FLEXIBLE SOLUTIONS INTERNATIONAL INC Debt Disclosure
13. Convertible Note Payable
In October 2018, the Company issued a convertible note payable in the amount of $1,000,000 in connection with the acquisition of EnP Investments LLC. The convertible note is due on or before September 30, 2023 with 5% interest due per year. At the option of the holder, the Note may be converted into shares in the Company’s common stock.
In June 2019, the holder opted to convert $500,000 of the convertible note payable into shares of the Company’s common stock.
In April 2020, the Company repaid the remaining principal balance of $500,000 and accrued interest of $13,046.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2021 | Mar 29, 2022 | Showing above |
| 2020 | Mar 31, 2021 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.