HOUSTON, TX / ACCESSWIRE / August 12, 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.
Board of Directors
June 30, 2014 Progress and Financial Report
achieved its second
quarterly profit while gross margins
continued to expand. The need to accelerate testing for further
product certifications will require additional capital. Expanded margins will
translate to stronger profitability as penetration of the spray foam
insulation market gains traction.
Board of Directors
of Directors (BOD) announces as of July 25, 2014 Mike Kiser
has resigned, effective immediately, from the Board of Directors of the
company. Mr. Kiser will continue to support the company as Chief Science
Officer. Mr. Kiser cited time demands related to his continuing recovery from
serious illness and other family health issues
which also require his attention for the foreseeable
future. Bruce Rutherford, Chairman of the Board, said “We have
accepted Mike’s resignation from the Board of Directors. We understand that his
health and that of his family must take priority. We look forward to his full
recovery and his future assistance with the Board when circumstances permit.
Mike is responsible for the development of our technology and his continued
participation in our R & D programs and other technology efforts is
the capital constraint, Flame Seal plans to offer in
the third quarter a convertible preferred stock issue paying a 5%
dividend in cash. The Preferred shares will be offered first to our
shareholders, and if not fully subscribed by existing shareholders, to third
parties. Proceeds from the issue will be used to increase research and
development, secure certifications in new markets, beef up our marketing budget
to increase sales and to further repair our balance sheet.
2014 Financial Review
on an Accrual Basis:
quarter ending June 30, 2014 Flame Seal reported
sales of $445,863 and a profit of $21,630.
Revenues continue on plan.
In the one
(1) year period commencing July 1, 2013 to June 30, 2014,
Flame Seal expanded its gross profit margin 9%. The improvement in profit
margin has provided much needed capital to support on-going operations and will
ensure continued profitability as we grow our sales.
the past year we have transformed and stabilized Flame Seal. The company is now
in a position to concentrate on improving sales opportunities by obtaining
additional product certifications with important suppliers to the spray foam
market and other certifications for other key markets. Future growth will
require significant operating capital, as well as hiring additional qualified
personnel. The objective is to penetrate target markets to develop
recurring revenue streams that are supported by knowledgeable and professional
balance sheet continues to be 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.
June 30, 2014 quarter, our Current Ratio continued to improve
to 85% from 79.4% on March 31, 2014.
Cash as of
June 30, 2014 was $50,484, a reduction from March 31,
2014′s $219,438 as a
comparable amount of short term loans
were repaid. The Board of Directors is continuing to provide
working capital as
needed which illustrates its dedicated commitment
to Flame Seal’s future.
and Technology Review
the June 30, 2014 quarter were $445, 863 continue on a modest
pace due to R & D constraints, marketing limitations and the need for
multiple certifications and new product testing.
products launches such as the recently announced Wild Fire initiative and purchase
commitments from new customers could significantly boost revenue this
year. Management is concentrating on developing long-term customer
relationships with steady, recurring order flow.
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 form the planned Preferred
Stock Offering, more testing and certifications are planned for 2014. These
certifications are absolutely necessary to expand our sales from current
2014 financial reports in table form are available on OTC Markets
– www.otcmarkets.com –
under the FLMP symbol.
content of this release continues to contain repetition of previously released
statements. Flame Seal is, also, aware that its website - www.flameseal.com -
is not up to date. When more pressing priorities are met, management intends to
update it to become an information resource for current and prospective
customers and investors, as well as suppliers and the media. 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.
Submitted By the Board of Directors
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
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.
949-233-3229 – preferred
Flame Seal Products, Inc.