HOUSTON, TEXAS, Aug. 15, 2019 (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: June 30, 2019 Second Quarter Results and Corporate Update
Second Quarter Results for 2019
Financial results for the June 30, 2019 and for future reporting purposes will reflect an accounting change in the treatment of Research and Development costs. Per our successor outside accountant's advice and re-interpretation of generally accepted accounting principles (GAAP), Flame Seal Products (FSP) is returning to expensing development costs for new products and technology in the current reporting period in which they occur. We will be restating financial results for fiscal 2018 and the first quarter of 2019 which, in addition to 2019’s second quarter, encompasses the total eighteen months’ time period of the now replaced accounting method. Operating results are negatively affected as expenses are accounted for each reporting period instead of being amortized over a longer period of time. Actual cash flows are not affected.
Flame Seal (FSP) revenues for the second quarter of 2019 were $583,325, a sequential decrease of $56,073 or 9% less than the first quarter of 2019 and a $3,279 decrease or less than 1% of 2018’s second quarter. In accordance with our new reporting guidelines, net loss for the quarter was $68,355 versus a loss of $861 in 2019’s first quarter and a profit of $13,370 in 2018’s second quarter, which were both reported under the now replaced accounting method.
Balance Sheet Update
FSP's current ratio of assets to liabilities remains healthy at 3.5. Cash resources remain constricted, though the BOD and investors continue to underwrite operations and R & D costs. Receivables remain current. Flame Seal has no outstanding litigation issues as of March 31, 2019. As of March 31, 2019, FSP had 72,559,096 shares outstanding.
Craig Keyser comments, “Operating results do not yet reflect the real progress we are making at Flame Seal. Product testing and certifications remain robust, even with cash constraints. As we mentioned in the first quarter press release, the transitioning to successor technologies is beginning to gain positive traction. In coating products, specifically class A paint, our Commercial Sales Program is beginning to yield positive and meaningful results as we build the foundation for an up-to-date marketing approach to the construction industry to expand the sales of paint and wood seal. Business-to-business sales are expected to become a mainstay of FSP’s success. Our leather fire retardant is now our largest revenue generator. Ignition and thermal barriers for foam revenues are finally looking up. Wild Fire efforts are getting underway as our distributor has hired an industry respected expert to penetrate this complex market. As the second half of 2019 unfolds, we’re laser focused on driving FSP’s revenues higher.”
Online Marketing Initiative
FSP’s web business is growing well. Revenues are expected to become meaningful to our financial performance. Visit FSP’s online shop - at flamesealshop.com to view our product offerings.
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 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:
Craig Keyser, CEO