HOUSTON, TX / ACCESSWIRE / May 15, 2020 / 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, 2020 First Quarter Results and Corporate Update
First Quarter Results for 2020
Flame Seal (FSP) revenues for the first quarter of 2020 were $700,052, an increase of $60,654 or 9% more than 2019, resulting in a loss of $35,760.
Balance Sheet Update
FSP's current ratio of assets to liabilities remains healthy at 2.8. Receivables remain current. Flame Seal has no outstanding litigation issues as of March 31, 2020. As of March 31, 2020, FSP had 73,371,296 shares outstanding, a small increase over the 73,304,096 shares as of 12/31/19.
Financial statements for March 31,2020 are included below.
Corporate Update
Craig Keyser comments, " A strong first quarter was cut short in mid-March by the effects of the Coronavirus Pandemic, which curtailed operations and revenue. In anticipation of these challenges, we activated contingency plans which included downsizing personnel, reducing daily operations just to fill orders and to keep our employees safe. We received a PPP (Paycheck Protection Program) loan which improves our financial position. As a result, we are in good shape to weather this pandemic. As conditions return to a healthier human and business environment, we anticipate resuming full operations. Research and Development (R & D) have yielded very positive results which bode well for strengthening FSP's core coating business and new product offerings.
We continue to bid on large scale projects as we focus on expanding direct marketing. This business-to-customer initiative is expected to become a promising source of revenue when normal business operations come back on line.
We are deeply appreciative of the outstanding effort of our loyal and dedicated employees performing bravely and brilliantly in this unprecedented time."
Romeo Laurel
Romeo Laurel, a faithful, long time member of the Board of Directors (BOD) and staunch supporter of Flame Seal recently succumbed to the Coronavirus. He served as FSP's accountant. His son, Mark, who is, also, a Certified Public Accountant (CPA) will take over his dad's duties and has joined the BOD. Romeo was a true friend of the company and the people who worked with him. He invested his own capital to finance operations over the years. He will be sorely missed.
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.
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.
Flame Seal Products, Inc. Releases March 31, 2020 First Quarter Results and Corporate Update
Flame Seal Products, Inc.
Profit & Loss Statement
January through March 2020
|
Income
|
||||
|
Income
|
700,052 | |||
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Total Income
|
700,052 | |||
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Cost of Goods Sold
|
||||
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Raw Materials
|
284,572 | |||
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Freight
|
12,053 | |||
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Certification Testing
|
31,822 | |||
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Waste Remediation
|
1,784 | |||
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Total Cost of Goods Sold
|
330,230 | |||
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Gross Profit
|
$ | 369,821 | ||
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Selling, General, & Admin Expenses
|
||||
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Expenses
|
405,582 | |||
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Total S G & A
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$ | 405,582 | ||
|
|
||||
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Net Ordinary Incom
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$ | (35,760) | ||
|
|
||||
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Net Income or Loss
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$ | (35,760) | ||
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As of December 31, 2019, FSP had 73,304,096 common shares outstanding.
|
||||
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Basic Earnings Per Share:
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$ | -0.0005 | ||
Flame Seal Products, Inc.
BALANCE SHEET
As of March 31, 2020
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ASSETS
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||||
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Current Assets
|
||||
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Cash
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$ | 128,711 | ||
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Accounts Receivables -Trade
|
457,570 | |||
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Inventory
|
315,002 | |||
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Total Current Assets
|
901,283 | |||
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Fixed Assets
|
||||
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Property Plant & Equipments
|
396,018 | |||
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Less Accumulated Depreciation
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(389,361 | ) | ||
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Total Fixes Assets
|
6,657 | |||
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Other Assets
|
||||
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Deferred Tax
|
837,672 | |||
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Patents
|
233,622 | |||
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Valuation Allowance
|
(837,672 | ) | ||
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Accumulated Amortiziation
|
(233,622 | ) | ||
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Total Other Assets
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- | |||
|
|
||||
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TOTAL ASSETS
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$ | 907,940 | ||
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LIABILITIES & EQUITY
|
||||
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Current Liability
|
||||
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Accounts Payable
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$ | 126,572 | ||
|
Accrued Interest Payable
|
95,000 | |||
|
Accrued Insurance
|
2,499 | |||
|
Accrued Property Tax
|
9,249 | |||
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Sales Tax Payables
|
2,057 | |||
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Payroll Liabilities
|
765 | |||
|
Alligiance Loan
|
88,184 | |||
|
Total Current Liablilites
|
324,327 | |||
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Long-Term Debt
|
1,157,086 | |||
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Total Liabilities
|
1,481,413 | |||
|
Stockholders Equity
|
||||
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Captial Stock
|
691,066 | |||
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Retained Earnings (Prior years)
|
(12,773,124 | ) | ||
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Additional Paid-In Capital
|
11,566,346 | |||
|
Less: Treasury Stock
|
(22,000 | ) | ||
|
Net Income (YTD)
|
(35,760 | ) | ||
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Total Equity
|
(573,473) | |||
|
|
||||
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TOTAL LIABILITES & EQUITY
|
$ | 907,940 | ||
Flame Seal Products, Inc.
Statement of Cash Flows
For the Year Ending March 31, 2020
|
OPERATING ACTIVITIES
|
||||
|
Net Income
|
$ | (35,760 | ) | |
|
Accounts Receivable
|
(304,073 | ) | ||
|
Inventory
|
(59,521 | ) | ||
|
Accounts Payable
|
(18,863 | ) | ||
|
Payroll Liabilities
|
9,705 | |||
|
Sales Tax Payable
|
2,040 | |||
|
Accrued Property Taxes
|
9,249 | |||
|
Short Term Loan
|
88,184 | |||
|
Prepaid Vendors
|
28,880 | |||
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Insurance Payable
|
2499 | |||
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Net cash provided by Operating Activities
|
$ | (277,661) | ||
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INVESTING ACTIVITIES
|
||||
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Property & Equipment
|
(5,229 | ) | ||
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Accumulated Depreciation
|
9,432 | |||
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Net cash provided by Investing Activities
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$ | 4,203 | ||
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FINANCING ACTIVITIES
|
||||
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Loans
|
188,312 | |||
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Additional paid-in capital
|
||||
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Net cash provided by Financing Activities
|
$ | 188,312 | ||
|
|
||||
|
Net cash increase for period
|
$ | (85,146) | ||
|
Cash at beginning of period
|
213,857 | |||
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Cash at end of period
|
$ | 128,711 | ||
Investor Relations Contact:
Richard Kaneb
Mobile 949-233-3229
[email protected]
www.flameseal.com
Craig Keyser, CEO
[email protected]
SOURCE: Flame Seal Products, Inc.