Summary of FLEXIBLE SOLUTIONS INTERNATIONAL INC

Item 2. Management's Discussion and Analysis of Results of Operation and Financial Condition.

Overview

The Company develops, manufactures and markets specialty chemicals that slow the evaporation of water. The Company also manufactures and markets biodegradable polymers which are used in the oil, gas and agriculture industries.

Results of Operations

The Company has two product lines:

Energy and Water Conservation products - The Company's HEAT$AVRŽ product is used in swimming pools and spas. The product forms a thin, transparent layer on the water's surface. The transparent layer slows the evaporation of water, allowing the water to retain a higher temperature for a longer period of time and thereby reducing the energy required to maintain the desired temperature of the water. WATER$AVRŽ, a modified version of HEAT$AVRŽ, can be used in reservoirs, potable water storage tanks, livestock watering ponds, canals, and irrigation ditches.

BCPA products - The second product, TPA's (i.e. thermal polyaspartate biopolymers), are biodegradable polymers used by the petroleum, chemical, utility and mining industries to prevent corrosion and scaling in water piping. This product can also be used in detergents to increase biodegradability and in agriculture to increase crop yields by enhancing fertilizer uptake.

Material changes in the Company's Statement of Operations for the periods presented are discussed below:

Three Months Ended March 31, 2009

              Increase
               (I) or
              Decrease
Item            (D)       Reason

Sales
  EWCP           D        The Company believes that the
products                  lower volume is the result of
                          large customers keeping
                          inventory levels down.

  BPCA           D        Reduced selling prices, reduced
products                  demand in the detergent sector
                          and lower oil extraction levels
                          all contributed to lower
                          revenue.

Gross Profit     D        Reduced due to lower volume and
                          lower pricing per unit sales
                          that were not accompanied by
                          lower cost raw materials until
                          later in the quarter.

Wages            I        Decreased use of consultants
                          increased wages.

Advertising      D        The Company selected the highest
and Promotion             impact trade shows and trade
                          publications, reducing the total
                          cost of reaching customers.

Office and       D        Various administrative costs
miscellaneous             associated with the 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         Increased wages decreased the
                          need for consultants.

Professional     I        The Company has chosen to
Fees                      allocate the year end audit fee
                          throughout the year instead of
                          just recording it in fourth
                          quarter.

Research         D        Decreased as one line of inquiry
                          was completed and new projects
                          were identified.

Commissions      D        Decreased sales for the quarter
                          resulted in lower 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 March 31, 2009 working capital was $6,242,378 (2008 - $6,465,437) 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 $85,806 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:

2009   $ 65,881
2010      9,962
2011      9,962
2011          -
2012          -

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.