A Conference call is scheduled for Monday May, 17^th, 11:00am Eastern time, 8:00am Pacific Time

See dial in numbers below

VICTORIA, BC / ACCESSWIRE / May 14, 2021 / FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE:FSI)(FRANKFURT:FXT), is the developer and manufacturer of biodegradable polymers for oil extraction, detergent ingredients and water treatment as well as crop nutrient availability chemistry. Flexible Solutions also manufactures biodegradable and environmentally safe water and energy conservation technologies. Today the Company announces financial results for the first quarter (Q1) ended March 31, 2021.

Mr. Daniel B. O'Brien, CEO, states, "Each year brings challenges which we find ways to meet. A year ago, it was covid. This year it is shipping difficulty and price increases. We are confident that we will overcome these hurdles too." Mr. O'Brien continues, "The problems I'm speaking of affected Q1 revenue but the sales that were delayed are being recognized in Q2 and our full year expectations remain positive."

Sales in the first quarter (Q1) were $7,624,607, compared to sales of $8,429,486 in the corresponding period a year ago. The financials show a Q1, 2021 net profit of $1,450,571, or $0.12 per share, compared to a net profit of $1,264,675, or $0.10 per share, in Q1, 2020.
Basic weighted average shares used in computing earnings per share amounts in Q1 were 12,292,452 and 12,237,798 for Q1, 2021 and Q1, 2020 respectively.
Non-GAAP operating cash flow: For the quarter ending March 31, 2021, net income reflects $272,554 of non-cash charges (depreciation, stock option expenses), PPP loan forgiveness, as well as gain on investment, interest expense, interest income, and income tax. Net income attributable to non-controlling interests (minority interest) is removed from the cash flow calculation. These are items not related to operating or current operating activities. When these items are removed, the Company shows operating cash flow of $1,513,629, or $0.12 per share. This compares with operating cash flow of $1,778,785, or $0.15 per share, in the corresponding 3 months of 2020 (see the table that follows for details of these calculations).

The NanoChem division continues to be the dominant source of revenue and cash flow for the Company. New opportunities continue to unfold in detergent, water treatment, oil field extraction and agricultural use to further increase sales in this division.

Conference call

A conference call has been scheduled for 11:00 am Eastern Time, 8:00 am Pacific Time, on Monday, May 17^th. CEO, Dan O'Brien will be presenting and answering questions on the conference call. To participate in this call please dial 1 877‑876‑9174 (or 1 785‑424‑1669) just prior to the scheduled call time.

The conference call title, "FSI First Quarter 2021 Financial Results," may be requested.

The above information and following table contain supplemental information regarding income and cash flow from operations for the period ended March 31, 2021. Adjustments to exclude depreciation, stock option expenses and one time charges are given. This financial information is a Non-GAAP financial measure as defined by SEC regulation G. The GAAP financial measure most directly comparable is net income. The reconciliation of each of the Non-GAAP financial measures is as follows:

FLEXIBLE SOLUTIONS INTERNATIONAL, INC.
Consolidated Statement of Operations
For 3 Months Ended March 31 (3 Months Operating Cash Flow)
(Unaudited)

		3 months ended March 31
		2021			2020
Revenue		$	7,624,697		$	8,429,486
Income (loss) before income tax - GAAP		$	2,122,511		$	1,766,678
Provision for Income tax (expense) / recovery - GAAP		$	(485,456	)	$	(434,988)
Net income (loss) - GAAP		$	1,450,571		$	1,264,675
Net income (loss) per common share - basic. - GAAP		$	0.12		$	0.10
3 month weighted average shares used in computing per share amounts - basic.- GAAP			12,292,452			12,237,798
	3 month Operating Cash Flow Ended March 31
Operating Cash flow (3 months). NON-GAAP		$	1,513,629a,b,c		$	1,778,785a,b,c

Operating Cash flow per share excluding non-operating items and items not related to current operations (3 months) - basic. NON GAAP		$	0.12a,b,c		$	0.15a,b,c
Non-cash Adjustments (3 month) GAAP		$	272,554 d		$	177,640 d
Shares (3 month basic weighted average) used in computing per share amounts - basic GAAP			12,292,452			12,237,798

Notes: certain items not related to "operations" of the Company have been excluded from net income as follows.

a) Non-GAAP -:: Flexible Solutions International purchased 65% of ENP in 4^th quarter, 2018 (October 2018). Therefore Operating Cash Flow is adjusted by the net income or loss of the non-controlling interest in ENP (2021 = $186,484, 2020 = $67,015).

b) Non-GAAP - amounts exclude certain cash and non-cash items: depreciation and stock compensation expense (2021 = $272,554, 2020 = $177,640), interest expense (2021 = $62,274, 2020 = $101,425), interest income (2021 = $10,298, 2020 = $414), gain on investment (2021 = $208,968, 2020 = $199,529), PPP loan forgiveness (2021 = $537,960, 2020 = N/A), write down of inventory (2021 = N/A, 2020 = N/A), deferred income tax recovery (2021 = N/A, 2020 = N/A), Income tax (2021 = $485,456, 2020 = $434,988), and Net income attributable to non-controlling interests. See the financial statements for all adjustments.

c) The revenue and gain from the 50% investment in the private Florida LLC, announced in January 2019, is not treated as revenue or profit from operations by Flexible Solutions given the Company only purchased 50% of the LLC. The profit is treated as investment income and therefore occurs below Operating income in the Statement of Operations. As a result, the gains from all investments, including that of the Florida LLC, are removed from the calculation to arrive at Operating Cash Flow.

d) Non-GAAP - amounts represent depreciation and stock compensation expense.

Safe Harbor Provision

The Private Securities Litigation Reform Act of 1995 provides a "Safe Harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward looking statement with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the company is detailed from time to time in the company's reports filed with the Securities and Exchange Commission.

Flexible Solutions International
6001 54^th Ave, Taber, Alberta, CANADA T1G 1X4
Company Contacts

Jason Bloom
Toll Free: 800 661 3560
Fax: 403 223 2905
E-mail: info@flexiblesolutions.com

If you have received this news release by mistake or if you would like to be removed from our update list please reply to: info@flexiblesolutions.com

To find out more information about Flexible Solutions and our products, please visit www.flexiblesolutions.com.

SOURCE: Flexible Solutions International, Inc.

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FSI Announces First Quarter, 2021 Financial Results