*** NEWS: SpongeTech Update from Michael L. Metter, Chairman, CEO
Thursday May 8, 9:41 am ET
NEW YORK, May 8 /PRNewswire-FirstCall/ -- Due to both time constraints and the huge number of calls and emails I have been receiving, I have decided to write this update and distribute it to shareholders as well as interested parties.
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PRODUCT SHIPMENTS
Product shipments for the first two months (March and April) of our fiscal fourth quarter, which ends May 31, were $2,200,000, and we are estimating shipments for the full fourth quarter to approximate $3,300,000. We are excited and very pleased with the market acceptance of our products, and also pleased with the results of our marketing program.
ORDER BACKLOG
Our order backlog for both Pet Care and Auto Care products is in excess of $23,000,000. We are experiencing strong demand in the United States and very strong demand from international buyers.
PRODUCTION
Independent sub-contractors using our patented technology and brand names produce our products here in the United States. These sub-contractors have adequate capacity to meet our growing demands.
FINANCES
Our balance sheet and cash positions have greatly improved due to the increased sales of our products. We do not expect to have any dilutive financing in the near future.
OUTLOOK
We are currently in negotiations with major retailers who are now evaluating and "test marketing" our products. For contractual and competitive reasons, we cannot further elaborate. At this time, I may add, we do not have signed contracts or firm orders and there is no assurance that our proposals to these clients will be accepted.
We are also in negotiations with a major supplier of Brand Name household cleaning products. Our discussions focus on SpongeTech using its patented technology to produce various household cleaning products using the Brand Name of our prospective client. Let me again say, while we are hopeful, there is no assurance of our entering into a final agreement with this client.
We are also evaluating and testing our product delivery system using our patented technology in other products. These include suntan lotion, topical medical uses, beauty aids, and other hardware and houseware product solutions.
In conclusion, we are pleased with our progress and look forward to continued growth.
Contact:
Steven Y Moskowitz
917-685-4958
