Last week SpongeTech Delivery Systems, Inc. (SPNG.OB) announced that it has started selling SpongeBob SquarePants, soap filled bath sponges for children. This company seems to be trying to win hearts not only of children but of adults as well. Several days ago I have found the information that SPNG paid $10,000 to Stock Egg in order to be noticed by possible investors. However, a question arises: how is this company performing? Does it have anything to suggest?
Yesterday the stock fell to $0.04, 11% down. In addition, the stock volume has decreased to over 45 million. From the perspective of financial situation of the company, it is seen that as of the end of February, the company had enough assets to cover the liabilities. Meanwhile, the operating income has decreased from November to February, i.e. from $2,830,000 to $2,293,000. In the same manner, the gross profit is down by 25%.
From the financial situation of the company it is seen that there are negative, as well as positive factors which can attract investors. All in all, the stock promotion I mentioned above isn’t included in the pluses of SpongeTech.