OVERVIEW
The company was founded in 1999 and is based in New York, New York. Spongetech Delivery Systems (OTCBB: SPNG) designs, produces, markets and distributes cleaning products for vehicular use utilizing patented technology relating to sponges containing hydrophilic (liquid absorbing) foam polyurethane matrices. The Company's sponges are specially configured with an outer contact layer and an inner matrix, which is loaded with specially formulated soaps and wax that are released when the sponge is applied to a surface with minimal pressure.
The Company’s products can be pre-loaded with detergents and waxes, which are absorbed in the core of the sponge then gradually released during use. The Company licenses the rights to manufacture and sell its products from H.H. Brown Shoe Technologies, Inc. (doing business as Dicon Technologies), the holder of the relevant patents relating to the hydrophilic sponges. The Company has designed and Dicon Technologies is conducting research and development for products using the same hydrophilic technology for bath and home use.
SPNG has developed a patented sponge that has both wash and wax fluids built in. All you need to do is add a little bit of water and use the sponge to clean your car... it's that simple!
Its product portfolio comprises specially configured sponges containing an outer contact layer and an inner matrix; children's bath foam sponge with a safe mesh coating, which prevents tearing; and household cleaning sponges infused with anti-bacterial bath and kitchen soaps.
The company’s lead product is SpongeTech® Ultimate One Step Car Wash & Car Wax System, a biodegradable multiple-use vehicle cleaning sponge formulated with high quality soap and carnauba wax. The company is also developing and testing products for pet, household and personal applications, such as the Puddle Pals®, children's floatable bath foam sponges with a "safe mesh" coating in the shape of animals in various colors and a special no-tear, non-irritating soap.
Vision
The company offers innovative, cost-effective and environmentally sensitive packaging and product delivery solutions through their exclusive, patented packaging technology.
Mission
To design develop and deploy a broad-based series of branded and private label packaging solutions for consumer products and industrial applications.
Target Market
- Auto Care Market products
- Kitchen cleaning products
- Outdoor cleaning products
- Bath cleaning products
- Children's bath products/toys
- Food service
The company has recently initiated an aggressive sales development and marketing campaign, which includes expansion of its domestic and international independent contractor distribution network, retail placement efforts, industry trade show participation, ecommerce activities and TV advertising. The company is also exploring various strategic licensing partnerships, including testing household cleaning sponges infused with anti-bacterial bath and kitchen soaps with a national detergent manufacturer for potential marketing under its brand and logo.
Investment Highlights
- SPNG revenues increased from $29,000 in the 4Q of 2007, to $64,000 in the 1Q of 2008 and $279,000 in the 2Q of 2008.
- SPNG announced profitability for the first time last quarter and has been growing faster than ever before.
- SPNG named one of the 7 best products at the Automotive Aftermarket Product Expo in Las Vegas.
- On January 29th, SPNG announced a $2,385,000 order that will ship in the second half of this year.
- On March 4th, SPNG announced a $2,750,000 reorder that will also ship in the second half of this year.
- Over $18MM in total backlog orders between now and February 2009.
- SPNG recently introduced a new product called the "Puddle Pals Children's Sponge."
$0.0485 (07/13/08)
