FSI 10-K & 10-Q changes, risk factors and insider trading
Flexible Solutions International Inc. · NYSE · Miscellaneous Chemical Products · CIK 1069394 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
Largest changes
We currently allow our major customers between 30 and 90 days to pay for each sale. This practice, while customary, presents an accounts receivable write-off risk if one or more of our significant customers defaulted on their payment obligations to us. Any such write-off, if substantial, would have a material adverse effect on our business and results of operations. Seesee in full comparisonaboveItemprincipal1customerofinformation.this Report for further details.
Full comparison: every changed paragraph (1)
We
currently allow our major customers between 30 and 90 days to pay for each sale. This practice, while customary, presents an accounts
receivable write-off risk if one or more of our significant customers defaulted on their payment obligations to us. Any such write-off,
if substantial, would have a material adverse effect on our business and results of operations. See aboveItem principal1 customerof information.this Report for further details.
Management's Discussion & Analysis (MD&A)
Largest changes
“Revenue Recognition. We follow a five-step model for revenue recognition. The five steps are: (1) identification of the contract(s) with the customer, (2) identification of the performance obligation(s) in the contract(s), (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligation, and (5) recognition of revenue when (or as) the performance obligation is satisfied. …”see in full comparison
“Revenue Recognition. The Company recognizes revenue when control of promised goods is transferred to customers in an amount that reflects the consideration the Company expects to receive in exchange for those goods. Revenue is recognized at a point in time, generally upon shipment, as this represents the transfer of the risk of loss and control to the carrier (F.O.B. shipping point). Shipping and handling activities are accounted for as fulfillment costs.”see in full comparison
We have sufficient cash resources tosee in full comparisonmeetsmeet our future commitments and cash flow requirements for the coming year. As of December 31,2024,2025, our working capital was$22,714,190$22,173,434 (20232024 -$20,172,833$22,714,190) and we have no substantial commitments or capital requirements that require significant outlays of cash over the coming fiscal year.
Full comparison: every changed paragraph (5)
We
have threefour product lines.
We
have sufficient cash resources to meetsmeet our future commitments and cash flow requirements for the coming year. As of December 31, 2024,2025,
our working capital was $22,714,190$22,173,434 (20232024 - $20,172,833$22,714,190) and we have no substantial commitments or capital requirements that require
significant outlays of cash over the coming fiscal year.
Other
than as disclosed above, we do not know of any trends, demands, commitments, events or uncertainties that will result in, or that are
reasonablereasonably likely to result in, our liquidity increasing or decreasing in any material way.
Revenue Recognition. The Company recognizes revenue when control of promised goods is transferred to customers in an amount that reflects the consideration the Company expects to receive in exchange for those goods. Revenue is recognized at a point in time, generally upon shipment, as this represents the transfer of the risk of loss and control to the carrier (F.O.B. shipping point). Shipping and handling activities are accounted for as fulfillment costs.
Revenue
Recognition. We follow a five-step model for revenue recognition. The five steps are: (1) identification of the contract(s) with
the customer, (2) identification of the performance obligation(s) in the contract(s), (3) determination of the transaction price, (4)
allocation of the transaction price to the performance obligation, and (5) recognition of revenue when (or as) the performance obligation
is satisfied. We fulfill our performance obligations when control of product transfers to the customer, which is generally at the time
the product is shipped since risk of loss is transferred to the purchaser upon delivery to the carrier. For shipments which are free on board (F.O.B).
shipping point, we have elected to account for shipping and handling activities as a fulfillment cost rather than as an additional promised
service and performance obligation.
What changed in the latest 10-Q
Risk Factors
We could not find a separate Risk Factors item in the latest 10-Q. Some companies leave it out of quarterly reports; see the annual 10-K risk factors and the original filing. Open the filing on SEC.gov.
Management's Discussion & Analysis (MD&A)
Largest changes
“The SPCH division also produces a chemical 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 thereby reducing the energy required to maintain the desired temperature of the water. A modified version of EWCP can also be used in reservoirs, potable water storage tanks, livestock watering pods, canals, and irrigation ditches for the purpose of reducing evaporation.”see in full comparison
“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 thereby reducing the energy required to maintain the desired temperature of the water. A modified version of EWCP can also be used in reservoirs, potable water storage tanks, livestock watering pods, canals, and irrigation ditches for the purpose of reducing evaporation.”see in full comparison
Thesee in full comparisonsecondfirstproduct,is specialty chemicals (“SPCH”). This includes our biodegradable polymers (“TPAs”),isused by the petroleum, chemical, utility and mining industries to prevent corrosion and scaling in water piping. TPAs can also be used to increase biodegradability in detergents and in the agriculture industry to increase crop yields by enhancing fertilizer uptake. Along with biodegradable polymers, the Company produces nitrogen conservation products used for the agriculture industry. These products decrease the loss of nitrogen fertilizer after initial application and allows less fertilizer to be used. These products are made and sold by the Company’s SPCH division.
“The third product line is nitrogen conservation products used for the agriculture industry. These products decrease the loss of nitrogen fertilizer after initial application and allows less fertilizer to be used. These products are made and sold by the Company’s TPA division.”see in full comparison
The Company develops, manufactures and markets biodegradable polymers which are used in the oil, gas and agriculturesee in full comparisonindustries.industriesThealongCompany also develops, manufactures and marketswith specialty chemicals that slow the evaporation of water. The second segment is food grade products and ingredients that the Company manufactures for specific clients and are confidential.
“The second product line is food grade products and ingredients (“FGPI”) that the Company manufactures for specific clients and are confidential.”see in full comparison
Full comparison: every changed paragraph (18)
The
Company develops, manufactures and markets biodegradable polymers which
are used in the oil, gas and agriculture industries.industries Thealong Company also develops,
manufactures and marketswith specialty chemicals that slow the evaporation of water. The second segment
is food grade products and ingredients that the Company manufactures for specific clients and are confidential.
We have 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 thereby reducing the energy required to maintain the desired temperature of the water. A modified version of EWCP can also be
used in reservoirs, potable water storage tanks, livestock watering pods, canals, and irrigation ditches for the purpose of reducing
evaporation.
The
secondfirst product,is specialty chemicals (“SPCH”). This includes our biodegradable polymers (“TPAs”), is used by the petroleum,
chemical, utility and mining industries to prevent
corrosion and scaling in water piping. TPAs can also be used to increase biodegradability
in detergents and in the agriculture industry
to increase crop yields by enhancing fertilizer uptake. Along with biodegradable polymers,
the Company produces nitrogen conservation products used for the agriculture industry. These products decrease the loss of nitrogen fertilizer
after initial application and allows less fertilizer to be used. These products are made and sold by the Company’s SPCH division.
The SPCH division also produces a chemical 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 thereby reducing the energy required to maintain the desired temperature of the water. A modified version of EWCP can also be used in reservoirs, potable water storage tanks, livestock watering pods, canals, and irrigation ditches for the purpose of reducing evaporation.
The second product line is food grade products and ingredients (“FGPI”) that the Company manufactures for specific clients and are confidential.
The
third product line is nitrogen conservation products used for the agriculture industry. These products decrease the loss of nitrogen
fertilizer after initial application and allows less fertilizer to be used. These products are made and sold by the Company’s TPA
division.
The
Company also manufactures food grade products that are made and sold by the TPA division.
Material
changes in the Company’s Statement of Operations for threesix months ended MarchJune 31,30, 2026 compared to the same period in the prior year
year are discussed below:
Three
Months ended MarchJune 31,30, 2026
Six Months ended June 30, 2026
Three
primary customers accounted for 56%54% of the Company’s sales during the three months ended MarchJune 31,30, 2026 (2025 - 49%45%). The amount
of revenue (all from the sale of TPA products) attributable to each customer is shown below.below:
*not a primary product sales customer in that period
**Research
and development services sales are not included in product sales Customers
with balances greater than 10% of our receivables as of MarchJune 31,30, 2026 and December 31, 2025 are shown below:
Changes to crude oil prices did not materially impact the Company’s operating results for the three and six months ended June 30, 2026.
The
Company’s sources and (uses) of cash for the threesix months ended MarchJune 31,30, 2026 and 2025 are shown below:
The
Company has sufficient cash resources to meets its future commitments and cash flow requirements for the coming year. As of MarchJune 31,30,
2026, working capital was $20,878,345$18,691,445 (December 31, 2025 - $22,173,434$24,227,759) and the Company has no substantial commitments that require significant
outlays of cash over the coming fiscal year.
The
Company does not anticipate any capital requirements beyond cash on hand for the twelve months ending MarchJune 31,30, 2027.
FSI insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 0 filings. Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
No Form 4 stock transactions in this period.
Well-known investors holding FSI (13F)
| Investor | Quarter | Shares | Reported value | % of their 13F | Change vs prior quarter |
|---|---|---|---|---|---|
| Renaissance Technologies | 2026-06-30 | 329,751 | $2.2M | 0.0% | Reduced 3% |
| Citadel Advisors (Ken Griffin) | 2026-06-30 | 41,514 | $276.5K | 0.0% | Added 11% |
| Two Sigma Investments | 2026-06-30 | 11,100 | $59.9K | — | Sold out |