Core Viewpoint - Flexible Solutions International, Inc. reported a significant decline in sales and net income for the first quarter of 2025 compared to the same period in 2024, primarily due to lower sales volume and increased costs, while also highlighting recovery in order patterns and new market opportunities [2][3][5]. Financial Performance - Q1 2025 sales were $7,473,692, down approximately 19% from $9,224,872 in Q1 2024 [5][6]. - The net loss for Q1 2025 was ($277,734), or ($0.02) per share, compared to a net income of $457,226, or $0.04 per share in Q1 2024 [5][6]. - Non-GAAP operating cash flow for Q1 2025 was $480,268, or $0.04 per share, down from $1,382,874, or $0.11 per share in Q1 2024 [5][6]. Revenue Sources and Market Opportunities - The NanoChem division and ENP subsidiary remain the primary sources of revenue and cash flow for the company [3]. - New opportunities are emerging in various sectors including detergent, water treatment, oil field extraction, turf, ornamental, and agricultural use, as well as in food and nutrition supplement manufacturing [3][5]. Conference Call Information - A conference call is scheduled for May 16, 2025, at 11:00 AM Eastern Time, where CEO Dan O'Brien will present and answer questions regarding the financial results [4].

Sales Performance - The Company reported a decrease in sales for EWCP products and TPA products due to decreased customer orders, with specific revenue figures of $830,483 for Company A and $1,856,395 for Company B in Q1 2025 compared to $1,291,426 and $2,299,938 in Q1 2024 respectively[76][79]. - Three primary customers accounted for 49% of the Company's sales in Q1 2025, down from 55% in Q1 2024, indicating a diversification in customer base[78]. Financial Performance - Gross profit decreased due to an increase in tariffs, while professional fees increased due to higher accounting and audit fees related to the Company's growth[76]. - Interest expense increased due to higher debt levels, impacting overall financial performance[76]. - The Company experienced a cash outflow of $544,294 from operating activities in Q1 2025, an improvement from $604,819 in Q1 2024[81]. Working Capital and Cash Flow - The Company’s working capital as of March 31, 2025, was $22,796,690, showing a slight increase from $22,714,190 as of December 31, 2024[81]. - The Company has sufficient cash resources to meet future commitments and cash flow requirements for the coming year[81]. Future Outlook - The Company anticipates no significant capital requirements for the twelve months ending March 31, 2026, indicating stable financial planning[82]. - New tariffs on raw materials imported from China are expected to affect future operating results, particularly in relation to aspartic acid used in TPA products[80]. Internal Controls - The Company implemented new procedures to improve financial reporting controls after identifying material weaknesses in the previous year[86].

Company Overview - Flexible Solutions International Inc. (FSI) is expected to report a year-over-year increase in earnings, with a projected EPS of $0.05, reflecting a +25% change, and revenues anticipated at $10.2 million, up 10.5% from the previous year [3]. Earnings Expectations - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - The Most Accurate Estimate for FSI matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11]. Earnings Surprise Prediction - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - FSI currently holds a Zacks Rank of 4 (Sell), complicating the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, FSI met the consensus EPS estimate of $0.05, resulting in no surprise [12]. - Over the past four quarters, FSI has only surpassed consensus EPS estimates once [13]. Industry Comparison - In the Zacks Chemical - Specialty industry, Hawkins (HWKN) is expected to post earnings of $0.74 per share, indicating a +12.1% year-over-year change, with revenues projected at $230.08 million, up 3.2% from the previous year [17].

Company Overview - Flexible Solutions International, Inc. (FSI) is a developer and manufacturer of biodegradable polymers for various applications including oil extraction, detergent ingredients, water treatment, and crop nutrient availability [1][3] - The company also produces biodegradable and environmentally safe technologies for water and energy conservation, and is expanding into the food and nutrition supplement manufacturing markets [1][3] Financial Highlights - FSI announced a special dividend of ten cents per share, to be paid on May 28 to shareholders of record on May 19 [2] - CEO Dan O'Brien stated that the company's current financial condition and expectations of continued profitability allow for this special dividend, emphasizing that it is not a regular dividend [2] Product and Market Expansion - The company's subsidiary, NanoChem Solutions Inc., specializes in biodegradable, water-soluble products made from thermal polyaspartate (TPA) biopolymers, which have applications in scale inhibition, detergents, water treatment, and crop enhancement [3] - In 2022, FSI entered the food and nutrition markets by obtaining FDA and SQF food grade approval for its Peru IL plant, indicating a strategic move to diversify its product offerings [3]

Company Overview - Flexible Solutions International, Inc. (FSI) is a developer and manufacturer of biodegradable polymers for various applications including oil extraction, detergent ingredients, water treatment, and crop nutrient availability [1][4] - The company is also expanding its presence in the food and nutrition supplement manufacturing markets [1] Financial Performance - In Q1 2025, FSI reported a revenue decrease from $9.2 million in Q1 2024 to $7.4 million in Q1 2025, representing a decline of approximately 20.0% year over year [2] - The CEO, Dan O'Brien, indicated that the decline was due to two significant customers reducing inventory and a decrease in sales from the ENP division, likely influenced by early purchases in Q4 2024 [3] Future Outlook - Despite the sales decline in Q1 2025, the company does not believe this will affect its growth expectations for the fiscal year 2025 [3] - Complete financial results will be available on May 15, 2025, with a conference call scheduled for the following day [3]

Company Overview - Flexible Solutions International, Inc. (NYSE: FSI) is a Canadian company that initially focused on manufacturing chemicals for swimming pools but has since expanded into specialty chemicals, particularly biodegradable products [1]. Mission and Principles - Grassroots Trading emphasizes providing objective, unbiased, and balanced research, supported by solid data and free from emotional influences or company preferences [1]. - The focus is primarily on small- to mid-cap companies, offering insights into often overlooked investment opportunities for Seeking Alpha investors [1]. - The company also identifies potential opportunities in large- and mega-cap companies, broadening its coverage of the dynamic equity markets [1].

Financial Data and Key Metrics Changes - Revenue for 2024 was flat compared to 2023, at $38.23 million versus $38.32 million [35] - Profits for 2024 were $3.04 million or $0.24 per share, compared to $2.78 million or $0.22 per share in 2023 [35] - Operating cash flow for 2024 was $7.08 million or $0.57 per share, up from $4.60 million or $0.37 per share in 2023 [36] Business Line Data and Key Metrics Changes - The NanoChem division (NCS) represents approximately 70% of total revenue, focusing on biodegradable polymers and agricultural products [5][6] - The ENP division focuses on sales into greenhouse, turf, and golf markets, with mild growth expected to continue in 2025 [14][15] - The food division is projected to grow in 2025, depending on the production timeline of new products [20] Market Data and Key Metrics Changes - Agricultural products in the US are selling reasonably well, but crop prices are not increasing at the rate of inflation [18] - Tariffs on raw materials imported from China have negatively impacted costs, cash flow, and profits [21] - The company is developing a new facility in Panama to mitigate tariff impacts and improve operational efficiency for international sales [24][25] Company Strategy and Development Direction - The company is focusing on expanding its food-grade product line and has secured a significant food-grade contract, requiring new equipment and clean room installations [9][10] - A new production facility in Panama is expected to begin operations in Q3 2025, which will reduce tariff exposure and improve shipping logistics [24][26] - The company is exploring entry into the drug compounding industry, with plans to secure sales before further investments [31][32] Management's Comments on Operating Environment and Future Outlook - Management anticipates a return to growth in 2025, particularly in the second half of the year [34] - The company is optimistic about its positioning to grow despite uncertainties related to the new administration [34] - Management highlighted challenges in finalizing new orders, including the need for equipment installation and customer satisfaction with pricing [48] Other Important Information - The company has substantial cash on hand and does not anticipate needing equity financing for upcoming capital expenditures [10] - The company has hired a consulting group to assist in obtaining export rebates for tariffs, which have been difficult to recover [22] Q&A Session Summary Question: What is the deal with Panama and tariffs? - The tariffs in Panama are much lower than those in the US, allowing for reduced friction in operations [43] Question: Expected gross margins on new food business contracts? - Margins are uncertain but expected to be in the same range as historical margins [44][45] Question: What are the challenges in finalizing orders? - Challenges include building new clean rooms, installing equipment, and proving scalability to customers [48] Question: Is the new product a proprietary development? - The new product is proprietary to the customer, and the company is adapting its operations to manufacture it [52][54] Question: What sets the company apart in securing this business? - The company has demonstrated high-quality operations and a willingness to invest in changes to earn the business [56][57]

Financial Data and Key Metrics Changes - Revenue for 2024 was flat compared to 2023, at $38.23 million versus $38.32 million, while profits increased to $3.04 million or $0.24 per share from $2.78 million or $0.22 per share in 2023 [35][36] - Operating cash flow for 2024 was $7.08 million or $0.57 per share, up from $4.60 million or $0.37 per share in 2023 [36] Business Line Data and Key Metrics Changes - The NanoChem division (NCS) represents approximately 70% of the company's revenue, focusing on biodegradable polymers and agricultural products [5][6] - The ENP division, which focuses on greenhouse, turf, and golf markets, experienced mild growth in the second half of 2024, with expectations for continued growth in 2025 [14][15] Market Data and Key Metrics Changes - Agricultural products in the US are selling reasonably well, but crop prices are not increasing at the rate of inflation, leading to challenges for growers [18] - The company anticipates a return to growth in 2025, particularly from international agricultural sales [15][19] Company Strategy and Development Direction - The company is developing a new facility in Panama to mitigate US tariff impacts, with production expected to begin in Q3 2025 [24][25] - The company aims to optimize food-grade production in Illinois while expanding its capabilities in Panama [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth in 2025, particularly in the second half of the year, despite uncertainties related to the new administration [34] - The company is focused on securing purchase orders for new food-grade products, with expectations for significant revenue growth by 2026 [12][34] Other Important Information - The company has substantial cash on hand and does not anticipate needing equity financing for upcoming capital expenditures [10][11] - A consulting group has been hired to assist in obtaining export rebates related to tariffs, which have negatively impacted cash flow and profits [22] Q&A Session Summary Question: What is the deal with Panama and tariffs? - The CEO explained that Panama has much lower inbound tariffs compared to the US, which will significantly reduce operational friction [43] Question: Expected gross margins on new food business contracts? - The CEO indicated uncertainty regarding margins but suggested they would be in the same range as historical margins [44][45] Question: Challenges in finalizing new orders? - The CEO outlined the need for new clean rooms and equipment installation, as well as customer satisfaction with pricing before orders can be finalized [48] Question: Development of proprietary products? - The CEO clarified that the new contract involves manufacturing a product developed by the customer, not a proprietary product of the company [52][54] Question: What sets the company apart in securing new business? - The CEO highlighted the company's commitment to high-quality operations and certifications, which impressed potential customers [56][57]

Core Viewpoint - Flexible Solutions International, Inc. reported significant financial improvements for the year ended December 31, 2024, with increased net income and cash flow, while also highlighting future growth opportunities in various markets [2][3]. Financial Performance - Sales for the full year 2024 were $38,234,860, a slight decrease from $38,324,806 in 2023 [6][7]. - Net income for 2024 was $3,038,529, or $0.24 per share, compared to $2,775,864, or $0.22 per share in 2023, indicating a year-over-year increase in profitability [6][7]. - Non-GAAP operating cash flow for 2024 was $7,082,952, or $0.57 per share, up from $4,604,320, or $0.37 per share in 2023, reflecting a substantial improvement in cash generation [6][7]. Business Developments - The company is focusing on expanding its presence in the food and nutrition supplement manufacturing markets, alongside its established operations in biodegradable polymers for oil extraction, detergent ingredients, and water treatment [2][4]. - The NanoChem division and ENP subsidiary remain the primary sources of revenue and cash flow, with new opportunities emerging in various sectors including detergent, water treatment, and agriculture [4]. Future Outlook - The CEO indicated potential purchase orders that could significantly boost revenue by Q4 2025 and into 2026, alongside efforts to mitigate tariff impacts on international sales [3][4]. - The company is actively working to recover previously paid tariffs, which is expected to contribute to growth in the coming years [3].

Sales Performance - EWCP product sales increased due to higher customer orders, while TPA product sales decreased due to lower customer orders[82]. Profitability - Gross profit increased as raw material costs declined, aligning with existing customer price reductions[82]. Cash Flow - Cash provided by operating activities was $5,568,346 in 2024, down from $6,116,171 in 2023[84]. Working Capital - Working capital increased to $22,714,190 in 2024 from $20,172,833 in 2023[84]. Interest Income - Interest income rose due to increased interest rates and higher term deposits[82]. One-time Loss - The company incurred a one-time loss on the sale of 30.1% of a Florida-based LLC[82]. Research and Development - Research expenses increased due to new product development initiatives[82]. Financial Commitments - The company has no substantial commitments or capital requirements for the coming fiscal year[84]. Consulting Costs - Increased reliance on consultants led to higher consulting costs[82]. Currency Exchange - Currency exchange impacts were noted due to fluctuations in the US/Canadian dollar exchange rate[82].