SOURCE: Spiral Toys

Spiral Toys

April 07, 2015 14:32 ET

Spiral Toys Shareholder Letter From the CEO

LOS ANGELES, CA--(Marketwired - Apr 7, 2015) - Spiral Toys (OTCQB: STOY) Today Mark Meyers, Spiral Toys CEO, released this letter to their shareholders.

Dear Shareholders,

"Consistent Action Creates Consistent Results" Christine Kane, CEO Uplevel You

I am excited to announce that Spiral Toys has successfully met or exceeded every goal we have set for ourselves in the past five months, and over the next year we aim to accomplish more than ever before. 

Below are some highlights of our progress:

  • Scaled Spiral from a creator of technology to a creator of products, brands and experiences with the launch and early success of CloudPets™.
  • As part of our vertical integration initiative, we expanded our revenue sources by establishing a Hong Kong entity devoted to lower-cost manufacturing, as well as a Canadian entity devoted to lower-cost product development, which is eligible for enticing tax credits
  • Placed our first product with an established toy distributor and marketer, Jay@Play, which believes in the product enough to fund the marketing and distribution of CloudPets™, as well as provide credit for their manufacturing.
  • Partnered with major manufacturers and distributors for two new upcoming projects.
  • Filed several patents on technology innovations in Bluetooth LE and Near Field Communication Fields (NFC)
  • Positioned ourselves as an industry leader in entertainment and Internet of Things technologies
  • Brought on a world-class content development studio with a clear focus on monetizing the CloudPets™ community. 

These achievements set the stage for what we plan to do next.

Earlier this month, we announced the upcoming CloudPets™ television campaign, which will be used to build demand and awareness for the product we will be launching later this summer. In the coming weeks, we will unveil our plans with CloudPets and other new products. Because we have established our manufacturing and product development partnerships in Hong Kong, these numbers will, for the first time, reflect much more than just potential unit sales. By developing, manufacturing, branding and marketing products before selling directly to the consumer, Spiral is engaged in every stage of a product lifecycle. 

During Q1 2015 we focused largely on product development, and expected little revenue during the quarter. In addition to CloudPets™, we have two additional properties in late development that will be announced during Q2 2015.

By the holiday season this year, CloudPets™ sales will be in full swing, supported by a large national media campaign and delivering significant revenue to our company and value to our shareholders. Additionally, we will have announced two new products with expanded market-appeal, and will move into 2016 with a strong revenue picture.

Lastly, our biggest goal for this year is to continue marching towards an early 2016 uplisting onto the NASDAQ, a move that will create even more value for our investors by offering greater liquidity. It will also give us the leverage and capabilities for continued growth. We expect that over the coming months we will update our investment community on more plans and details of our uplisting strategy and execution.

On behalf of everyone at Spiral, I would like to thank you for your support, and your confidence in our endeavors. Together, I believe that our consistent action will gain consistent results!  

Contact Information

  • Investor Relations Contact
    Mark Meyers
    Spiral Toys Inc.
    President and CEO

    For more information:
    Bob Stewart
    (844) 681-7627

    Media Relations Contact
    Nicole Gornall Rohrer
    Phone (626) 993-3770