PROPERTY, PLANT & EQUIPMENT

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Note 5 - PROPERTY, PLANT & EQUIPMENT

	March 31, 2012		Accumulated		March 31, 2012
	Cost		Depreciation		Net
Buildings	$	5,366,751	$	1,822,723	$	3,544,028
Computer hardware		104,840		83,250		21,590
Furniture and fixtures		28,334		20,947		7,387
Office equipment		23,884		20,152		3,732
Manufacturing equipment		5,944,012		2,110,428		3,833,584
Trailer		17,308		12,797		4,511
Technology		136,953		6,848		130,105
Truck		11,920		8,705		3,215
Land		477,828		—		477,828
	$	12,111,830	$	4,085,850	$	8,025,980

	December 31, 2011		Accumulated		December 31, 2011
	Cost		Depreciation		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

Amount of depreciation expense for three months ended March 31, 2012: $306,548 (2011: $81,153)

The following capitalized costs pertaining to the Company’s new plant in Taber, Alberta are classified as Plant Under Construction and Equipment at December 31, 2011 and included contracted costs and supplies. The Company began depreciating the Plant and Equipment as of January 1, 2012.

	December 31, 2011 Cost
Building	$	1,040,078
Building improvements		1,068,606
Manufacturing equipment		3,411,914
	$	5,520,598

The following carrying amount of capital assets held by Flexible Solutions Ltd. serves as collateral for the AFSC loan. (See Note 9b):

Land	$	278,735
Building		1,030,400
Building improvements		1,062,252
Manufacturing equipment		3,363,100
Trailer		4,511
Truck		3,215
Technology		130,105