048
Net income (loss) per common share -
basic. - GAAP                                  $     0.05    $      0.03
3 month weighted average shares used in
computing per share amounts - basic.- GAAP     12,240,545     12,108,110

                                                  9 month Operating Cash Flow
                                                       Ended September 30
                                               --------------------------------
Operating Cash flow (9 months). NON-GAAP       $4,082,754a,b,c $ 2,534,644a,b,c

Operating Cash flow per share excluding
non-operating items and items not
related to current operations (9 months)
- basic. NON-GAAP                              $     0.33a,b,c $      0.21a,b,c
Non-cash Adjustments (9 month) GAAP            $  534,333d     $   591,472d
Shares (9 month basic weighted average)
used in computing per share amounts - basic
GAAP                                           $ 12,239,633    $11,862,484
-------------------------------------------------------------------------------

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).

b)   Non-GAAP - amounts exclude  certain cash and non-cash  items:  depreciation
     and stock compensation expense (2020 = $534,333, 2019 = $591,472), interest
     expense  (2020  =  $199,947,  2019 =  $341,791),  interest  income  (2020 =
     $26,197,  2019 =  $69,154),  gain on sale of asset  (2020 = $9,490,  2019 =
     N/A), gain on investment (2020 = $660,601, 2019 = $342,248),  write down of
     inventory  (2020 = N/A, 2019 = N/A),  deferred  income tax recovery (2020 =
     N/A, 2019 = $125,999), and Income tax (2020 = $1,064,851, 2019 = $743,317).
     Net income attributable to non-controlling interests (minority interest) is
     removed from the cash flow calculation (2020 = $558,324,  2019 = $527,778).
     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
     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>form8k3qspeech11-20.txt
<DESCRIPTION>EXH. 99.2 SPEECH
<TEXT>
Q3 2020

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 2020.

Prior  to  discussion  of our  financials,  I'd  like to  update  our  corporate
condition and product  lines along with what,  in our opinion,  might occur over
the next two quarters.

Covid virus:  The NanoChem  Subsidiary,  the ENP  Subsidiary and the Florida LLC
investment are all engaged in producing for the agriculture  and/or the cleaning
products sectors. Therefore, we are considered essential services and are likely
to remain so if restrictions are reinstated. Production and sales are continuing
to meet customer  orders.  We continued to shrink our inventory and increase our
cash position in Q2 and Q3 by ordering  less  inventory  than we consumed.  This
tactic was  successful and we feel that we now have the right level of inventory
to suit the risks of covid  while  still  having  the  ability  to  service  our
customers.

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.


<PAGE>


TPA is used in  agriculture  to  significantly  increase crop yield.  It acts 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.
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.

SUN 27(TM) and N Savr 30(TM) are our nitrogen conservation products. Nitrogen is
a  critical  fertilizer  but  it  can  be  lost  through  bacterial   breakdown,
evaporation and soil runoff.

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.

ENP  Division:  ENP is  focused  on  sales  into the  greenhouse,  turf and golf
markets,  while, our NCS sales are into row crop agriculture - two very distinct
markets.  The  strong  quarters  for ENP are 2 and 3 to match the US spring  and
summer.  Q3 was very strong.  ENP expects  moderate  year over year growth in Q4
2020 with the  caution  that Q4 early buy orders  could be affected if the virus
causes  customers to keep  inventory  very low. Q1 2021is still  unclear at this
time.

The Florida LLC  investment:  This  investment  was  profitable,  as usual.  The
company we  invested in has sold more to date in 2020 than it did in the first 9
months of 2019.  The  Company is focused on  international  sales into  multiple
countries  all of which are facing  different  covid  issues and  responding  in
varied ways. The large number of variables prevents any useful prediction for Q4
2020 and Q1 2021 other than continued growth at a moderate rate is likely.

Q4 2020 and early 2021

TPA, SUN 27(TM) and N Savr 30(TM) for agricultural use had peak uptake in Q1 and
Q2. Early buy orders in Q4 could be reduced if our customers decide to use just
in time strategies. However, recent strong increases in corn and soybean prices
may counteract customer worries.


<PAGE>


Oil, gas and  industrial  sales of TPA are expected to be flat in Q4 compared to
the previous year while  predictions  regarding  2021 are not possible under the
circumstances.  Like  agriculture,  our  sales to  cleaning  products  and water
treatment  are  considered  essential  leaving only O&G as a market  vertical at
risk.  The risk in O&G is not  permanent  loss of  business,  rather,  it is the
possibility  of some wells  shutting down for  maintenance  while oil prices are
low.

Tariffs:  Since Sept 30th 2018,  many of our raw  materials  imported from China
have  included a 10%  additional  tariff which rose to 25% in 2019. US customers
received  price  increases  from  us  as  this  inventory  entered   production.
International  customers are not charged the tariffs because we are applying for
the  export  rebates  available  to  recover  the  tariffs.  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
are very complicated to apply for and can take many months to arrive.  The total
dollar amount due back to us has become  significant  and continues to increase.
Changes in customs  categories  in Q3 2020 have  resulted  in another of our raw
materials  being  added to the  tariff  list  increasing  the  strain on us. The
rebates will increase profitability and cash flow while decreasing cost of goods
for the future  quarters in which the rebates  are  received.  In my Q1 speech I
expressed  comfort  that we would  begin to see  rebates in Q2 or early in Q3. I
based  this on the fact that we filed our  template  and  request  for our first
rebate in mid-May.  As of Aug 14, there had been no response from the government
except an excuse that "employees are not in the office".  In September,  we were
told that they had lost our file and instructed us to refile.  Because files are
examined  in order of  receipt  and there is a 30-day  payment  delay even after
approval, we no longer expect rebates in Q4.

Highlights of the financial results:

Sales for the  quarter  increased  10% to $8.11  million,  compared  with  $7.40
million for Q3 2019.  The result is a gain of 582  thousand or 5 cents per share
in the 2020 period,  compared to a gain of 412 thousand or 3 cents per share, in
2019. We attribute the improvement to increased sales.


<PAGE>


It is not obvious why revenue similar to Q2 would result in significantly  lower
profit in Q3.  Reason 1 is product  mix:  Q3  historically  sees a lower  margin
product  mix.  Reason 2 is the  addition of another of our raw  materials to the
tariff regime  resulting in additional  costs until rebates arrive.  Reason 3 is
the relative  strength of the ENP division whose revenue is fully  consolidated.
However,  35% of ENP's profit is backed out to ENP's minority  shareholder.  ENP
had an  excellent  Q3 which  transformed  our average Q into a good one. We feel
that this is further validation of our ENP acquisition.

Working  capital is adequate for all our purposes and is increasing  during 2020
as we  book  retained  profit  from  sales.  Continuous  effort  will be made to
optimize  inventory  and accounts  receivable  while  increasing  cash until the
effects of the virus become more predictable. We also have a line of credit with
Midland  States Bank.  We are  confident  that we can execute our plans with our
existing  capital.  The  purchase  of ENP in 2018 was funded by a term loan from
Harris bank [now carried by Midland] and a $1 MM convertible  debenture taken by
the seller.  One half the  debenture was converted to 200,000 FSI shares in 2019
while the  remaining  500,000 was retired for cash in Q2 of this year.  The term
loan is now more than half repaid.  The LLC  investment in January 2019 was made
with cash on hand provided by FSL, our Canadian operating company.

The text of this  speech will be  available  as an 8K filing on  www.sec.gov  by
Tuesday, November 17th. 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>
