PROPERTY, EQUIPMENT AND LEASEHOLDS

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Note 5. PROPERTY, EQUIPMENT AND LEASEHOLDS

	2011 Cost		Accumulated Depreciation		2011 Net
Buildings	$	3,216,859	$	1,731,782	$	1,485,077
Plant under construction and equipment		5,520,598		—		5,520,598
Computer hardware		103,614		80,475		23,139
Furniture and fixtures		27,953		20,268		7,685
Office equipment		23,427		19,573		3,854
Manufacturing equipment		2,447,864		1,900,110		547,754
Trailer		27,447		20,260		7,187
Technology		134,327		—		134,327
Truck		11,691		8,283		3,408
Land		472,485		—		472,485
	$	11,986,265	$	3,780,751	$	8,205,514

	2010 Cost		Accumulated Depreciation		2010 Net
Buildings	$	3,216,859	$	1,566,462	$	1,650,397
Plant under construction and equipment		4,922,148		—		4,922,148
Computer hardware		100,733		72,557		28,176
Furniture and fixtures		28,391		18,654		9,737
Office equipment		23,954		19,028		4,926
Manufacturing equipment		2,392,162		1,772,207		619,955
Trailer		28,064		17,566		10,498
Technology		137,349		—		137,349
Trade show booth		8,736		7,863		873
Truck		11,954		6,975		4,979
Land		478,634		—		478,634
	$	11,348,985	$	3,481,313	$	7,867,672

Amount of depreciation expense for 2011: $330,939 (2010: $343,215)

The following capitalized costs pertaining to the Company’s new plant in Taber, Alberta are classified as Plant Under Construction and Equipment and include contracted costs and supplies, but do not include capitalized interest costs. The Company will not begin depreciating the Plant and Equipment until it becomes operational.

	2011 Cost		2010 Cost
Building	$	1,040,078	$	1,063,471
Building improvements		1,068,606		1,085,613
Manufacturing equipment		3,411,914		2,773,064
Technology		134,327		137,349
	$	5,654,925	$	5,059,497

The following carrying amount of property, equipment and leaseholds held by Flexible Solutions Ltd. serves as collateral for the AFSC loan (see Note 9b):

Land	$	273,392
Building		1,036,564
Building improvements		1,068,606
Manufacturing equipment		3,464,421
Trailer		7,187
Truck		3,408
Technology		134,327