Add
FSI to Portfolio
Set Alert
Email to a
Friend
| |||
|
|
Quotes & Info
|
| FSI > SEC Filings for FSI > Form 10-Q on 13-Nov-2008 | All Recent SEC Filings |
13-Nov-2008
Quarterly Report
Overview
Flexible Solutions International, Inc. ("we," "us," and "our") develops, manufactures and markets specialty chemicals that slow the evaporation of water. Our initial product, HEAT$AVRŽ, is marketed for use in swimming pools and spas where its use, by slowing the evaporation of water, allows the water to retain a higher temperature for a longer period of time and thereby reduces the energy required to maintain the desired temperature of the water in the pool. Using the same technology, WATER$AVRŽ, is marketed for water conservation in irrigation canals, aquaculture, and reservoirs where its use slows water loss due to evaporation. We also manufacture and market TPA's for use in the oilfields to reduce scale and corrosion in many 'topside' water systems and in the agriculture industry to reduce fertilizer crystallization before, during and after application.
Results of Operations
The Company has two product lines:
The first is a chemical ("EWCP") used in swimming pools and spas. The product forms a thin, transparent layer on the water's surface. The transparent layer slows the evaporation of water, allowing the water to retain a higher temperature for a longer period of time and thereby reducing the energy required to maintain the desired temperature of the water. A modified version of the product can also be used in reservoirs, potable water storage tanks, livestock watering ponds, canals, and irrigation ditches.
The second product ("BPCA") combines biodegradable polymers and chemical additives and is used by the petroleum, chemical, utility and mining industries to prevent corrosion and scaling in water piping. This product can also be used in detergent to increase biodegradability and in agriculture to increase crop yields by enhancing fertilizer uptake.
Material changes in our Statement of Operations for the periods presented are discussed below:
Nine Months Ended September 30, 2008
Increase
(I) or
Item Decrease Reason
(D)
Sales
EWCP products D During the nine months ended September 30, 2008 a
drought in Australia eased, which reduced sales of
energy and water conservation products. In addition,
energy and water conservation products for use in
swimming pools decreased due to real estate
foreclosures in the United States.
BPCA products I Maintenance shutdowns in the oil extraction industry
during 2007 reduced sales during the nine months
ended September 30, 2007.
|
Wages I Increased sales required increased support on all
levels.
Administrative D Five year stock option plans granted to several long
salaries and term employees in 2006 resulted in higher expenses
benefits in 2007. Granting of stock options resulted in an
expense of $153,451 in first nine months of 2007 as
compared to $93,665 in the same period 2008.
Investor D Options granted in relation to the private placement
relations and in May 2007 increased our investor relations costs
transfer agent during that period.
fee
Office and I Various administrative costs associated with the
miscellaneous start up of the new facility have been allocated to
this account. Once the facility is operational,
these costs will be allocated to overhead.
Consulting D The granting of stock options to long term
consultants in 2006 resulted in a stock option
expense of $56,720 in the nine months ended
September 30, 2008 as compared to $108,747 in the
same period 2007.
|
Three Months Ended September 30, 2008
Increase
(I) or
Item Decrease Reason
(D)
Sales
EWCP products I The Company believes that lower volume commitments
by large customers hoping to control inventory in Q1
and Q2 resulted in orders pushed forward into Q3,
leading to increased sales over the same period in
the past year.
BPCA products I Maintenance shutdowns in the oil extraction industry
during 2007 reduced sales during the three months
ended September 30, 2007.
Wages I Increased sales required increased support on all
levels.
Administrative D Five year stock option plans granted to several long
salaries and term employees in 2006 resulted in higher expenses
benefits in 2007 than 2008. Granting of stock options plans
resulted in an expense of $51,150 in third quarter
2007 as compared to $31,222 in the same period 2008.
|
Investor D The Company relied less on third party investor
relations and relations consultants during the three months ending
transfer agent September 30, 2008.
fee
Office and I Various administrative costs associated with the
miscellaneous start up of the new facility have been allocated to
this account. Once the facility is operational,
these costs will be allocated to overhead.
Consulting D The granting of stock options to long-term
consultants, which vest over a five year period
beginning in 2006, resulted in a stock option
expense of $15,869 in third quarter 2008 as compared
to $43,138 in the same period 2007.
Commissions I Increased sales for the quarter resulted in
increased commissions.
|
Capital Resources and Liquidity
The sources and uses of funds are directly obtainable from the Consolidated Statement of Cash Flows included as part of the financial statements filed with this report.
The Company has sufficient cash resources to meets its future commitments and cash flow requirements for the coming year. As of September 30, 2008 working capital was $5,481,845 (2007 - $7,295,137) and the Company has no substantial commitments that require significant outlays of cash over the coming fiscal year.
The Company is committed to minimum rental payments for property and premises aggregating approximately $198,730 over the term of three leases, the last expiring on December 31, 2011.
Commitments in each of the next five years are approximately as follows:
2008 $ 44,382 2009 122,747 2010 15,800 2011 15,800 2012 - |
The Company does not anticipate any capital requirements for the twelve months ending December 31, 2008.
The Company does not have any commitments or arrangements from any person to provide it with any additional capital.
See Note 2 to the financial statements included as part of this report for a description of the Company's significant accounting policies and recent accounting pronouncements.
|
|