Houston, TX, March 13, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- FLAME SEAL PRODUCTS, INC. (OTC PINK: FLMP), a leading provider of Specialty Chemicals for the Passive Fire Protection Market, today issues the following update to its Stockholders.
From: Craig Keyser, CEO
Subject: December 31, 2019 Full Year Results and Corporate Update
Year End Results for 2019
Flame Seal’s 2019 revenues were $2,385,715, a small increase over 2018 revenues, resulting in a loss of $106,632 compared to a $56,196 profit in 2018. Revenues remain relatively flat as we continue to test and certify new products. Transitioning to our new technologies is requiring additional development time and investment, which is expensed as incurred, leading to losses until anticipated revenues return Flame Seal (FSP) to profitability.
Craig Keyser comments, "2019 was a continuation of developing FSP’s new business to business model. FSP has essentially replaced its old product lines since 2013 with new, competitive technology. Investment in Research and Development (R & D) exceeds $1,000,000 since 2013, which has been made possible by the solid support of FSP’s Board of Directors (BOD). Please note all of FSP's R & D investment costs are expensed on its income statement. These costs reflect negatively on our operating results – P & L. The marketing team is in the process of commercializing new products for key segments of the construction industry. We have reasonable, but optimistic, expectations for reliable, recurring revenues in the coming years.”
Accounting
All product developments and R & D costs are expensed as incurred per Generally Accepted Accounting Principles (GAAP). Accordingly, as of 2016 FSP is restating its financial results to reflect this change. The restatements will be available on otcmarkets.com under the Flame Seal symbol – FLMP – in the Disclosure section. Please note that the restated 2016, 2017 and 2018 income and expense statement (P & L) tables will be available as part of the 2019 financial statements.
New Product Announcement
Flame Seal Products is pleased to announce a recently entered strategic partnership in the Spray Applied Polyurethane Market with a well-known manufacturer of quality flame retardant (FR) coatings - Flame Control Coatings (FCC). The partnership will help bring an additional solution to the highly competitive Spray Foam market. Flame Control 60-60a is now available at Flame Seal Products in Houston, Texas. Meaningful sales are anticipated in 2020.
Balance Sheet Update
As of 12/31/2019, FSP's current ratio of assets to liabilities remained strong at 2.65. Payables are current and we have minimal receivable issues. Flame Seal has no outstanding litigation issues as of December 31, 2019.
As of December 31, 2019, FSP had 73,304,096 shares outstanding, an 1,331,400 or 1.8% increase over 12/31/2018.
About Flame Seal
Flame Seal Products, Inc., manufacturer of the world's number one fire prevention technology, was founded in 1992 as a research and development company focused on the investigation and application of passive Fire Prevention Technologies. FLAME SEAL PRODUCTS, INC. (FLMP) began trading its common stock on March 27, 2000. Flame Seal Products, Inc. is also the Transfer Agent of record. The company offers a wide variety of Code Driven solutions for a number of diverse applications, industries, and has developed three passive fire prevention technologies which are the basis for the company's products. For more information, go to: http://flameseal.com. Financial information and news on Flame Seal is available on otcmarkets.com -- symbol FLMP -- in the "Filing and Disclosure" and “News” sections.
Safe Harbor Statement
Certain statements in this release may be "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to numerous risks and uncertainties. Actual results may vary significantly from the results expressed or implied in such statements. Factors that could cause actual results to materially differ from forward-looking statements include, but are not limited to, the Company's ability to meet the terms and conditions required to obtain its project financing, risks and delays associated with product development, risk of market acceptance of new products, risk of technology or product obsolescence, competitive risks, reliance on development partners and the need for additional capital. Flame Seal takes no obligation to update or correct forward-looking statements, and also takes no obligation to update or correct information prepared by third parties that are not paid for by Flame Seal.
Investor Relations Contact:
Richard Kaneb
Mobile 949-233-3229
richardkaneb@gmail.com
Craig Keyser
CEO Flame Seal Products
ckeyser@flameseal.com