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9. LONG TERM DEBT

12 Months Ended

Dec. 31, 2012

(a) Flexible Solutions Ltd. has received a non-interest bearing loan from the Department of Agriculture and Agri-Food Canada (“AAFC”). Eligible for up to $1,000,000 in Canadian funds, the Company had borrowed $910,801 in Canadian funds (US$915,446) as of December 31, 2012 on an unsecured basis (2011 - $910,801CDN; US$915,719). The balance owing at December 31, 2012 was $546,481 in Canadian funds (US$549,288). The repayment schedule is as follows:

Amount Due (in CDN funds)		Payment Due Date

$182,160		December 31, 2013
$182,160		December 31, 2014
$182,160		December 31, 2015

(b) Flexible Solutions Ltd. has also received a 5% simple interest loan from Agriculture Financial Services Corp. (“AFSC”). Eligible for up to $2,000,000 in Canadian funds, the Company had originally borrowed $1,491,000 in Canadian. The Company was required to make interest payments until May 1, 2010 and then started to pay down the principal in equal payments until May 1, 2014. The borrowing balance as December 31, 2012 was $1,170,811 in Canadian dollars ($1,176,782US). The borrowing balance as December 31, 2011 was $1,281,960 in Canadian funds ($1,260,531US). The Company has pledged the assets of the Taber, AB building, including equipment, inventory and accounts receivable (see Notes 3, 4 and 5) as collateral, as well as signed a promissory note guaranteeing the amount of the loan.

The Company has committed to the following repayments:

2013		$	190,911
2014		$	79,546

Continuity	2012			2011
Balance, January 1	$	1,976,992			2,328,801
Less: Payments on loan		310,384			309,055
Effect of exchange rate		59,512			(42,754	)
Balance, December 31	$	1,726,050		$	1,976,992

Outstanding balance at December 31,		2012			2011
a) Long term debt - AAFC	$	549,268		$	716,461
b) Long term debt - AFSC		1,176,782			1,260,531
Long-term Debt	$	1,726,050		$	1,976,992
Less: current portion		(318,644	)		(329,389	)
	$	1,407,406		$	1,647,603