Flame Seal Products, Inc. Releases September 30, 2019 Third Quarter Results and Corporate Update
Houston, TX - (NewMediaWire) - November 22, 2019 - 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: September 30, 2019 Third Quarter Results with Accounting and Corporate Updates
Financial results commencing with June 30, 2019 results 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. Operating results are negatively affected as expenses are accounted for each reporting period instead of being amortized over a longer period of time. R & D balance sheet assets are reduced and reflected in operating expenses. Actual cash flows are not affected.
Three Month Results as of September 30, 2019
Per the aforementioned accounting update, FSP is reporting results for the quarter ended September 30, 2019 and a sequential revenue comparison. Flame Seal revenues for the third quarter of 2019 were $623,289, a sequential increase of $39,964 or 6% more than the second quarter of 2019. The expensing of R & D costs negatively affected operating results with a loss of $150,927.
Balance Sheet Update
FSP's current ratio of assets to liabilities remains healthy at 3x. Cash resources remain constrained. The BOD continues to underwrite operations and R & D costs. Receivables remain current. Flame Seal has no outstanding litigation issues as of September 30, 2019. As of September 30, 2019, FSP had 72,604,096 shares outstanding.
Craig Keyser comments, “Operating results are currently unsatisfactory. Further, the P&L was negatively affected by the significant charges made to the statement due to the accounting change. We continue to invest in our R&D and Technology and these investments will have a positive effect on our top line sales as we move into 2020 and beyond. As stated in the June 30, 2019 press release, coating products, specifically our fire retardant paint line, marketed through our Commercial Sales Program is beginning to build the foundation for an effective long-term marketing approach to the construction industry. Our effort is focused on providing certified products and solutions to the ever-expanding building codes requirements.”
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 "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