CEOCFO-Members Login
Become A Member!
|
This is a printer friendly page!
SpongeTech is bringing to market a revolutionary new bio-degradable product
that dispenses a cleanser and will change the way we clean our automobiles
Consumer Goods
Cleaning Products
(SPNG-OTC: BB)
SpongeTech Delivery Systems Inc.
The Empire State Building
350 Fifth Avenue
New York, NY 10118
Phone: 212-594-4175
Steven Moskowitz
CFO
Interview conducted by:
Lynn Fosse, Senior Editor
CEOCFOinterviews.com
Published – September 14, 2007
BIO:
STEVEN MOSKOWITZ. Mr. Moskowitz has served as director AT Western power and
Equipment Company since February 11, 2003. Since 1997, Mr. Moskowitz has
been the Vice-President of Business Development for H.W. Carter and Sons.
Prior thereto, Mr. Moskowitz was Division President of Evolutions. Mr.
Moskowitz is currently a director, secretary and CFO for Spongetech Delivery
Systems. He previously served as the CEO and a director of Azurel, Ltd from
October 2002 through September 2003, President from May 2004 to July 2004.
He has been the CEO of Azurel, Ltd from July 2005 to September 2006. Azurel,
Ltd merged with National Stem Cell Holding, Inc. in October 2006 where Mr.
Moskowitz has been a director since September 2006. Mr. Moskowitz was a
director of AUGI from May 2006 to June 2006. Mr. Moskowitz is also currently
an independent director for R.M. Enterprises International, Ltd. He is also
Executive Vice President of Tiburon Capital Group, a privately held holding
corporation.
Company Profile:
SpongeTech Delivery Systems is a development stage company which designs,
produces, markets and distributes cleaning products for vehicular use
utilizing patented technology relating to sponges containing hydrophilic
(liquid absorbing) foam polyurethane matrices. The Company's sponges are
specially configured with an outer contact layer and an inner matrix, which
is loaded with specially formulated soaps and wax that are released when the
sponge is applied to a surface with minimal pressure. The Company's products
are currently designed specifically for vehicular cleaning use. However, the
Company is exploring the possibility of using its patented technology for
the development of sponges for other uses, including for use with
anti-bacterial, bath and kitchen soaps for household uses, as well as for
use as a children's bath foam sponge.
CEOCFO:
Mr. Moskowitz, what is your vision for SpongeTech and where are you in the
process?
Mr. Moskowitz:
“SpongeTech is a company that just started trading here in 2007. We
developed with Dicon Technologies a technology that allows an item that
looks like a sponge, but is actually foam and is a delivery system.
Therefore, where people used to use bottles in a carwash or cleaning
products, they can use this foam sponge to wash their car up to ten times
with this single application use. In addition, products can be rolled out in
many different categories for your home. It is bio-degradable so it helps
the environment. We feel this is going to be the wave of the future.
Everybody in the world when Swiffer came out was looking for something easy
to use. This is the next easy-to-use product with multi-use; it is 99.9%
bacterial free. The sponge only allows liquid to get out, it does not allow
it to get back into the sponge.”
CEOCFO: Why are you starting with
carwash products?
Mr. Moskowitz: “It was the easiest
business to get into, because people use sponges almost everyday for their
carwash. We could have started with body soap, but you would need a lot more
marketing and as we get more recognition, people will use it for their cars,
pets, or body soap. We hope to have something by Valentines Day 2008 maybe
in a heart shape.”
CEOCFO: What is inside the foam that
holds the liquid?
Mr. Moskowitz: “It is a super absorbent
polent. If you cut this sponge in half, you have the same amount of liquid
inside. Every strand of the sponge itself has product inside whether it is
car wash or wax or any other product.”
CEOCFO: Do you wet it as you would a
sponge?
Mr. Moskowitz: “Our foam, sponge like
product is an action and reaction product. The wetting is the action and
reaction is the squeezing the suds come out. Then you are able to get a nice
lather and clean your car, window, tires. When you finish, you can squeeze
all of the suds out and then put it away until you use it again. It will not
hold anything, no dirty water. It never gets dirty.”
CEOCFO: How are you rolling out your
products?
Mr. Moskowitz: “The first thing we are
doing is we ran commercials on cable and we are getting a lot of play on our
website, which is www.spongetech.com, and we are getting a lot of internet
business. We are now starting to roll it out in stores. By the fall for the
holiday season, we made a deal with Incredible Discoveries and we will be
doing an infomercial on the product and explaining how it works. The
retailers will come into that.”
CEOCFO: How does the price point
compared to traditional methods?
Mr. Moskowitz: “The price point for a
single sponge is $9.00. In my neighborhood, that is an $80.00 value for
$9.00. If you went out to buy Turtle Wax, you would have to buy a thing of
fluid, wax, a bucket, sponge, and that alone is like $50.00. Here you could
wash your car for $9.00. It is faster, less messy and does a better job. The
Canuba, which is the best wax you can have and it is already in the sponge.
Therefore, while it is washing your car it is waxing it.”
CEOCFO: What inventory do you need to
maintain?
Mr. Moskowitz: “Our supplier is owned by
Berkshire Hathaway Inc (NYSE-BRK.A) and we have a good relationship with
them. We can make up to ten thousand pieces a day. We are bringing in almost
a thousand people a day and we are only touching the surface.”
CEOCFO: You mentioned soap and body
products; do you need to do testing on the foam to use it on the body as
opposed to a car?
Mr. Moskowitz: “It is all made in a
clean room so a lot of testing is done with focus groups where nobody cares
what it smells like. For the car wash, there is a lemon smell and for the
body they want a perfumed smell. It is just a matter of getting the right
fragrance. We are running focus groups in Massachusetts, Philadelphia, Los
Angeles, Fort Lauderdale, and Dallas. When we get back the results we will
know what fragrance and texture people like the most.”
CEOCFO: Is this patented?
Mr. Moskowitz: “Yes, it is patent
protected.”
CEOCFO: What is the financial picture?
Mr. Moskowitz: “We have spent $4.5
million to date developing product. It will probably cost us about another
$1.5 million to develop now, what is coming from the officers and directors
of the company. Once we have everything developed we will probably do a
secondary in early 2008, after our products are rolling and we have more
sales and revenue to show to the public.”
CEOCFO: Where else are you active?
Mr. Moskowitz: “We have distributors in
Europe, Australia and Singapore. Just about everybody in the world uses
sponges or has cars, boats or jet skis. They can clean their dogs.”
CEOCFO: You have a limitless opportunity
here.
Mr. Moskowitz: “Right, We started with
the auto industry but we know that it can be used for kitchen, bath,
furniture, glass and almost anything.”
CEOCFO: I see that SpongeTech is
creating relationships with different vendors.
Mr. Moskowitz: “They have created their
markets and we are allowing them to use our application.”
CEOCFO: In closing, why should potential
investors be interested and what should they remember about SpongeTech?
Mr. Moskowitz: “At this time SpongeTech
is in its infancy and as we roll out each division they will get the full
potential of what the company can be. We have nearly almost 4.5 million
orders from South America with just one auto part. Once we start rolling it
our here in the United States with Incredible Discoveries on television and
into stores, I think 2008, 2009 will be extremely growth years. Over the
next three to five years, we will change the face of cleaning in America and
the world. In addition, people should realize that we are doing this with a
very environmentally friendly product. It is a win/win.”
disclaimers
Any reproduction or further distribution of this
article without the express written consent of CEOCFOinterviews.com is prohibited.
|
