Flame Seal Products, Inc. Releases March 31, 2018 First Quarter Results and Corporate Update
HOUSTON, TX, May 21, 2018 (GLOBE NEWSWIRE) -- 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: March 31, 2018 First Quarter Results and Corporate Update
First Quarter Results for 2018
Flame Seal 2018 revenues for the first quarter of 2018 were $668,593, an increase of $68,713 or 11% more than 2017 resulting in a profit of $36,182.
Accounting Change
In the first quarter of 2018, the Board of Directors (BOD) initiated an accounting review, specifically related to treatment of the ongoing, extensive research and development costs, product testing and certifications. Flame Seal Products, Inc. (FSP) has routinely been expensing most of these costs, negatively distorting the actual operating performance. In accordance with generally accepted accounting principles (GAAP), most of these costs should have been capitalized as R & D (research and development) investment and categorized as assets reported on the balance sheet. These assets will be amortized over the projected useful life of the investment. The BOD adopted GAAP standards as reflected in the March 31, 2018 results. FSP will, also, restate and report financials from 2015 through 2017 to accurately reflect GAAP standards on OTC Markets – www.otcmarkets.com. The BOD is committed to accurately reflect FSP’s financial condition and operating performance.
Balance Sheet Update
FSP's current ratio of assets to liabilities remains strong at 3.5. Receivables remained healthy and current. Flame Seal has no outstanding litigation issues as of December 31, 2017.
As of March 31, 2018, FSP had 71,192,396 shares outstanding, a 7,294,243 share or 11.4% increase over 12/31/17. The increase reflects the conversion of $725,000 of FSP debt to equity by a member of the Board of Directors who with his prior investments now owns 16,273,127 shares or 22.86% of the outstanding shares.
Craig Keyser adds “As stated in our 2017 yearend update, FSP’s balance sheet was materially improved by a major investment of a BOD member. This BOD member formed a separate wild fire marketing company to distribute FSP’s Wild Fire products. FSP is pleased to receive key support from such a highly successful businessman. His most recent investment in FSP affirms his faith in our Company.
Wild Fire Development Restructured
In the first quarter of 2018, FSP decided to restructure its wild fire marketing efforts to increase the focus, effort and capital for that family of products. FSP has not had adequate personnel and capital to properly address this opportunity. Accordingly, an FSP BOD member will substantially underwrite ongoing marketing expenses for the Wild Fire family of products, including facility costs, to accelerate Wild Fire market penetration. FSP personnel will be free to concentrate on maximizing results from current business and new initiatives which continue to comprise the bulk of recurring revenue.
Research and Development Update
Craig Keyser comments, "2017’s difficult conditions persist into 2018. Though FSP has had some successes in testing and certification, the breakthroughs we’ve sought have not yet been achieved. As previously stated ‘Transitioning to our successor technologies has proven more challenging than we expected, though we have learned that the added knowledge gained through multiple testing difficulties has given our team insight as to how to produce the efficacy we demand’. As noted with our accounting change, FSP has invested heavily in developing new technologies to be competitive in our rapidly expanding marketplaces. “
Online Marketing Initiative
With the launch of our new Website in late 2016, our analytics have continued to show increases in web traffic. The SEO (search engine optimization) website is attracting more business daily as well as providing up-to-date information, training, and company product information. FSP’s online store allows customers to purchase any FSP products at any time of the day, worldwide.
New Sales Manager
In another development, FSP is pleased to report the addition of Adam Attayi as Sales Manager as of May 16. Adam, a former employee, rejoins us from a $multi-billion international chemical giant to spearhead our sales drive. He believes in FSP’s potential and wants to be a meaningful part of realizing it. “
Shareholders Meeting
FSP plans to hold a shareholders’ meeting later this year, most likely in September. We plan to set and announce the date in our June 30, 2018 results press release this summer.
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 and 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 on Flame Seal is available on otcmarkets.com -- symbol FLMP -- in the "Filing and Disclosure" section.
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.