Flexible Solutions International, Inc. (FSI): Business Model Canvas [Dec-2025 Updated]

You're trying to map out where Flexible Solutions International, Inc. (FSI) is headed now that they've made that big pivot into food-grade manufacturing, right? Honestly, looking at their nine building blocks as of late 2025 shows a company aggressively retooling its structure. They are banking on high-margin contract manufacturing-new deals could add $15 million to $30 million annually-while simultaneously managing tariff impacts and launching that new Panama facility in Q4. It's a classic specialty chemical play balancing core biodegradable polymer sales, which still make up about 70% of revenue, with big capital expenditure bets. Let's break down the quick math on their Key Resources, Revenue Streams, and the strategic moves underpinning their near-term stability, like that $4.26 million operating cash flow for the first nine months of 2025, to see if this strategy sticks.

Flexible Solutions International, Inc. (FSI) - Canvas Business Model: Key Partnerships

You're looking at the core relationships underpinning Flexible Solutions International, Inc.'s (FSI) pivot toward higher-margin, long-term revenue visibility. These partnerships are critical, especially as the company transitions from its legacy chemical business.

Major Manufacturing and Customer Agreements

The most significant recent additions to FSI's Key Partnerships involve two major food-grade manufacturing contracts secured in 2025. These agreements provide revenue predictability far exceeding the typical 12-24 month terms of the legacy chemical business.

The initial contract, signed on January 7, 2025, with an unnamed U.S.-based company, is a five-year, non-exclusive agreement for food-grade product manufacturing. This deal carries renewal options that could extend the relationship for up to 30 years total, with potential annual revenue estimated between $15 million and $30 million or more. Revenue generation was anticipated to commence within approximately six months of the January 2025 announcement, following necessary capital expenditure for clean room expansion and equipment installation.

A second, significant food-grade contract was announced on August 11, 2025. This agreement for the Illinois plant has an estimated annual revenue stream between $6.5 million and $13 million, with provisions for expansion beyond $25 million in annual revenue. Production for this second contract began in September 2025, and the August contract alone is bringing in $6.5 million. The two contracts combined are projected to contribute a total of $15 million to $30 million annually within the next four to six quarters. FSI is targeting food-grade production revenue exceeding $50 million per year by 2027.

Partnership Detail	Initial Term (Years)	Potential Total Term (Years)	Estimated Annual Revenue Range (USD)	Start/Ramp-Up Timing
First U.S. Food-Grade Contract (Jan 2025)	5	30 (Five 5-year renewals)	$15,000,000 to $30,000,000+	Mid-2025
Second Food-Grade Contract (Aug 2025)	5	Not explicitly stated	$6,500,000 to $13,000,000 (with expansion potential >$25M)	September 2025

Financing and Capital Access

Flexible Solutions International, Inc. maintains key financial relationships to support working capital and operational needs for its subsidiaries, ENP Peru Investments, LLC (ENP) and NanoChem Solutions Inc. (NCS).

The company utilizes lines of credit with Stock Yards Bank for both the ENP and NanoChem subsidiaries. The loan financing used to acquire the ENP division was paid in full in June 2025. Furthermore, a three-year note for equipment is scheduled to be fully paid off in December 2025, which is expected to free up over $2 million in annual cash flow for other uses. As of December 31, 2024, the outstanding balance on one revolving line of credit was $2,052,159. That specific line of credit had a maximum availability capped at the lesser of $2,000,000 or a formula based on receivables and inventory. For that credit facility, NanoChem guaranteed 65% (not to exceed $2,925,000) and the non-controlling interest guaranteed the remaining 35% (not to exceed $1,575,000).

Raw Material and International Sales Alliances

The core technology of the NanoChem Solutions Inc. subsidiary relies on Thermal Polyaspartate (TPA) biopolymers, which are manufactured from the common biological amino acid, L-aspartic acid.

Key suppliers for this critical raw material are integral to the NanoChem division's operations, though specific supplier names and associated 2025 cost figures aren't detailed in recent public statements.

The company also has a strategic alliance involving an investment in a private Florida LLC focused on international agriculture sales.

• Profit from the 19.9% investment in the private Florida LLC is recognized as investment income, not operating revenue.
• The Florida LLC alliance was reported as profitable in Q1 2025.
• Gains from all investments, including the Florida LLC, totaled $54,479 for Q3 2025.

Distribution partners are essential for the global reach of Flexible Solutions International, Inc.'s industrial and agricultural products, including WaterSavr and Heatsavr technologies.

Flexible Solutions International, Inc. (FSI) - Canvas Business Model: Key Activities

You're looking at the core engine room of Flexible Solutions International, Inc. (FSI) as of late 2025. The key activities show a company heavily invested in scaling up high-value manufacturing while managing the costs of that expansion.

Manufacturing of Thermal Polyaspartate (TPA) biodegradable polymers

The NanoChem Solutions Inc. subsidiary remains the primary revenue driver, responsible for manufacturing the core Thermal Polyaspartate (TPA) biopolymers. This division accounted for approximately 70% of Flexible Solutions International, Inc.'s revenue in the first quarter of 2025. The activity involves producing TPA for its established uses in agriculture, oilfield, cleaning, and water treatment applications. The company is actively moving production to its new facility in Panama, with first production estimated to begin in Q3 2025. This move is specifically designed to serve international customers and mitigate U.S. tariff impacts. Final equipment installation and testing at the Panama facility are anticipated to conclude in late Q4 2025 or early Q1 2026.

Production of food-grade products under new contracts

A major focus has been the scaling of food-grade operations, which now include a wine additive and a second food-grade product secured via a new 5-year contract announced in August 2025. This second contract carries a minimum annual revenue commitment of $6.5 million, with a maximum potential exceeding $25 million per year if the customer exercises that option. The company reported that this second contract reached full production, generating over $1 million in revenue in early Q4 2025, following its initial shipment in very early Q4 2025. The January food-grade contract required an estimated additional CapEx of about $4 million, with the remainder of that spending scheduled for Q4 2025. Management hopes to see margins in the Food division settle in the 22% to 25% range before tax.

Research and Development (R&D) for new crop enhancement and water treatment products

While the focus is on scaling existing production, R&D activities continue to support the core business and explore adjacent markets. The NanoChem division has started producing other crop enhancement products alongside TPA. The company is actively pursuing new opportunities in the food and nutrition supplement manufacturing markets. Strategic investments in 2025 point toward future revenue potential in nutraceuticals and pharmaceuticals, specifically related to GLP-1 drug compounding.

Managing global logistics and supply chain to mitigate tariff impacts

Logistics management is critical, especially given that higher cost of goods, including higher tariffs, negatively affected third quarter 2025 earnings. The strategic activity here centers on the Panama factory, which, once fully operational, is expected to produce nearly all products for international sales, thereby eliminating U.S. tariffs. Furthermore, the company is improving its cash flow position by completing debt obligations. The loan used to acquire the ENP division was paid in full in June 2025. The 3-year note for equipment is scheduled for final payment in December 2025, which is expected to free up over $2 million in cash flow per year for other purposes.

Operating the ENP division for turf, golf, and greenhouse product sales

The ENP subsidiary operates in the greenhouse, turf, and golf markets and represents most of Flexible Solutions International, Inc.'s revenue outside of NanoChem. The division experienced reduced sales in the first quarter of 2025, with sales of $7.47 million for Q1 2025, a 19% decrease from Q1 2024's $9.22 million. However, the ENP division delivered strong revenue in Q3 2025, which was up 13% year-over-year to $10.56 million compared to $9.31 million in Q3 2024. The company announced in October 2025 the sale of its Mendota Plant, while retaining a long-term lease for the ENP division to allow for expansion of the food grade division at the Peru, IL plant.

Here's a quick look at the financial context surrounding these key activities through the third quarter of 2025:

Metric	Q3 2025 Value	Comparison/Context
Q3 Revenue	$10,556,291	Up 13% from $9,314,937 in Q3 2024.
9 Months Operating Cash Flow	$4.26 million	Down from $5.91 million for the same period in 2024.
Q3 Net Income (Loss)	($503,358)	Compared to a net income of $611,858 in Q3 2024.
New Food Contract Annual Minimum	$6.5 million	Part of the August 2025 secured 5-year contract.
Equipment Note Payoff Date	December 2025	Frees up over $2 million in annual cash flow.

The company's operational focus is clearly on converting capital expenditure into recognized revenue from the new food contracts and the Panama facility. You can see the pressure this puts on current profitability, as Q3 2025 recorded a net loss of $503,358, despite the revenue growth.

• NanoChem Division Revenue Contribution (Q1 2025 context): ~70%.
• Panama Factory International Sales Goal: Eliminate U.S. tariffs.
• ENP Division Q3 2025 Revenue: Strong, following a rebound from Q1 2025 weakness.
• New Food Contract Revenue Generated (Early Q4 2025): Over $1 million.
• Estimated CapEx for January Food Contract: Approximately $4 million.

Flexible Solutions International, Inc. (FSI) - Canvas Business Model: Key Resources

You're looking at the core assets that power Flexible Solutions International, Inc. (FSI) right now, heading into the end of 2025. These aren't just line items; they're the actual engines of the business.

The foundation here is the proprietary TPA biopolymer technology and formulation know-how. This intellectual property underpins their offerings across several markets: biodegradable polymers for oil extraction, detergent ingredients, water treatment, and crop nutrient availability chemistry. Also key are their biodegradable and environmentally safe water and energy conservation technologies. This specialized knowledge is defintely hard to replicate quickly.

Here's a quick look at the tangible and financial backbone supporting this technology as of the third quarter of 2025.

Resource Category	Specific Asset/Metric	Value/Status (as of late 2025)
Financial Resource	Operating Cash Flow (9 Months Ended Sept 30, 2025)	$4,257,973
Manufacturing Facility (US)	Peru, IL Plant	FDA food grade approved
Manufacturing Facility (Canada)	Taber, Canada Plant	Operational base
Manufacturing Facility (International)	Panama Factory	Equipment installation/testing nearing completion; estimated Q4 2025 startup

Your physical footprint is centered around two main production sites, with a major international expansion coming online. The manufacturing facilities in Peru, IL, are FDA food grade approved, which is critical for that growing segment. The facility in Taber, Canada, serves as another key production hub. Plus, the new Panama factory, built for international production, was in the final stages of setup as of the Q3 2025 report, with management estimating first production could start in Q4 2025. All the equipment for Panama has arrived, and leasehold improvements are done.

Don't overlook the human element, which is a resource in itself. The expertise of key personnel in specialty chemical and food-grade manufacturing is vital, especially given the recent contract wins. To support the start of full production for the second food-grade contract in Q3 2025, the company had to hire and train 4 shifts of new employees and backup personnel. That rapid scaling of specialized labor is a resource you can count on.

Flexible Solutions International, Inc. (FSI) - Canvas Business Model: Value Propositions

You're looking at the core value drivers for Flexible Solutions International, Inc. (FSI) as of late 2025. The company is clearly pushing a dual strategy: leveraging its established environmental chemistry while aggressively pivoting toward high-margin, long-term food-grade manufacturing contracts.

Biodegradable polymers (TPA) for reduced environmental impact

The NanoChem Solutions Inc. (NCS) subsidiary, which manufactures thermal polyaspartate (TPA) biopolymers, remains a foundational revenue source, representing approximately 70% of FSI's revenue. TPA is used in oilfield water treatment to prevent scale and in agriculture.

Crop enhancement chemistry (SUN 27, N Savr 30) for increased yield

Flexible Solutions International, Inc. sells SUN 27TM and N Savr 30TM through distributors across North and South America. These products are designed to reduce nitrogen fertilizer loss from the soil. The company is focused on international agriculture sales into multiple countries, though U.S. agricultural product sales have been under pressure due to uncertainty and crop prices not increasing at the rate of inflation.

Product/Application	Benefit Metric	Detail/Context
TPA (Agriculture)	Increased Crop Yield	Allows fertilizer to remain longer for plants to use.
SUN 27/N Savr 30	Nitrogen Conservation	Slows down nitrogen loss from fields.
TPA (Oilfield)	Scale/Corrosion Prevention	Used in oil extraction water treatment.

Water and energy conservation products (HEATSAVR, WATERSAVR)

These technologies offer quantifiable resource savings for industrial and consumer markets. WATERSAVR is the world's first commercially viable water evaporation retardant. HEATSAVR is positioned as a "liquid blanket" for commercial pools and spas.

• WATERSAVR reduces evaporation by up to 30% on reservoirs and canals.
• HEATSAVR reduces energy costs by 15% to 40%.

High-margin food-grade contract manufacturing services

This is the strategic growth area, moving beyond the legacy chemical business. The Illinois plant is FDA and SQF certified for these materials. The company received a payment of US$2.5 million on July 1, 2025, for assisting in the development of a new food-grade product. A second major food-grade contract has a minimum annual revenue of $6.5 million and a maximum potential of greater than $25 million per year. The company has secured two new food-grade contracts, with potential annual revenue between $25 million and $30 million in the next 4-6 quarters.

The consensus full fiscal year 2025 revenue estimate is approximately $42.12 million, reflecting anticipated growth from these initiatives. The company is targeting full-scale food-grade production in 2026.

Tariff mitigation and optimized logistics via the new Panama facility

The new facility in Panama is a key operational value proposition, designed to counter the negative impact of tariffs. The company faced weakness in its underlying business due to a punitive 25% tariff on Chinese-sourced raw materials used in U.S. operations. The Panama factory is expected to begin first production in Q3 2025, with all equipment delivered and installation underway. Once operational, nearly all products for international sale will be made in Panama using raw materials sourced without U.S. tariffs. This move also offers logistical advantages, as the new plant is 30 minutes from the port.

The Q3 2025 net loss of ($503,358) was partly due to significant expenses recognized for preparing for new contract production and costs related to the Panama factory installation being classified as current period expenses.

Finance: draft 13-week cash view by Friday.

Flexible Solutions International, Inc. (FSI) - Canvas Business Model: Customer Relationships

You're looking at how Flexible Solutions International, Inc. (FSI) locks in its business volume and maintains the trust of its key buyers. It's a mix of very long-term commitments and responsive service, especially as they scale up the food-grade side of things.

Long-term, non-exclusive manufacturing contracts for stability and volume

The stability here comes from multi-year commitments on the food-grade side, which is a major growth area. These aren't exclusive, which gives FSI flexibility, but the term length locks in significant volume. For instance, the contract announced in January 2025 is a five-year contract with automatic renewal for successive five-year terms. This single deal alone has potential annual revenues estimated between $15 million and $30 million or more. That's a substantial chunk of their trailing twelve-month revenue of $38.6 million as of September 30, 2025.

Also, consider the second major food-grade contract announced in August 2025. This is another 5-year contract that reached full production in very late Q3 2025. It has a minimum guaranteed revenue floor of $6.5 million per year, but can go up to greater than $25 million per year if the customer requests it.

Here's a quick look at the two big food-grade relationships driving this stability:

Contract Milestone	Term Length	Minimum Annual Revenue (USD)	Status (Late 2025)
January 2025 Food-Grade Contract	5 years (with 5-year auto-renewals)	$15 million (estimated floor)	Revenue stream anticipated to commence within six months of Jan 2025 announcement
August 2025 Food-Grade Contract	5 years	$6.5 million	Reached full production in very late Q3 2025

These contracts are designed to be financially beneficial, especially with inflation and tariff protection clauses built in.

Direct sales and technical support for large industrial and agricultural customers

FSI's core business, including the biodegradable polymers for oilfields, water treatment, and agricultural use, relies on direct engagement. The company has 17 sales and customer support personnel as of March 30, 2025. The NanoChem division, which accounts for about 70% of the company's revenue, is key here.

The direct sales effort supports a wide range of industrial applications:

• TPAs for oilfields to reduce scale and corrosion.
• TPAs for agricultural use to reduce fertilizer crystallization.
• TPAs for irrigation to prevent drip port plugging.
• TPAs for cleaning products to prevent dirt re-deposition.

This direct approach helps FSI manage complex product applications, like their WaterSavr^TM and Heatsavr^TM products, which require technical guidance for optimal use in reservoirs or pools.

Managing customer inventory adjustments to maintain long-term trust

Trust is definitely tested when ordering patterns fluctuate. You saw this play out in early 2025. In Q1 2025, sales dropped 19% year-over-year to $7.47 million, and the company reported a net loss of $277,734. CEO Dan O'Brien specifically noted that this was due to customers returning to normal ordering patterns following an inventory adjustment in the prior quarter. The fact that the ENP subsidiary saw a revenue rebound in April 2025 shows FSI managed that inventory correction without losing the customer base. If onboarding takes 14+ days, churn risk rises, but here, the relationship recovered quickly.

Dedicated sales focus for the ENP division's turf and golf markets

The ENP subsidiary, which FSI acquired 65% of in 2018, has a dedicated focus that requires specific sales attention. ENP is focused on sales into the greenhouse, turf and golf markets. This division, along with NanoChem, remains the dominant source of revenue and cash flow. For the nine months ending September 30, 2025, ENP is estimated to contribute roughly $13 million to $15 million in revenue, generated from its 60,000 square feet of production space. The strong performance in Q3 2025 revenue growth of 13% year-over-year to $10.56 million was driven by this EMP/ENP segment. The strategy is to move agriculture and polymer production to Panama, which frees up space at the Illinois plant specifically to optimize and expand U.S. food grade production, but the dedicated turf/golf sales focus remains critical for the ENP revenue base.

Finance: draft 13-week cash view by Friday.

Flexible Solutions International, Inc. (FSI) - Canvas Business Model: Channels

Direct sales efforts target large industrial and agricultural clients globally, primarily driving the NanoChem division, which represented approximately 70% of Flexible Solutions International, Inc. (FSI) revenue as of the first quarter of 2025. The ENP division, focused on greenhouse, turf, and golf markets, is estimated to generate between $13 million and $15 million in revenue for the 2025 fiscal year.

The Energy and Water Conservation Products (EWCP) segment includes products like HEATSAVR, which is a chemical product for use in swimming pools and spas to slow water evaporation. Specific revenue or distribution channel data for HEATSAVR through third-party distributors is not explicitly detailed for 2025, but the segment contributes to the overall top line.

International sales are significantly channeled through the Florida LLC investment, which focuses on international agriculture sales into multiple countries. This investment was structured with an aggregate sale value of $6 million, following an original buying price of $3.5 million. The LLC was profitable in the first quarter of 2025, though it recorded a small loss in the third quarter of 2025.

The new Panama production plant is a direct channel mechanism for international markets, designed to produce nearly all products sold internationally, thereby bypassing U.S. tariffs, which ranged between 30% and 58.5% on certain raw materials from China. First production from this factory was estimated to begin in the third or fourth quarter of 2025, with capital expenditures for its development totaling approximately $4 million.

New food-grade contracts represent a major channel for high-margin revenue. One significant 5-year contract has a minimum annual revenue commitment of $6.5 million and a potential to exceed $25 million per year. The company is aiming for a projected run rate of $50 million to $60 million in annual revenue from these food-grade contracts by 2027.

Key financial metrics related to the business segments and overall sales performance as of late 2025 include:

Metric	Value (As of Q3 2025 or TTM Sep 30, 2025)
Q3 2025 Sales Revenue	$10,556,291
Q3 2025 Sales Growth (YoY)	13%
Trailing Twelve Month Revenue (TTM)	$38.6M
NanoChem Division Revenue Share (Q1 2025 Est.)	Approx. 70%
ENP Division 2025 Revenue Estimate	$13 million to $15 million
New Food Contract Minimum Annual Revenue	$6.5 million
Nine Months 2025 Operating Cash Flow	$4.26 million

The operational shift to the Panama plant is intended to support international sales by mitigating tariff impacts. The company's strategy involves shifting production for international sales to Panama, allowing the Illinois NanoChem plant to focus on new food-grade products.

The company's use of channels is evolving, focusing on:

• Direct sales to large clients for the 70% revenue-contributing NanoChem segment.
• Leveraging the newly operational Panama facility for international volume.
• Managing the equity investment in the Florida LLC for international agriculture sales.
• Fulfilling the new food-grade contracts, with minimum annual revenue of $6.5 million each.

The company's 3-year note for equipment is scheduled to be fully paid in December 2025, which will free up over $2 million in cash flow per year for other purposes.

Flexible Solutions International, Inc. (FSI) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Flexible Solutions International, Inc. (FSI) as of late 2025. The business model heavily relies on its established chemical manufacturing base, which generated a Trailing Twelve Month (TTM) revenue of $38.6M as of September 30, 2025. The largest portion of this revenue comes from the NanoChem Solutions Inc. subsidiary, which serves industrial and agricultural clients.

Here is a breakdown of the key customer segments based on the company's reported activities and revenue drivers through the third quarter of 2025:

Customer Segment Category	Primary FSI Division/Product Focus	Relevant 2025 Financial/Statistical Data
Industrial chemical manufacturers	NanoChem Solutions Inc. (TPA biopolymers) for detergent ingredients and water treatment	NanoChem division represents approximately 70% of FSI revenue. Q1 2025 sales were $7.47 million.
Large-scale agriculture and fertilizer companies	NanoChem Solutions Inc. (SUN 27 and N Savr 30) for crop nutrient availability chemistry	Q3 2025 revenue was $10.539 million, up approximately 13% year over year. Management noted resumption of growth in agriculture in Q3 2025.
Turf, ornamental, and golf course management markets	ENP division (Energy and Water Conservation Products)	ENP subsidiary revenue saw a rebound in Q2 2025 after a reduced sales period in Q1 2025. The division focuses on sales into these specific markets.
Food and nutrition supplement manufacturing companies	New focus area for food-grade TPA products	A 5-year contract secured with a minimum annual revenue of $6.5 million, potentially reaching over $25 million per year. A $2.5 million payment for food grade product development was recorded in Q2 2025.

The industrial chemical and agricultural segments are served by the NanoChem division, which manufactures thermal polyaspartate (TPA) biopolymers. This core group includes customers needing scale inhibitors and crop enhancement chemistry. The ENP division, representing most of FSI's other revenue, targets specialized markets. You saw its Q2 2025 revenue increase to $11.212 million, up 6.5% from Q2 2024, following a dip in Q1 2025.

The new focus on food and nutrition supplements is a significant development for future revenue streams. FSI is actively pursuing large, protected contracts in this area. The company is also developing a duplicate polymer factory in Panama to source raw materials without U.S. tariffs for international sales, aiming for first production in Q3 2025. This strategic move directly impacts the cost structure for international agricultural and polymer customers.

Specific applications serving these customer segments include:

• WATERSAVR brand, reducing evaporation on reservoirs by up to 30%.
• HEATSAV, a liquid blanket for pools, reducing energy costs by 15% to 40%.
• TPA for use in agriculture, with raw material costs recently around $2,300 per metric ton with a 10% variance.
• The ENP division targets sales into the greenhouse, turf, and golf markets.

Finance: draft 13-week cash view by Friday.

Flexible Solutions International, Inc. (FSI) - Canvas Business Model: Cost Structure

You're looking at the hard numbers driving Flexible Solutions International, Inc.'s (FSI) current spending, which is heavily weighted toward strategic build-out right now. Honestly, the short-term hit to profitability reflects major, necessary investments.

High cost of goods sold, including significant tariffs on imported materials.

The cost structure is being pressured by tariffs on imported raw materials, which management noted had a negative effect on Q3 2025 earnings. Prior to the Panama facility coming online, these tariffs on materials from China were a known issue, with the total dollar amount due back from export rebates growing well in excess of $1 MM as of mid-2024. The higher sales in Q3 2025 were achieved despite these higher costs.

Capital expenditures (CapEx) for the Panama factory and food-grade clean room expansion.

Significant CapEx was deployed for the Panama plant and related food-grade contract expansion. The remainder of the CapEx for the new food grade contract was expected to be spent in Q3 2025, totaling approximately $4 million. This investment was funded by cash flow and retained earnings, avoiding new debt or equity financing. The Illinois plant's free space is being optimized for food-grade production expansion, which was also a focus of these CapEx and installation costs.

R&D and installation costs classified as expenses against current income.

Strategic investments are hitting the income statement directly. Costs related to the installation of CAPEX in both Illinois and Panama were classified as expenses against current income in Q3 2025, contributing to the net loss of $503,358 for the quarter. To be fair, Q2 2025 saw an unusual R&D revenue event of $2.5 million, which temporarily boosted that quarter's profit.

The key financial metrics for the period ending September 30, 2025, show the impact of these costs:

Metric	Q3 2025 Amount	Nine Months 2025 Amount	Year Ago Q3 Amount
Revenue	$10.56 million	$29.4 million	$9.31 million
Net Income (Loss)	Net Loss of $503,358	Net Income of $1.25 million	Net Income of $611,858
Basic EPS (Loss)	Loss of $0.04 per share	Earnings of $0.10 per share	Earnings of $0.05 per share
Operating Cash Flow (9 Months)	N/A	$4,257,973	$5,909,621

Operating expenses for the NanoChem and ENP divisions.

The division structure dictates cost allocation, even if specific OpEx line items aren't fully itemized in the latest release. The NanoChem division (NCS) is the core, representing approximately 70% of FSI's revenue. The ENP subsidiary also remains a key revenue source, though its sales experienced a temporary reduction in Q1 2025. The net loss in Q3 2025 was driven by these higher costs and significant expenses related to preparing for the new food-grade contract production.

• NanoChem division (NCS) revenue contribution: Approximately 70% of total FSI revenue.
• ENP division: Key revenue source facing temporary sales weakness in early 2025.
• Q3 2025 expenses: Included costs for hiring and training 4 shifts of new employees for the food contract startup.
• Q3 2025 expenses: Included leasehold improvements and equipment installation in Panama throughout the quarter.

Long-term debt repayment, with a $2 million annual cash flow benefit expected post-December 2025.

Debt management is improving cash flow visibility. The loan used to acquire the ENP division was paid off in full as of June 30, 2025. Furthermore, a three-year equipment note was scheduled for full payment by December 2025. This specific repayment is projected to result in an annual cash flow benefit of over $2 million starting after December 2025. The company is continuing to pay down long-term debt according to loan terms.

Finance: draft 13-week cash view by Friday.

Flexible Solutions International, Inc. (FSI) - Canvas Business Model: Revenue Streams

You're looking at the top-line picture for Flexible Solutions International, Inc. (FSI) as of late 2025, focusing strictly on where the money is coming from. The revenue streams are clearly segmented across their core chemical business, their environmental products subsidiary, and the rapidly expanding food-grade manufacturing segment.

The overall financial snapshot for the third quarter of 2025 shows a company generating growth despite significant ramp-up costs associated with new ventures. The reported sales for Q3 2025 were $10.56 million.

For a broader view, the trailing twelve-month (TTM) revenue ending September 30, 2025, stood at $38.56 million.

Here's a quick look at the key revenue metrics as of the Q3 2025 reporting period:

Metric	Amount
Q3 2025 Sales	$10.56 million
Trailing Twelve-Month Revenue (TTM)	$38.56 million
Q3 2025 Investment Income (Florida LLC Gains)	$54,479

The core of the business remains the sale of biodegradable polymers, specifically thermal polyaspartate (TPA) through the NanoChem Solutions Inc. subsidiary. This segment services industrial and agricultural uses, including scale inhibitors, detergent ingredients, and crop nutrient availability chemistry. This division is consistently cited as the majority revenue contributor, aligning with the approximate 70% figure you noted.

Revenue from the ENP division, which focuses on the greenhouse, turf, and golf markets, also remains a key component. Management noted that the ENP division delivered strong revenue in Q3 2025, with an outlook for higher first-half 2026 revenue compared to the previous year.

The food-grade contract manufacturing segment represents the most significant near-term growth driver, leveraging the FDA and SQF certified Illinois plant. This stream is built on secured, multi-year contracts:

• The August 2025 five-year contract has a minimum annual revenue commitment of $6.5 million and a maximum potential greater than $25 million annually, if requested by the customer.
• The earlier January 2025 food-grade contract had an estimated maximum annual revenue potential of $30 million.
• The critical goal for the next 4 to 6 quarters is scaling these contracts toward an estimated maximum of $30 million plus $25 million per year.
• The longer-term target is an annual revenue run rate of $50 million-$60 million from food contracts by 2027.

Investment income is derived from the company's interest in the private Florida LLC. It is important to note that the profit from this investment is treated as investment income, occurring below Operating Income on the Statement of Operations. For Q3 2025, the reported gains from all investments, including the Florida LLC, were $54,479. This is a significant change from the $330,750 reported in Q3 2024. Management indicated that the accounting treatment related to the sale of the stake will flip to a positive as payments begin in Q4 2025.

You should track the following operational drivers that directly impact these revenue streams:

• The Panama factory is expected to commence production in Q4 2025, which will support international sales and bypass U.S. tariffs.
• The final payment on the three-year equipment note is scheduled for December 2025, which will free up over $2 million in cash flow per year.

Finance: draft 13-week cash view by Friday.