<SEC-DOCUMENT>0001004878-21-000035.txt : 20210402
<SEC-HEADER>0001004878-21-000035.hdr.sgml : 20210402
<ACCEPTANCE-DATETIME>20210401174752
ACCESSION NUMBER:		0001004878-21-000035
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20210331
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20210402
DATE AS OF CHANGE:		20210401

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:		21799549

	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>form8k202yrend4-21.txt
<DESCRIPTION>8-K RE 2020 YEAR END 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): March 31, 2021

                      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:

                                                       Name of exchange
     Title of each class       Trading Symbol          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 March 31, 2021, the Company issued a press release announcing its
financial results for the year ended December 31, 2020.

Item 8.01   Other Events

     On April 1, 2021 the Company held a conference call to discuss its
financial results for the year ended December 31, 2020, as well as other
information regarding the Company.

Item 9.01   Exhibits

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

  99.1      March 31, 2021 Press Release

  99.2      Text of conference call speech by Dan O'Brien/April 1, 2021.






                                       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:  April 1, 2021
                                 FLEXIBLE SOLUTIONS INTERNATIONAL INC.


                                 By:  /s/ Daniel B. O'Brien
                                      ----------------------------------------
                                     Daniel B. O'Brien, President and Chief
                                     Executive Officer















                                       3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>form8kyrendex9914-21.txt
<DESCRIPTION>EXH 99.1 PRESS RELEASE
<TEXT>


                                  EXHIBIT 99.1


<PAGE>

                     FLEXIBLE SOLUTIONS INTERNATIONAL, INC.

NEWS RELEASE
March 31, 2021


       FSI ANNOUNCES Full Year, 2020 FINANCIAL RESULTS: NET PROFIT up 50%

  A Conference call is scheduled for Thursday April 1st, 2021, 11:00am Eastern
                           time, 8:00am Pacific Time

                   See dial in number and explanation below

VICTORIA, BRITISH COLUMBIA, March 31, 2021 - 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
full year ended December 31, 2020.

Mr. Daniel B. O'Brien, CEO, states, "We are very pleased with the increase in
revenue, profits and cash flow in 2020, especially considering the constraints
of operating during the pandemic." Mr. O'Brien continues, "We plan to continue
our growth as vaccines are distributed and the economy opens."

     o    Sales for the Full Year were  $31,407,454,  up approximately  14% when
          compared to sales of  $27,440,110 in the  corresponding  period a year
          ago. The financials  show a Full Year,  2020 net profit of $2,977,050,
          or $0.24 per share,  compared to a net income of $1,912,392,  or $0.16
          per share, in Full Year,  2019.  Note: the financials do not take into
          account potential tariff rebates that are currently being applied for.
          The tariffs were  charged on some raw  materials  used to  manufacture
          products that were shipped in both 2019 and 2020.

     o    Basic  weighted  average  shares used in computing  earnings per share
          amounts were  12,240,641 and  11,945,636 for full year,  2020 and full
          year, 2019 respectively.

     o    Non-GAAP  operating cash flow:  For the 12 months ending  December 31,
          2020,   net   income   reflects   $1,007,684   of   non-cash   charges
          (depreciation,  stock  option  expenses),  as well as gain  (loss)  on
          disposition of equipment,  gain(loss) on investment, interest expense,
          interest income, write down of inventory, Income tax expense/recovery,
          and pre tax Net  income  attributable  to  non-controlling  interests.
          These are items not  related to  current  operating  activities.  When
          these items are removed,  the  financials  show operating cash flow of
          $4,514,182 or $0.37 per share.  This compares with operating cash flow
          of $2,619,040,  or $0.22 per share in the  corresponding  12 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.

                                       1
<PAGE>


Conference call

A conference call has been scheduled for 11:00 am Eastern Time, 8:00 am Pacific
Time, on Thursday April 1st, 2021 . CEO, Dan O'Brien will be presenting and
answering questions on the conference call. To participate in this call please
dial 1-877-876-9177 (or 1-785-424-1672) just prior to the scheduled call time.
To join the call participants will be requested to give their name and company
affiliation. The conference ID: SOLUTIONS and or call title "Fourth quarter 2020
Financial Results," will be requested

more...

The above information and following table contain supplemental information
regarding income and cash flow from operations for the period ended December 31,
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 12 Months Ended December 31 (12 Months Operating Cash Flow)
                                   (Unaudited)
-------------------------------------------------------------------------------
                                                 12 months ended December 31
                                                    2020             2019
                                               --------------------------------
Revenue                                          $ 31,407,454     $27,440,110
Income (loss) before income tax - GAAP           $  5,190,975     $ 2,314,621
Provision for Income tax - net  - GAAP           $a(1,607,441)    $   (17,436)

Net income (loss)  - GAAP                        $  2,977,050     $ 1,912,392

Net income (loss) per common share - basic. -
GAAP                                             $       0.24     $      0.16
12 month weighted average shares used in
computing per share amounts - basic.-  GAAP        12,240,641      11,945,636


                                                 12 month Operating Cash Flow
                                                      Ended December 31
                                               ---------------------------------

Operating Cash Flow (12 months). NON-GAAP      $4,514,182 a,b,c  $2,619,040a,b,c

Operating Cash Flow per share excluding        $     0.37 a,b,c  $     0.22a,b,c
  non-operating items and items not related
  to 0.37a,b,c current operations (12 months)
  - basic - NON-GAAP
Non-cash Adjustments (12 month) - GAAP         $1,007,684 d      $  866,708 d
Shares (12 month basic weighted average)
   used in computing per share amounts - basic
   GAAP                                        12,240,641        11,945,636
--------------------------------------------------------------------------------

Notes: certain items not related to "operations" of the Company's net income are
listed below.

a)    Non-GAAP - Flexible Solutions International purchased 65% of ENP in 4th
      quarter, 2018 (October 2018). Therefore Operating Cash Flow is adjusted by
      the pre-tax Net income or loss of the non-controlling interest in ENP. An
      adjustment to 2019 Operating cash flow has been made to account for the
      use of a pre-tax amount versus an after tax amount which was originally
      used in that year.

                                       2
<PAGE>

b)    Non-GAAP  -  amounts   exclude   certain   cash  and   non-cash   items:
      depreciation and stock compensation  expense (2020 = $1,007,684,  2019 =
      $866,708),   interest  expense  (2020  =  $260,657,  2019  =  $428,371),
      interest  income (2020 = $53,101,  2019 = $80,731),  gain on  investment
      (2020 = $877,358,  2019 = $323,824),  gain on sale of equipment  (2020 =
      9,490,  2019 =  $2,312),  Gain  on  acquisition  of ENP  Realty  (2020 =
      $133,341,  2019 = N/A),  Deferred income tax recovery  (expense) (2020 =
      (409,553),  2019 =  $602,421),  Income  tax (2020 =  $1,197,888,  2019 =
      $619,857),  and  pre-tax  Net  income  attributable  to  non-controlling
      interests  (2020  =  $871,844,  2019 =  $583,793).  *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  (2020 =  $877,358,  and 2019 =
      $323,824),  including  those from 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.

                                       3

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>form8kyrendex9924-21.txt
<DESCRIPTION>EXH. 99.2 CONF. CALL SPEECH
<TEXT>




                                  EXHIBIT 99.2



<PAGE>


Full Year 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 FY 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 even if  restrictions  are  reinstated.  Production  and sales are
continuing to meet customer  orders.  We reduced our inventory and increased our
cash position in 2020 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.

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. 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.

                                       1
<PAGE>

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.  FY 2020  growth in both  revenue  and profit was good.  ENP expects the
level of growth in in 2021 to be similar to 2020.  The Florida  LLC  investment:
This  investment was  profitable as usual.  The LLC increased its revenue nearly
30%.  This had the effect of increasing  our NCS division  sales to them and our
share of the LLC profits substantially.  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 FY 2021 except that the LLC management  expects continued growth.
For Q1 2021 some  customers have made their spring orders so late that shipments
will occur in Q2. No revenue loss is anticipated but  recognition  will be in Q2
rather than Q1.

Strategic  investment in Lygos: In December,  FSI invested  $500,000 in Lygos in
return for equity.  Lygos is using the  investment to continue  development of a
microbial  route to aspartic acid using corn sugar as a feedstock.  FSI would be
the major user of aspartic acid derived this way and believes  that  sustainable
aspartic acid would allow us to obtain large new customers and develop  valuable
new products.  Lygos' scientific team have already successfully  developed other
organic acids from sustainable  feedstock and are recognized as one of the world
leaders in synthetic  biology by their peers in the industry  and  academia.  We
have high  confidence  in their  ability to achieve  sustainable  aspartic  acid
through a fermentation route.

Q1 2021

TPA,  SUN 27(TM) and N Savr 30(TM) for  agricultural  use have peak uptake in Q1
and Q2. As we  suspected,  ordering  in 2021 is not the same as in 2020 and some
orders  are early  while  others are later than  usual.  We expect  that some Q1
orders will ship in Q2 and be recognized in the Q they ship in.

Oil, gas and  industrial  sales of TPA are expected to be flat to slightly up in
Q1 2021. Like  agriculture,  our sales to cleaning  products and water treatment
are  considered  essential,  leaving only O&G as a market  vertical at risk from
covid.  The  risk  in O&G is  declining  as the  vaccines  are  distributed  and
economies prepare to open.

Tariffs: Since Sept 30, 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 now  exceeds  $1 MM 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 2020 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  2020.  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 did not receive  rebates in 2020.  We received a
request for small changes to our  application  in early January and responded in
24 hours. We are still waiting for the government's response to our changes.

                                       2

<PAGE>


Shipping and  Inventory:  Ocean shipping and land transport in the US are taking
much  longer  than  usual.  6 weeks from PO to  receipt of product  has become 3
months in some cases.  The Suez Canal  problem  will  exacerbate  this for a few
weeks.  We are doing our best to cope with shipping issues by ordering far ahead
but we warn that some disruption will be unavoidable.

New  Equipment:  2.5 years ago, we began the  purchase and  installation  of new
equipment that will allow us to make additional products and increase sales. The
machinery went live in December and will contribute to sales and profits in 2021
and onward.  Revenue from this  equipment is expected to be significant by early
2022.

Highlights of the financial results:

Sales for the year increased 14% to $31.4  million,  compared with $27.4 million
for FY 2019.

Profits:  The  result is a gain of $2.98  million or 24 cents per share in 2020,
compared to a gain of $1.91 million or 16 cents per share, in 2019. We attribute
the improvement to increased  sales and lower costs for travel and  professional
fees along with no bad debt charge.

Operating  Cash Flow:  This non-GAAP  number is useful to show our progress with
non-cash  items  removed for clarity.  For 2020 it was $4.51 million or 37 cents
per share compared to $2.62 million or 22 cents per share.

Long term debt: We repaid the $500 thousand convertible note with cash in April
2020 and reduced our principal on our historic loans by more than $1 MM during
the year. We took on $500 thousand in PPP loans and $450 thousand in a mortgage
for the land and factory owned through ENP realty. Although it looks like we
ended the year with similar long-term debt, once the new asset is accounted for
and the PPP is forgiven our improved position is obvious.

Working capital is adequate for all our purposes and is increasing  continuously
as we book  retained  profit  from  sales.  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,  as noted above,  the remainder was paid back in cash. The LLC investment
in  January  2019 was made  with  cash on hand  provided  by FSL,  our  Canadian
operating  company.  The equity investment in Lygos was funded with cash on hand
from the same source.

The text of this  speech will be  available  as an 8K filing on  www.sec.gov  by
Monday,  April 4th.  Email or fax copies can be  requested  from Jason  Bloom at
Jason@flexiblesolutions.com. Thank you, the floor is open for questions.



                                       3

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
