Flexible Solutions International, Inc.

Climate Impact & Sustainability Data (2023)

Increased raw material costs
Increased wages to add and retain manufacturing employees
Increased insurance costs
Increased debt
Increase in property tax
Resumption of travel after COVID-19
Decreased customer orders and pricing for TPA products
Seasonal fluctuations in sales of swimming pool and WATERSAVR® products
Potential for supply chain disruptions due to reliance on third-party suppliers for raw materials and components
Lack of revenue generation from WATERSAVR® product
Potential for product obsolescence without timely introduction of new products
Dependence on certain customers
Economic, political, and other risks associated with international sales and operations
Credit risk and potential for substantial write-offs if significant customers default
Potential for product liability claims
Failure to comply with environmental regulations
Failure to protect intellectual property
Potential infringement on intellectual property rights of others
Dependence on certain key employees

Implementing employee retention strategies (wage increases)
Developing alternative sourcing strategies (for raw materials)
Monitoring and managing international risks
Implementing credit risk management practices
Maintaining product liability insurance
Ensuring compliance with environmental regulations
Protecting intellectual property through patents, trademarks, trade secrets, and nondisclosure agreements
Investing in research and development of new products
Diversifying customer base
Marketing efforts for WATERSAVR® product
Investing in research and development to prevent product obsolescence
Implementing strategies to mitigate seasonal fluctuations (e.g., adjusting production, diversifying markets)