2019 Q4 Form 10-Q Financial Statement

#000149315219017439 Filed on November 14, 2019

View on sec.gov

Income Statement

Concept 2019 Q4 2019 Q3 2018 Q3
Revenue $4.795M $7.403M $3.817M
YoY Change -15.5% 93.98% 16.74%
Cost Of Revenue $3.481M $5.024M $2.859M
YoY Change -22.62% 75.72% 25.72%
Gross Profit $1.314M $2.379M $957.5K
YoY Change 11.74% 148.5% -3.79%
Gross Profit Margin 27.4% 32.14% 25.09%
Selling, General & Admin $1.399M $1.440M $1.029M
YoY Change -4.07% 39.96% -4.72%
% of Gross Profit 106.54% 60.53% 107.47%
Research & Development $52.66K $15.55K $32.70K
YoY Change 8.18% -52.44% -15.49%
% of Gross Profit 4.01% 0.65% 3.41%
Depreciation & Amortization $157.8K $156.5K $60.56K
YoY Change -2.59% 158.39% 21.12%
% of Gross Profit 12.01% 6.58% 6.32%
Operating Expenses $1.452M $1.560M $1.156M
YoY Change -3.68% 34.91% -1.82%
Operating Profit -$138.5K $819.4K -$198.7K
YoY Change -58.28% -512.32% 8.93%
Interest Expense -$89.75K $94.32K $7.735K
YoY Change -133.12% 1119.38% -32.16%
% of Operating Profit 11.51%
Other Income/Expense, Net
YoY Change
Pretax Income -$225.9K $915.8K -$182.8K
YoY Change 270.15% -600.88% -62.66%
Income Tax -$599.9K $213.8K -$37.37K
% Of Pretax Income 23.34%
Net Earnings $516.9K $412.0K -$145.5K
YoY Change -353.61% -383.25% -47.85%
Net Earnings / Revenue 10.78% 5.57% -3.81%
Basic Earnings Per Share
Diluted Earnings Per Share $40.53K $33.56K -$12.51K
COMMON SHARES
Basic Shares Outstanding 12.19M shares 12.11M shares 11.63M shares
Diluted Shares Outstanding 12.28M shares 11.79M shares

Balance Sheet

Concept 2019 Q4 2019 Q3 2018 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.635M $6.001M $8.594M
YoY Change -53.75% -30.17% 35.98%
Cash & Equivalents $3.635M $6.001M $8.594M
Short-Term Investments
Other Short-Term Assets $218.6K $356.7K $199.0K
YoY Change 9.15% 79.28% 24.37%
Inventory $9.183M $8.550M $5.271M
Prepaid Expenses $218.6K $356.7K $199.0K
Receivables $4.470M $4.620M $2.736M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $17.51M $19.53M $16.80M
YoY Change -17.46% 16.23% 21.59%
LONG-TERM ASSETS
Property, Plant & Equipment $4.006M $3.656M $1.787M
YoY Change 56.27% 104.55% 7.87%
Goodwill $2.534M $2.534M
YoY Change 0.0%
Intangibles $2.952M $2.996M
YoY Change -5.63%
Long-Term Investments $1.916M $1.940M
YoY Change 146.74%
Other Assets $2.600M $1.907M $1.028M
YoY Change 191.58% 85.44% -60.76%
Total Long-Term Assets $14.87M $13.98M $2.903M
YoY Change 48.93% 381.7% -35.39%
TOTAL ASSETS
Total Short-Term Assets $17.51M $19.53M $16.80M
Total Long-Term Assets $14.87M $13.98M $2.903M
Total Assets $32.38M $33.51M $19.70M
YoY Change 3.8% 70.08% 7.61%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $636.3K $971.2K $0.00
YoY Change -26.08% -100.0%
Accrued Expenses $181.2K $830.9K $0.00
YoY Change -4.55%
Deferred Revenue
YoY Change
Short-Term Debt $2.390M $1.841M $250.0K
YoY Change -14.59% 636.44% 0.0%
Long-Term Debt Due $1.197M $621.6K $201.2K
YoY Change 55.14% 208.93% 0.0%
Total Short-Term Liabilities $6.793M $6.868M $2.163M
YoY Change 11.28% 217.59% 24.15%
LONG-TERM LIABILITIES
Long-Term Debt $3.184M $3.914M
YoY Change -11.08%
Other Long-Term Liabilities $383.5K $466.5K $0.00
YoY Change
Total Long-Term Liabilities $3.184M $3.914M $0.00
YoY Change -11.08% -100.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.793M $6.868M $2.163M
Total Long-Term Liabilities $3.184M $3.914M $0.00
Total Liabilities $11.92M $12.61M $2.163M
YoY Change 2.09% 483.2% 11.29%
SHAREHOLDERS EQUITY
Retained Earnings $2.456M $2.861M $3.146M
YoY Change -16.51% -9.05% 61.8%
Common Stock $12.22K $12.19K $11.63K
YoY Change 4.41% 4.81% -99.92%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $17.91M $18.04M $17.54M
YoY Change
Total Liabilities & Shareholders Equity $32.38M $33.51M $19.70M
YoY Change 3.8% 70.08% 7.61%

Cashflow Statement

Concept 2019 Q4 2019 Q3 2018 Q3
OPERATING ACTIVITIES
Net Income $516.9K $412.0K -$145.5K
YoY Change -353.61% -383.25% -47.85%
Depreciation, Depletion And Amortization $157.8K $156.5K $60.56K
YoY Change -2.59% 158.39% 21.12%
Cash From Operating Activities -$1.672M $1.877M -$1.735M
YoY Change -5.31% -208.2% -485.53%
INVESTING ACTIVITIES
Capital Expenditures -$434.1K -$79.61K -$12.26K
YoY Change 192.2% 549.35%
Acquisitions
YoY Change
Other Investing Activities $328.3K -$331.4K -$19.26K
YoY Change -106.84% 1620.61% -93.58%
Cash From Investing Activities -$105.8K -$411.0K -$21.52K
YoY Change -97.86% 1809.85% -92.83%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -739.7K -735.8K -54.54K
YoY Change -111.85% 1249.06% -85.65%
NET CHANGE
Cash From Operating Activities -1.672M 1.877M -1.735M
Cash From Investing Activities -105.8K -411.0K -21.52K
Cash From Financing Activities -739.7K -735.8K -54.54K
Net Change In Cash -2.517M 730.4K -1.811M
YoY Change 437.34% -140.33% 687.36%
FREE CASH FLOW
Cash From Operating Activities -$1.672M $1.877M -$1.735M
Capital Expenditures -$434.1K -$79.61K -$12.26K
Free Cash Flow -$1.237M $1.957M -$1.723M
YoY Change -23.46% -213.59% -482.8%

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CY2019Q3 us-gaap Equity Method Investments
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FLEXIBLE SOLUTIONS INTERNATIONAL INC
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0001069394
dei Document Type
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10-Q
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2019-09-30
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us-gaap Payments To Acquire Property Plant And Equipment
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FSI Shipping Cost
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5155 usd
CY2018Q3 FSI Shipping Cost
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5388 usd
us-gaap Gain Loss On Disposition Of Assets1
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us-gaap Gain Loss On Disposition Of Assets1
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0.4389 pure
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1.0959
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2019
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true
dei Entity Emerging Growth Company
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false
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false
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us-gaap Gain Loss On Investments
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5336 usd
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82734 usd
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CY2019Q3 us-gaap Goodwill
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CY2019Q3 us-gaap Retained Earnings Accumulated Deficit
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us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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us-gaap Depreciation
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod
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CY2018Q3 us-gaap Net Income Loss Attributable To Noncontrolling Interest
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500000 usd
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CY2019Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
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dei Entity Current Reporting Status
EntityCurrentReportingStatus
Yes
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Yes
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false
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CY2019Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
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us-gaap Equity Method Investment Description Of Principal Activities
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Significant influence is generally deemed to exist if the Company's ownership interest in the voting stock of the investee ranges between 20% and 50%, although other factors, such as representation on the investee's board of directors, are considered in determining whether the equity method of accounting is appropriate.
CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
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2.10
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1.09
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1.16
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1.01
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1.34
us-gaap Repayments Of Lines Of Credit
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us-gaap Repayments Of Lines Of Credit
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289983 usd
CY2018Q3 us-gaap Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest
ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest
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CY2019Q3 us-gaap Accrued Liabilities Current
AccruedLiabilitiesCurrent
830877 usd
CY2018Q4 us-gaap Accrued Liabilities Current
AccruedLiabilitiesCurrent
189875 usd
CY2019Q3 us-gaap Accounts Payable Current
AccountsPayableCurrent
971163 usd
CY2018Q4 us-gaap Accounts Payable Current
AccountsPayableCurrent
860798 usd
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
231696 usd
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
usd
FSI Lease Right Of Use Financing
LeaseRightOfUseFinancing
300102 usd
FSI Lease Right Of Use Financing
LeaseRightOfUseFinancing
usd
us-gaap Proceeds From Lease Payments
ProceedsFromLeasePayments
-300102 usd
us-gaap Proceeds From Lease Payments
ProceedsFromLeasePayments
usd
CY2019Q2 FSI Distribution To Noncontrolling Interests
DistributionToNoncontrollingInterests
usd
FSI Consulting Expenses
ConsultingExpenses
158993 usd
FSI Consulting Expenses
ConsultingExpenses
93134 usd
CY2019Q3 FSI Consulting Expenses
ConsultingExpenses
39943 usd
CY2018Q3 FSI Consulting Expenses
ConsultingExpenses
30758 usd
us-gaap Use Of Estimates
UseOfEstimates
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">(l) <i>Use of Estimates</i>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and would impact the results of operations and cash flows.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 35.45pt">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 35.45pt">Estimates and underlying assumptions are reviewed at each period end. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 35.45pt">Significant areas requiring the use of management estimates include assumptions and estimates relating to the valuation of goodwill and intangible assets, asset impairment analysis, share-based payments and warrants, valuation allowances for deferred income tax assets, determination of useful lives of property, equipment and leaseholds and intangible assets, and the valuation of inventory.</p>
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">(q) <i>Risk Management.</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company&#8217;s credit risk is primarily attributable to its accounts receivable. The amounts presented in the accompanying consolidated balance sheets are net of allowances for doubtful accounts, estimated by the Company&#8217;s management based on prior experience and the current economic environment. The Company is exposed to credit-related losses in the event of non-payment by customers. Credit exposure is minimized by dealing with only credit worthy counterparties. Accounts receivable for the Company&#8217;s three primary customers totaled $2,544,395 (55%) at September 30, 2019 (December 31, 2018 - $1,280,406 or 31%).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt; background-color: white">The credit risk on cash and cash equivalents is limited because the Company limits its exposure to credit loss by placing its cash and cash equivalents with major financial institutions. The Company maintains cash balances at financial institutions which at times exceed federally insured amounts. The Company has not experienced any material losses in such accounts.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt; background-color: white">The Company is exposed to foreign exchange and interest rate risk to the extent that market value rate fluctuations materially differ from financial assets and liabilities, subject to fixed long-term rates.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt; background-color: white">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt; background-color: white">In order to manage its exposure to foreign exchange risks, the Company is closely monitoring the fluctuations in the foreign currency exchange rates and the impact on the value of cash and cash equivalents, accounts receivable, and accounts payable and accrued liabilities. The Company has not hedged its exposure to currency fluctuations.</p>
CY2019Q3 FSI Distribution To Noncontrolling Interests
DistributionToNoncontrollingInterests
usd
FSI Proceeds From Disposal Of Long Term Deposits
ProceedsFromDisposalOfLongTermDeposits
147 usd
FSI Proceeds From Disposal Of Long Term Deposits
ProceedsFromDisposalOfLongTermDeposits
usd
us-gaap Proceeds From Bank Debt
ProceedsFromBankDebt
1100000 usd
us-gaap Proceeds From Bank Debt
ProceedsFromBankDebt
usd
us-gaap Payments Of Capital Distribution
PaymentsOfCapitalDistribution
133759 usd
us-gaap Payments Of Capital Distribution
PaymentsOfCapitalDistribution
usd
us-gaap Repayments Of Bank Debt
RepaymentsOfBankDebt
916017 usd
us-gaap Repayments Of Bank Debt
RepaymentsOfBankDebt
150895 usd
CY2019Q3 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
91303 usd
us-gaap Increase Decrease In Deferred Income Taxes
IncreaseDecreaseInDeferredIncomeTaxes
140909 usd
us-gaap Increase Decrease In Deferred Income Taxes
IncreaseDecreaseInDeferredIncomeTaxes
usd

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