Earnings Labs

Flexible Solutions International, Inc. (FSI)

Q2 2014 Earnings Call· Fri, Aug 15, 2014

$6.53

+0.31%

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Transcript

Operator

Operator

Good day everyone, and welcome to today’s Flexibility Solutions International second quarter 2014 financials conference. [Operator instructions.] At this time, I would turn the conference over to your host for today, Mr. Dan O’Brien, CEO of Flexibility Solutions. Please go ahead, sir. Dan O’Brien: Thank you, operator. Good morning, this is Dan O’Brien, CEO of Flexibility Solutions. Safe Harbor provision, the Private Securities Litigation Reform Act of 1995 provides a Safe Harbor for forward-looking statements. Certain of the statements contained herein which are not historical facts are forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the company is detailed from time-to-time in the company’s reports filed with the Securities and Exchange Commission. Welcome to the FSI conference call for second quarter 2014. Prior to speaking specifically regarding the financials, I’d like to talk about where we are in our product lines and what we expect for the next quarters. NanoChem division represents most of the revenues of FSI. This division makes polyaspartic acid, called TPA for short, a biodegradable protein with many valuable uses. TPA is used in agriculture to increase crop yield. The method of action is through limiting crystal embryo growth between fertilizer ions and other ions in the soil. When embryonic crystals are prevented from transforming into fully crystalline form by TPA, the fertilizer remains available to plants further into the growing season. The firm but light attraction between TPA and the fertilizer ions also reduces fertilizer runoff. Keeping fertilizer easily available to crops results in better yield with the same level of fertilization. In North America alone, the wholesale market is estimated at over $2 billion a year, and most…

Operator

Operator

[Operator instructions.] We’ll go first to Paul Scolardi of Super Trades.

Paul Scolardi - Super Trades

Management

I would like to know what the addressable market is for WatrSavr in the U.S. and worldwide, if you have any idea, if this trial were to be successful. Dan O’Brien: We would assume that it’s in the $300 million to $1 billion range. But the difficulty in assessing these markets is governmental action, and in some ways, how willing the government is to admit that they have a water problem. In years past, we did a full worldwide assessment of how much surface area there was to economically treat in water-starved areas, and we came up with a number of $10 million, but I don’t think that’s a realistic addressable market. I’m much more comfortable with the $300 million to $1 billion range.

Paul Scolardi - Super Trades

Management

And as far as the Texas project, do you have any idea of the timeframe, until results are determined? Dan O’Brien: Wichita Falls will have results by October, but it will be up to them when they decide to provide us with those results.

Operator

Operator

It appears we have no further questions at this time.