Flame Seal Products, Inc. Releases Dec. 31, 2019 Full Year Results

FLAME SEAL PRODUCTS, INC. issued its Dec. 31, 2019, full year results and corporate update.

Flame Seal’s 2019 revenues were $2.38 million, a small increase over 2018 revenues, resulting in a loss of $106,632 compared to a $56,196 profit in 2018.

Revenues remain relatively flat as the company continues to test and certify new products. Transitioning to new technologies is requiring additional development time and investment, which is expensed as incurred, leading to losses until anticipated revenues return Flame Seal (FSP) to profitability. 

“2019 was a continuation of developing FSP’s new business-to-business model. FSP has essentially replaced its old product lines since 2013 with new, competitive technology,” CEO Craig Keyser said. “Investment in Research and Development (R&D) exceeds $1,000,000 since 2013, which has been made possible by the solid support of FSP’s Board of Directors.

‘Please note all of FSP’s R & D investment costs are expensed on its income statement. These costs reflect negatively on our operating results – P & L,” he continued. “The marketing team is in the process of commercializing new products for key segments of the construction industry. We have reasonable, but optimistic, expectations for reliable, recurring revenues in the coming years.”

All product developments and R&D costs are expensed as incurred per Generally Accepted Accounting Principles (GAAP).

Accordingly, as of 2016 FSP is restating its financial results to reflect this change.

The restatements will be available on otcmarkets.com under the Flame Seal symbol – FLMP – in the Disclosure section. Note that the restated 2016, 2017 and 2018 income and expense statement (P&L) tables will be available as part of the 2019 financial statements, the CEO said.

Flame Seal Products announced a recently entered strategic partnership in the spray-applied polyurethane market with Flame Control Coatings. 

Flame Control 60-60a is now available at Flame Seal Products in Houston. Meaningful sales are anticipated in 2020.

As of Dec. 31, 2019, FSP’s current ratio of assets to liabilities remained strong at 2.65.

“Payables are current and we have minimal receivable issues. Flame Seal has no outstanding litigation issues as of Dec. 31, 2019,” Keyer said. “As of Dec.31, 2019, FSP had 73,304,096 shares outstanding, an 1,331,400 or 1.8% increase over Dec. 31, 2018.”