Flame Seal Products, Inc. Releases June 30, 2020 Second Quarter Results and Corporate Update

HOUSTON, TX / ACCESSWIRE / September 29, 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: June 30, 2020 Second Quarter Results and Corporate Update

Second Quarter Results for 2020

Flame Seal (FSP) revenues for the second quarter of 2020 were $320,721, a decrease of $379,331 or 54% less than the first quarter, resulting in a loss of $144,676.

Balance Sheet Update

FSP's current ratio of assets to liabilities was 1.85 versus 2.8 in the first quarter. Receivables remain current. Flame Seal has no outstanding litigation issues as of June 30, 2020. As of June 30, 2020, FSP had 73,304,096 reflecting no change since March 31, 2020.

Financial statements for June 30,2020 are included below.

Corporate Update

Craig Keyser comments, " 2020 is proving to be an extremely challenging year. The Pandemic has persisted in postponing, in some cases for an indeterminate amount of time, re-orders and new business revenues. Our emergency plan has sustained us to this point, but business must improve this Fall and early 2021. We've reduced our cost structure to bare operating minimums. In spite of these extraordinarily difficult times, we have continued vital testing of our new technology to address promising and rapidly expanding $multimillion markets. Research and Development (R & D) have yielded extremely positive results which bode well for strengthening FSP's core coating business and new product offerings.

As stated before, 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 if and when normal business operations come back on line.

We are deeply thankful for the outstanding effort of our loyal and dedicated employees performing bravely and brilliantly in this unprecedented time, as well as appreciative of the support of our Board of Directors."

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.

June 30, 2020 Financial Statements (unaudited)
Profit & Loss
April through June 2020

 
Apr – Jun 20
 

Ordinary Income/Expense

Income

 
 
320,720.53
 

Cost of Goods Sold

 
 
154,608.75
 

Gross Profit

 
 
166,111.78
 

Expense

 
 
310,715.52
 

Net Ordinary Income

 
 
(144,603.74
)

Other Income/Expense

Other Income

Other Income

 
 
26.41
 

Total Other Income

 
 
26.41
 

Other Expense

815 – Interest Expense

 
 
98.91
 

Total Other Expense

 
 
98.91
 

Net Other Income

 
 
(72.50
)

Net Income

 
 
(144,676.24)
 

Balance Sheet
As of June30, 2020

ASSETS
Current Assets

 
Jun 30, 20
 

Checking/Savings

 
 
304,726.64
 

Accounts Receivable

 
 
169,946.39
 

Other Current Assets

161 – Inventory

 
 
324,048.46
 

173 – Undeposited Funds

 
 
7,572.71
 

Total Other Current Assets

 
 
331,621.17
 

Total Current Assets

 
 
806,294.20
 

Fixed Assets

183 – Property, Plant, and Equipment

 
 
395,713.14
 

185 – Lab Equipment

 
 
700.00
 

189 – Less Accumulated Depreciation

 
 
(398,792.46
)

Total Fixed Assets

 
 
(2,379.32
)

Other Assets

190 – Deferred Tax

 
 
837,672.42
 

191 – Patents & Product Development

 
 
233,622.74
 

192 – Valuation Allowance

 
 
(837,672.42
)

199 – Less Accumulated Amortization

 
 
(233,622.74
)

Total Other Assets

 
 
0.00
 

TOTAL ASSETS

 
 
803,914.88
 

LIABILITIES & EQUITY

Liabilities

Current Liabilities

Accounts Payable

 
 
122,937.49
 

Other Current Liabilities

 
 
312,695.53
 

Total Current Liabilities

 
 
435,633.02
 

Long Term Liabilities

 
 
1,072,661.68
 

Total Liabilities

 
 
1,508,294.70
 

Equity

351 – Treasury Stock

 
 
(22,000.00
)

350 – Additional paid-in capital

 
 
11,566,345.80
 

300 – Common Stock

 
 
691,066.74
 

399 – Retained Earnings

 
 
(12,771,474.17
)

Net Income

 
 
(168,318.19
)

Total Equity

 
 
(704,379.82
)

TOTAL LIABILITIES & EQUITY

 
 
803,914.88
 

Statement of Cash Flows
April through June 2020

 
Apr-Jun 20
 

Operating Activities

Net Income

 
 
(144,709
)

Adjustments to reconcile Net Income

to net cash provided by operations

Depreciation

 
 
9,432
 

Decrease in Accounts Receivable

 
 
287,977
 

Increase in Inventory

 
 
(1,830
)

Increase in Undposited Funds

 
 
(7,051
)

Increase in Accounts Payable

 
 
12,552
 

Total adjustments to Net Income

 
 
301,080
 

Net cash provided by Operating Activities

 
 
156,371
 

Investing Activities

Increase in PPE

 
 
(1,023
)

Net cash proved by Investing Activities

 
 
(1,023
)

Financing Activities

Decrease in N/P Allegiance

 
 
(88,927
)

Increase in PPP Loan

 
 
192,500
 

Decease in LT Notes

 
 
(59,676
)

Decrease in N/P Stockholders

 
 
(24,749
)

Net cash provided by Financing Activities

 
 
19,148
 

Net increase in cash

 
 
174,496
 

Cash at beginning of period

 
 
130,230
 

Cash at end of period

 
 
304,726
 

Investor Relations Contact:

Richard Kaneb
Mobile 949-233-3229
richardkaneb@gmail.com
www.flameseal.com

Craig Keyser, CEO
ckeyser@flameseal.com

SOURCE: Flame Seal Products, Inc.

ReleaseID: 608272