Spiral Toys Inc. (fka STOY)

[WarrenE]

I don't know which is false and misleading!

1 and 2 . More than 1.3 million cloudpets -- on the NEWS.. 10/1/2015
1,289,268 cloudpets --12/31/2015

At the period of the time, they got orders,but something happened between october - December?
Still, ONLY 10,732 units deference. May be about 0.82% toys were returned because they didn't work.


3. I remember that they got cancel of the order... after though..
Is it a lie because the statement was changed at the end of December?

4. Did you read it very carefully?

The Company recognized revenue from the manufacture of the electronic component contained within the CloudPets line. This revenue is recognized upon shipment of the completed electronic part to the third party. For the twelve months ended December 31, 2015, product sales totaled $5,684,717 net of sales return allowance of $27,021 as compared to $194,321 for the same period in 2014. The unit is then assembled by a third party that is retained by our distributor. During the twelve months ended December 31, 2015, the Company produced and shipped 1,289,268 components for inclusion in CloudPets;


Royalty revenue represents royalties from license fees, which is earned when the Cloudpets are shipped to the retailer. For the twelve months ended December 31, 2015, license fees totaled $250,679 compared to 0 for the same period in 2014. This revenue was based on shipping 482,075 CloudPets completed units. Royalty revenue from Cloudpets sales was $151,903 and $98,776 was from the reimbursement of development fees. The amount recognized for the reimbursement of development fees is also included as part of the product development costs.


5. What???? That is opposite! STOY has not received a comprehensive royalty report from the distributor,Animal Magic Asia, Limited










Quote: 236T568 Member Level Tuesday, 10/04/16 11:58:41 AM
Re: None
Post # of 8851 and

236T568 Member Level Monday, 10/03/16 08:06:33 PM
Re: None
Post # of 8852
Quote:Scam company STOY issues False and Misleading press release on Cloudpets toy shipments


1. In a press released issued on October 1, 2016 STOY claimed that it shipped more than 1.3 million Cloudpets electronic component units in 2015 up to Oct 1, 2015:


"Shipments of Spiral Toys' Communications Modules for CloudPets Surpasses 1.3 Million Units"

"shipments of the internal connected technology components that power the CloudPets™ interactive plush toy now totals more than 1.3 million units since the company launched its retail marketing campaign in April."

www.otcmarkets.com/stock/STOY/news/Shipments-of-Spiral-Toys--Communications-Modules-for-CloudPets-Surpasses-1-3-Million-Units?id=115750&b=y




2. Yet in STOY's 10K filed with the SEC STOY stated that it only shipped 1,289,268 units:


"During the twelve months ended December 31, 2015, the Company produced and shipped 1,289,268 components for inclusion in CloudPets"

https://www.sec.gov/Archives/edgar/data/1520108/000149315216008408/form10-k.htm




3. Furthermore, STOY, in the same Oct 1, 2015 press release, claimed that there were additional orders for 300,000 units:

"CloudPet toy orders have now totaled more than 1.6 million units, with about 300,000 currently in the order fulfillment pipeline and earmarked for holiday season sales. "




4. Yet in the 2015 10K STOY stated that ZERO Cloudpets toy electronic component units were shipped in the 2015 4th quarter and only 482,075 CloudPets completed units were actually shipped in all of 2015:


"There were no additional shipments of Cloudpets units or any production of electronic components for the Cloud Pet units during the fourth quarter of 2015."

" This revenue was based on shipping 482,075 CloudPets completed units."

https://www.sec.gov/Archives/edgar/data/1520108/000149315216008408/form10-k.htm




5. In addition, to underscore STOY's false and misleading statements on Cloudpets toys shipped, it finally has admitted in the 2015 10K that its Distributor, which accounts for 86% of STOY's accounts receivable, has failed to provide an accounting of units and products shipped:

"During the year ended December 31, 2015 one distributor, Animal Magic Asia, Limited, represented approximately 86% of our accounts receivable. The Company relies on receiving a timely report from the distributor to report royalty revenues. The Company has not received a comprehensive royalty report and is basing royalty revenue and product development reimbursement on preliminary estimates from the distributor. The Company has initiated a dialogue with distributors of CloudPets to obtain a complete accounting of costs and reconciliation of units and products shipped."

https://www.sec.gov/Archives/edgar/data/1520108/000149315216008408/form10-k.htm