Sales Performance - The Company reported a decrease in sales for EWCP products and TPA products due to decreased customer orders, with specific revenue figures of 1,856,395 for Company B in Q1 2025 compared to 2,299,938 in Q1 2024 respectively[76][79]. - Three primary customers accounted for 49% of the Company's sales in Q1 2025, down from 55% in Q1 2024, indicating a diversification in customer base[78]. Financial Performance - Gross profit decreased due to an increase in tariffs, while professional fees increased due to higher accounting and audit fees related to the Company's growth[76]. - Interest expense increased due to higher debt levels, impacting overall financial performance[76]. - The Company experienced a cash outflow of 604,819 in Q1 2024[81]. Working Capital and Cash Flow - The Company’s working capital as of March 31, 2025, was 22,714,190 as of December 31, 2024[81]. - The Company has sufficient cash resources to meet future commitments and cash flow requirements for the coming year[81]. Future Outlook - The Company anticipates no significant capital requirements for the twelve months ending March 31, 2026, indicating stable financial planning[82]. - New tariffs on raw materials imported from China are expected to affect future operating results, particularly in relation to aspartic acid used in TPA products[80]. Internal Controls - The Company implemented new procedures to improve financial reporting controls after identifying material weaknesses in the previous year[86].
Flexible Solutions International (FSI) - 2025 Q1 - Quarterly Report