Here are 1-2 brief analogies for Flexible Solutions International (FSI):

• FSI is like an Ecolab for specialty chemicals that conserve water and enhance agricultural efficiency.
• FSI is a highly specialized Dow Chemical or DuPont, focused on chemical innovations for water conservation and agricultural productivity.

• Thermal Polyaspartates (TPAs): Specialty chemicals used across various industries, including oilfields for scale/corrosion reduction, agriculture for fertilizer management, irrigation system maintenance, and as additives in consumer products.
• Nitrogen Conservation Products: Chemicals specifically designed for agriculture to slow down the loss of nitrogen from fields.
• HEATSAVR: A chemical product for swimming pools and spas that forms a thin, transparent layer on the water's surface to reduce heat evaporation.
• WATERSAVR: A product used to reduce water evaporation from reservoirs, potable water storage tanks, aqueducts, canals, and for lawn/turf/plant care.

Major Customers of Flexible Solutions International (FSI)

Flexible Solutions International (FSI) primarily sells its specialty chemicals to other businesses and organizations (B2B) rather than directly to individual consumers. The provided background information does not name specific major customer companies.

Based on the description of its products and their applications, FSI's major customers are found within the following categories:

• Oilfield Service and Exploration Companies: Companies involved in the oil and gas industry that utilize TPAs to reduce scale and corrosion in various water systems.
• Agricultural Input Manufacturers and Large-Scale Farming Operations: Businesses that produce fertilizers and pesticides, or large agricultural entities that apply FSI's nitrogen conservation products and TPAs to reduce fertilizer crystallization, prevent mineral crystal formation, and improve irrigation efficiency.
• Manufacturers of Household and Consumer Products: Companies that incorporate TPAs as additives into products such as household laundry detergents, other consumer care items, and pesticides.
• Water Management Authorities and Large-Scale Water Users: Entities such as municipalities, water districts, and large agricultural operations that manage reservoirs, potable water storage tanks, aqueducts, canals, and irrigation ditches, using WATERSAVR to reduce water evaporation. This also includes large livestock operations.
• Pool and Spa Product Distributors and Retailers: Companies within the recreational water industry that distribute or sell chemical products for swimming pools and spas, including HEATSAVR.

Daniel B. O'Brien, President, Chief Executive Officer, Principal Financial Officer, and Accounting Officer

Daniel B. O'Brien founded Flexible Solutions Ltd., a private company focused on pool chemicals, in 1991. This company was subsequently purchased by Flexible Solutions International, Inc. through a share exchange in August 1998. He has served as the CEO of Flexible Solutions International, Inc. since June 1998. Prior to his involvement with Flexible Solutions Ltd., Mr. O'Brien was a teacher at Brentwood College. He is also a significant shareholder in the company.

Robert Helina, Director

Robert Helina serves as a Director for Flexible Solutions International, Inc.

John Bientjes, Independent Director

John Bientjes serves as an Independent Director for Flexible Solutions International, Inc.

Thomas Fyles, Independent Director

Thomas Fyles serves as an Independent Director for Flexible Solutions International, Inc.

David Fynn, Independent Director

David Fynn serves as an Independent Director for Flexible Solutions International, Inc.

Key Risks to Flexible Solutions International (FSI)

1. Commodity Price Volatility and Industry Cyclicality: Flexible Solutions International operates in segments highly susceptible to fluctuations in commodity markets. Its products for oilfields, which reduce scale and corrosion, are directly impacted by oil and gas prices and drilling activity. Similarly, the agricultural segment, including nitrogen conservation products and TPAs for fertilizers, is sensitive to crop prices and farm income. Sector-specific risks in the Basic Materials industry, such as commodity price volatility, could therefore impact the company's future performance. For instance, the company's CEO noted weakness in the international agriculture market in late 2024, which affected revenue.
2. Execution Risk of Strategic Transition and Reliance on Key Contracts: The company is undergoing a significant strategic shift, transitioning from a chemical company to a food-grade supplier and expanding into higher-margin food-grade manufacturing. This involves substantial capital expenditure and a reliance on new food-grade contracts to drive future revenue growth and enhance earnings. There are significant execution and cash flow risks tied to the successful implementation of these new contracts and the broader transition.
3. Environmental and Regulatory Risks: As a developer and manufacturer of specialty chemicals, including those for water conservation and agricultural use, Flexible Solutions International is exposed to evolving environmental regulations. While many of its products are positioned as environmentally friendly (e.g., biodegradable polymers, water evaporation reduction), changes in environmental policies, increased scrutiny of chemical use in water systems or agriculture, or the emergence of non-chemical alternative solutions could impact product demand or necessitate costly product modifications and compliance efforts. The demand for water conservation products like WATERSAVR is also inherently dependent on persistent water scarcity and conservation initiatives, which can be influenced by climate patterns and public policy.

Addressable Markets for Flexible Solutions International's Main Products or Services:

• Nitrogen Conservation Products and Thermal Polyaspartates (TPAs) for Agriculture: These products, used to slow nitrogen loss from fields and reduce fertilizer crystallization, operate within the global nitrogen stabilizers market. This market was valued at approximately USD 1.72 billion in 2024 and is projected to reach USD 2.89 billion by 2033. The North American nitrogen stabilizer market alone was estimated to be around USD 650 million in 2024.
• HEATSAVR (Liquid Pool Cover): HEATSAVR, which reduces heat loss and evaporation in swimming pools and spas, competes within the broader global swimming pool covers market. This market was valued at USD 1,649.3 million in 2022. It is forecasted to grow by USD 483 million, at a Compound Annual Growth Rate (CAGR) of 4.9% between 2024 and 2029. North America was the largest regional market for swimming pool covers in 2022.
• Thermal Polyaspartates (TPAs) as Additives for Household Laundry Detergents and Consumer Care Products: FSI's TPAs serve as additives to enhance the performance and environmental profile of detergents. The global detergent chemicals market, which encompasses these additives, was valued at USD 68.53 billion in 2024 and is anticipated to reach approximately USD 157.83 billion by 2034, growing at a CAGR of 8.7% from 2025 to 2034. The North American detergent chemicals market was valued at USD 19.19 billion in 2024.
• Thermal Polyaspartates (TPAs) for Oilfields (Scale and Corrosion Reduction) and for Irrigation (Preventing Drip Irrigation Port Plugging), and WATERSAVR (Water Evaporation Reduction for Large Water Bodies): null

Flexible Solutions International (FSI) is poised for future revenue growth over the next 2-3 years, driven by its strategic expansion into new markets and product lines, as well as continued strength in existing segments. Key drivers include significant new food-grade contracts, the operationalization of its Panama factory for international sales, and anticipated growth in its ENP division and international agriculture sales.

Here are the expected drivers of future revenue growth for Flexible Solutions International:

1. Expansion into Food-Grade Products: Flexible Solutions International is making a significant strategic shift by expanding its presence in the food and nutrition supplement manufacturing markets. The company has secured multiple food-grade contracts, with management indicating the potential to achieve an annual revenue run rate of $50 million to $60 million from these contracts by 2027. Production for these new food-grade products began in late 2025 and early 2026, and a second major food-grade contract announced in August 2025 is expected to contribute between $6.5 million and $13 million annually, with potential to expand to over $25 million per year. This diversification is a major growth inflection point for FSI.
2. Panama Factory for International Sales: The company's new duplicate agriculture and polymer factory in Panama became operational in Q3 2025, with shipments commencing in January 2026. This strategic move is expected to handle nearly all international sales of FSI's agriculture and polymer products, which will help reduce shipping times and eliminate U.S. tariffs on raw materials. The freed-up capacity at the Illinois factory can then be utilized for increased food-grade product production, further boosting overall revenue and potentially improving margins.
3. Growth in ENP Division: The ENP division, which focuses on sales to the greenhouse, turf, and golf markets, is anticipated to continue its growth trajectory in 2025 and into 2026, with strong performance expected particularly in the second half of these years. This sustained growth in a key existing segment will contribute to the company's overall revenue expansion.
4. Recovery in International Agriculture Sales (Florida LLC): The Florida LLC investment, which concentrates on international agriculture sales across multiple countries, is projected to return to growth in the second half of 2025 and continue into 2026. This recovery in international agricultural markets is expected to translate into increased revenue for FSI, despite the ongoing pressures and uncertainties in the broader agriculture sector.

Share Issuance

• Flexible Solutions International filed a shelf registration on February 24, 2026, to potentially offer up to $50,000,000 of common stock, preferred stock, convertible preferred stock, rights, warrants, and units.
• As of February 24, 2026, there were 12,737,498 common shares outstanding.
• The company's CEO stated in Q3 2025 that no equity financing would be necessary for approximately $4 million in additional capital expenditures related to food-grade contracts.

Inbound Investments

• Flexible Solutions International secured a $5.0 million revolving line of credit and a $1.4 million secured loan, totaling $6.4 million, from a major Chicago-based bank for working capital.
• This new credit facility replaces a previous $1.5 million line of credit and is expected to negate the need for equity market access for growth capital in the foreseeable future.
• The company received a $2.5 million payment for food-grade product development in the second quarter of 2025.

Outbound Investments

• In July 2023, Flexible Solutions International invested in an LLC that owns an industrial building located in Mendota, Illinois.

Capital Expenditures

• Approximately $4 million in additional capital expenditures were estimated for equipment and plant improvements related to food-grade contracts, with the remainder to be spent in Q4 2025.
• The company anticipates minimal additional capital expenditures for scaling food-grade sales to $13 million-$15 million, but $2 million-$3 million in additional spending would be required to reach $25 million in sales.
• Flexible Solutions International announced a capital expenditure in June 2024 to acquire a vial filling line for injectable drugs, including GLP1 for weight loss.