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 [phone]
[e-mail]
www.flameseal.com

Craig Keyser, CEO
[e-mail]

SOURCE: Flame Seal Products, Inc.

View source version on accesswire.com:
https://www.accesswire.com/608272/Flame-Seal-Products-Inc-Releases-June-30-2020-Second-Quarter-Results-and-Corporate-Update