FSI ANNOUNCES FULL YEAR, 2023 FINANCIAL RESULTS - Seite 3

		12 month Operating Cash Flow Ended December 31
Operating Cash Flow (12 months). NON-GAAP		$	4,598,698a,b,c			$	8,442,735a,b,c
Operating Cash Flow per share excluding non-operating items and items not related to current operations (12 months) – basic. -NON-GAAP		$	0.37a,b,c			$	0.68a,b,c
Non-cash Adjustments (12 month) -GAAP		$	2,081,399 d			$	1,676,579 d
Shares (12 month basic weighted average) used in computing per share amounts – basic -GAAP			12,484,336				12,379,316

Notes: certain items not related to “operations” of the Company’s net income are listed below.

a) Non-GAAP – Flexible Solutions International owns 65% of ENP and 80% of 317 Mendota. Therefore Operating Cash Flow is adjusted by the pre tax Net income or loss of the non-controlling interest(minority interest) in both entities. The 2022 number given in the financials is after tax figure. A pretax minority interest number now appears in the financials for full year 2023 and future years.

b) Non-GAAP – amounts exclude certain cash and non-cash items: Depreciation and Stock compensation expense (2023 = $2,081,399, 2022 = $1,676,579), Interest expense (2023 = $498,666, 2022 = $292,949), Interest income (2023 = $113,809, 2022 = $132,233), Gain on investment (2023 = 506,098, 2022 = $341,424), gain on sale of asset (2023 = 4,589, 2022 = N/A), Gain on previously held equity interest - acquisition of ENP Peru (2023 = N/A, 2022 = $335,051), Deferred income tax recovery (expense) (2023 = $250,917, 2022 = $71,295), Income tax (2023 = 118,182, 2022 = 217,151), and pretax Net income attributable to non-controlling interests (2023 = $980,121, 2022 = $995,144). Also, the legal and accounting costs associated with the attempted merger of FSI and Lygos (2023 = N/A, 2022 = $417,974(see news releases)) are removed to arrive at Operating Cash Flow. Although included in operating expenses these onetime expenditures were not related to operations of FSI. *See the financial statements for all adjustments.