HOUSTON, TX, United States, via ETELIGIS INC., 11/03/2014 – – FLAME SEAL PRODUCTS, INC. (OTC Pink: FLMP) (PINKSHEETS: FLMP), a leading provider of Specialty Chemicals for the Passive Fire Protection Market, today issues the following update to its Stockholders.
From: The Board of Directors
Subject: September 30, 2014 Progress and Financial Report
Flame Seal operated at close to breakeven in the third quarter ending September 30, 2014. Operating efficiencies continue to translate into stronger profitability while renewed focus in the spray foam insulation market gains traction. The Company invested in several important product certifications in an effort to increase sales opportunities. The Board of Directors (BOD) continues to commit substantial time and assets in order to ensure the execution of the Company’s turnaround plan until increased revenues generates self-financing cash flow.
September 30, 2014 Financial Review
Earnings on an Accrual Basis:
For the quarter ending September 30, 2014 Flame Seal had a $6,775 operating loss on sales of $477,408. Revenues were very slightly below the 2014 plan. A nonrecurring adjustment of $10, 584 from prior periods made the net loss $17,329. Flame Seal continued to manage its cost structure and resulting cash flow into alignment.
The balance sheet continues to improve though burdened by substantial obligations incurred prior to May 2013. Further improvements will take more time and capital, in part, because the BOD decided to devote available cash flow to support sales, marketing programs and new product developments.
– In the September 30, 2014 quarter, our Current Ratio continued to improve to 2.50% from .85% on June 30, 2014 – an extraordinary 294% gain in large part attributable to the aforementioned financial support and commitment from the BOD.
Cash as of September 30, 2014 was $107,434. Product development testing continues to accelerate at $58,393 in the third quarter versus $32,450 in the second quarter as Flame Seal intensifies its stated objective to achieve multiple certifications for SPUF manufacturers and for other applications. Accelerating this capital-intensive process will require added capital.
Sales and Technology Review:
Sales for the September 30, 2014 quarter of $477,408 continue on a restrained pace due to R & D constraints, marketing limitations and the need for multiple certifications and new product testing.
New products launches such as the recently announced Wild Fire initiative and purchase commitments from new customers could significantly boost revenue in 2015. Management is focused on developing long-term customer relationships with steady, recurring order flow.
The Company also is focusing on the expanding Thermal Barrier market as this segment continues to present the opportunity for increased sales. To this end and subject to securing a permanent capital infusion from the planned Preferred Stock Offering, more testing and certifications are planned for the remainder of 2014 and 2015. These certifications are absolutely necessary to expand our sales from current levels.
September 30, 2014 financial reports in table form are available on OTC Markets — www.otcmarkets.com — under the FLMP symbol.
The content of this release continues to contain repetition of previously released statements. Flame Seal’s website – investors. This action will insure that current shareholders receive pertinent information from Flame Seal.
Additionally, we reiterate that Flame Seal’s unaudited financial statements are prepared by an independent Certified Public Accountant. Audited statements will be made available when we accumulate adequate surplus and more pressing priorities have been met. The objective is clarity, transparency, consistency and timely factual reporting for our owners, the shareholders.
Respectfully Submitted By the 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.
Mobile: 949-233-3229 – preferred
SOURCE: Flame Seal Products, Inc.