Spongetech Delivery Systems Inc. (SPNG.OB) designs, produces, markets, and distributes cleaning products for vehicular use utilizing patented technology relating to sponges containing liquid absorbing foam polyurethane matrices. Spongetech’s sponges are specially configured with an outer contact layer and an inner matrix. The inner matrix of the sponge is pre-loaded with specially formulated soaps and waxes that are released when the sponge is applied to a surface with minimal pressure.
The company’s lead product is the SpongeTech Ultimate One Step Car Wash & Car Wax System, a biodegradable multiple-use vehicle cleaning sponge formulated with high-quality soap and carnauba wax. Spongetech is also developing and testing products for pet, household, and personal applications. An example of these products would be the Puddle Pals children’s floatable bath foam sponges with a safe mesh coating, which prevents tearing, in the shape of animals in various colors and a special no-tear, non-irritating soap.
Spongetech has been rated a ‘speculative buy’ with a price target of $0.19 by Beacon Equity Research analyst, Victor Sula, Ph.D. In his report, the analyst writes, “Spongetech enters FY 2009 with a confirmed order backlog exceeding $27 million…We estimate revenues will reach $5.5 million in FY 2008 and $28.2 million in FY 2009. Going forward, we expect Spongetech to maintain 30% average annual longer-term growth as it introduces new products through major US retailers and rapidly penetrates key international markets.”
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