Flexible Solutions International's biggest risks in the FY2024 10-K
- The company relies heavily on key management, a few major customers, and maintaining proprietary technology protections.
The risks most specific to Flexible Solutions International
Our operations are subject to seasonal fluctuation
Our TPA business experiences a slight seasonal increase in the spring for US crop season and a slowdown in December from oilfield customers.
Our WATERSAVR® product has not proven to be a revenue producing product and we may never recoup the cost associated with its development
Our WATERSAVR product introduced in June 2002 has failed to generate commercial orders beyond initial testing by potential customers.
We are dependent upon certain customers
We depend on three sizable customers whose loss would result in a substantial reduction in our revenues.
Economic, political and other risks associated with international sales and operations could adversely affect our sales
International shipments accounted for approximately 24 percent of our revenues in 2024, 21 percent in 2023, and 20 percent in 2022.
We are subject to credit risk and may be subject to substantial write-offs if one or more of our significant customers default on their payment obligations to us
We grant major customers 30 to 90 days to pay, creating accounts receivable write-off risks if they default.
Our ongoing success is dependent upon the continued availability of certain key employees
Our ongoing success depends on Daniel B. O’Brien because we lack any other employee with an equivalent level of industry expertise.
All 15 risk factors
Headings as the filing states them, in filing order.
Other
- 01We have in the past incurred significant operating losses and may not sustain profitability in the future
- 02Fluctuations in our operating results may cause our stock price to decline
- 03Our operations are subject to seasonal fluctuation
- 04Interruptions in our ability to purchase raw materials and components may adversely affect our profitability
- 05Our WATERSAVR® product has not proven to be a revenue producing product and we may never recoup the cost associated with its development
- 06If we do not introduce new products in a timely manner, our products could become obsolete and our operating results would suffer
- 07We are dependent upon certain customers
- 08Economic, political and other risks associated with international sales and operations could adversely affect our sales
- 09We are subject to credit risk and may be subject to substantial write-offs if one or more of our significant customers default on their payment obligations to us
- 10Our products can be hazardous if not handled, stored and used properly; litigation related to the handling, storage and safety of our products would have a material adverse effect on our business and results of operations
- 11Our failure to comply with environmental regulations may create significant environmental liabilities and force us to modify our manufacturing processes
- 12Our failure to protect our intellectual property could impair our competitive position
- 13Our products may infringe on the intellectual property rights of others, and resulting claims against us could be costly and prevent us from making or selling certain products
- 14A product liability claim for damages could materially and adversely affect our financial condition and results of operations
- 15Our ongoing success is dependent upon the continued availability of certain key employees
Other Flexible Solutions International 10-Ks
- FY2025 10-K risk factors15 risks1 reworded
International revenue percentage dropped significantly from 24% in 2024 to 16% in 2025.
Filed Apr 15, 2026
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.