Flame Seal Products, Inc. Releases September 30, 2018 Results and Corporate Update

HOUSTON, TX, Nov. 14, 2018 (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: September 30, 2018 Third Quarter Results and Corporate Update 

Revenues for the quarter ended September 30, 2018 were $564,017, a $183,553 or 25% decrease compared to the September 30, 2017 quarter and a sequential $22,587 decrease or 4% less than the June 30, 2018 quarter. 

Craig Keyser comments, "Flame Seal’s (FSP) sales remain sluggish. Testing for a new technologically advanced product addressing the spray foam insulation market has been frustratingly unsatisfactory. That project remains active, though right now, is not being emphasized. 

“In the past several months FSP has shifted more of its research and development focus to other construction-related, flame retardant coatings with meaningful and encouraging results. Specifically, we’ve developed and successfully tested a new Class A paint product which we are preparing for additional certification testing and commercialization. We’re also developing other earlier R & D stage products with positive results thus far. While 2018 looks to be sub par for FSP, our initiatives as well as other business opportunities are anticipated to renew growth in 2019 and beyond.”   

Operating Results

For the quarter ending September 30, 2018 FSP’s net profit was $7,588. FSP reiterates that the small profit was a result of capitalizing a greater portion of FSP’s ongoing costs of development and testing of new products. The critical nature of these investments in FSP’s future dictate our total focus on making FSP a financial success for our shareholders.

Operations

During the third quarter FSP maintained strong gross operating margins. Operations continue to be reported near break even on disappointing sales, but because of a higher capitalization rate of R & D costs, FSP will remain cash constrained until revenues resume growing and cash flow improves.   

Balance Sheet Status

FSP’s current ratio of 2.7 is a decline from prior reporting periods as receivables and cash have been reduced. Receivables are current. As of September 30, 2018, FSP has 71,456,796 shares outstanding compared with 71,228,296 at second quarter’s end. 

Craig Keyser notes, “Since 2013, we’ve dramatically improved our financial condition, created new product offerings, invested in plant and personnel, but as we approach the end of 2018, we remain disappointed with the slow and small scale of developing products. We are optimistic about recent developments. According to respected research (MarketResearchStore.com) ‘the global flame retardant chemicals market was valued at approximately USD 6.0 billion in 2014 and is expected to reach USD 10.0 billion by 2020, growing at a CAGR of around 10% between 2015 and 2020.’ FSP intends participating and succeeding in this massive opportunity.

“We appreciate our stockholders ongoing support and trust.” 

Shareholder Meeting 

Due to our 100% effort to get Flame Seal growing again, we are postponing a shareholder meeting until the first quarter of 2019. Details will be communicated once the schedule and program has been developed. 

We are transparent and open regarding our challenges and prospects as seen in this financial report and update. If you have questions, please contact Richard Kaneb at 949-233-3229.  

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 company and product information, go to: . For publicly disclosed information, go to  - symbol FLMP. All press releases regarding FLMP results and corporate updates can be found in the “News” section and all financials are 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.