Flame Seal Products, Inc. Releases March 31, 2020 First Quarter Results and Corporate Update

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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
Total Income		700,052
Cost of Goods Sold
Raw Materials		284,572
Freight		12,053
Certification Testing		31,822
Waste Remediation		1,784
Total Cost of Goods Sold		330,230
Gross Profit	$	369,821
Selling, General, & Admin Expenses
Expenses		405,582
Total S G & A	$	405,582

Net Ordinary Incom	$	(35,760)

Net Income or Loss	$	(35,760)
As of December 31, 2019, FSP had 73,304,096 common shares outstanding.
Basic Earnings Per Share:	$	-0.0005

Flame Seal Products, Inc.
BALANCE SHEET
As of March 31, 2020

ASSETS
Current Assets
Cash	$	128,711
Accounts Receivables -Trade		457,570
Inventory		315,002
Total Current Assets		901,283
Fixed Assets
Property Plant & Equipments		396,018
Less Accumulated Depreciation		(389,361	)
Total Fixes Assets		6,657
Other Assets
Deferred Tax		837,672
Patents		233,622
Valuation Allowance		(837,672	)
Accumulated Amortiziation		(233,622	)
Total Other Assets		-

TOTAL ASSETS	$	907,940
LIABILITIES & EQUITY
Current Liability
Accounts Payable	$	126,572
Accrued Interest Payable		95,000
Accrued Insurance		2,499
Accrued Property Tax		9,249
Sales Tax Payables		2,057
Payroll Liabilities		765
Alligiance Loan		88,184
Total Current Liablilites		324,327
Long-Term Debt		1,157,086
Total Liabilities		1,481,413
Stockholders Equity
Captial Stock		691,066
Retained Earnings (Prior years)		(12,773,124	)
Additional Paid-In Capital		11,566,346
Less: Treasury Stock		(22,000	)
Net Income (YTD)		(35,760	)
Total Equity		(573,473)

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
Insurance Payable		2499
Net cash provided by Operating Activities	$	(277,661)
INVESTING ACTIVITIES
Property & Equipment		(5,229	)
Accumulated Depreciation		9,432
Net cash provided by Investing Activities	$	4,203
FINANCING ACTIVITIES
Loans		188,312
Additional paid-in capital
Net cash provided by Financing Activities	$	188,312

Net cash increase for period	$	(85,146)
Cash at beginning of period		213,857
Cash at end of period	$	128,711